Robinhood Co-Founders Prepare for Massive IPO

Fintech

For years, Silicon Valley has been getting on the banking officials with promises of a better customer experience. However, it’s only now that rising trading apps, payment upstarts, and online lenders are reaching big public market valuations.

Soon, it’s Robinhood’s turn.

Vlad Tenev and Baiju Bhatt, who were roommates at Stanford nearly a decade ago, are each poised to be meriting around $2.6 billion on paper when their trading app debuts on the Nasdaq later this month. That’s based on the $40-pershare midpoint of its price scale provided in its refreshed IPO plan on Monday.

As declared in the filing, CEO Tenev and chief creative officer Bhatt will individually own 7.9% of the company’s leading shares. They’re also each selling around $50 million worth of shares in the offering.

It’s been a standard year for tech listings. At least 12 companies went public throughout an IPO, direct listing, or particular purpose acquisition company (SPAC), achieving a market capitalization of $10 billion or more.

Within these companies and several others with more moderate estimates, the tech industry has created 16 billionaires in 2021.

 

Fintech Is Catching an Outsized Share of The Gains

 

Coinbase CEO Brian Armstrong holds stock in his cryptocurrency app worth around $8.7 billion after the company’s direct listing in April. Fred Ehrsam, who co-founded the company among Armstrong in 2012, holds a $2.7 billion stake.

Marqeta CEO Jason Gardner is worth nearly $2 billion after getting his payment technology company public last month. In contrast, Affirm’s Max Levchin owns shares priced at over $1.5 billion in his online lender, which took its IPO in January.

SoFi, a provider of college loans, home loans, and several investments and insurance products, went public throughout a SPAC in June and is now valued at $12 billion. To be sure, no individual holder holds a billion-dollar stake.

That’s before plunging into the companies that are still private. According to the Bloomberg Billionaires Index, payments company Stripe was at $95 billion in a financing round in March. This gave sibling co-founders Patrick and John Collison a mixed stake of $23 billion.

Klarna, a Swedish payments company, is now deserving $46 billion on the private market. Klarna CEO Sebastian Siemiatkowski has a net worth of $2.2 billion, as stated by Forbes.

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