The stock and crypto trading app raised millions of dollars in its recent funding round.
Many private traders trade stocks and cryptocurrencies through the popular Robinhood app. This is reflected in the company’s recent Series G funding round
On September 23, a spokeswoman for Robinhood Markets Inc. announced that the fintech company had raised $ 660 million in a financing round. This brings the company’s value to $ 11.7 billion.
The fresh capital is an extension of an August Series G financing round . Back then, D1 Capital Partners invested $ 200 million in Robinhood.
New and old investors have participated in the expansion, including Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital and Bitcoin Lifestyle.
The spokeswoman said the capital will be used „to promote our core product and customer experience as well as new offerings such as cash management and recurring investments.“
Robinhood has now raised an estimated $ 1.25 billion from investors and has raised over $ 2 billion in total capital to date, according to Reuters calculations based on PitchBook data
Traders fuel demand for the app’s services and strengthen investor confidence. But things haven’t always gone smoothly for the company in the past few months.
In April it was reported that Robinhood needed the additional capital to respond to the platform’s stresses in March. This crashed three times during trading peaks. Many traders reported heavy losses because they could not access their accounts. They then asked for compensation.
Robinhood has compensated some of the dealers who were affected by the March disruption. However, the company did not provide any information about how many users were affected.