Savings and investment startup Acorns has acquired Earlybird, a family-friendly investment gifting platform. The financial conditions for the transaction have not been disclosed.
As part of the acquisition, Earlybird will be closed, with all customer accounts officially closing on June 23rd. Customer funds will be returned to a bank account connected to the account.
Founded in 2019, Earlybird has launched a product that combines financial investment with the community. The app allowed family and friends to give their children investments while preserving memories through digital time capsules. Investments were children at age 18 and were able to use funds for college payments, down payments at home, or seeded first business, etc.
“When we founded Earlybird, we envision creating a platform that changes the way families leave a lasting legacy for their children,” Jordan Wexler, CEO and co-founder of Earlybird, said in a statement. “The opportunity to join Acorns not only reaffirms our vision, but also affects millions of families who are deeply interested in building financial futures for their children.”
Wexler and co-founder Caleb Frankel join the Acorns team to build Acorns, the smart money app for Kids startups. Acorns Early offers debit cards designed for children and teens, develops financial literacy and manages money. The company launched Acorns early after the acquisition of Gohenry, a startup focused on providing financial management and financial education services for ages 6 to 18.
By introducing Wexler and Frankel, Acorns believes the company can leverage its experience and passion for its space to enhance Acorns early.
“Our vision is to build a financial wellness system for the whole family and create complex growth at every stage of life,” Acorns CEO Noah Kerner said in an email to TechCrunch. “The shared experiences and insights between the two teams will allow us to deliver this vision faster and better, creating the most value for our American families every day.”
Existing Earlybird customers will be offered a free one-year subscription to Acorns Gold, a plan that will provide early access to all Acorns products, including Acorns products. Customers will receive detailed emails about the sign-up process.
Acorns points out that early bird users are unable to transfer early bird funds to acorns early. If users want to continue their investment journey with acorns, they will need to withdraw funds from early birds and open a new account with acorns.
The company plans to integrate Earlybird's digital time capsule functionality into the early app at a later date. In Earlybird, this feature allowed users to construct time capsules by recording videos at memorable moments in their lives. For example, if a mother was promoted and wanted to give her child a one-off investment, she could record a video of her talking to the child and remember the moment in memory.
The acquisition comes as Acorns doubled its customers with Acorns Gold and doubled its $12/month subscription plan over the past year.
“Our Gold Plan is a place that provides financial health to the whole family. It's a product for all bonded fabrics between parents, children and family units,” says Kerner. “This will be a place where the whole family can manage their money while growing smart money habits together.”
Acorns raised $300 million in March 2022, valued at $2 billion at the time. The company did not provide an updated rating.