Bitcoin : Robinhood raises an additional $ 200M to support its growth


A record valuation

Robinhood formalized, Monday, August 17, a new fundraising of 200 million dollars against 320 million dollars in a previous round of financing. The company has harvested $ 1.7 billion funding for 7 years according to the Crunchbase site.

The new round table was led by the American investment fund D1 Capital Partners. The company joins the very closed club of unlisted companies valued at more than 10 billion dollars.

Originally, Robinhood specialized in stock trading. It added the buying and selling of cryptocurrency in January 2018. Robinhood stood out in eliminating trading fees and by offering an accessible service only via a mobile application.

The company said the funds will be used to improve its core product and customer experience. The “customer service” that Robinhood says it wants to improve may refer to the multiple outages the app suffered in 2020.

Indeed, the service was offline three times during several peaks of activity. Many traders reported heavy losses, not being able to access their accounts and demanded compensation.

👉 To read on the same subject: The startup Robinhood manages to raise an additional $ 323 million

A popular app in the United States

The app is very popular with young traders who appreciate the user-friendly interface and the absence of trading fees. The application won 3 million new accounts in the first quarter of 2020.

The American company has also launched Robinhood Snacks which aims to create and disseminate digestible and easy to understand financial news. The newsletter and the podcast are respectively followed by 20 millions and 2 million people.

Robinhood has also postponed its UK launch and has not made any announcements regarding its expansion into other global markets. A spokesperson for the firm said the company will focus on strengthening its business in the United States.

👉 To read on the same subject: The Coinbase Pro mobile application is now available on Android

About the Author : Florent David

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I began to discover the basics of blockchain and Bitcoin technology with Satoshi Nakamoto’s post: A Peer-to-Peer Electronic Cash System. The disruptive and controversial aspect of the subject quickly fascinated me!
All articles by Florent David.