By
Godfrey Benjamin
April 22nd, 2024
Robinhood Financial LLC announces that it has raised $280 million in series F funding. With the new funds, Robinhood is planning to scale its platform by building new products.
Through its official webpage today, Robinhood Financial LLC, which is a subsidiary of Robinhood Market Inc, announced that it has raised $280 million in Series F funding at an $8.3 billion valuation.
According to the post, the round was led by an existing investor Sequoia Capital, which was in participation with other previous and also new investors. Among them include NEA, Ribbit Capital, Unusual Ventures and also 9Yards Capital.
Robinhood Series F Funding
In a turn of events, it seems investors are turning to specific places like Robinhood to invest their capital, amid the market volatility. The post noted that Robinhood added more than three million funded accounts in the first quarter, whereby half of the customers were first-time investors.
With the new funding, Robinhood is planning to scale its platform by building new products and by accelerating build-out of its operations. This will include hiring more top talents in its offices including the one at Denver.
“Robinhood has made the financial markets accessible to the masses, and in turn, revolutionized the decades-old brokerage industry,” said Andrew Reed, partner at Sequoia. “We are excited to further our relationship with Robinhood, which we believe is at the beginning of its opportunity,” he concluded.
Robinhood Financial amid Coronavirus Crisis
Robinhood Financial LLC is a member of SIPC, which protects securities of its members up to $500,000 including $250, 000 for cash claims. It is currently authorized to do business in all 50 states, Washington D.C., and also the commonwealth of Puerto Rico. However, Robinhood does not currently offer foreign investment accounts.
For one to apply for a Robinhood account, you must be 18 years or older, have a valid social security number, have a legal U.S residential address and be a U.S. citizen or a U.S. permanent resident or have a valid U.S. visa.
Robinhood has remained active since the coronavirus outbreak despite the March outages, which led to a two day in the dark for the customers. The outage was caused by the then highly volatile and historic market conditions; record volume; and record account sign-ups. However, the outage was dealt with and the technical team upgraded the infrastructure to deal with future problems much faster.
The company also offered its interested customers with a diversified investment mix, including stocks, ETFs and also cryptocurrencies. It is a move to help investors spread their risk across to avoid scenarios like the black Thursday when most of the traditional stock crashed almost to their knees.