Robinhood could be the most important company to IPO in 2021.

Here are 9 things you should know before they go public. ⇣⇣…

- 18M users
- $959M in 2020 revenue
- 245% revenue growth from 2019
- Expected valuation of $40B

Solid numbers.
1. They want you to trade a lot

Robinhood mostly makes money when you trade, through something called "Payment for Order Flow." That means they want you to trade a lot.
2. They want you to trade options

RH earns more money when you trade *options* which are riskier. They earn $2.90 per options trade and just $0.40 for a typical equities trade. This has caused some controversy (we unpack).
3. They're making money from memes

RH offers crypto-trading. Dogecoin trading activity drove 34% of Q1 crypto revenue. RH is the home of meme finance, and it shows.
3. Revenue is on fire🔥

Total 2020 revenue surpassed $950 million, up 2.5x. It's only growing. They brought in $522M in Q1, a run rate of +$2B. That was a 309% increase from the previous year.
4. Management has clear strengths and weaknesses

Vlad is apparently excellent at scaling product and eng teams. He's also great and seeing the big picture. But his communication skills could apparently use some work.
5. They're profitable


They're adjusted EBITDA came in at +$150 million in 2020, and $115 million in Q1 of this year. This is not just another unprofitable unicorn.
6. They've built a huge audience

RH's first acquisition was a media company. That looks like it's paid off. RobinhoodSnacks has 32 million subscribers. That's a lot of people hearing RH's messaging.
7. They've got competition

RH has to fight on multiple fronts. Traditional finance, neobrokers, other fintech, and entertainment companies all battle with the business.
8. Their valuation is high?

I could see this popping to +$60B. Still, compare RH to Coinbase and it looks expensive. Coinbase is being valued at 6.5x its run rate, and is growing faster. RH is being valued at 19.2x.
9. They're facing a lot of lawsuits

These likely won't harm the company much. So far fines have been immaterial and bad press has spurred signups. Still, something to keep an eye on.
10. They're trendsetters

No company has been played a bigger role in making investing a cultural phenomenon than RH.

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More from @mariodgabriele

9 Jul
Most people have heard of Masa Son. What most people don't know is that Masa has a brother who is a billionaire in his own right.

He helped launch Yahoo Japan, founded one of the biggest gaming companies and and is an investor in companies like Zoox.

Here's Taizo Son's story 👇
Taizo was born on the island of Kyushu, Japan as the youngest child of the Son family.

The age difference between Taizo and Masa? 15 years.

By the time Taizo was in primary school, Masa was already a millionaire.
Due to the large age difference, Taizo didn't consider Masa as a role model.

As he describes it, his brother was so much older than him that it was hard to compare himself to Masa.

The person that inspired him most: Jerry Yang, the co-founder of Yahoo and 3 years his elder.
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1 Jul
The Generalist still feels like it's just getting started. Momentum building.

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If you want to dive straight into the deck, you can follow the link below, watch the video, or keep on scrolling...
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But... Image
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Been thinking a lot about startup ideas recently as part of @thegeneral1st's Requests for Startups briefings.

Here are a few ideas I genuinely believe could become billion-dollar businesses:
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Consumers rely on antiquated, expensive, insecure platforms. What could this process look like on-chain?

- No single point of failure,
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As managing CO2 emissions and energy usage becomes more critical for all enterprises, could climate become a core function within companies?
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These can become massive ecosystems in time.
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Since 2015, capital investment has grown *40%* per year. That is nuts.
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Extremely excited for The Generalist's upcoming piece:

"Tech in Africa"

Meet the team...
@iaboyeji @Nicho0le @haydenalcalde @sgrin77
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If you follow African entrepreneurship, you know @iaboyeji. He's been a founder of @Andela, @theflutterwave, and now @anafricanfuture. Image
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.@stripe's keynote was absurdly impressive.

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The company had 173 *billion* API requests. Performance is seemingly unaffected, even during busy days.
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