Robinhood announced last week that it has received a $50 million round of funding led by New Enterprise Association (NEA). Existing investors Index Ventures, Ribbit Capital and Social Leverage joined the round, along with new investor Vaizra Investments. Robinhood has now received $66 million in funding to date.
StockBrokers.com first blogged about the Robinhood App in December 2013. Most recently in December of 2014, we wrote about the Robinhood app launch and spoke about why mobile only $0 commissions is a bold bet long term. As Blain noted in that particular post, we believe that Robinhood will need mass scale and adoption to make a run at turning a profit.
What is Robinhood doing with this new round of funding? They are beginning to expand globally. Robinhood is first going to be available in Australia, and there is already a web page up for the Robinhood Australia venture. It should be noted that Australia is well-known for high priced stock trades. Some trades cost $65 in Australia. Robinhood is hoping this venture takes off Down Under. The exact time of the launch in Australia will be announced later this year.
Robinhood also said in their latest press release that 25 percent of the people who have joined Robinhood since the launch of the app are first-time investors.
Margin accounts, more asset classes and an Android app are to be released later this year by Robinhood.
For the full press release click here.