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Robinhood is worth $7.6B after new funding round

The Robinhood application is displayed in the App Store on an Apple Inc. iPhone in an arranged photograph taken in Washington, D.C., U.S., on Friday, Dec. 14, 2018. The Securities Investor Protection Corp. said a new checking account from Robinhood Financial LLC raises red flags and that the deposited funds may not be eligible for protection. Photographer: Andrew Harrer/Bloomberg
The Robinhood application is displayed in the App Store on an Apple Inc. iPhone in an arranged photograph taken in Washington, D.C., U.S., on Friday, Dec. 14, 2018. The Securities Investor Protection Corp. said a new checking account from Robinhood Financial LLC raises red flags and that the deposited funds may not be eligible for protection. Photographer: Andrew Harrer/Bloomberg

Robinhood Markets has closed a new round of funding valuing the company at $7.6 billion. That’s up from its latest $5.6 billion valuation in 2018. The company raised $323 million in the most recent deal.

The jump in valuation comes despite problems last year when the Menlo Park, California-based startup announced a new checking service. The product, which advertised an enticing 3% interest rate, quickly encountered backlash over whether and how it would be insured. The company was forced to backtrack on its plans to release the service.

In a statement announcing the funding, Robinhood outlined several new initiatives it had recently rolled out, including expanded trading of cryptocurrency. The company was founded in 2013, and gained a following with millennial customers in particular by allowing people to trade stocks for free on its mobile app.

Robinhood’s new funding round was led by existing investor DST Global. Other backers included Ribbit Capital, New Enterprise Associates, Sequoia Capital and Thrive Capital.