Market Overview

Robinhood Said To Be Raising $250M In New Funding

Share:
Robinhood Said To Be Raising $250M In New Funding

Robinhood, an online retail trading platform offering various investment options, including commission-free stock, is raising $250 million in fresh funding.

What Happened

The California-based online brokerage is raising $250 million from investors, led by Sequoia capital, at $8 billion pre-money valuation. After its most recent round of funding closed in  July 2019, the company was valued at $7.6 billion, reported Bloomberg.

Along with Sequoia, existing investors in Robinhood include Alphabet Inc.’s (NASDAQ: GOOGL) (NASDAQ: GOOG) venture capital arm GV, DST Global, Kleiner Perkins, New Enterprise Associates, and Index Ventures

Why It Matters

The online brokerage experienced long and repeated outages in early March, leading to an announcement of gold and monetary compensation for affected consumers. Robinhood blamed infrastructure and systems communications failures for the downtime.

Even so, the trading app has enjoyed record growth in revenue during the current COVID-19 pandemic, as the resulting volatility has led to new account sign-ups. In December, the company had 10 million users, according to Bloomberg.

Recently, the brokerage announced the rollout of several new features for its Gold members, including Level 2 market data and research from the Morningstar analyst team.

 

Related Articles (GOOG + GOOGL)

View Comments and Join the Discussion!

Posted-In: Bloomberg Robinhood tradingFintech News Financing Media Best of Benzinga