Point72 Ventures Invests in Acorns to Fuel Expansion of its Found Money Rewards Program

“Cash forward” becomes new standard for brands who want to invest in Millennial’s futures

NEW YORK, NY (November 22, 2016) – Point72 Ventures, the early-stage venture capital strategy of Point72 Asset Management, has invested $2 million in leading micro-investing startup Acorns.Acorns, the country’s fastest-growing micro-investing startup with more than 1.3 million accounts, allows users to start investing by rounding-up purchases on their debit and credit cards – for example, a purchase of $8.46 rounds to $9.00 – with the additional $0.54 invested into a portfolio of ETFs, enabling participants to link daily spending to investing.

Acorns will use the investment to further develop its Found Money rewards program, which offers Millennials another way to get a head start on investing, and continue to revolutionize brand engagement for its partners.  Found Money, launched in May, deeply resonates with Millennials, who make up 75% of Acorns customers, and who are a key demographic target for brands today.

Through Found Money, Acorns offers its brand partners an entirely new approach to building customer loyalty. When Acorns users shop with the Found Money partner brands, they’ll invest directly in the users’ Acorns account, shifting loyalty rewards from a cash back to cash forward approach.  Traditional loyalty rewards are redeemed and used immediately for a discounted or free item, but Found Money allows brand partners to build a longer term relationship with customers. It also gives brand partners a means to better identify and retain its target customers.

“Acorns has made it incredibly simple to start investing regardless of your age, financial literacy or cash balance.  If someone starts investing frequently with small investments earlier in their life, they will not only benefit financially from compound returns and dollar cost averaging, but they’ll pay more attention and learn about the financial markets,” said Pete Casella, Partner at Point72 Ventures.  “Many of Point72’s top investment professionals started investing in high school or college. Our analysts of tomorrow are opening Acorns accounts today.”

Found Money allows for the deep penetration into the target Millennial market through its verified transaction activity. Acorns partners have experienced a greater than 50 percent average increase in transactions for Acorns customers, a 58 percent growth in customers, a 53 percent increase in spend, and 72 percent lift in transaction volume.

When Acorns users spend money with partner brands, such as Airbnb, Dollar Shave Club and Blue Apron, the companies make a direct investment in the customers’ Acorns account.  This cash forward initiative lets brands directly invest into long-term and highly visible relationships with proven loyal customers.

In a current partnership promotion, Acorns investors hosting via Airbnb receive $50 after their first booking, and guests earn up to 1.8% of their booking subtotal. Other program rewards include a $30 investment when signing up for Blue Apron, 10% of all Jack Thread purchases, and 10% when the customer spends $10 or more with Dollar Shave Club

“Everybody’s doing cash back. This generation wants cash forward,” says Noah Kerner, Acorns CEO. “This partnership with Point72 Ventures, and access to their extensive network, means even more Found Money brands taking a vested interest in Millennials’ futures.”

To see the specific rewards now available to Acorns investors via the Found Money program, please visit www.acorns.com/foundmoney.

 

About Point72 Ventures:

Point72 Ventures is an early-stage venture capital fund. It invests in Seed through Series C rounds with initial investments of $500k to $2m. Its parent company is Point72 Asset Management, the family office managing the assets of Steve Cohen with $11b AUM. Point72 Asset Management is headquartered in Stamford, Connecticut, and maintains offices in New York, London, Hong Kong, Tokyo, and Singapore. Point72 Asset Management, L.P. is a family office and does not seek, solicit or accept any external investments. For more information, visit www.Point72.com. 

 

About Acorns:

Acorns is the fastest-growing investment app in the U.S. It allows users to round up their daily purchases and automatically Invest the Change® into a low-cost, diversified portfolio of exchange-traded funds offered by some of the world’s top asset managers (including Vanguard and Blackrock). Acorns provides a simple entry-point using the Acorns app on iPhone or Android. Customers accumulate fractional shares in one of five portfolios constructed by world-renowned Nobel Laureate economist Dr. Harry Markowitz. Acorns smart portfolio algorithms automatically work behind the scenes, helping users build wealth naturally, pennies at a time. From Acorns mighty oaks do grow.