Financial institutions in the blockchain market space see an influx in valuations since the novel coronavirus broke out. This follows after multiple firms entered another Funding Round, seeing outside investors place millions into these brokerages in hopes of high returns. The latest brokerage to announce their Funding Round complete is Robinhood, who have obtained a company-wide valuation of $8.3 Billion. It came after they earned $280 Million during the Series F Funding Round. Confirmed investors include Sequoia Capital, Ribbit Capital, Unusual Ventures, NEA, and 9Yards Capital.
Marking the 6th Funding Round for Robinhood, they launched Series F during March but didn’t inform the public until May 4th. When investment proceedings were being conducted with firms like Sequoia Capital and Unusual Ventures, Robinhood told them of drastic growth margins in 2020. These margins include 3x Million Accounts being funded since January. That means Robinhood is nearing the most extensive customer base in the United States, making them a hot commodity, and allowing the $280 Million to be earned during the Series F Funding Round.
When considering that Robinhood began operational activities in the early 2010s, it’s surprising that their valuation has exceeded that of TD Ameritrade. Their considered one of the most brokerages, having been operational since 1975. Their historic presence couldn’t compete with the formidable services maintained through Robinhood. Now TD Ameritrade stands in 3rd place, with ETrade Brokers following in 2nd. The 1st place titleholder is Robinhood for the time being.
Usage of Funds
Robinhood is targeting the usage of these funds towards Application Infrastructure, which follows after numerous errors have been reported with their mobile application. Users claim frustrations when trading through their mobile services, forcing the overwhelming majority to engage with Robinhood’s desktop platform. Altering the infrastructure mechanics with their mobile application will better support Robinhood in their continued growth. It should be noted that ETrade Brokers offers a formidable mobile platform that sees a conversion of clientele from Robinhood at 5.2% monthly. Robinhood wants to stop this immediately to maintain their 1st place position.
Most engaging with Robinhood are loyalists to the platform, with millennials clarified as the most active participants in their customer base. That’s why Robinhood will also target the usage of Series F Funds towards advertising campaigns, hoping to grow their popularity amongst older age groups. Regardless of how Robinhood appropriates funds, it’ll improve their services drastically and give investors better trading opportunities.