- No-free stock trading app company Robinhood is reportedly planning to raise $250 million at an $8 billion valuation
No-free stock trading app company Robinhood is reportedly planning to raise $250 million at an $8 billion valuation, according to Bloomberg. This round of funding is being led by Sequoia Capital.
With this round of funding, Robinhood will likely invest in the infrastructure for the Robinhood app. Earlier this year, Robinhood said that frantic trading and a record number of new sign-ups caused technical major problems.
On March 2, Robinhood was down for nearly the whole day while the S&P 500 climbed 4.6% And then Robinhood faced 3 major outages within about a week The stress to the infrastructure led to a “thundering herd” effect, which also triggered a failure of the DNS system.
Robinhood co-founders Baiju Bhatt and Vlad Tenev addressed the outage issue in a blog post and said that stress to the infrastructure was a major reason for the problems. And they said Robinhood will invest further in adding more redundancies to its infrastructure.
In July 2019, Robinhood had raised $323 million funding at a $7.6 billion valuation. That round was led by DST Global with participation from Ribbit Capital, NEA, Sequoia, and Thrive Capital.