Company analysis of Robinhood.

1. Akhil Ramgopal (ARAMG)

2. Invest For Free
ü Brokerage Firm – (Mobile and Web Platform)
ü Investing – Stocks, ETFs, Options, Cryptocurrencies
ü Zero Commission Trades

3. Persona - Rex
ü Software Engineer @ Unicorn
ü Loves Disrupters
ü Little Investing Knowledge

4. Finances
3
13
50
110
363
0
50
100
150
200
250
300
350
2012 2013 2014 2015 2016 2017 2018 2019
Amount
Millions
Year
ROBINHOOD FUNDING

5. Business Model
ü Interest on Uninvested Cash
ü Robinhood Gold – (Margin Trading)
ü Rebates – (Market Makers)
Freemium Model Interest Earning
Cash on accounts which are
uninvested lent out and invested in
other safe financial instruments that
make up interests
Robinhood Gold offers more
advanced functionalities
compared to the basic free
services provided in the app
Market makers pay small fees to
Robinhood for sending trades to
process through their platforms

6. History
Founded: Baiju Bhatt
and Vladimir Tenev
April 2013
iOS App Launch
December 2014
Android App Launch
August 2015
Robinhood Instant
February 2016
Robinhood Gold
September 2016
Crypto Wallet
June 2018
Robinhood Clearing
October 2018
Checking Account*
December 2018

7. Growth
0.45
0.75
1.6
2.3
6
0
1
2
3
4
5
6
7
2014 2015 2016 2017 2018 2019 2020
Users
Millions
Year
ROBINHOOD USER GROWTH

8. Secret Sauce?

9. It’s Easy

10. Also Complex
Multi-Leg Options Strategies Candlestick Charts Global Stocks

11. User Base
ü 6 million users
ü Average Age: 31
ü Median Age: 29

12. Portability

13. Competition

14. Prediction

15. Checking Account
ü Cash Management Accounts
ü 3% Interest Rate
ü SIPC Insured – (PROBLEM!!!)

16. Retirement
ü “Passive Investors”
ü Integrate Roth IRA or 401k
ü Other Types of Investments

17. Potential IPO
ü Jason Warnick named CFO – (November 2018)
ü Lead Robinhood to IPO

18. Sources
ü https://about.robinhood.com/
ü https://fourweekmba.com/how-does-robinhood-make-money/
ü https://www.crunchbase.com/organization/robinhood#section-funding-rounds
ü https://www.americanbanker.com/articles/robinhood-backs-down-after-outcry-over-checking-account
ü https://www.bloomberg.com/news/articles/2018-05-11/robinhood-founders-turn-billionaires-in-a-silicon-
valley-minute

19. Web Platform