Posted on

Why investors were willing to write Robinhood a $3 billion check during the GameStop chaos



Share

Vlad Tenev, RobinhoodSource: RobinhoodRobinhood’s ability to add hundreds of thousands of new customers during a week of chaos, along with its IPO prospects, convinced Silicon Valley backers that a multi-billion-dollar cash infusion was worth it.CNBC spoke to three of Robinhood’s investors, who agreed to speak about the emergency funding without being named, because the conversations were private. All of them said there was “strong demand” for investors to get a piece of Robinhood, even as the company stared down a public relations and regulatory crisis.The trouble started last week, as Robinhood restricted trading for a list of stocks …

Read More