No-fee investing app Robinhood confirmed that it raised $323 million in Sequence E funding at a $7.6 billion valuation. DST International led the spherical, and was joined by traders together with Ribbit Capital, NEA, Sequoia, and Thrive Capital.
It’s doable that this mega-round is simply setting the stage for a a lot larger spherical of funding that the corporate has mentioned with a wider group of traders, which may worth the corporate at over $10 billion, in keeping with The Data.
It’s unclear what it’s going to do with the recent funding, but it surely may make one other try at higher serving its millennial clientele.
Robinhood brought about a stir final December by asserting a no-fee checking-and-savings account that provided a 3% yield. Days later, nevertheless, the corporate walked again the announcement after regulators criticized it for providing what amounted to a checking account with out FDIC insurance coverage—a backstop that protects shoppers within the occasion a monetary establishment fails.
At a panel throughout Fortune’s Brainstorm Tech convention earlier this month, Robinhood’s COO Gretchen Howard defined that the corporate is making ready to attempt once more. “We’re going to return out with a money administration account quickly,” she mentioned.
Extra broadly, Howard mentioned Robinhood is concentrated on increasing its brokerage enterprise, noting that solely 1 / 4 of millennials use a self-directed dealer for investments. She added the corporate has additionally filed for a federal financial institution constitution—a instrument that may permit it to supply conventional banking merchandise.
Robinhood has been laser-focused on aiming to grow to be a one-stop store for a younger investor’s wants. In March, the corporate made its first acquisition: a millennial-focused e-newsletter known as MarketSnacks (later re-branded as “Robinhood Snacks”).
I’m curious to see if Robinhood makes extra strategic acquisitions with all this money — or prepares for its rumored public debut as an alternative.
…AND MORE MEGA-FUNDING: Electrical scooter firm Chicken is elevating a Sequence D spherical led by Sequoia Capital at a $2.5 billion valuation, in keeping with individuals near the deal. TechCrunch had the preliminary particulars right here.
REINING IN PRIVATE EQUITY: Leo Hindery Jr., a personal fairness investor and former CEO of AT&T Broadband, wrote a Fortune op-ed during which he makes the case for why his trade must be reined in.
Hindery says there’s a apply escalating throughout the economic system. He provides, “That apply is the unchecked and reckless overuse of heavy burdens of debt, after which of chapter legal guidelines, by some personal fairness companies and hedge funds to the overwhelming detriment of workers and retirees.”
He goes on to make a case for Sen. Elizabeth Warren’s Cease Wall Avenue Looting Act, a brand new invoice launched this week. (Context: Her coverage proposal would slap new guidelines on personal fairness and “ineffective hypothesis” on Wall Avenue. A centerpiece of her “financial patriotism” plan is to remodel personal fairness companies, which she mentioned usually act like “vampires” once they purchase corporations by “bleeding the corporate dry and strolling away enriched at the same time as the corporate succumbs.”)
From Hindery’s column:
At the moment, too many PE fund managers are generalists, with little or no expertise within the trade they’re investing in. And we’re seeing them use a much-discredited playbook: reduce prices, take out money for their very own short-term profit, add little real aggressive worth, after which slash jobs and employee advantages in a determined bid for larger working money movement.
This is the reason this week’s laws issues a lot. The aptly-named Cease Wall Avenue Looting Act would lastly maintain predatory personal fairness companies and hedge funds accountable for the injury they trigger, shut tax loopholes that encourage extreme debt and let executives keep away from paying their fair proportion of taxes, and restrict the debt that predatory companies can entry to grab management of corporations.
And, tremendously importantly, the invoice would defend staff when employers go bankrupt, giving them added recourse to pursue the severance that’s presently denied them.
Do you agree? Disagree? In case you’re a personal fairness skilled, I’d love to listen to from you. Please electronic mail your feedback to [email protected] with the topic line “Time period Sheet Response” and notice that your responses could also be utilized in a future Time period Sheet. (Let me know when you’d favor to remain nameless.)
– MoneyLion, a New York-based data-driven on-line shopper lending platform, raised $160 million in funding, together with $60 million in beforehand unannounced funding and a $100 million Sequence C spherical. Edison Companions and Greenspring Associates co-led the spherical, and had been joined by traders together with Capital One, MetaBank and FinTech Collective.
– Onecom, a UK-based enterprise telecommunications supplier, raised 100 million kilos ($124 million) in funding. Buyers embrace LDC and Ares Administration.
– Heap, a San Francisco-based analytics startup, raised $55 million in Sequence C funding. NewView Capital led the spherical, and was joined by traders together with DTCP, Maverick Ventures, Triangle Peak Companions, Alliance Bernstein Personal Credit score Buyers, and Sharespost. Present traders NEA, Menlo Ventures, Initialized Capital, and Pear VC additionally participated.
– Homeward, an Austin, Texas-based property startup, raised $25 million in fairness and debt funding. Buyers embrace LiveOak Enterprise Companions, Genesis Capital and Keystone.
– Ethic Inc, a New York-based asset administration platform, raised $13 million in Sequence A funding. Nyca Companions led the spherical, and was joined by traders together with Constancy Investments, Sound Ventures, ThirdStream Companions, City Innovation Fund and Kapor Capital.
