Hi all, Julie here.
We’re going to focus on some of our key takeaways from the Robinhood S1 today (and we’re off on Monday for the holiday), but wanted to give a big shoutout to our friends at Daylight for the new funding round first! If you want to hear more about what the team is up to, checkout my recent podcast with Co-Founder Billie Simmons. And you should also tune into my episode from this week with our beloved Charley Ma where we talk about our favorite fintech stories from the first half of the year.
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Number of some fun mentions in the S1:
- Meme: 1
- Citadel: 2
- Dogecoin: 10
- PFOF: 65
- Margin: 125
- Options: 203
- Cryptocurrency(ies): 301
Speaking of Dogecoin, well, no one likes Dogecoin more than Robinhood’s bank account. And if people stop trading Dogecoin, that’s a risk. From the S1:
“If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected. For the three months ended March 31, 2021, 17% of our total revenue was derived from transaction-based revenues earned from cryptocurrency transactions, compared to 4% for the three months year ended December 31, 2020. While we currently support a portfolio of seven cryptocurrencies for trading, for the three months ended March 31, 2021, 34% of our cryptocurrency transaction-based revenue was attributable to transactions in Dogecoin, as compared to 4% for the three months ended December 31, 2020. As such, in addition to the factors impacting the broader cryptoeconomy described elsewhere in this section, RHC’s business may be adversely affected, and growth in our net revenue earned from cryptocurrency transactions may slow or decline, if the markets for Dogecoin deteriorate or if the price of Dogecoin declines, including as a result of factors such as negative perceptions of Dogecoin or the increased availability of Dogecoin on other cryptocurrency trading platforms.”
And here are some crazy financial stats.
For anyone interested in buying Robinhood at its IPO price, you’re in luck if you’re a Robinhood customer. The company announced that it’s allocating up to 35% of its IPO shares to individual investors on the platform.
A few people that really hope you buy at the IPO and drive up the share price are Co-Founders Vlad Tenev and Baiju Bhatt. They will make bank if shares head north of $120 based on restricted stock units that they were awarded.
Vlad, for instance, would get $342M if the stock hits $120, and $6.66B if it hits $300. However, if the stock doesn't hit an average price of $120 over a 60-day period, none of his 2021 RSUs will vest.
Other than the two founders, the other highest paid employee is actually someone I’ve known for about a decade: Chief Legal Officer Dan Gallagher. I remember talking to him in a DC bar in 2019 about everything going on in fintech, and Robinhood coming up. Funny how things come full circle. Anyways, if I get dinner or drinks with him again soon, he’s buying. He made $30M last year. TBH, he’s worth every penny.