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Speaker 2: Urs what's going on.

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Speaker 3: Universities are outdated and don't teach you how to become

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Speaker 3: an entrepreneur. They just teach you how to become an employee.

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Speaker 4: You go to school for four years and you leave

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Speaker 4: with nothing but debt. But here are EYL University. Our

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Speaker 4: curriculum is much different.

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Speaker 3: Our university teaches you real world skills that you can

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Speaker 3: use to gain financial freedom right away. In traditional universities,

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Speaker 3: you learn from professors that have never did what they teach,

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Speaker 3: and they teach you how to become an employee. At

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Speaker 3: our university, we use instructors that are currently successful in

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Speaker 3: specific field that they teach, and they teach you how

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Speaker 3: to become an entrepreneur.

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Speaker 5: Don't wait, don't hesitate it over there now.

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Speaker 6: My graduates from my school being false bad.

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Speaker 7: Drops drop Mike drop bad dry.

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Speaker 4: All right, guys, welcome back e y L Silicon Valley Edition,

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Speaker 4: Billionaire Edition the third time. Yes, yes, yes, very rare.

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Speaker 4: So shout out to Mark Cuban and Mike no regrets.

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Speaker 4: Those are the two previous billionaires that we've had on.

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Speaker 4: But this is a much younger situation, much younger gentlemen.

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Speaker 4: So and you might be familiar with his company, perhaps

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Speaker 4: perhaps so Vlad tenef, I say your last name correctly,

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Speaker 4: you did, Thank you. I get very nervous if people

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Speaker 4: Butcher put Butcher my name all the time, so I'm

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Speaker 4: very conscious about that. So thank you for having us.

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Speaker 4: If you guys aren't familiar, CEO of Robin Hood, Robin

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Speaker 4: Hood revolutionized the game when it comes to investing. Brought

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Speaker 4: millions of investors into the fold that previously we're not investing.

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Speaker 5: I think the number is like twenty twenty three million right.

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Speaker 8: Now new investors or total.

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Speaker 5: But over the pandemic, the number was like ridiculous.

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Speaker 4: Every day somebody comes up to me and asks me

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Speaker 4: to look at their portfolio, and at least eighty percent

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Speaker 4: of the time when they pull it up, it's Robin.

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Speaker 9: It's good to hear. Glad we're serving people.

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Speaker 4: Yes, and recently went public in July with a current

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Speaker 4: valuation somewhere around forty billion.

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Speaker 5: Dollars give or take.

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Speaker 2: Yeah.

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Speaker 4: Yeah, So this is going to be an interesting conversation.

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Speaker 4: We're going to go a deep dive in true Eile fashion.

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Speaker 4: So first and foremo, thank you for having us.

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Speaker 2: We appreciate it, Thanks for being here.

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Speaker 4: Yes, yes, all right, so let's get into this. You

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Speaker 4: are a Bulgarian immigrant. I know both of your parents

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Speaker 4: worked at the World Bank. So coming to America, going

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Speaker 4: to Stanford University, which is, you know, one of the

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Speaker 4: premier universities in the wages. Yeah, especially when it comes

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Speaker 4: to tech, probably the number one place for people that

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Speaker 4: are looking at and do tech.

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Speaker 8: I know you had a couple of other.

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Speaker 4: Businesses previously, you had a bit of started in two

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Speaker 4: thousy ten, but then started twenty eleven. Chronoles I think

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Speaker 4: was the last business that you had. But what made

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Speaker 4: you have the idea and start Robinhood in twenty thirteen?

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Speaker 8: Like, where did that come from?

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Speaker 2: Yeah?

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Speaker 9: Well it it was. It was definitely a journey, so

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Speaker 9: I would say when I got to Stanford. Even though

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Speaker 9: Stanford was a university that you associate with entrepreneurship, I

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Speaker 9: wasn't really. I didn't come from a particularly entrepreneurial family.

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Speaker 9: I was interested in science and math growing up, so

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Speaker 9: I thought I would be a professor. So I went

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Speaker 9: to Stanford to study physics, and then I transitioned even

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Speaker 9: more kind of theoretical than physics into math, where you

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Speaker 9: literally have a chalkboard and a couch and that's what

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Speaker 9: you work with, right. I actually went to grad school

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Speaker 9: after graduating UCLA. I did grad school. I was in

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Speaker 9: a math PhD program that I ended up dropping out of.

