Robinhood is a financial services company who aims to democratize finance for everyone, believing that everyone should have access to the financial markets. It was founded by Vladimir Tenev and Baiju Bhatt in April 2013, headquartered in Menlo Park, California. Because of their mission, Robinhood is recognizable as a company that offers commission-free trading of stock and exchange traded funds (ETF). They also offer cryptocurrency trading and banking. Robinhood also launched an application wherein users can keep track of a stock, explore what other similar stocks they can invest in, or even see the latest news, updates and status about the companies they wish to observe.
Truly, Robinhood made the financial market accessible to everyone, anytime and anywhere. No wonder why the platform keeps gaining users from the year it was founded up to this day. According to Forbes, the platform already reached 13 million users by the end of 2020, and gained 6 million more users just in the first two months of 2021. Impressive growth in such a short span of time, indeed!
It is expected that Robinhood could value above £21 billion once it goes public.
Despite a contentious start to the new year, Robinhood just declared for its highly anticipated IPO, and the commission-free brokerage now aims to offer consumers from the United Kingdom the opportunity to purchase pre-IPO shares.
The forthcoming IPO of Robinhood may be one of the most awaited listings of the year. We suggest utilizing a market order to secure your shares if you want to ensure that your order fills on the day of the IPO. If you are just interested in Robinhood as a long-term investment, you should wait a day or two after the IPO to purchase your shares. Even the most renowned IPOs tend to fall in price on the first day.
Robinhood is one of the fastest-growing fintech startup companies. In fact, it is one of the most valuable private companies in Silicon Valley, the home to many start-up companies and global technology companies. The website accumulated 13 million members from its inception in 2013 and the end of 2020. In the first two months of 2021, it attracted another 6 million users.
According to Sensor Tower, weekly downloads from US app stores increased in the first half of 2020, making it the fourth most downloaded financial app—the first time it hit the top 10.
Industry news site Business of Apps reported that the average account size is under $3,500, compared to $100,000 for E-Trade and $240,000 for Schwab.
The influx of new clients at Robinhood has piqued Wall Street's curiosity. The firm was purportedly valued at £8 billion in September 2020, increasing to almost £14 billion by the end of the year, and then tripling to £28 billion in February 2021.
That would put Robinhood's market worth at one-third of Charles Schwab's, despite the fact that it manages a miniscule fraction of its traditional rival's assets.