In this article, we will see When was Robinhood Founded?
Introduction
Robinhood, a trading application that services customers or users to buy or sell financial assets such as stocks, options, exchange-traded funds & cryptocurrency. The beneficial point of Robinhood is customers don’t have to pay for brokerage commission while placing a trade.
Robinhood was founded in the year 2013 by Vladimir Tenev & Baiju Bhatt. It has been headquartered in San Francisco, California. And the unique point is that in the year 2021, it got public on the Nasdaq stock exchange & it also had a user count of 18 million in the same year.
Robinhood, a financial technology company that permits its users to buy & sell stocks, options, cryptocurrency, etc. The higher number of users of Robinhood get access to the services of the company through the easy & efficiently usable mobile applications.
Whereas, Robinhood users also have other online accessing facilities like through the company’s online website, tablets & smartwatch applications. These all are possible because of technology development.
As every company has its past & same also applies to Robinhood. Below is the Robinhood Company’s history.
History of Robinhood Company (Chapter 1)
Vladimir Tenev & Baiju Bhatt are the founders of Robinhood, a fintech company. Before starting Robinhood, they also built high-frequency trading platforms for financial institutions in New York City. While starting the Robinhood Company, they both had a mission statement which says that to provide people access to financial markets.
And then they started these projects to help people to reach the financial markets. Vladimir Tenev analyzed that executing a trade costs brokerages & they charged fees of $5 to $10 per trade whereas an efficient minimum account should be $500 & $5,000.
The Robinhood Company team presented its application publicly for the first time in the LA Hacks. They published it in AppStore during the year 2014 & later they officially launched the Robinhood application in the year 2015.
In January 2015, Robinhood got to know that the average person’s age who is using the platform is said to be around 26. And considering the year 2021, Robinhood had around & more than 18 million users on their platforms.
In 2017, Robinhood Company had raised $110 million by gaining a $1.3 billion valuation & it was led by Yuri Milner of DST Global, Greenoaks Capital, & Thrive Capital. And in the next year, it closed a $363 million Series D financing round led by DST Global.
In May of 2018, the company raised a total of $539 million in venture capital funding. And held the last valuation of $5.6 billion.
History of Robinhood Company (Chapter 2)
Robinhood Company moved its headquarters from Palo Alto to the former headquarters of Sunset magazine in Menlo Park in February month of the year 2018.
In the year 2019, reports stated that Robinhood Company raised another $200 million in the funding round which makes the company value between $7 billion to $10 billion range. In November of the year 2019, Robinhood Company stated that it is going to establish in the United Kingdom.
In May 2020, Robinhood Company raised $280 million in venture funding led by Sequoia Capital. Three months later, the company raised a $200 million series G funding round from the D1 Capital Partners investors.
In the year 2021, Robinhood Company got public on Nasdaq Stock Exchange.
Robinhood Funding, Valuation & Revenue
Robinhood had over 20 rounds of venture capital funding in which it raised a total of $5.6 billion.
The investors of Robinhood Company include Sequoia Capital, DST Global, Index Ventures, Institutional Venture Partners, etc.
Robinhood Company was valued at $32 billion during the year 2021 when it got public. Robinhood raised $1.9 billion during the IPO.
In the year 2020, Robinhood had revenue of $959 million which had a profit of $7.45 million. Whereas in the year 2019, the company had only generated $278 million in which it had a loss of $107 million.
Robinhood Company Revenue
Below given is the revenue list of Robinhood Company from the year 2015-2020.
- In the year 2020, Robinhood Company had a revenue of $959 million.
- In the year 2019, Robinhood Company had revenue of $278 million.
- In the year 2018, Robinhood Company had revenue of $69 million.
- In the year 2017, Robinhood Company had revenue of $21 million.
- In the year 2016, Robinhood Company had a revenue of $9.3 million.
- In the year 2015, Robinhood Company had revenue of $2.9 million.
Robinhood Company Mission
Robinhood Mission Statement- “We are working with the mission to democratize finance for people”
Robinhood Company has a mission of making finance to reach all of the people around the world irrespective of boundaries. With this mission, it took a step into the financial technology field to reach the user’s hands via mobile applications, websites, etc.
Wherever the users are situated, they can easily finance into the stocks, options, exchange-traded funds & cryptocurrency. Robinhood’s online financial technology was estimated from just a few years back & now it has gained over 18 million users on their platform in the year 2021. Slowly it is reaching one over one user by covering the various services provided by the company.
Robinhood Company is a parent company of Robinhood Financial, LLC, Robinhood Crypto, LLC, & Robinhood Securities, LLC.
Robinhood Company Values
Robinhood Company Value statement- “Our Values are in service of our customers.”
Robinhood Company constantly strives to provide needy services in every aspect so that it gets proven beneficial for the customers. For that, Robinhood Company believes the below-given steps are very important services for the customers & these are also the values for the company.
Safety First
Robinhood always was & always will focus on the safety of the customers in the manner of security & privacy of the information which users or customers provide. Robinhood believes that it will never break the trust of the customers in every aspect.
Power in Unity
Means company states that it focuses on both rich & poor. In this manner, the company doesn’t care about which customer has less or more money because Robinhood accepts equally & this makes unity stronger.
Make Customers Happy
Robinhood wants its customers to always be happy. So that company provides good services in every way possible.
These all were the values that Robinhood Company follows.
Robinhood Company Users
As the company grows from year to year, its user capability is also increasing. So, below given are the counts of users using the Robinhood Company services from the year 2015 to 2021.
- In the year 2021, Robinhood Company had a user count of 18 million.
- In the year 2020, Robinhood Company had a user count of 13 million.
- In the year 2019, Robinhood Company had a user count of 10 million.
- In the year 2018, Robinhood Company had a user count of 6 million.
- In the year 2017, Robinhood Company had a user count of 2 million.
- In the year 2016, Robinhood Company had a user count of 1 million.
- In the year 2015, Robinhood Company had a user count of 0.5 million.
Robinhood Company Valuation Growth
The company had various funding rounds within the past few years. So, these indirectly help to the valuation growth of the company.
Below given is the valuation growth from the year 2017 to 2021.
- In the year 2021, Robinhood Company holds a valuation of $20 billion.
- In the year 2020, Robinhood Company holds a valuation of $11.7 billion.
- In the year 2019, Robinhood Company holds a valuation of $7 billion.
- In the year 2018, Robinhood Company holds a valuation of $5.6 billion.
- In the year 2017, Robinhood Company holds a valuation of $1.3 billion.
Conclusion
Robinhood Company is going to be the future of the financial technology industry. As years are passing, the users & revenue status of the company is also growing so this will help a company to come up with various other strategies to lead in its industry.
In the future, it will begin much more investment plans for the customers. And it is going to be worth it for the users.
Frequently Asked Questions
1. How does Robinhood Company work?
Answer: Robinhood is a financial technology company that services customers or users to buy or sell financial assets such as stocks, options, exchange-traded funds & cryptocurrency. The beneficial point of Robinhood is customers don’t have to pay for brokerage commission while placing a trade.
2. How does Robinhood Company make money?
Answer: There are a bunch of various money-making streams available for Robinhood Company. Robinhood Company generates money through order flow payments, subscription fees, interest paid on stock loans, interchange fees, etc. And the company is also updating needy changes year to year so that the growth of the company should be high. Working in a business model is one of the biggest strategies for making revenue because it directly impacts various things.
