Robinhood, the app-based trading platform, looks set to hit the public markets this year after filing confidential paperwork with the Securities and Exchange Commission this week.
Robinhood is far from the only financial technology, or fintech, startup expected to make its public debut this year.
From Betterment and Chime to Coinbase and BlockFi, the IPO market for fintech companies still has plenty to offer in 2021, though their valuations may be slashed, according to Kathleen Smith, IPO ETF manager at Renaissance Capital.
“The IPO market is starting to get weighed under by the amount of issuance that we’ve seen, and the multiples so there’s like a valuation reset happening in the IPO market,” she told Yahoo Finance.
The company filed an S-1 with the SEC last month ahead of its expected direct listing.
It’s more akin to something like Rocket Mortgage, whose parent company Rocket Companies went public in August 2020, raising $1.8 billion at a valuation of $36 billion.
The company raised $350 million in additional funding in March, putting its valuation at a whopping $3 billion.