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Speaker 9: But my sort of I didn't really know what I

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Speaker 9: was going to do with my career, but kind of

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Speaker 9: my default path was to be a math professor. It's

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Speaker 9: pretty much what you do with a math degree, because

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Speaker 9: I really enjoyed. What appealed to me was creating something, which,

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Speaker 9: in the case of being a mathematician, would be you know,

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Speaker 9: like a new theory or something that hopefully hundreds of

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Speaker 9: years from now into the future, if you're lucky, they

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Speaker 9: would teach to high schoolers or other students. So I

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Speaker 9: went there, you know, expecting to be a research mathematician.

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Speaker 9: I met my co founder who I started all these

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Speaker 9: other companies with, and he was also on the same path,

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Speaker 9: started physics and then transitioned to math.

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Speaker 2: And then.

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Speaker 9: Two thousand and eight when we graduated and I went

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Speaker 9: to grad school, and he got a job in the

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Speaker 9: financial industry. Kind of on a whim. The stock market crashed, right,

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Speaker 9: so you had Lehman Brothers going belly up, and the

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Speaker 9: entire uh, the entire market changed and so probably somewhat

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Speaker 9: foolishly if it sounds kind of silly to say it now,

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Speaker 9: but at the time, that seemed like the best time

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Speaker 9: to start a financial company, right when the financial system crashed. Yeah,

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Speaker 9: I mean it was in a way leveling the playing field.

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Speaker 9: So it was a changing of the guard, right like

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Speaker 9: the era of I don't know if you guys have

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Speaker 9: ever seen old movies of you know, traders, people trading

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Speaker 9: on the trading floor. Uh, you know, probably trading trading places.

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Speaker 9: Wall Street Trading Place is one of my favorites. That's

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Speaker 9: eighties from the eighties. They did do a sequel a

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Speaker 9: couple of years ago, but yeah, basically you see those

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Speaker 9: scenes of like the trading pit and the people with

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Speaker 9: the paper tickets flying around, and that really changed in

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Speaker 9: the two thousands, especially after two thousand two thousand and eight.

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Speaker 9: There were no more people with paper tickets, no more

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Speaker 9: manual trading. Everything went completely electronic, and so our previous

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Speaker 9: two businesses we kind of created in the wake of that.

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Speaker 9: So we saw an opportunity as markets were going electronic,

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Speaker 9: to start a software company that basically built the technology

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Speaker 9: and the software to support fully automated trading. And so

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Speaker 9: that's what Chronos was. It was basically a B to

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Speaker 9: B a business to business enterprise software company. We built

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Speaker 9: the technology and we licensed it to financial institutions who

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Speaker 9: couldn't really compete. You know, they were they wanted to

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Speaker 9: get into fully automated trading, but they were still using

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Speaker 9: kind of the people on the phones or the desks.

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Speaker 9: And so we found a little bit of a niche there.

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Speaker 9: And then as we were building that business and growing

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Speaker 9: it and scaling it, Beaiju and I both kind of

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Speaker 9: recognized that, you know, while we saw a path to

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Speaker 9: making making it a big business and growing it to

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Speaker 9: millions in revenue, we just weren't that passionate about about

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Speaker 9: the end the end result of running a big enterprise business.

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Speaker 9: And the way we describe it is, you know, our

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Speaker 9: customers were already rich. I mean, there were institutions, they

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Speaker 9: had money, and we were kind of helping them adapt

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Speaker 9: to this new environment, giving them better technology. But what

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Speaker 9: we really were after was building a consumer product and

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Speaker 9: actually improving the lives of everyday people. And you know,

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Speaker 9: we started thinking, like, twenty years from now, what would

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Speaker 9: we still want to be doing if we, you know,

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Speaker 9: got back from from work after a really hard day,

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Speaker 9: what would make us proud of what we were delivering

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Speaker 9: the people, and through kind of building our previous company, Kronos,

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Speaker 9: we realized how everything worked, how you know, a trade

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Speaker 9: would be processed, how it would be cleared and settled,

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Speaker 9: and all of like the regulatory stuff around that. And

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Speaker 9: then we kind of asked ourselves, well, if these institutional

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Speaker 9: customers that we have are doing millions of trades and

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Speaker 9: we have the technology to support that, what's to say

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Speaker 9: that regular people can't access that either? And why are

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Speaker 9: regular people still paying ten dollars every time they want

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Speaker 9: to make an investment?

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Speaker 5: I remember those days.

