Robinhood Raises Another $2.4 Billion

More proof that collateral requirements are a problem for Robinhood, the brokerage app raised another $2.4 billion from shareholders after raising to help it ride out a trading frenzy (Wall Street Journal)

The huge infusion—the $3.4 billion raised since last Thursday is more than the company has raised in total up until this point in the eight years since its launch—gives Robinhood a war chest to cover a surge in collateral requirements stemming from the trading boom, people familiar with the matter said. It also should allow the company to support the hundreds of thousands of new accounts users opened since Thursday and to remove many of the trading restrictions that angered customers of the popular brokerage, the people said.