The crypto-friendly mobile trading app, Robinhood, has raised another $320 million in its new funding round. This takes the total amount of funds raised in its Series F funding round to $600 million, and its overall valuation to a whopping $8.6 billion. The investment round was led by the likes of TSG Consumer Partners and IVP.
The Series F funding round was announced by the company in May and raised around $280 million at that time, where the funding round was led by Sequoia Capital, along with participation from firms such as NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures.
The Robinhood app has been riding high on the success of this pandemic period. With the app registering whopping traffic, given that it allows users to trade and buy cryptocurrency, making it an excellent way for beginners to venture into the crypto space. The firm has reported the creation of more than 3 million funded accounts by May, suggesting the popularity of the application.
The Robinhood App may be seeing a great deal of success in 2020, but it also has its fair share of controversies, especially multiple outages and shutting off the app at peak hours. It also reportedly led to the suicide of one 20-year-old user Alexander Kearns. He found his Robinhood wallet balance at -$730,000 while trading options after one of the many shutdowns of the application.
The co-CEOs of the firm Vlad Tenev & Baiju Bhatt soon wrote a blog post expressing their condolences for the loss of Keams and also promised to upgrade the interface and added layer of authorization required to trade options. The firm also donated $250,000 towards suicide prevention. An excerpt from the blog post read:
“It is not lost upon us that our company and our service have become synonymous with retail investing in America and that this has led to millions of new investors making their first investments through Robinhood. We recognize this profound responsibility, and we don't take it lightly. We aspire to innovate, lead, and go beyond the status quo.”