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Speaker 3: I always tell a story when I opened the scot

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Speaker 3: trade account and it was like seven dollars every trade.

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Speaker 2: Yeah, I'm like, man, wasn't that long ago?

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Speaker 8: Yeah?

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Speaker 5: Yeah? So the first come was Scelaris. Is that am

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Speaker 5: I saying that? Right?

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Speaker 2: Yeah?

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Speaker 3: So when I was doing a researcher and it feels

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Speaker 3: like we took the trading part of Selaris, we had

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Speaker 3: the institutional side, and we said, okay, I said, well,

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Speaker 3: because I'm like wearing this together, right, Yeah, but you

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Speaker 3: guys saw what you could make. You were inside of

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Speaker 3: the institutional side saying like we've read these people already rich,

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Speaker 3: and you birthed what you what you're known for now

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Speaker 3: is that is that kind of how it worked?

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Speaker 9: Well, we we had we saw what our customers were

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Speaker 9: able to do, what a trade looked like for an institution,

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Speaker 9: the cost structure behind it, which was essentially zero. You know,

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Speaker 9: they were placing some of these some of these customers

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Speaker 9: are placing you know, billions of dollars in dollar value

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Speaker 9: of trades per day, you know, millions of trades per day.

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Speaker 9: And they couldn't do that at if it was seven

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Speaker 9: dollars a trade, right, So the cost structure was fundamentally different.

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Speaker 9: So yeah, then then it's natural. And you know, I

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Speaker 9: remember at the time also watching watching all of Steve

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Speaker 9: Jobs's keynotes for the Apple events, and he had he

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Speaker 9: had rolled out the iPad, the first iPad at around

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Speaker 9: that time, and this was like while we were in

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Speaker 9: the thick of like building out our enterprise product, we

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Speaker 9: sort of saw I still remember watching that keynote and

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Speaker 9: just thinking like how awesome it is to roll out

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Speaker 9: a consumer product and to actually have you know, everyday

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Speaker 9: people wanting what you're building and to just just serve

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Speaker 9: them rather than serving businesses and having to do enterprise sales.

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Speaker 9: It's just fundamentally different. So we wanted to do that,

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Speaker 9: and then we saw an opportunity and when we got

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Speaker 9: the idea for just the simple value proposition, right paying

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Speaker 9: zero dollars per transaction instead of paying seven dollars and

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Speaker 9: kind of making it mobile, because nobody had done that

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Speaker 9: really in the past. All the other brokerages that allowed

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Speaker 9: you to invest on mobile, they basically took their web

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Speaker 9: pages and kind of shrunk them down. They were still complicated,

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Speaker 9: they weren't really built for mobile. You couldn't sign up

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Speaker 9: on mobile. You still needed your computer. So we saw

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Speaker 9: when we got that idea, we knew it was a

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Speaker 9: big idea, and we knew that, you know, if we

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Speaker 9: just brought it to market that.

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Speaker 2: It had to work. I mean, we executed well.

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Speaker 4: It bring an idea and it is something that I'm

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Speaker 4: surprised nobody thought about because it's like that's when I

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Speaker 4: think of Robinhood, I think of two things. Use it interface.

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Speaker 4: It's extremely use it friendly, even on the optional side,

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Speaker 4: which can be complicated. Yeah, it's made it extremely user

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Speaker 4: friendly and it doesn't cost anything, which now everybody kind

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Speaker 4: of has adopted that model. But if you're not familiar

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Speaker 4: with it. It wasn't always the case, like that wasn't always

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Speaker 4: the standard, like you said, it used to be like

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Speaker 4: seven dollars per trade or five dollars per tray or

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Speaker 4: something like that. That adds up over the course of time.

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Speaker 4: So those two key elements were like the foundation to

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Speaker 4: use an interface and having it free.

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Speaker 9: Yeah, well, I think there were a couple of other

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Speaker 9: things there. I think the user interface and being mobile

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Speaker 9: first were important. I think the cost structure is fundamentally important.

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Speaker 9: And if you think about it, if you are someone

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Speaker 9: that's just getting started, hasn't invested before, and you have

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Speaker 9: one hundred dollars, you know, it's kind of a it's

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Speaker 9: a big step to say I'll put one thousand dollars

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Speaker 9: towards something. If you're just getting started, that's kind of

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Speaker 9: a big commitment. But ten dollars one hundred dollars you

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Speaker 9: could theoretically start with that. But if you're paying seven

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Speaker 9: dollars per transaction, that was just not possible, like it

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Speaker 9: would the fees would eat into every trade, and it

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Speaker 9: would be impossible to diversify as well. So if you

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Speaker 9: want a portfolio with seven different stocks, you know, that's

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Speaker 9: seventy dollars or fifty dollars if you wanted to make

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Speaker 9: those seven transactions. So it was actually impossible or very

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Speaker 9: very difficult to get started with.

