How does Robinhood Make Money | Robinhood Business Model | How does Robinhood App Make Money | How Robinhood Makes Money
Hope you are enjoying India rains as much as I am. Relief from this Summer! Well, to start off this Monsoon so How does Robinhood Make Money came to my mind because Markets are good here and I was wondering what can remove my trade costs? Here is something that will make you wonder, do such companies really exist? Every Industry has their share of the Bulls and the Bears! I am sure, you now would have understood what Robinhood is all about.
Just another stock trading app! It’s a trading app/website in the USA that offers completely free trades, ZERO COMMISSIONS. Yes, you got that right, coming from the best-performing markets of Asia and being an avid investor, this is really interesting to see how Robinhood has carved out a business model from thin air and giving the stuff REALLY REALLY FREE. Let’s look at How does Robinhood Make Money and Robinhood Business Model. We will also be looking at How does Robinhood App Make Money along with deep diving into How Robinhood Makes Money from Non-Stock Market Investments.
About Robinhood, Founders, Funding, and Facts
The company was founded when two high-frequency traders for financial institutions in New York City realized that high-frequency traders and electronic trading firms pay effectively nothing to execute trades. This inspired them to bring this technology to the retail brokerage market with Robinhood, a commission-free stock brokerage. As of March 2018, it had nearly four million customers and it is no longer a stock trading platform, it’s a fully functional cryptocurrency trading platform as well.
Robinhood Founders: Vladimir Tenev and Baiju Bhatt
Robinhood Funding: Robinhood has raised a total of $600 million (appx) in venture capital funding. Robinhood received seed capital from investors including Google Ventures, Andreessen Horowitz, Index Ventures, IT Ventures, Social Leverage, and Elefund. Series A was led by Index Ventures and Ribbit Capital; Howard Lindzon, co-founder of StockTwits and general partner at Social Leverage; Aaron Levie, founder of Box; Dave Morin, founder of Path; Jared Leto; Snoop Dogg; and Nas of QueensBridge Venture Partners. Series B funding in May 2015, led by New Enterprise Associates (NEA). Existing investors Index Ventures, Ribbit Capital and Social Leverage joined the round, along with new investor Vaizra Investments. $1.3 billion valuation led by Yuri Milner from DST Global made the company jump to Unicorn status. As of May 2018, they are valued at $5.6 Billion.
Let’s now look at How does Robinhood Make Money and Robinhood Business Model.