Venture Capital: Robinhood, The ‘Go-To’ Trading App For Millennials, Snags $660M
Robinhood boosted its Series G from $200 million to $660 million.
The trading app previously announced its Series G funding with a $200 million investment by D1 Capital Partners. According to a company spokeswoman, the company expanded the round to $660 million at a valuation of $11.7 billion.
Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital, 9Yards Capital, and D1 Capital Partners are some of the new and existing investors participating in the funding.
“We’ve raised an additional $460 million in subsequent closings to our Series G to support our core product and customer experience and new offerings like cash management and recurring investments,” the company spokeswoman clarified.
Pandemic triggered growth
Robinhood’s latest valuation is still short of the $14.5 billion valuation struck this week by mobile banking outfit Chime.
Fintechs’ businesses have received a shot in the arm from the digitization spurred by the coronavirus pandemic. Millennials have flocked to the fee-free Robinhood trading app as stock markets rocketed off their pandemic lows. Tech stocks had been especially strong and attracted huge retail interest.
However, the Wall Street Journal reported earlier this month that Robinhood is facing a fraud investigation from the SEC. It related to high-speed trading firms. WSJ said that the trading app could face a fine in excess of $10 million. It failed to report it was sending customers’ orders for execution by these traders and getting paid for this order flow.
In June, a 20-year-old student committed suicide after thinking he had got himself into more than $700,000 worth of debt from trading highly complex options on Robinhood.
With the latest funding, Robinhood has cumulatively raised more than $2 billion.
Latest Alternative Investment News
The Brunel Pension Partnership has picked Ownership Capital, RBC Global Asset Management, and Nordea Asset Management to manage its new Sustainable Equities Fund of around £1.2 billion ($1.55 billion). Brunel…
CrowdProperty, a leading crowdfunder/lender to the U.K. SME property sector, has lent over £100 million to development professionals. The funding had a beneficial impact on the UK economy because it…
Ripple Labs, the San Francisco-based technology company that facilitates cross-border payments through the use of its blockchain solutions via RippleNet, will invest an undisclosed amount in Money Tap. Money Tap…
Earlier this year, Apple (NASDAQ: AAPL) acquired Vilynx, a Barcelona-based startup that uses AI and computer vision technology to analyze a video’s visual, audio, and text elements. Reportedly, the iPhone…