Total amount raised
$6.2 Billion
Latest funding date
5/1/2022
Location
Robinhood has successfully raised funding over 23 rounds, with the latest being a Post-IPO Secondary round led by Emergent Fidelity Technologies. The platform offers commission-free trading in stocks, options, ETFs, and cryptocurrencies.
Keep reading to explore the intricacies of Robinhood's fundraising journey and the investors backing this innovative platform.
What Is Robinhood?
Robinhood, headquartered in Menlo Park, California, is a financial services company that offers commission-free trading of stocks, options, ETFs, and cryptocurrencies. The company operates in the FinTech, cryptocurrency, and trading platform industries.
Founded by Baiju Bhatt and Vlad Tenev, Robinhood has grown significantly, employing between 1001 and 5000 people. The platform is known for its intuitive trading tools and expert-managed portfolios, emphasizing data security and 24/7 customer support.
How Much Funding Has Robinhood Raised?
- Post-IPO Secondary
- Amount Raised: USD 648,293,886
- Date: May 2022
- Lead Investors: Emergent Fidelity Technologies
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to existing shareholders and support the company's growth initiatives.
- Private Equity
- Amount Raised: USD 2,400,000,000
- Date: February 2021
- Lead Investors: Ribbit Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To invest in customer growth and enhance products to provide more people access to the financial system.
- Series H
- Amount Raised: USD 1,000,000,000
- Date: January 2021
- Lead Investors: Ribbit Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To manage rapid growth and address challenges including customer outrage and increased scrutiny.
- Secondary Market
- Date: September 2020
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to existing shareholders.
- Series Unknown
- Amount Raised: USD 11,550,000
- Date: September 2020
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing business operations and growth.
- Series G
- Amount Raised: USD 460,000,000
- Date: September 2020
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's capabilities and user base.
- Series G
- Amount Raised: USD 200,000,000
- Date: August 2020
- Lead Investors: D1 Capital Partners
- Valuation at Round: USD 11.2 billion
- Motivation Behind the Round: To support the company's growth and development of new features.
- Series F
- Amount Raised: USD 320,000,000
- Date: July 2020
- Lead Investors: IVP, TSG Consumer Partners
- Valuation at Round: USD 8.6 billion
- Motivation Behind the Round: To enhance the platform and expand its user base.
- Secondary Market
- Date: July 2020
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to existing shareholders.
- Series F
- Amount Raised: USD 280,025,000
- Date: May 2020
- Lead Investors: Sequoia Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and development of new features.
Total Amount Raised: USD 5,379,868,886. Current Valuation: USD 11.2 billion.
Key Investors
- Emergent Fidelity Technologies
- Details: Emergent Fidelity Technologies is a key investor in Robinhood, leading the Post-IPO Secondary round. The firm focuses on providing liquidity to existing shareholders and supporting growth initiatives.
- Investment Focus Areas: Not publicly disclosed.
- Notable Investments: Post-IPO Secondary - Robinhood.
- Ribbit Capital
- Details: Ribbit Capital is a venture capital firm that led multiple funding rounds for Robinhood, including the Private Equity and Series H rounds. The firm is known for its focus on financial technology investments.
- Investment Focus Areas: Financial technology (fintech).
- Notable Investments: Coinbase, Credit Karma, Robinhood.
- D1 Capital Partners
- Details: D1 Capital Partners participated in Robinhood's Series G round. The firm invests in both public and private markets, focusing on long-term growth.
- Investment Focus Areas: Technology, healthcare, consumer sectors.
- Notable Investments: Not publicly disclosed.
- IVP
- Details: IVP, or Institutional Venture Partners, is a later-stage venture capital firm that invested in Robinhood's Series F round. The firm has a history of backing successful technology companies.
- Investment Focus Areas: Technology, enterprise software, digital media.
- Notable Investments: Twitter, Slack, Snap.
- TSG Consumer Partners
- Details: TSG Consumer Partners is a private equity firm that also invested in Robinhood's Series F round. The firm specializes in growth capital for branded consumer companies.
- Investment Focus Areas: Consumer products, retail, food and beverage.
- Notable Investments: Revolve, Vitamin Water, Planet Fitness.
What's Next for Robinhood?
Robinhood's future is brimming with opportunities, particularly in expanding its customer base and enhancing its product offerings. With a recent $3.4 billion funding round, the company is well-positioned to invest in customer growth and build new financial products, making financial services more accessible to a broader audience.
Future fundraising opportunities are likely, especially with the potential for an initial public offering (IPO) on the horizon. The strong backing from major investors like Ribbit Capital and Sequoia suggests continued confidence in Robinhood's growth trajectory. However, the company will need to navigate challenges such as regulatory scrutiny and maintaining user trust amidst market volatility.
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