Fintech Private Equity USA Venture Capital

The Funds & Venture Capitalists Behind Robinhood

Robinhood completed a further funding round of financing this week. Who are the institutions backing the fintech company.

Robinhood completed a further funding round of financing this week. Who are the institutions backing the fintech company.

In September 2020, Robinhood raised their Series G funding round, bringing their total valuable to $11.7 billion. Following January’s Reddit boom, SEC requirements led to a fast-tracked funding round consisting of a further cash injection of $2.4 billion. The new valuation is unknown, but in a post-Reddit rout world for Robinhood consisting of over 30 class action lawsuits, whether the valuation is above or below $11 billion, depends on the risk weighted analysis the new financiers place on the app. On the one hand, Robinhood is now the western world’s most talked about trading platform, and on the other a new source of interest for those speculating wrongdoing involving hedge funds. Aside from their future, who are the financiers behind their latest funding rounds.

Sequoia Capital:

In their own words “we help the daring build legendary companies from idea to IPO and beyond.” Sequoia Capital is an typical venture capital firm based in Menlo Park, California and mainly focuses on the technology industry. What separates them is they back companies from Seed rounds to later stages, such as the Series F/G of Robinhood. Notable companies backed by Sequoia are Instagram, Tumblr, Strava, Airbnb and DoorDash and Reddit (which is rather ironic).

Website: https://www.sequoiacap.com/

Ribbit Capital

Ribbit are a lesser known funding outfit. They state “Our goal isn’t just to write checks. It’s to deposit and grow ideas. We look at finance with a hungry eye for change, and with a desire to share our learning and experience – including some painful mistakes along the way – with ambitious entrepreneurs”. Revolut and Robinhood are part of their portfolio, alongside other financial services disruptors such as Habito – the mortgage marketplace – and Health IQ – the insurance marketplace.

Website: https://ribbitcap.com/

NEA

NEA focus on technology and healthcare. In their own words “we are a global venture capital firm with a mission to make the world better by helping founders build great companies that improve the way we live, work and play.” Notable portfolio companies include Houzz, coursera and Goop – the lifestyle brand launched by Gwyneth Paltrow.

Website: https://www.nea.com/

Andreessen Horowitz

“Founded in 2009 by Marc Andreessen and Ben Horowitz, Andreessen Horowitz (known as “a16z”) is a venture capital firm in Silicon Valley, California, that backs bold entrepreneurs building the future through technology. We are stage agnostic: We invest in seed to late-stage technology companies, across the consumer, enterprise, bio/healthcare, crypto, and fintech spaces. a16z has nearly $16.6B in assets under management across multiple funds, including the $1.4B Bio funds, the $865M Crypto funds, and the Cultural Leadership Fund.”

Website: https://a16z.com/

9 Yards Capital

9Yards is a Venture Capital firm that makes investments in transformative technology companies predominantly at the growth stage.

Portfolio companies include Robinhood and Coinbase.

Website: https://9yardscapital.com/

D1 Capital Partners

In their own words: “D1 Capital Partners L.P. is a global investment firm that deploys capital in both public and private markets. D1 was founded in July 2018 by Daniel Sundheim. The firm invests on behalf of investors globally, including endowments and foundations, family offices, sovereign wealth funds, outsourced CIOs, hospitals and pensions. D1 has a fundamental and research-intensive investment strategy with a focus on medium to long-term returns. Its research centers on the consumer, business services, financial services, healthcare, industrials, real estate and technology, media and telecom sectors. Geographically, investments are generally in North America, Western Europe, Japan, and China. Most of the firm’s capital is deployed in publicly traded equities as well as equity derivatives, convertibles and other fixed income instruments. The private equity strategy is opportunistic and primarily later-stage, non-control stakes in companies raising capital for expansion.”

Website: Unknown

Sources:

The Street: https://www.thestreet.com/investing/robinhood-raises-another-2-4-billion-as-app-volume-surges

The Verge: https://www.theverge.com/2021/2/1/22254656/robinhood-gamestop-stonks-trade-freeze-class-action-lawsuits

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