Robinhood operates an online trading app that offers commission-free trading in stocks, ETFs, options and cryptocurrency, along with tools to help people put money in motion. The company is co-founded by Vlad Tenev and Baiju Prafulkumar and is based in Menlo Park, California. Robinhood said it plans to use the newly raised funds to continue investing in customer growth and to build and enhance products that give more people access to the financial system. The article frames the raise as a major financing event for the company and cites participation from several existing investors. No operating metrics such as revenue or user counts are provided in the article. The coverage focuses on product offerings and the intended use of proceeds. Robinhood is a retail trading platform known for commission-free stock and crypto trading and a subscription offering. The company reported 4.31 million DARTs (daily average revenue trades) in June and said DARTs in Q2 more than doubled versus Q1. Robinhood’s payment-for-order-flow revenue roughly doubled from $90.9M in Q1 2020 to $183.3M in Q2 2020, implying about a $733.2M annual run-rate from that product alone. The firm also generates income from a subscription service and other techniques. Robinhood added crypto trading in early 2018 and has seen substantial crypto-related volume growth. The company has emphasized user safety and education after a high-profile user suicide tied to an options trade and is positioning itself for an eventual IPO. Robinhood is a Menlo Park, Calif.-based consumer investing app that enables retail customers to trade and invest on its platform. The company has added 3 million accounts this year and reported around $60 million in revenue in March, roughly three times its February result. In March it also saw more than 10x net deposits versus its monthly average in the last quarter of 2019. The firm experienced three outages in two weeks in March, which it attributed to unprecedented usage load that prevented customers from trading during certain hours. Robinhood says it will use new capital to build out capabilities and continue to invest in scaling its platform to prevent future crashes. Valuation gains have slowed over successive rounds despite recent user and deposit growth. Robinhood is a free stock trading app that provides retail investors access to financial markets. The company added several new features in the past year, including its own clearing system, Clearing by Robinhood, and launched Robinhood Snacks after acquiring a media startup. Robinhood says it will use the new capital to 'keep pursuing [its] mission of democratizing finance for all.' Founded in 2013 and headquartered in Menlo Park, the business was valued at $7.6 billion in this round. The Series E increases the company’s disclosed venture funding; Robinhood has raised more than $860 million in venture capital to date. Investors in the round include DST Global, Ribbit Capital, NEA, Sequoia, and Thrive Capital. Robinhood began as a dead-simple stock trading application with no transaction fees and has expanded to let users trade stocks, options and cryptocurrency. The company says it now has 4 million users and has passed $150 billion in transaction volume. Robinhood has rolled out a web version, added stock option trading, launched Robinhood Crypto (available in 10 states) and introduced premium services like Robinhood Gold to generate revenue. After launching Robinhood Crypto, about 1 million users waitlisted for access within five days. Management emphasizes creating a seamless, integrated experience to move between asset types and is targeting younger users who want low-cost, granular investing. The company recently attracted new financing and reports a $5.6 billion valuation while having raised $539 million to date.

Total raised

$4.7B

Funding rounds

10

Latest round

Equity

Latest activity

Feb 2021