For a business that has been around for a while, going public with an IPO gives the company access to raising capital in more resourceful ways. Other benefits include an increase in the awareness of the company by the public. And there is better access to quality unlisted stocks. So an IPO (despite some of its drawbacks) is considered a jackpot for private companies that have been around for a long time. Robinhood is nearing IPO and this is article details everything you need to know about the IPO.
What is an IPO?
IPO is the acronym for Initial Public Offering. And this happens when a privately owned business goes public by selling its shares on a public stock exchange platform. Before the concept of an IPO, companies were run by family members, acquaintances, or close business partners. Usually, the capital for the business was raised from the pocket of these founders and close friends (that might happen to be investors). When a business is still in anonymity, the value is estimated as a guess of all its assets, income, growth, and revenue. But in the case of fame (with IPO), the values are calculated based on the certainty of the same values, and the number of its shares in the stock market. While it has many benefits and disadvantages, there are other things to find out about going public with an IPO.
Robinhood: The fastest-growing financial software company
Based on many Robinhood reviews, Robinhood is a fast-growing app that is focused on stock trading and is drawing near to adding above $30 billion to its current $11.7 billion. Founded by Baiju Bhatt and Vlad Tenev in 2013, it aims to democratize the financial markets, as it works with many major banks in the world. In the past, the privately-owned company has been criticized, sued, and termed as illegal, or a bad influence and way of investing.
In its many negative histories, the company has also been on the bad side of many popular investors like Charlie Munger and Warren Buffett. However, despite its challenges and opposes, it was listed as 2021’s No 1 in the 50 lists of CNBC Disruptor companies.
Many of its investors and backers include Kleiner Perkins, NEA, Sequoia Capital, and Andreessen Horowitz, and a few others. And in addition to the increase in its value, more investors from Facebook, Google, and Amazon are likely to be added to its top executives.
When comparing Robinhood with any of the other best brokerage firms in the USA, it was concluded that this finance app stood the test of 2021’s challenges, and many investors would be interested. Also, amateur investors would have access to IPO shares.
Robinhood provides options trading, equity, bank-like cash management, and cryptocurrency products. And according to its CEO, and founder – Tenev Vlad, many people (in millions) can take part in the running financial market through the app. He also said the software will and can open access to the creation of wealth for those that have felt left behind. It is so that democratization of finance can be made a reality.
Its relationship with world billionaires
There are some opposing as well as supporting opinions of billionaires about the financial software- Robinhood. Some believe that the application is more entertaining than profitable. They believe that financial software for the investing of money and cryptocurrencies should be less accommodating for everyone. Others see that the tactics and methods used in attracting its customers are aggressive and manipulative. According to Massachusett regulators, there are too many disruptions and outages that are not been controlled (or prevented) on its trading platform.
In other opinions, Robinhood was seen as a gambling app where many of its customers are from the casino. It was deemed unworthy to be a part of the financial stock market. Charlie Munger opined that the app was for bettors and using it for wealth creation, is a dirty way of making money.
However, in the reviews and acknowledgments of the workers, Robinhood is transparent, gives its customers the best price, is void of any conflict of interest, and aims to create a solid avenue for people to make money legally.
X versus Robinhood
Robinhood is not necessarily the favorite of everyone including the public. Some people make comparisons like Robinhood vs vanguard, and you can also see reviews and comments about Robinhood vs Etrade, but there have been some major challenges facing Robinhood. There have been cases of hacking attempts at its systems. Some celebrities have also joined social media attempts to delete and end Robinhood.
However, the business continued to enjoy growth during those periods and recorded over 600,00 downloads daily. And now, after 8 years of being privately owned, the company is ready to go public.
Robinhood has thrived through years of ups and downs and has now become one of the leading and most valuable companies in Silicon Valley. Its attempt to go public is estimated to add above $30 billion to its current value. Although many have stood against the company including billionaires, the public, celebrities, and competitors, Robinhood remains on the journey to attaining IPO. From what we’ve seen so far, they are getting much closer because a lot of people prefer to use their business model in investing.
My name is Winterberg and I started this investment blog to share my journey towards financial independence.
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