Robinhood Attracts $200 Million as Valuation Swells to $7 Billion: Report

Robinhood Attracts $200 Million as Valuation Swells to $7 Billion: Report 1

By CCN: Who says millennials don’t like to save and invest their money? By building a commission-free stock brokerage and trading app with a slick interface, Robinhood has built a $7 billion business in just six years. That’s the company’s valuation as it nears a $200 million funding round from its current financial backers, Bloomberg reports. The investment round is still unfolding and once complete could reportedly result in Robinhood fetching a valuation as high as $10 billion.

Robinhood closed its most recent funding round last year at which time a $5.6 billion valuation was attached.

The stock trading app boasts a stellar track record of growing its user base and monetizing its services.

According to Nasdaq, Robinhood Markets Inc. made $8 billion in revenue in 2017 and is projected to rake in $47 billion annually by 2020. It is already the fastest growing broker of all time.

Last year the investment app blew passed E*Trade after doubling its user base to 4 million. E*Trade, which was started in 1982, had 3.7 million user accounts at the time.

How Does Robinhood Makes Its Money?

With no commission fees, a common question people have when they first hear about Robinhood is: ‘How does the app make money?’ It’s a fair question.

Robinhood’s profits come from three sources:

  • Interest earned by lending money held in Robinhood accounts
  • Selling orders to high-volume exchanges seeking more liquidity
  • Robinhood Gold subscriptions that charge users $10 to $200 a month to borrow anywhere from $2,000 to $50,000 to trade on margin

The sale of orders to high-frequency exchanges is a practice that has attracted some criticism for a lack of transparency.

Robinhood’s Merry Band of Millennials

Robinhood is very popular with millennials. The lack of commission fees is a big selling point for millennials, who have less cash to spare than their parents did when they were that age. The app’s friendly interface and slick design is also likely a draw for the young-ish crowd.

Millennials Also Love Cryptocurrency

There’s no doubt that the mobile app’s selection of cryptocurrency investments is also attractive to millennial savers and daytraders.

One nationwide survey found 43% of millennials trust crypto exchanges more than stock exchanges. A further 90% of millennials prefer cryptocurrency to gold.

Robinhood Co-Founder and co-CEO Baiju Bhatt told CNBC last year:

“Crypto has certainly added to our growth. In the next couple of years I think you’ll see Robinhood looking like a full-service consumer finance company.”

[embedded content]

[youtube https://www.youtube.com/watch?v=iHN0f2WNLkE?feature=oembed&w=680&h=383]

Robinhood Attracts $200 Million as Valuation Swells to $7 Billion: Report 2
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 42,627.00
ethereum
Ethereum (ETH) $ 2,919.06
cardano
Cardano (ADA) $ 2.29
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 348.60
xrp
XRP (XRP) $ 0.935774
solana
Solana (SOL) $ 135.34
polkadot
Polkadot (DOT) $ 29.73
usd-coin
USD Coin (USDC) $ 0.998234
dogecoin
Dogecoin (DOGE) $ 0.208192
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 42,627.00
ethereumEthereum (ETH)
$ 2,919.06
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 514.49
litecoinLitecoin (LTC)
$ 150.78
bitcoinBitcoin (BTC)
36.316,93
ethereumEthereum (ETH)
2.486,95
tetherTether (USDT)
0,851970
bitcoin-cashBitcoin Cash (BCH)
438,33
litecoinLitecoin (LTC)
128,46
bitcoinBitcoin (BTC)
31,104.28
ethereumEthereum (ETH)
2,129.99
tetherTether (USDT)
0.729685
bitcoin-cashBitcoin Cash (BCH)
375.42
litecoinLitecoin (LTC)
110.02

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin42,810 0.09 % 0.14 % 9.36 %
Ethereum2,938.8 0.04 % 0.36 % 13.87 %
Cardano2.310 0.35 % 1.68 % 1.68 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Binance Coin351.00 0.08 % 1.34 % 13.53 %
XRP0.9429 0.15 % 0.21 % 11.68 %
Solana136.85 0.10 % 1.77 % 7.28 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.01 % 0.08 % 0.05 %
Dogecoin0.2103 0.24 % 0.54 % 12.73 %

bitcoin
Bitcoin (BTC) $ 42,627.00
ethereum
Ethereum (ETH) $ 2,919.06
cardano
Cardano (ADA) $ 2.29
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 348.60
xrp
XRP (XRP) $ 0.935774
solana
Solana (SOL) $ 135.34
polkadot
Polkadot (DOT) $ 29.73
usd-coin
USD Coin (USDC) $ 0.998234
dogecoin
Dogecoin (DOGE) $ 0.208192