DealmakingFintech

Acorns grabs Rich Sullivan, former Twitter and DreamWorks CFO in run up to going public

Acorns, a company that offers a list of financial services such as investment, round-up savings, debt management and debit cards, announced hiring former Twitter and DreamWorks executive Rich Sullivan as its new CFO, according to a press release.

Sullivan was chosen because of his experience in subscriptions, family and high-growth technology, Acorns CEO Noah Kerner told TechCrunch.

Sullivan most recently worked at Twitter, leading corporate finance, planning and analysis, and previously held executive positions for STX Entertainment and was DreamWorks’ Deputy CFO.

“Rich brings a unique combination of expertise, vision, and commitment to mission. Our next phase of growth as a company will only be fueled by his leadership,” Kerner stated in the release.

The hiring is part of Acorns’ plan to go public, which is expected to happen via merge with SPAC Pioneer Merger Corp. in the second half of the year, according to CNBC. The deal, which was announced in late May, values Acorns at approximately $2.2 billion and will put the financial service provider on the NASDAQ under the symbol OAKS.

Founded in 2012, the company’s platform has more than four million subscribers who have invested almost $10 billion through the application. The 99% monthly retention rate shows the service is easy-to-use and is driving Acorns’ goal to reach 10 million monthly subscribers by 2025, with 60 to 70 percent CAGR growth projected by Kerner, according to TechCrunch.

“Acorns is not only a category leader but also a category creator. Its value proposition is built around inclusive, long-term financial wellness. With integrity at its core, the brand has an incredibly loyal following and market leading retention rates,” PayPal board member and chairman of Pioneer Merger told CNBC at the time of Acorns’ announcement to go public.

Acorns plans to have about $450 million in cash balance by the time of the SPAC deal closing, with those funds planned to attract new customers through advertising and brand partnerships, and development of new products and services.

The company also plans to expand through strategic acquisitions in premium services for families, Kerner told the Wall Street Journal. That move could be to supplant or replace their current product aimed at children, Acorns Early.

In other recent fintech news, fintech lender Figure is partnering with Sagent for mortgage servicing blockchain. SMB-aimed accounting platform FreshBooks also raised $130.75 million, with an $80 million Series E and $50 million debt financing round.

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