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Speaker 2: Small a bounts of money.

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Speaker 9: But I think the other thing also was you look

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Speaker 9: more broadly, and now people talk about fintech as kind

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Speaker 9: of a space, as a big industry. You know, lots

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Speaker 9: of fintech companies, cryptos now becoming a bigger and bigger thing.

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Speaker 9: But when we got started, people weren't really starting financial

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Speaker 9: companies very much. I mean, you look at Google trends

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Speaker 9: sometimes I do this. If you look at fintech, there

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Speaker 9: was like nothing up until twenty fifteen, right, and then

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Speaker 9: you've seen a steady increase and now you know tons

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Speaker 9: of fintech companies across insurance, across spending saving you know people,

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Speaker 9: there's a lot of a lot of innovation, and investors

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Speaker 9: didn't used to invest in it. I mean, when we

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Speaker 9: were first getting started and we tell people we wanted

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Speaker 9: to create a regulated brokerage, that would scare a lot

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Speaker 9: of people off. It'd be like, we haven't seen that before.

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Speaker 9: You know, we're funding consumer apps and you know you

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Speaker 9: don't want it. You don't want to be regulated, That's

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Speaker 9: what they tell us. You definitely don't want to be

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Speaker 9: regulated because that's just going to be really hard. You're

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Speaker 9: not going to be able to innovate. And you know,

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Speaker 9: the only regulated companies are these companies that are forty

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Speaker 9: years old and have you know, billion dollar marketing budgets.

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Speaker 9: So I think just the the decision to build a

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Speaker 9: regulated brokerage at the time was a it was kind

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Speaker 9: of contrarian, right. We were like, we're not going to

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Speaker 9: stay away from this. We know that, you know, to

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Speaker 9: do that is going to be hard, and because it's hard,

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Speaker 9: not that many people have done it recently, and you know,

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Speaker 9: we think we think there's something there. And we kind

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Speaker 9: of understood that process too, of what it meant to

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Speaker 9: be regulated and operating in a regulated industry from our

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Speaker 9: previous experience, and we knew that it wasn't as scary

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Speaker 9: as you know, people people initially thought. You just kind

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Speaker 9: of had to figure it out and work through it

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Speaker 9: like any other any other problem or constraint.

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Speaker 4: Me let me ask you this, as far as a

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Speaker 4: lot of people that listen to our platform are aspiring

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Speaker 4: entrepreneurs or young just getting started, so the number one

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Speaker 4: heard was always funding. So you know, we see where

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Speaker 4: Robinhood is now obviously, you know, like I said, forty

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Speaker 4: billion dollar valuation, but it didn't away start like that.

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Speaker 4: So can you walk us through the process of funding?

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Speaker 4: Did you sell fund did you get money from family?

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Speaker 4: I'm assuming angel investors came in at some point, but

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Speaker 4: can you kind of just walk up through that.

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Speaker 9: Yeah, So there were a couple of different We we

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Speaker 9: had a long period where we had just raised some

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Speaker 9: seed money. So that started in like twenty twelve, twenty thirteen,

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Speaker 9: and we probably raised in aggregate about three million dollars

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Speaker 9: in seed capital, and that was probably the hardest outside investors.

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Speaker 9: Outside investors, lots of them, lots of small investors. We

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Speaker 9: were actually you could find robin Hood an angel list

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Speaker 9: in twenty twelve or twenty thirteen on the wrong sites,

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Speaker 9: So you know, talk to a lot of people. A

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Speaker 9: lot of people were skeptical, but there were some people

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Speaker 9: that made early bets into the business and kind of

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Speaker 9: kind of took that bet. So Index Ventures invested in

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Speaker 9: our seed round and then a bunch of subsequent rounds too.

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Speaker 9: So that was Jan Hammer who led the seed round,

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Speaker 9: led the a round as well, and is still on

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Speaker 9: our board through IPO. We had Google Ventures. We had

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Speaker 9: Tim Draper from Draper Fisher Jervis. Yeah, lots of lots

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Speaker 9: of angel investors.

