Robinhood raised 4x in a year, crossing the $5B mark

Robinhood has recently added a web version, the stock options trading, and a crypto exchange. This company launched back in 2013, managed to grow its valuation four times in a year. Just eleven months after Robinhood confirmed that they had raised $350 million in Series D funding after a $110 million Series C with eleven months ago. This new raise brings Robinhood at the $526 million funding level. This impressive value growth shows that this company represents an essential player in the mobile finance tools industry and also predicts future growth.

The cryptocurrency trading feature has been developed in just two months, and they made this tremendous effort to catch up with the economic shift. After only five days Robinhood Crypto’s announcement, one million users have been registered on the waitlist for platform access. This launch brought three essential features to light. A tracking and trading website version has been launched back in November, in December the options trading has been made available (and this suddenly made Robinhood a reliable alternative for Scottrade and E*Trade) and the last but not least added feature, cryptocurrency exchange feature, has completed this outstanding trio of Robinhood service debuts.

The Gold subscription ($6-$200) allows users to trade on margin with higher levels of prices and the interest on the money stored in users’ accounts are this company’s primary sources of revenue. It is believed that this fast growth had an important influence on Josh Elman’s recruit as a VP of product. At Greylock Partners, he will transition to a part-time position, and at Robinhood, he will actively contribute to building a platform business that will serve as the backbone for many other fintech applications (just like he helped with building Facebook’s identity platform).

Instead of charging per trade (including bonus features), Robinhood charges for everything, except the bare bones trades. This business model is very similar to Dropbox’s one, that offers users small amounts of storage for free, but charges for enterprise accounts and extra storage. Since Robinhood was found as a free-trade application, this company could quickly transform into a mobile finance hub in a few years from now on.

Questions have been raised among about this mobile finance application’s safety, but it’s good to know that SEC regulates its activity. At the same time, Robinhood is a member of FINRA (Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corporation). These facts and the commissions and fees’ policy make Robinhood one of the stars on the mobile finance niche. 

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