Robinhood began as a dead stock trading application in which there was no transaction fee – but since it is increasing, and especially when it starts crying in cryptocurrency, investors are very excited about their possibilities And are putting a ton of new funding in it.
And this is likely to create a next generation business properties and cryptocurrency, which is now sending Robinhood to a $ 5.6 billion valuation in a new funding round, which the company is announcing today. Robinhood says that he has closed the $ 363 million series financing round; DST Global led the new round and economic, Kleiner Perkins, Sequoia and Capital G. Robinhood had an appraisal of $ 1.3 billion last year when it had about 2 million users, and the company says it now has 4 million users and has passed $ 150 billion in volume of transactions.
CEO Vlad Tenev said, “This is the only place where you can trade crypto, stock and options in one place.” “To create an experience for us that feels seamless and natural for customers, for example, want to use an income to buy an equity and buy crypto, it is not challenging from a product and design approach. , But the infrastructure structure is also challenging. Under the hood there is a complexity, and our goal is to make it as unobtrusive as possible and to give that complexity To do. ”
Those 4 million users – and that evaluation – indicates that RobinHood has a clear way for users to dip their toes in financial services without working with business-duty firms such as Scotrud or E * trade There is a lot of demand in the form. And while there are many services that provide robot-advisory services such as betterment and welfthon, which make it easy to invest money in small amounts, RobinHood provides users the opportunity to make these things at a more granular level.
And, of course, the cryptocurrency aspect is obviously taking great interest in the company. At that time, 1 million users had waited for the wait five days after the announcement of Robinhood Crypto. RobinHood has premium services like Robinhood Gold, where the company can find additional ways of generating revenue which offset the requirements of running the system which allows users to trade the stock for free. RobinHood has raised $ 539 million till date, because diving in financial services can be an expensive possibility, as well as enough users on board on this issue that it can reach the level on which the business can understand faster Comes.
Robinhood’s crypto trading service came in February and till date the company says it is available in 10 states. The company also started a web version and stock option trading, trying to become a more robust financial services company, which has still been tuned for a younger generation which is included in the investment without the need for a large balance of investment Wants an easy way to be. Most of Robinhood’s users are not called “day traders” and they are holding the stock for a while after buying them.
Tenew said, “If you look at data and statistics, people who are active day traders are actually a very small percentage of our place.” “Those who are actually dealing with that synergy are the minority of our customers, most of our clients buy more than these and catch the croaking strategies. We actually see many unique things because we can charge for commissions There are customers who deposit money regularly twice a month and then buy the stock as soon as the deposit amount. Do not see the issues that are increasingly buying and selling. “