Robinhood Raises Another $320 Million, Reaches $8.6 Billion Valuation
On July 13th, 2020, Robinhood concluded its Series F funding round which started in May. Joined by two new investors led by Sequoia Capital, Robinhood’s latest valuation rises to $8.6 billion.
Robinhood Reaches $8.6 Billion Valuation
Slowly, FinTech companies are adopting the Robinhood model of having no fees for trading stocks, ETFs, crypto assets, and options.
As the first fee-less trading platform, Robinhood enjoys a great deal of momentum and global popularity. Nonetheless, to survive in the FinTech arena as the top dog, you have to keep investing and upgrading your services as if no competition exists. The latest influx of investment into Robinhood shows how the platform is only continuing to gain momentum.
At the beginning of May, Robinhood successfully received $280 million in Series F funding. Sequoia Capital led the charge.
That investment round brought the company’s value to $8.3 billion. However, on July 13th, 2020, Robinhood attracted even more investors. From millennial traders to venture capital firms, Robinhood’s stock trading app is widely considered one of the best of its kind.
Robinhood’s Series F Funding Now Totals $600 Million
The new investors – TSG Consumer Partners and IVP – brought in an extra $320 million which concluded the Series F funding round to a clean $600 million. Accordingly, the current valuation of Robinhood rose from $8.3 to $8.6 billion.
Robinhood intends to use this money to expand its newest Denver office, tweak the user experience, and hire more technical talent to prevent the notorious platform outages from ever happening again. In particular, Robinhood intends to introduce eligibility criteria and expanded educational material so that trading-related suicides don’t besmirch the company’s brand.
One would think that stock-trading would be on the downturn due to the coronavirus. In reality, a combination of factors we addressed previously, related to the ‘Portnoy Top’ effect, only served to spur a new generation of younger and more energetic traders. In this new world of social distancing, remote work, economic and societal uncertainty, people are hunkering down and seeking ways to make their money work for them through investing.
Despite some technical hiccups along the way, Robinhood snugly fits into this new demand for intuitive, easy, and fee-less investing for anyone. The platform is popularly considered the best stock trading app available.
A long time ago, after the 9/11 terror attack, President Bush urged the nation to increase spending. Should President Trump do the same in the wake of the coronavirus, or should people keep employing their money via trading apps? Let us know in the comments below.