Bono's Rise Fund has made it's first fintech investment with Acorns, joining Ashton Kutcher and Kevin Durant as backers. Bono co-founded with TPG, raising $2b with a focus on social or environmental impact.
Acorns is part of a growing list of startups offering digital wealth management services. Some 2.7 million people use the app to put spare cash into exchange-traded funds managed by Vanguard Group Inc., BlackRock Inc. and others. The Irvine, California-based startup has more than $500 million in assets under management, according to a filing with the U.S. Securities and Exchange Commission. The average account balance for each client is much lower than other digital wealth startups by design. Acorns clients have less than $500 on average compared with about $43,000 for Betterment LLC.