Robinhood, the zero-commission stock and crypto trading exchange, has reportedly begun the long process to complete an IPO. The hiring of CFO, Jason Warnick, in 2018 indicates a step in that direction. The company, founded in 2013, has enjoyed significant growth, raising over $530 million in venture capital funding since inception. Robinhood was most recently valued at $5.6 billion in May 2018, after a $363 million investment by notable investors including ICONIQ Capital, Kleiner Perkins, New Enterprise Associates and Sequoia Capital.
While performance figures of the company are sparse, Robinhood claimed to pass the five million user mark in September 2018. The company will have to expand offerings with care as it is operating in a highly regulated industry. While it has successfully done so to date, road-bumps including its turbulent offering of checking and savings accounts illustrate the need to proceed cautiously and with regulatory approval. Still, the company is disrupting a significant market and benefits from strong brand awareness, especially with Millennials, and offers the lowest cost service among competitors. These factors could be highly valued by public investors as the company proceeds through the public offering process.