Robinhood, a US-based online share trading service backed by entertainment agency Roc Nation and internet and technology group Alphabet, received $280m in a series F round yesterday.
Sequoia Capital led the round, while a range of existing and new backers also participated, though only New Enterprise Associates (NEA), Ribbit Capital, 9Yards Capital and Unusual Ventures were named.
The news follows reports a month ago that Robinhood was seeking up to $250m in fresh funding.
Robinhood has built a commission-free online investment platform for users to trade shares in public companies. The company has added more than 3 million accounts this year, having had acquired 10 million users by the end of 2019, amid the pandemic-caused market crash.
The funding will enable Robinhood to scale its platform, develop additional products and hire staff across all of its offices.
Andrew Reed, a partner at Sequoia, said: “Robinhood has made the financial markets accessible to the masses, and in turn, revolutionised the decades-old brokerage industry.
“We are excited to further our relationship with Robinhood, which we believe is at the beginning of its opportunity.”
Robinhood has raised approximately $1.2bn in funding altogether.
GV, an early-stage investment subsidiary of Alphabet then called Google Ventures, participated in a $3m seed round in 2013 alongside Index Ventures, Andreessen Horowitz, Rothenberg Ventures and assorted angel investors.
Arrive, a subsidiary of Roc Nation, injected an undisclosed amount in February 2018 before CapitalG, a growth-stage unit of Alphabet, contributed to a $363m series D round three months later together with DST Global, NEA, Sequoia, Thrive Capital, Iconiq Capital and Kleiner Perkins Caufield & Byers.
Robinhood’s investors also include Greenoaks Capital, Queensbridge Venture Partners, Social Leverage and Vaizra Investments.
