Commission Free Trading App, Robinhood, Raises $280 Million At A Valuation of $8.3 Billion

  • Robinhood, a commission-free trading app, has raised $280 million in a recently concluded series F funding held by the FinTech startup.
  • This funding round was led by Sequoia Capital, a prominent California-based Venture Capital, which was already an investor in the Robinhood portfolio.
  • The Robinhood venture was valued at $8.3 billion as of this market deal.

This is not the first time for Robinhood to attract such enormous funding, the firm raised $323 million in its July 2019 seed round. Now that the COVID-19 pandemic is forcing more people indoors, the app’s market share skyrocketed within the first quarter of 2020. Close to 3 million funded accounts have been opened since we began the year.

Robinhood’s Catch

Despite being in existence for only five years, Robinhood has given brokerage veterans like TD Ameritrade Holding Corp and Charles Schwab Corp a run for their money. The new approach of commission-free trading is gradually forcing Robinhood’s peers to abandon the ‘discount’ formula as a business strategy in the brokerage industry.

Apart from the product packaging, Robinhood also capitalized on the growing millennial market which is generally tech-savvy. The trading app gave easy access to financial assets like stocks and dynamic markets including crypto. According to a statement by the firm, it will further expand its services following the new capital injection,

“scaling our platform, building new products, and accelerating build-out of our operations,”

While the progress has been commendable, it has come with its own challenges for the Robinhood platform. The app has slowed down on several occasions due to heavy traffic causing some traders to miss out on executions that would have otherwise made them money.

Robinhood, however, assured its clients that they are working to compensate the affected parties on an individual basis. Nonetheless, a lawsuit has already been filed against Robinhood for the incurred losses by one of its account holders.

The FinTech Rush

This growing field that seeks to intersect finance and technology is not short of attention from investors. Just recently, a fintech startup dubbed ‘Stripe’ secured $600 million in funding which brought its valuation to $36 billion. This project focuses on creating a bridge for receiving payments and billing through an online avenue. It is also quite noteworthy that several startups within this space had scheduled IPO’s for 2020 but have since postponed given the COVID-19 uncertainty.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,486FansLike
2,795FollowersFollow
4,268FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

ETH Locked on Aave & Uniswap Records a Sharp Rise

Decentralized Finance (DeFi) is back to recovering, currently at over $11 billion, reaching an all-time high of nearly $12 billion from last week, as...

Alameda Research and Three Arrows Capital Outdoing Each Other to Mint Record WBTC

On Friday, FTX CEO Sam Bankman-Fried’s Almeda Research minted the biggest wrapped Bitcoin (WBTC) ever, as per WBTC Network. 2317 BTC was minted on Sept....

“Nothing Compares to My Bitcoin Bet,” Says Social Capital CEO Chamath Palihapitiya

Bitcoin was the best performing asset of the last decade, and in 2020, it remains a winner again. Compared to the S&P 500 hitting a...

The XRP Ledger Foundation Launches To Accelerate XRPL Adoption And Development

The XRP Ledger Foundation, a non-profit, announced its official launch on September 24. The Ledger Foundation would be responsible for supporting the development as...

Bitcoin Trading Like a ‘High Beta' But Social Sentiment Remains Subdued

After a somber start of the week, Bitcoin is all set to end it on a higher note. In the late hours of Thursday, the...

Ant Group Launches Blockchain-Powered Cross-border Trade Settlement Platform ‘Trusple'

Ant Group, owner of mobile payment app Alipay, launched a blockchain-powered platform for cross-border trade settlements this week. The move came ahead of its...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today