Stock Trading Platform Raises $220M at Unicorn Valuation

Public.com Secures $220 Million Funding Round

Just prior to Robinhood’s scheduled Congressional hearing, competitor Public.com has announced the completion of a $220 million funding round. This investment values the company at $1.2 billion, as initially reported by TechCrunch.

Public.com confirmed the funding today, also revealing a significant milestone. The platform has now surpassed one million members in just 18 months since its launch.

Valuation and Backer Confidence

This latest funding round, led by existing investors such as Greycroft, Accel, Tiger Global, and Inspired Capital, assigns a valuation of approximately $1,200 per member. The perceived value of this metric is open to interpretation.

Investor confidence is demonstrably high, fueled by growing interest in savings and investment platforms. Robinhood, for example, achieved a revenue run rate exceeding $800 million in Q4 2020, with continued growth into 2021.

The Rise of Digital Investing

Both Public.com and Robinhood benefit from a broader trend. A significant shift is occurring in banking, moving away from traditional physical infrastructure towards digital solutions like neo-banks and ecommerce.

Robinhood revolutionized trading with its commission-free model, aligning perfectly with the evolving mobile and virtual banking landscape.

Public.com has further differentiated itself by eliminating payment for order flow (PFOF). This practice, utilized by companies like Robinhood, involves receiving fees for directing user trades to specific market makers.

Continued Investment in Fintech

As TechCrunch recently observed, there appears to be substantial capital available for stock-trading startups. The successful completion of Public.com’s funding round reinforces this observation.

The market now anticipates further investment in innovative fintech companies. It remains to be seen which platform will secure the next major funding round.