Funding
Fast-growing fintech firm Acorns Grow Inc. is seeking another funding round that would vault the 6-year-old Irvine-based company’s valuation to $700 million, according to news reports.
The company, which built an investment app for individuals and now manages nearly $1 billion raised from over 3 million users, is seeking more than $100 million, according to a report last week by Bloomberg.
The potential lead investor in the round hasn’t been disclosed. Large investors have included New York-based BlackRock Inc., the world’s largest asset manager, with $6.3 trillion, that headed a $50 million funding round in May for Acorns.
Local investment banking pioneer Walter Cruttenden and his son Jeffrey launched Acorns in 2012 to bring microinvesting to the masses through a mobile app featuring nominal fees and no minimums. It launched its first product in 2014.
The company is now led by Chief Executive Noah Kerner, a former executive at coworking real estate firm WeWork. Walter Cruttenden serves as chairman.
Acorns has raised nearly $150 million, according to funding data research firm Crunchbase Inc.
Bain Capital Ventures, Greycroft Partners and PayPal Holdings Inc. are also investors, as is basketball star Kevin Durant and actor Ashton Kutcher.
In May, the Business Journal reported the company struck a lease to move to larger offices at the UCI Research Park office campus in Irvine. Its website currently lists 20 job openings.
— Mark Mueller
Dana Point-based Zott Inc. plans to raise $15 million, “its first institutional round,” according to Chief Executive Paul Pickle.
The entertainment and educational content platform, which launched a year ago, is designed to enhance patient experience during their stay at the hospital. It features live TV, movies, live chat messaging and other gaming options. Once installed, anyone can consume content through their preferred device.
About $6 million of the proceeds would be used to “fully penetrate [its existing] healthcare pipeline” and the rest would be to “grow other pipelines,” Pickle told the Business Journal.
Pickle said other sectors, such as education and hospitality, can leverage Zott’s platform and provide a safe space for users to experience curated and original content.
Zott also plans to invest in research and development and expand its sales force to 40 to 60. It currently employs 12.
— Sherry Hsieh
Space
The last Real Office Centers coworking location in Orange County, a 21,500-square-foot space in the Vine building in UCI Research Park, has a new operator.
Next7 said it took over the location a few months ago and has already boosted occupancy at the 5151 California Ave. location from under 70% to 100%, in addition to having “a lengthy waiting list.”
Plans are in the works to expand the facility, which has about 220 members—a combination of private office users, coworking users and virtual members who primarily use the address and conference rooms for meetings.
Executives said in an email that they “work closely with EvoNexus,” a startup incubator in the same building.
“We will take on incubator-type members that either did not get accepted to EvoNexus or are waiting for acceptance, as well as some unaffiliated with Evonexus,” the company said.
Coworking space at Next7 costs about $250 per month, per employee.
Next7’s co-founders are real estate developers Waad J. Nadhir and Toshinobu Kurematsu.
Real Office Centers closed or turned over operations of several OC and Los Angeles locations last year after falling behind on rent; the Vine location was its last site in OC.
— Mark Mueller