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Speaker 8: Got big names out the gate. Well that's a big name.

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Speaker 9: Yeah, so he came towards the end of our seed round,

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Speaker 9: but yeah, it was very early.

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Speaker 3: So what was that process like, Because I'm thinking generationally

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Speaker 3: at the time, you're in your twenties. Yeah, tell them

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Speaker 3: about a product that's revolutionary to our generation. For sure,

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Speaker 3: it's simplistic in its design. But these guys are traditionalists.

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Speaker 5: So what was that like?

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Speaker 3: In a sense traditionalist because they've been in the financial

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Speaker 3: industry for years, never seen anything like this. I feel

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Speaker 3: like when we talk about technology and anything that's new,

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Speaker 3: people are rigid, and yeah, they hesitant toward it. So

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Speaker 3: what was that like even explaining it to get the

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Speaker 3: seed funded.

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Speaker 9: I mean, I think that the people that got it,

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Speaker 9: there were some people that got very excited about it,

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Speaker 9: and you know, I think they looked at the quality

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Speaker 9: of the team and that we were really passionate and

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Speaker 9: and basically you know, wanted to give it a shot

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Speaker 9: right away. Then there's people that needed a little bit

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Speaker 9: of convincing, and you know, they talked through the business

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Speaker 9: model and they really had to understand it. And then

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Speaker 9: there's people, the majority of people that just sort of

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Speaker 9: like wrote it off for one reason or another. Either

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Speaker 9: they looked at the competitors and said, there hasn't been

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Speaker 9: a new brokerage in a long time, you'll never make money,

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Speaker 9: you'll never get customers, YouTube mathematicians. We don't believe you

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Speaker 9: can build a consumer product that's good. So there's a

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Speaker 9: lot of reasons why I think a rational person would

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Speaker 9: say no. I mean, fintech as a category didn't really

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Speaker 9: exist back then either. But yeah, there were people that

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Speaker 9: got excited and really passionate angel investors that supported us

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Speaker 9: and gave us the funding. And I think another thing

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Speaker 9: that made it hard is because it's so regulated. The

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Speaker 9: traditional lean startup methodology where you kind of like test

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Speaker 9: out the messaging and test out whether the value prop

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Speaker 9: of the product resonates with customers, that didn't really work.

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Speaker 9: So we had to actually get all the regulatory approvals

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Speaker 9: and the license before we could start marketing a brokerage

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Speaker 9: produc because it was so regulated. So it's a little

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Speaker 9: bit of a of a chicken and egg problem because

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Speaker 9: we needed the funding to get the license. But you know,

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Speaker 9: people would be hesitant to give you funding if they

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Speaker 9: thought that there was a risk that you wouldn't get

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Speaker 9: the license to be a broker. So at the end

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Speaker 9: of the day, you know, we had to talk to

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Speaker 9: a lot of people. I think I said on a podcast,

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Speaker 9: I mean this was obviously an order of magnitude rough approximation,

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Speaker 9: but we probably talked to seventy five investors or more

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Speaker 9: to raise the three million dollars.

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Speaker 3: Yeah, it's like Ryan said, Wilsten ninety nine know this

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Speaker 3: before we got out, Yes.

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Speaker 4: Yeah, well how important was the network? Obviously going to

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Speaker 4: Stanford there's no other better place to go, So where

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Speaker 4: a lot of those relationships built from Stanford? Or I

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Speaker 4: mean your parents would work for the World Bang too,

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Speaker 4: So did you have where did you get those relationships?

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Speaker 8: To even approach angel investors?

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Speaker 9: We had to build them from scratch because even though

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Speaker 9: we had gone to Standford, we were kind of we

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Speaker 9: were like in the math department, and people don't start

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Speaker 9: companies out of the math department.

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Speaker 5: It comes a math team.

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Speaker 9: Again, So neither Baiju or I spent a lot of

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Speaker 9: time you know, we never did internships at Google or Facebook.

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Speaker 9: We didn't you know, go to the CS department. We

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Speaker 9: took some CS classes, but it wasn't like you know nowadays,

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Speaker 9: I think there's like a machine at Stanford where you know,

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Speaker 9: if you're in the CS department, which right now is

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Speaker 9: the most most popular one. But back when, back when

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Speaker 9: I was there, it was before the current kind of

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Speaker 9: like startup friends computer science. Computer science. Yeah, so people

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Speaker 9: were majoring. When I was at Stanford, the number one

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Speaker 9: major was human biology, which is basically pre med and

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Speaker 9: then there were a lot of people that were interested

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Speaker 9: in like investment banking, and they would go into finance,

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Speaker 9: and I think computer science was probably third or fourth.