– Cognism, a London-based gross sales acceleration platform, raised $10 million in Sequence B funding. PeakSpan Capital led the spherical.
– Weller, a Boulder, Colo.-based maker of CBD-infused meals and beverage merchandise, raised $Three million in seed funding. Model Foundry Ventures led the spherical.
– Liquefy, a Hong Kong-based blockchain agnostic issuance platform for safety tokens, raised $2.6 million in funding. Ideanomics and NEO International Growth led the spherical.
– WattBuy, a Bellevue, Wash.-based power intelligence startup, raised $1.2 million in seed funding. Buyers embrace Powerhouse Ventures and Schmidt Futures.
– Antstream Arcade, a London-based streaming platform for retro video games, raised Sequence A funding of an undisclosed quantity. Tencent led the spherical, and was joined by traders together with Hambro Perks.
– Viviota Inc, an Austin, Texas-based engineering information software program firm, raised funding of an undisclosed quantity from Naya Ventures.
HEALTH AND LIFE SCIENCES DEALS
– Frequency Therapeutics, a Woburn, Mass-based clinical-stage biotechnology firm, raised $62 million in Sequence C funding. Perceptive Advisors led the spherical, and was joined by traders together with Deerfield Administration, RTW Investments and Mizuho Securities Principal Funding, in addition to current traders Polaris Founders Capital, Taiwania Capital Administration, Axil Capital, and CoBro Ventures.
– Cell Vault, a Daytona Seaside, Fla.-based T-cell financial institution, raised $1 million in funding. The traders weren’t named.
PRIVATE EQUITY DEALS
– Silver Lake Administration will purchase a minority stake in EverCommerce, a Denver, Colo.-based software program supplier, in a deal that values the corporate at $2 billion, in keeping with The Wall Avenue Journal. Learn extra.
– New Capital Companions made an funding in ARMCO, a Pompano Seaside, Fla.-based supplier of high quality assurance software program for the monetary providers trade. Monetary phrases weren’t disclosed.
– Cairngorm Capital acquired Millbrook, a U.Ok.-based supplier and producer of kit, evaluation providers and home-based variations that assist service customers reside independently at dwelling. Monetary phrases weren’t disclosed.
– Yellow Wooden Companions agreed to purchase the Dr. Scholl’s model from Bayer, for $585 million.
– Predominant Capital acquired a majority stake in Optimizers, a Netherlands-based supplier of software program and cell apps for the provision chain and logistics markets. Monetary phrases weren’t disclosed.
– Continental Providers, a portfolio firm of New Heritage Capital, acquired Northern Merchandising, an Ann Arbor, Mich.-based supplier of merchandising providers. Monetary phrases weren’t disclosed.
– Apple is in superior talks to purchase Intel Corp’s smartphone-modem chip enterprise, in keeping with The Wall Avenue Journal. The deal would worth the enterprise at $1 billion or extra. Learn extra.
– Compass Datacenters, which is backed by RedBird Capital Companions, Ontario Lecturers’ Pension Plan, and Azrieli Group Ltd, acquired ROOT Information Middle, a Canada-based wholesale information heart supplier. Monetary phrases weren’t disclosed.
– GFL Environmental, a North American waste hauler, plans to boost $1.5 billion in a Canadian IPO, Bloomberg stories. Ontario Lecturers’ Pension Plan, BC Companions, and GIC Personal again the agency. Learn extra.
– Interswitch, a Nigerian-based funds agency, has reportedly employed bankers for an IPO that might worth the agency at above $1.Three billion, Bloomberg stories citing sources. Helios Funding Companions backs the agency. Learn extra.
– Envista Holdings, a Brea, Calif.-based dental gear supplier spinning out of Danaher, filed on Monday for an $100 million IPO. On a carve-out foundation, the agency posted gross sales of $2.eight billion and earnings of $230.7 million in 2018. It plans to listing on the NYSE as “NVST.” Learn extra.
– DNEG, a British visible results agency that has labored on ‘Interstellar’ and ‘Avengers: Endgame’, has reportedly employed J.P. Morgan for an IPO in London this autumn, Sky Information stories citing sources. Prime Focus backs the agency. Learn extra.
– BC Companions agreed to recapitalize Garda World Safety Company, a Canada-based safety and money providers firm, in a deal valued at C$5.2 billion ($four billion). The vendor was Rhône Group.
– 3i Group plc agreed to accumulate Evernex, a France-based supplier of third-party upkeep providers for data-center infrastructure and demanding IT belongings, from The Carlyle Group. Monetary phrases weren’t disclosed.
– DC Capital Companions agreed to promote QRC, a Fredericksburg, Va.-based agile, disruptive product firm, from Parsons Company for $215 million.
– PPG agreed to accumulate Dexmet Company, a Wallingford, Conn.-based maker of specialty supplies for surfaces in aerospace, automotive and industrial functions. The vendor is Sverica Capital Administration LP. Monetary phrases weren’t disclosed.
– David Seider joined Weatherford Capital as a vp.