Robinhood Markets announced Monday that it had raised an additional $2.4 billion from existing shareholders, on top of the
The latest financing round was led by Ribbit Capital and also includes Iconiq Capital, Andreessen Horowitz, Sequoia Capital, Index Ventures and NEA, Robinhood said in a blog post.
“This round of funding will help us scale to meet the incredible growth we’ve seen and demand for our platform,” CFO Jason Warnick said in the post.
Robinhood disclosed the fundraising after the online brokerage pulled back on trading curbs imposed in the wake of last week’s Reddit-fueled market frenzy. But as the tumult entered a second week, that hasn’t quelled customers’ suspicions of the firm’s motives.
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“As of today, Wells Fargo Advisors is not allowing solicitation of those two securities,” a spokesperson for the bank said Wednesday.
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The firm said high volume may have curtailed access to its mobile app and urged clients to use its other platforms.
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The looming threat for Biden’s SEC pick is that the good times could end on his watch, triggering a crash that hits retail investors who’ve contributed to the boom.
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Robinhood Seeks to Quell User Revolt While Protecting Business
CEO Vlad Tenev has tried in public appearances — including with Elon Musk — to explain why Robinhood halted trading in popular stocks including GameStop. Still, that wasn’t enough for many customers. Despite the relaxation of trading limits — reducing the number of affected securities Sunday to eight from 50 — some of its more than 13 million users are angry that they were restricted at all.
Venture capital investors are key stakeholders for Robinhood, after they helped lift its valuation to about $11.7 billion in a September funding round.
The latest round, following last week’s emergency infusion, suggests its initial public offering hangs in the balance.
The current turmoil could delay Robinhood’s IPO, which is planned for as early as May, one person familiar with the matter said. True to its mission, the trading platform had considered an unusually retail investor-centric offering by allocating a significant minority of listed shares to clients, Bloomberg reported in January. No final decision on that plan had been made at the time.
The latest fundraising was