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Speaker 9: So it was growing. But you know, nowadays, Stanford I

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Speaker 9: think is very integrated with like venture capital, and they've

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Speaker 9: and have like startup accelerators where you could apply and

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Speaker 9: and they can help you out. But you know, when

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Speaker 9: you're a mathematician, you're not you're not really you're not

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Speaker 9: really spending time doing any of that. So we had

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Speaker 9: to build the networks from scratch. And you know, we

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Speaker 9: were in New York actually for our first two companies,

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Speaker 9: and at that time there was No, there was not

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Speaker 9: a lot of venture capital in New York. I mean,

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Speaker 9: now it's probably a little bit better, but in the

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Speaker 9: early twenty tens, late two thousands, there were maybe like

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Speaker 9: a handful of investors in New York. So we moved

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Speaker 9: back to California to start this business, and so we

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Speaker 9: were really starting from scratch. You know, We're coming to

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Speaker 9: a new place and didn't really have the luxury of

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Speaker 9: the Stanford network. And that's why, you know, we hustled.

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Speaker 9: We met investors. We tried to like go two degrees

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Speaker 9: of separation, so we would ask friends if they had

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Speaker 9: any friends that were that were investors.

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Speaker 2: We went on angel list, where.

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Speaker 8: Angel list is a website with that list all angel investors.

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Speaker 9: Yeah, it's a platform. It's a platform and you can

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Speaker 9: create for earlier stage companies. Generally you can create a

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Speaker 9: profile as a startup and then they help you connect

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Speaker 9: with angel investors. And I think there's also recruiting, so

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Speaker 9: some people look for look for jobs and you can

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Speaker 9: you can hire a little bit out of angel list

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Speaker 9: as well.

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Speaker 5: And you said something about having the team.

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Speaker 3: A strong team is a team the network that you

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Speaker 3: found at Stanford or these are people that we just

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Speaker 3: kind of along the journey said you know what you're

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Speaker 3: great at that, we'll find you here.

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Speaker 5: How did you build the team?

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Speaker 9: Yeah, that's actually very unconventional. So because we didn't have

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Speaker 9: because we weren't really in computer science, I couldn't call

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Speaker 9: up my friends that were that were computer science majors

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Speaker 9: and get them to join, right, So we did it

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Speaker 9: in a sense very traditionally. We would get a booth

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Speaker 9: at the Career Fair. So it was actually, you know,

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Speaker 9: a bunch of the big companies, but you could you

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Speaker 9: could get a booth if you're an alumni and you're incorporated.

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Speaker 9: I think it was like seven hundred dollars, and we

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Speaker 9: would collect resumes and actually, you know, Beaiju and I

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Speaker 9: would would man the booths ourselves with our T shirts

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Speaker 9: and hand out swag, and a lot of our really

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Speaker 9: really great initial employees were just from the Stanford Career Fair.

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Speaker 5: And people's escaped career Day all the time.

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Speaker 8: Yeah, yeah, Bible, you never know.

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Speaker 9: There's always a way to I think if you if

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Speaker 9: you're scrappy enough, there's a way to to make it happen.

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Speaker 9: I think not a lot of people would think about

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Speaker 9: going straight to the career fair. But for us, because

438
00:24:39,800 --> 00:24:43,840
Speaker 9: we never had internships at these companies, our only experience

439
00:24:43,920 --> 00:24:46,399
Speaker 9: to like getting a job was the career fair. So

440
00:24:46,440 --> 00:24:48,040
Speaker 9: it was sort of like the first thing that came

441
00:24:48,080 --> 00:24:49,879
Speaker 9: to mind. Oh, of course, that's how we want to

442
00:24:49,960 --> 00:24:52,879
Speaker 9: hire people. Let's just figure out how to how to

443
00:24:52,880 --> 00:24:53,879
Speaker 9: get one of those booths.

444
00:24:54,000 --> 00:24:55,480
Speaker 5: I got my first job at a career fair.

445
00:24:55,560 --> 00:24:55,840
Speaker 8: Did you?

446
00:24:56,040 --> 00:24:56,359
Speaker 5: Yeah?

