Robinhood raises an additional $320 million in funding at $8.6 billion valuation

Robinhood, the popular stock and options brokerage, has lined up additional cash after the close of a Series F funding round in May, according to Fortune. 

Per Fortune's report, the California firm has raised an additional $320 million from new and previous investors. TSG Consumer Partners and IVP are new investors participating in the round. 

The firm's valuation stands at $8.6 billion, according to Fortune. In an addendum to its Series F announcement Robinhood said:

"We’re pleased to share that we’ve raised an additional $320 million in subsequent closings, bringing our total for the round to $600 million. The new funding comes from new and existing investors, including TSG Consumer Partners and IVP, and brings our post-money valuation to $8.6 billion."

The new cash injection comes amid an increase in Robinhood's user-base as well as scrutiny over its business practices. A pioneer in zero-commission trading, Robinhood has come under fire in recent months over whether it is exposing inexperienced traders to risky products. In response, Robinhood has made changes to its platform, making it more difficult to access options.

"We're rolling out improved in-app messaging this week to help customers better understand the mechanics of early options assignments, and we recently published more resources on our help center," the firm said of the changes in a tweet explaining a series of platform enhancements. 

At the time of its previous raise, the firm said that it had added more than 3 million users since the beginning of the year despite a string of platform outages. 

AUTHOR

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

See More

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on