Robinhood Is Set to Raise at Least $200 Million in New Funding
There is no way that Robinhood is worth this much money. I admire them, but $7 billion for 2 million customers is insane. I&#x27;m assuming they are targeting being the &quot;Financial Amazon&quot; for millenials, I&#x27;m just not convinced even if they achieved it it&#x27;s worth this much. Stock trading is a dying business, and after the next stock market crash or recession, they will lose the majority of their customers. Moving into financial services might make sense, but I don&#x27;t think these founders have the acumen to do this, as exhibited by their embarrassing attempt recently with their &quot;checking and savings&quot; account.<p>What Uber&#x27;s IPO has shown is that VC funding is far too overly delusional. They buy their own bullshit about how growth trumps all but investors want profits and you won&#x27;t see the real reaction until it starts trading for real, like Uber and Lyft. Until then, all you see is VCs talking their book and lazy tech writers repeating everything they say without actually thinking about it. So, sure some investors were stupid enough to invest $200M at $7B valuation, but I doubt Robinhood will grow into such lofty valuations that are reflected by the markets unless something drastically changes. 2M customers simply isn&#x27;t enough.