U2 Rockstar Bono investing on Fin-tech
Financial Technology is a new buzz word for investors. With startups mushrooming in tech and finance ecosystem, several celebrities are drawing into the industry. Lately, Bono, lead singer of top rock band U2 bet an investment in Acorns Grow Inc. The fin-tech venture is an app based platform that allows people to invest in stock market. Their target customers are people with marginal disposable income. Interestingly, it is not only Bono investing in the startup. Acorns Grow Inc is also backed by other celebrities like Ashton Kutcher and Kevin Durant.
Bono invested in Acorns through his investment firm, The Rise Fund. The details of the investment are kept private as both Acorns and The Rise Fund are restraining from making any comment to the media. The celebrity co-founded his venture in 2017 partnering with TPG, the private equity firm. The Rise Fund works with a social and environmental cause. Bono’s company ventures into commercial projects. The rock star raised USD 2 Billion to set up the enterprise. Aston Kutcher backed up Acorns via Sound Ventures, his enterprise.
Against the backdrop of hefty investment from celebrities, experts in the industry are putting up a hazy scenario. Per several analysts, Acorns does not have a bright portfolio waiting ahead with the type of operation they manage. In the vertical, there are much stronger firms operating with larger equities. Acorns has clients with an average investment of USD 500, while firms like Betterment LLC plays at average investment of USD 43,000. The only leeway for Acorns is to increase the investment portfolio of clients to higher margin.
Still, Acorns is a growing entity in the market. By the latter month of 2017, even before a year of completion, the startup acquired another investment company named Vault. With celebrities backing up the firm and afresh funds flooding in, the company might have major breakthroughs in the market.