It really has to be something crazy to reach such valuations at that stage…
No experience with the app - due to it only being available to the US markets at the moment (and unlikely to change in the near future). However, I’ve only heard good things. I’ve always been a bit skeptical of the valuations of these companies, but our UK equivalent, Freetrade, just closed their round on Crowdcube yesterday with 615% of their target achieved (all in less than 6hrs open to the general public and 24hrs to early subscribers). This is huge for a company that really hasn’t revealed an awful lot to their customers as of yet - but clearly there’s something to be said for this model.
It seems crazy to see a fourfold increase in their valuation in just one year, but I don’t think there’s much room to doubt the Robinhood figures - the demand for their product (particularly from Millennials is evident, with 1m signups in less than 24hrs). Needless to say, they’ll need some time to fill these huge shoes they’ve created for themselves, but they’re sitting amongst a decent number of Unicorns in the same scenario. Here’s to hoping Freetrade can shed some light on what we’re missing out on over on the other side of the pond!
Following on from Layla’s comment, they’ve got some big plans too e.g. -
Yep, once they begin to bring in that level of funding they have to aggressively grow in to other areas to provide growth for the investors.
It is so interesting to see banks moving to investing products (think Revolut, Starling and their marketplace and new entrants like project imagine) and now investing providers moving in the other direction to dominate the new financial services landscape.
Waiting for Amazon, Facebook and Google to make their moves next as WeChat have done in China