Stocks

Public.com fund raising: Robinhood rival Public.com raises funds at $1.2 bn valuation as retail trading booms

On-line brokerage Public.com, which competes with Robinhood, mentioned on Wednesday it had raised $220 million in recent funds from new and present traders, lifting its valuation to $1.2 billion.

Buyers have doubled down on on-line brokerages that have been on the heart of a social media-driven buying and selling frenzy on Wall Avenue in closely shorted shares of firms reminiscent of GameStop Corp.

Robinhood closed a mammoth $3.four billion fundraise earlier this 12 months to shore up its funds as clearinghouses requested for extra collateral attributable to heightened volatility.

New York-based Public.com operates a zero-fee buying and selling app that additionally doubles up as a social media funding group, the place its members can personal fractional shares of shares and exchange-traded funds (ETFs), in response to its web site.

Members can observe standard creators and share their very own investing-related concepts like every other social media platform.

Earlier this month, Public.com determined to desert the controversial cost for order movement apply, which refers back to the course of the place brokerages route orders to market makers to execute trades as an alternative of sending them on to exchanges.

The apply has drawn scrutiny from regulators globally because it creates an incentive for brokers to ship orders to whoever pays essentially the most, somewhat than the place that may get the most effective consequence for patrons.

Together with the most recent spherical, Public.com has thus far raised about $310 million. The startup at the moment has a million members on its platform.

Buyers together with Tiger World Administration, Accel Companions and Will Smith’s Dreamers VC participated within the newest spherical.

The corporate plans to make use of the funds so as to add options reminiscent of crypto buying and selling, pre- and post-market buying and selling, whereas additionally organising recurring investments for members.

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