In this year of pandemics, risk capital investors bet big on Robinhood while at home, mostly younger investors, entered investing on a stock market that saw the first rising bear markets and turnaround in the history of Wall Street.
On Monday, the trading app released a $200 million round of funding for its third-largest investment in just four months. Robinhood's latest cash investment is up to $11.2 billion, which is equivalent to $3 billion.
Who Invested in Robinhood?
New York-based D1 Partners sponsored the latest investment just a month after another late-stage round of Robinhood. In July, Robinhood said that the previous fund series, announced in April, were to add an investment of 320 million dollars. The total was up to 8.6 billion dollars. D1 is joining big Robinhood partners including Sequoia, Kleiner Perkins, GV.
In addition to trading volume, Robinhood's revenues rose. In the recent SEC filing, the revenues from customer transactions have roughly doubled when compared to the previous quarter. This was largely the volume of trading options.
What Makes Robinhood Unique?
Robinhood said on Monday that they saw proof that there was more competition in the financial markets and that since January, the number of educational services used by the clients has grown by over 250%.
Robinhood delivers most products free and makes money from a network of customer orders and premium-paid membership packages. The customer's average age is 31.
Let us recall that users of the Robinhood app are often right and seem to always earn. Recently, we published an article about how Apple shares are very popular with ordinary investors.