How Robinhood Raised $3.4 Billion To Reshape Finance: A Closer Look At The Source CEO Story
Robinhood, a stock trading app that has revolutionized the way people invest, recently raised $3.4 billion in a Series G funding round. This is incredible news, and it comes as little surprise – Robinhood has become a game-changer for finance, offering users accessible accounts and free trades. But how did they get to this point? In this blog post, we’ll take a closer look at how Robinhood became the company it is today – from its humble beginnings to its return on investment. We’ll explore the story of its CEO, Vlad Tenev; his journey from a startup founder to an innovator who helped reshape finance. Read on to find out more!
What is Robinhood?
In 2014, two Stanford University graduates had an idea to change the way people invest. Their names were Baiju Bhatt and Vlad Tenev, and together they founded Robinhood.
Robinhood is a commission-free stock trading platform that allows users to buy and sell stocks, ETFs, options, and cryptocurrencies without paying any fees. The company makes money from interest on the cash and securities in user accounts, as well as margin lending.
Since its launch in 2015, Robinhood has been one of the fastest-growing financial startups in history. The company now has over 13 million users and is valued at $11.2 billion.
In 2019, Robinhood made headlines when it raised $323 million from investors at a $7.6 billion valuation. The round was led by DST Global, with participation from Sequoia Capital, Andreessen Horowitz, Ribbit Capital, Thrive Capital, NEA, and Greenoaks Capital.
This latest round of funding brings Robinhood’s total raised to over $1 billion. With this new capital, Robinhood plans to expand its product offerings and continue its mission of democratizing finance for all.
How Robinhood Works
Robinhood is a commission-free stock trading app that allows users to buy and sell stocks, options, and ETFs with zero trade commissions. It was founded in 2013 by Vlad Tenev and Baiju Bhatt, who were both former employees of the hedge fund world. Robinhood has been able to grow rapidly thanks to its simple user interface and its focus on mobile trading. The company has raised $176 million from investors including Google Ventures, Andreessen Horowitz, and Sequoia Capital.
In February 2016, Robinhood launched a new product called Robinhood Gold. Gold is a premium service that gives users the ability to access after-hours trading and margin trading. With Gold, users pay a monthly subscription fee of $10 to trade on margin. Robinhood has been able to offer these premium services without charging any trade commissions thanks to the revenue generated from its monthly subscriptions.
The company has plans to continue expanding its offerings beyond just stock trading. In the future, Robinhood plans to offer cryptocurrency trading, as well as other financial products such as savings accounts and loans. Robinhood is quickly becoming one of the most popular platforms for young investors thanks to its commission-free trades and innovative approach to finance.
The Pros and Cons of Robinhood
There are a lot of things to like about Robinhood. For one, it has no minimum balance requirement, so you can start investing with as little as $5. Additionally, Robinhood doesn’t charge any commissions on trades, which is a big plus if you’re just starting and don’t have a lot of money to invest.
On the downside, Robinhood does have some drawbacks. One is that it only offers limited customer support. Additionally, Robinhood doesn’t offer any traditional banking services, so if you’re looking for a one-stop shop for all your financial needs, this may not be the best option.
Why Source CEO Wants to Reshape Finance
In an interview with CNBC, Vlad Tenev, co-founder and CEO of Source, announced that the company plans to raise $1 billion in new funding. This round of funding will be led by DST Global, with participation from existing investors including Sequoia, Andreessen Horowitz, Ribbit Capital, and Google Ventures.
The new funding will be used to accelerate Source’s mission of reshaping finance. According to Tenev, the current financial system is “broken” and favors large institutions over individuals. He wants to change that by making it easier for people to access the financial markets and invest for themselves.
To do this, Source plans to use the new funding to expand its product offerings and reach more people. The company is also considering launching a retail brokerage service in the future. Tenev believes that Source can provide a better experience for investors than traditional brokerages.
Sources has already made strides in changing the way people invest. The company’s mobile app allows users to trade stocks, ETFs, and options with no commission fees. It also offers advanced features like margin trading and after-hours trading. And last year, Source introduced fractional shares, which allow users to invest in pieces of expensive stocks like Amazon and Tesla that they couldn’t otherwise afford.
With its new round of funding, Source plans to continue its mission of making investing more accessible and affordable for everyone.
How Robinhood Plans to Use the $3.4 Billion it Raised
In 2018, Robinhood raised $3.4 billion from a combination of venture capitalists and private investors. The online broker plans to use the funds to expand its offerings beyond stocks and into other financial products like options, cryptocurrency, and even checking and savings accounts.
This is a huge vote of confidence in Robinhood’s mission to make investing accessible to everyone. And it couldn’t come at a better time, as the company is facing increased scrutiny from regulators over its practice of allowing customers to trade on margin.
With this infusion of cash, Robinhood plans to double down on its efforts to democratize finance. It’s an ambitious goal, but one that could pay off big for the company — and its customers.
The story of Robinhood and its CEO is an inspiring example of how passion, determination, and ambition can be unleashed to reshape the financial industry. By leveraging technology and a customer-oriented approach, they were able to raise $3.4 billion in funding to create a revolutionary platform that makes investing more accessible than ever before. It’s an incredible achievement that should serve as inspiration for anyone looking to make their mark on the world.