Robinhood more than doubles Series F to $600M
July 14, 2020
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Robinhood has extended its Series F by an additional $320 million, bringing the total amount raised to $600 million and its valuation to $8.6 billion. TSG Consumer Partners and IVP joined new and existing investors in the round.
The company has seen its online brokerage platform soar in popularity during the coronavirus pandemic and ensuing stock market volatility, adding about 3 million new accounts in the first four months of the year. The new round is being used to expand the platform.
In recent weeks, Robinhood has taken heat after the suicide of Alex Kearns, a customer who reportedly believed he owed $730,000 as a result of options trades. Critics say the company's app makes it too easy for novice investors to dabble in margin trading and complex instruments like derivatives.
Robinhood responded by adding educational material, making user interface changes and donating $250,000 to the American Foundation for Suicide Prevention. It is also considering increasing eligibility requirements for certain complex trades.
The company has seen its online brokerage platform soar in popularity during the coronavirus pandemic and ensuing stock market volatility, adding about 3 million new accounts in the first four months of the year. The new round is being used to expand the platform.
In recent weeks, Robinhood has taken heat after the suicide of Alex Kearns, a customer who reportedly believed he owed $730,000 as a result of options trades. Critics say the company's app makes it too easy for novice investors to dabble in margin trading and complex instruments like derivatives.
Robinhood responded by adding educational material, making user interface changes and donating $250,000 to the American Foundation for Suicide Prevention. It is also considering increasing eligibility requirements for certain complex trades.
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