Skip to main content

Acorns’ SPAC listing depicts a consumer fintech business with a SaaSy revenue mix

Another day, another unicorn public offering.

Today it’s Acorns, a consumer fintech service that blends saving and investing into a freemium product. It’s a company that TechCrunch has covered extensively since its birth, including through the pandemic’s impact on its business, both good and bad.

The Exchange explores startups, markets and money. 

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.

Acorns fits inside the larger savings-and-investing boom seen over the last four or five quarters as consumers buffeted by the economic changes brought on by COVID-19 turned to stashing cash and boosting their equities investing cadence.

By now this is old news, but we haven’t had a clear picture of the economics of consumer fintech startups accelerated by the pandemic. Now that Acorns has decided to list via a SPAC — more on that in a moment — we do.

So this morning, we’re unpacking the Acorns deal and its investor deck, but we’re also trying to better understand why venture capitalists have poured so very much money into the space and the resulting economic picture that arises from the companies that they have funded. Acorns is our test subject, then.

We’ll start with a quick overview of its SPAC-led deal before getting into its results. Into the breach!

The Acorns SPAC deal

If your eyes are blurring as we review yet another SPAC transaction’s details, I get you. Let’s be brief. Here’s what you need to know:

  • Acorns is merging with Pioneer Merger Corp., a public blank-check company
  • Acorns CEO Noah Kerner and “Pioneer’s sponsor” are each giving 10% of their equity to select customers
  • When combined, the entity will trade on the Nasdaq under the ticker symbol OAKS

You know, the thing you plant acorns to grow. Har har.

Here are the financial details of the transaction, via the company’s investor deck:

Image Credits: Acorns investor deck



from Startups – TechCrunch https://ift.tt/3bYBVpc
Labels:

Comments

Post a Comment

Popular posts from this blog

Thousands of cryptocurrency projects are already dead

Two sites that are actively cataloging failed crypto projects, Coinopsy and DeadCoins , have found that over a 1,000 projects have failed so far in 2018. The projects range from true abandonware to outright scams and include BRIG , a scam by two “brothers,” Jack and Jay Brig, and Titanium , a project that ended in an SEC investigation. Obviously any new set of institutions must create their own sets of rules and that is exactly what is happening in the blockchain world. But when faced with the potential for massive token fundraising, bigger problems arise. While everyone expects startups to fail, the sheer amount of cash flooding these projects is a big problem. When a startup has too much fuel too quickly the resulting conflagration ends up consuming both the company and the founders and there is little help for the investors. These conflagrations happen everywhere are a global phenomenon. Scam and dead ICOs raised $1 billion in 2017 with 297 questionable startups in the mix. The
Post a Comment
Read more

Dance launches its e-bike subscription service in Berlin

German startup Dance is launching its subscription service in its hometown Berlin. For a flat monthly fee of €79 (around $93 at today’s exchange rate), users will get a custom-designed electric bike as well as access to an on-demand repair and maintenance service. Founded by the former founders of SoundCloud and Jimdo , the company managed to raise some significant funding before launching its service. BlueYard led the startup’s seed round while HV Capital (formerly known as HV Holtzbrinck Ventures) led Dance’s €15 million Series A round, which represented $17.7 million at the time. E-bike subscription service Dance closes $17.7M Series A, led by HV Holtzbrinck Ventures The reason why Dance needed so much capital is that the company has designed its own e-bike internally. Called the Dance One, it features an aluminum frame and weighs around 22kg (48.5lb). It has a single speed and it relies on its electric motor to help you go from 0 to 25kmph. And the best part is that you
Post a Comment
Read more