Editor’s note: This is another example of huge financing in the crypto sector.
Trading application Robinhood raised US$660 million in its latest G round of financing.
According to a Reuters report on Wednesday, this round of financing initially raised only US$460 million, but then D1 Capital increased its investment by US$200 million. The company spokesperson revealed that Robinhood’s current valuation has exceeded $11.7 billion.
The trading application supports the trading of some major cryptocurrencies and has received support from Andreessen Horowitz, Sequoia Capital, Ribbit Capital, 9Yards Capital, and D1 Capital.
According to reports, these funds will be used for the application to support the development of its core products, as well as to launch cash management and circular investment functions.
Robinhood said that since the app has experienced multiple downtimes before users can not use it, it will also make efforts to improve the customer experience.
During the COVID-19 pandemic, platforms for individual investors like Robinhood have been heavily used, because people working from home have poured into the stock market to bet that the market will recover quickly.
However, some people accused Robinhood of providing sophisticated trading products to amateur investors and failing to fulfill its responsibility to protect its customers.
According to a report by “Beijing”, in June this year, a 20-year-old student committed suicide because he lost more than $700,000 in a complex option transaction using Robinhood, even though this amount was only a temporary fluctuation before the contract was executed.
Nevertheless, the ability to raise funds of this scale in the current economic situation shows that Robinhood financial applications are booming as the next generation of unicorn companies.
Author Liang Che
