Zero-commission brokerage start-up Robinhood said Tuesday it has picked up $13 million in series-A funding from Index Ventures. Robinhood co-founders Vlad Tenev and Baiju Bhatt said this capital infusion will be used to hire engineers and designers and bring the IOS-only app out of the Beta stage.
Robinhood launched its mobile trading platform earlier this year. Tenev and Bhatt said in an interview with CNBC on Tuesday that the start-up had added a number of familiar names to its board of directors. Included on that list are Snoop Dogg and Jared Leto. Tenev said Robinhood seeks to deliver their product to what he believes in an undeserved market. He said, “Of the almost half-million people on the waiting list to use the Robinhood app, 80 percent are between the ages of 18 and 29.” Robinhood’s co-founders tried to make clear in their interview on CNBC Tuesday that they aren’t focused on monetizing the app just yet. They also announced that the first wave of customers of customers were going to be able to start using Robinhood this week as part of the Beta program.
Will the zero commission start-up make a splash in the market or will it be a flash in the pan? Only time will tell, but StockBrokers.com will keep you updated along the way!