[Bon App’] Robinhood wants to play the robins of the woods of mobile trading
Origin: United States
Planned launch: dearly 2015
Availability: the versions Android 2.2 and iOS are in beta
It is an American application which is not yet officially available, and yet which is already attracting millions of dollars in investments. Robinhood – the aptly named – must be used to place orders on the Wall Street directly from a smartphone and above all, and this is the novelty, without being deducted from a commission. Until then, competing applications E * Trade, Fidelity, Schwab or Scottrade charge 7 to 10 dollars per transaction.
In December 2013, the start-up created in 2012 had completed a first funding round of $ 3 million with Index Ventures and Andreessen Horowitz. She announced Tuesday, September 23 that she had made a second round for $ 13 million. This sum will be used to recruit people to be able to improve the security of the application. This time, they are added: Google Ventures, Ribbit Capital and business angels like Howard Lindzon, Aaron Levie, Dave Morin, rapper Nasir Jones, Snoop Dogg, Jared Leto. Google Ventures and Rothenberg Ventures have also invested in the company.
The app targets beginners to trading
The two young Americans who created it – Vlad Tenev and Baiju Bhatt – claim 500,000 registered beta testers (80% of whom are between 18 and 29 years old), they were 160,000 last February according to a TechCrunch article. Vlad Tenev and Baiju Bhatt target people who are new to trading. “Most stock brokerage houses are over 30 years old, their interfaces are clunky, aimed at older professionals and seasoned traders. They do not reserve room for new investors and they are the ones we are targeting, ”said Vlad Tenev, who worked in finance before setting up his business as well as his partner.
Developers rely on a B to B economic model: they will market an API to its partners wishing to develop applications including its technology. The startup – soon to be based in Palo Alto, California – will also collect money as a traffic provider in certain markets (but do not specify which ones) and also plan to advise the most active investors in the longer term, in return for finance.
Robinhood’s consumer launch is scheduled for early 2015.
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