Cryptocurrency trading was booming on Robinhood in the first quarter, with 17% of its total revenue being crypto-related.
The company claims that it will reserve 20% to 35% of its Class A shares for customers. And there will be two other classes of stock, with Class B shares carrying 10 votes each and Class C shares with no voting rights. The filing makes it clear that after the IPO, all of the Class B shares will be held by company executives and directors.
New York-based D1 Partners, Google’s venture capital arm, GV, Sequoia, and Kleiner Perkins are some of Robinhood’s biggest venture capital investors.
“We have grown rapidly in recent years and we have limited operating experience at our current scale of operations; if we are unable to manage our growth effectively, our financial performance may suffer and our brand and company culture may be harmed,” Robinhood outlined in the “risk factors” section of their prospectus.