- Commission-free stock and cryptocurrency trading app Robinhood announced that it raised $280 million in Series F funding at an $8.3 billion valuation
Commission-free stock and cryptocurrency trading app Robinhood announced that it raised $280 million in Series F funding at an $8.3 billion valuation. This confirms rumors from last month that the company was looking to raise about $250 million at an $8 billion valuation.
This round of funding was led by Sequoia Capital with participation from New Enterprise Associates, Ribbit Capital, and Unusual Ventures. Including this round of funding, Robinhood has now raised a total of over $1 billion.
This round of funding will be used for scaling the platform and building out new products. And the company added over 3 million funded accounts this year. Plus half of new Robinhood customers this year were first-time investors.
“As more people choose Robinhood, we remain focused on continuously improving the experience we provide,” said Robinhood in an announcement. “With this funding, we’ll continue to invest in scaling our platform, building new products, and accelerating build-out of our operations.”
Robinhood was reportedly considering going public in 2020, but the IPO is likely due to this round of funding and the economic crisis due to the coronavirus pandemic.
“Robinhood has made the financial markets accessible to the masses, and in turn, revolutionized the decades-old brokerage industry,” explained Sequoia partner Andrew Reed. “We’re excited to further our relationship with Robinhood, which we believe is at the beginning of its opportunity.”
Robinhood was founded by Vlad Tenev and Baiju Prafulkumar Bhatt in 2012.