Robinhood is a commission-free stock trading platform that aims to make investing easy and accessible for young people. It has grown rapidly since its 2015 launch, reaching over 7 million users in 2018 through its mobile-focused design and social growth incentives. While Robinhood does not directly charge commissions, it generates revenue through interest on customer cash balances, premium subscriptions, and selling order flow. The company continues to expand its offerings like options and cryptocurrency trading as it works towards an IPO.

1. Anurag Koduri

2. The Problem
• Investing is difficult.
• Investing is expensive.
• For who? Young People.

3. The Product
• Making it as easy as
possible to invest
• Commission-free
trading
• Mobile-dominant
platform

4. The Product

5. User Growth
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
2015 2016 2017 2018 Today
Users Growth Since Launch
Users

6. User Growth
• Give your
customers what
they came for:
money
• Social media
advantaged
growth incentives

7. Venture Capital Funding
0
50000000
100000000
150000000
200000000
250000000
300000000
350000000
400000000
Seed Round Series A Series B Series C Series D
Amount Invested
Amount Invested
March 2018, $5.6B
valuation

8. Business Model
• Interest on unused cash in customers’ accounts
• Robinhood Gold – attracting mature investors
• Selling order flow – Robinhood isn’t actually
completely free…

9. Company History
2013 2015 2016 2017 2018
Baiju Bhatt & Vladimir Tenev,
who had previously built
trading platforms, founded
Robinhood in response to
Occupy Wall Street movement
Formally launched iOS accounts
for anyone US residents over 18
Android launch
Robinhood Gold
launch
Options and
cryptocurrencies
now available on
platform

10. Secret Sauce
• Design. Which one would you choose if you’ve never invested before?

11. What’s Hot?
• Didn’t work because
not SIPC insured
• Currently retrying
under “Cash
Management”

12. Competition – Brokerages

13. Prediction? Success.
• Already has more users than E-trade, growth is steady
• Continually expanding products and offerings
• Keep current young customers for the long run
• IPO-ready

15. References
• https://www.cnbc.com/2018/05/16/gallup-why-younger-americans-arent-
investing-in-the-stock-market.html
• https://en.wikipedia.org/wiki/Robinhood_(company)
• https://productcoalition.com/my-two-cents-a-robinhood-growth-analysis-
eca1d4cd4a23
• https://techcrunch.com/2018/10/10/robinhood-clearing/
• https://www.investopedia.com/articles/active-trading/020515/how-robinhood-
makes-money.asp
• https://robinhood.com/
• https://www.investors.com/news/robinhood-stock-trading-app-user-growth-
clearing/
• https://www.crunchbase.com/organization/robinhood#section-funding-rounds