Robinhood Raises $323 Million at $7.6 Billion Valuation
Stock trading app Robinhood recently raised $323 million at $7.6 billion valuation. As announced fairly recently, the funding round was led by DST Global.
Founded in 2013, Robinhood is a securities trading app that lets users trade stocks without charging any commission. In February 2018, the company also opened doors to cryptocurrency trading, and expanded its crypto operations to the elusive New York market in May 2019.
According to company officials, the funding would be used to further expand the company’s operations.
Robinhood Focused on Free Stock Trading
Robinhood, like Binance has only been around for a short time but has helped to bring value to wide variety of users. By focusing on mobile and simple free stock trading, while adding features such as Robinhood Gold and options, it became a compelling application.
Individuals can purchase a wide variety of finance instruments. The Robinhood app caters to a large percentage of millennials who love stocks such as Tesla, Nio, Lyft, Uber and other familiar consumer companies.
The firm provides crypto entrepreneurs and fintech entrepreneurs with a couple of key compelling lessons.
Robinhood Lessons for Crypto Entrepreneurs
The first lesson Robinhood provides to future entrepreneurs is to look at an existing problem in a large market and improve the experience. The Robinhood app founders focused on drastically bringing costs down.
Robinhood provided zero commission trading.
The zero-commission trading on Robinhood was a big value proposition but the overall user experience, being mobile first and other factors help to retain more targeted millennial users.
This brings us to second lesson, continue to make a difference for potential users each day. The company aims to be customer centric all around, they provide value to individual investors and high-frequency trading firms.
The fintech firm is certainly doing something right.
Robinhood users continue to rise spurring more potential services such as savings accounts and more services provided by startups like N26 and new online only service providers.
The finance disrupter is certainly poised for an IPO.