Robinhood Financial raised new funding at a valuation of about $11.2 billion, as Dan Sundheim’s D1 Capital Partners poured $200 million into the online trading company.
The seven-year-old firm was most recently valued at $8.6 billion during its July funding round, before it posted record trading figures for June. It revealed daily average revenue trades of 4.31 million for the month, greater than any of its publicly traded rivals. The latest investment and valuation were announced by Robinhood in a blog post on its website.
Robinhood’s surge during the Covid-19 pandemic has garnered both fascination and criticism from Wall Street, with concerns persisting that the platform attracts many young users who many not understand the risks of stock wagers. D1’s new investment marks a vote of confidence from a prominent hedge fund investor.
Sundheim was chief investment officer at Viking Global Investors before striking out on his own and opening D1 to outside investors in 2018. It was one of the largest hedge fund launches of that year, and he was among an early crop of investors to invest in both publicly traded and privately held stocks.