Total amount raised
$6.2 Billions
Latest funding date
Location
Title
Robinhood has successfully raised significant capital through multiple funding rounds, attracting a diverse group of investors. The platform offers commission-free trading of stocks, options, ETFs, and cryptocurrencies.
Keep reading to explore the intricacies of Robinhood's fundraising journey and the investors backing this innovative platform.
What Is Robinhood?
Robinhood, founded in 2013 by Baiju Bhatt and Vlad Tenev, is a financial services company based in Menlo Park, California. The platform offers commission-free trading of stocks, options, ETFs, and cryptocurrencies, aiming to democratize access to financial markets.
With a workforce of 1001-5000 employees, Robinhood provides a range of services including margin trading, IPO access, and cash management accounts. The company also offers educational resources to help users become better investors.
Robinhood's mission is to make people comfortable storing money and trading stocks using its application, ensuring a seamless and intuitive trading experience.
How Much Funding Has Robinhood Raised?
- Post-IPO Secondary
- Amount Raised: $648.3M
- Date: May 2022
- Lead Investors: Emergent Fidelity Technologies
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to existing shareholders and raise additional capital for business expansion.
- Private Equity Round
- Amount Raised: $2.4B
- Date: February 2021
- Lead Investors: Ribbit Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To manage a surge in collateral requirements due to a trading boom and to lift trading restrictions.
- Series H
- Amount Raised: $1B
- Date: January 2021
- Lead Investors: Ribbit Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support customer growth and enhance product offerings.
- Series E
- Amount Raised: Not publicly disclosed
- Date: January 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Not publicly disclosed
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: September 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Not publicly disclosed
- Venture Round
- Amount Raised: $11.6M
- Date: September 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational needs and business growth.
- Series G
- Amount Raised: $460M
- Date: September 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand access to financial literacy and enhance product offerings.
- Series G
- Amount Raised: $200M
- Date: August 2020
- Lead Investors: D1 Capital Partners
- Valuation at Round: $11.2B
- Motivation Behind the Round: To manage rapid growth and address operational challenges.
- Series F
- Amount Raised: $320M
- Date: July 2020
- Lead Investors: IVP, TSG Consumer Partners
- Valuation at Round: $8.6B
- Motivation Behind the Round: To support customer growth and enhance product offerings.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: July 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Not publicly disclosed
Robinhood has raised a total of $5.04B with a current valuation of $11.2B.
Key Investors
- Ribbit Capital
- Details: Ribbit Capital is a venture capital firm that focuses on financial technology companies. It has been a significant player in the fintech space, supporting innovative startups.
- Investment Focus Areas: Fintech, financial services, technology.
- Notable Investments: Coinbase, Credit Karma, Wealthfront.
- ICONIQ Capital
- Details: ICONIQ Capital is a global multi-family office and merchant bank. It manages the wealth of tech entrepreneurs and invests in high-growth technology companies.
- Investment Focus Areas: Technology, software, internet.
- Notable Investments: Snowflake, Uber, Alibaba.
- Andreessen Horowitz
- Details: Andreessen Horowitz is a private venture capital firm based in Silicon Valley. It invests in both early-stage startups and established growth companies.
- Investment Focus Areas: Technology, software, consumer internet.
- Notable Investments: Facebook, Twitter, Airbnb.
- Sequoia Capital
- Details: Sequoia Capital is a venture capital firm that has been investing in technology and healthcare companies since 1972. It has a long history of backing successful startups.
- Investment Focus Areas: Technology, healthcare, consumer.
- Notable Investments: Apple, Google, LinkedIn, PayPal.
- NEA (New Enterprise Associates)
- Details: NEA is one of the world's largest venture capital firms. It invests in technology and healthcare companies at all stages of development.
- Investment Focus Areas: Technology, healthcare, energy.
- Notable Investments: Coursera, Duolingo, 23andMe.
What's Next for Robinhood?
Robinhood's future is brimming with opportunities, particularly in expanding its product offerings and enhancing financial literacy initiatives. The recent $3.4 billion funding round underscores the substantial potential for growth, allowing the company to invest in customer acquisition and product development.
Future fundraising seems promising, especially with strong backing from major investors like Ribbit Capital and Sequoia. However, challenges such as regulatory scrutiny and maintaining customer trust loom large. Navigating these hurdles will be crucial as Robinhood continues to capitalize on the growing interest in accessible trading platforms.
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