447
00:24:56,560 --> 00:24:58,840
Speaker 3: I was how to tell it was like interviewing you

448
00:24:58,880 --> 00:25:01,919
Speaker 3: in the booth that was like education expo, and I

449
00:25:01,960 --> 00:25:04,440
Speaker 3: was sitting there. You get an interview and they'll tell

450
00:25:04,440 --> 00:25:06,399
Speaker 3: you to come back to the school. I bombed the

451
00:25:06,400 --> 00:25:08,520
Speaker 3: first one and I was sitting waiting for my friend

452
00:25:08,520 --> 00:25:10,560
Speaker 3: to do the next one. And I was like, I

453
00:25:10,560 --> 00:25:12,400
Speaker 3: need a job, and the guy was like, you need

454
00:25:12,400 --> 00:25:14,320
Speaker 3: a job? I told to me, And that's how I

455
00:25:14,359 --> 00:25:14,800
Speaker 3: got my job.

456
00:25:14,800 --> 00:25:16,760
Speaker 4: That's how people are getting hired as teachers these days.

457
00:25:18,320 --> 00:25:20,960
Speaker 4: Be very I was fifteen years ago. You're listening in

458
00:25:21,200 --> 00:25:23,399
Speaker 4: New York City, Chao children, you should be very disturbed

459
00:25:24,200 --> 00:25:27,120
Speaker 4: if they go to public school. So let me ask

460
00:25:27,119 --> 00:25:29,879
Speaker 4: you this. It seems like this has happened very quickly.

461
00:25:29,960 --> 00:25:32,679
Speaker 4: So at what point do you get the app up

462
00:25:32,720 --> 00:25:35,479
Speaker 4: and running and actually have a product that people are

463
00:25:35,520 --> 00:25:37,480
Speaker 4: actually downloading and starting to use.

464
00:25:37,720 --> 00:25:40,080
Speaker 9: Yeah, good question. It does seem the way when I

465
00:25:40,119 --> 00:25:43,080
Speaker 9: talk about it here, it seems like it happens very quickly,

466
00:25:43,160 --> 00:25:46,240
Speaker 9: but it it took years, right like we first got

467
00:25:46,240 --> 00:25:49,640
Speaker 9: the idea. So we moved back to California from New

468
00:25:49,720 --> 00:25:54,000
Speaker 9: York during the Kronos stays in twenty eleven, end of

469
00:25:54,040 --> 00:25:57,840
Speaker 9: twenty eleven, and we get the idea for robin Hood

470
00:25:57,880 --> 00:25:59,080
Speaker 9: February twenty twelve.

471
00:25:59,600 --> 00:26:00,640
Speaker 5: Who comes up with the name?

472
00:26:01,359 --> 00:26:05,560
Speaker 9: Actually, my wife came up with the name. My girlfriend

473
00:26:05,560 --> 00:26:08,240
Speaker 9: at the time now wife, and she was trying to

474
00:26:08,280 --> 00:26:10,760
Speaker 9: explain to her friends what I what I was doing,

475
00:26:11,240 --> 00:26:15,600
Speaker 9: and she'd be like, oh, well, you know my boyfriend Vlad,

476
00:26:15,640 --> 00:26:18,200
Speaker 9: he's in finance, and then they'd kind of grow and

477
00:26:18,240 --> 00:26:20,840
Speaker 9: they'd be like, yeah, I think of some kind of

478
00:26:20,960 --> 00:26:24,080
Speaker 9: investment banker or something, and then she'd say, no, no, no,

479
00:26:24,359 --> 00:26:26,600
Speaker 9: you know, they're kind of the Robinhood of finance. They're

480
00:26:26,600 --> 00:26:29,639
Speaker 9: trying to build something new for the little guy.

481
00:26:29,760 --> 00:26:33,400
Speaker 2: And so then Beiju and I.

482
00:26:33,320 --> 00:26:35,359
Speaker 9: Had a couple of ideas for the name, and we

483
00:26:35,840 --> 00:26:39,119
Speaker 9: asked some of our employees, but both of us just

484
00:26:39,200 --> 00:26:43,080
Speaker 9: kind of liked Robinhood. We thought that it stood for something,

485
00:26:43,160 --> 00:26:48,800
Speaker 9: you know, something very powerful, a powerful idea, And you know,

486
00:26:48,840 --> 00:26:52,919
Speaker 9: I think Jeff Bezos says that the name is probably

487
00:26:53,040 --> 00:26:55,639
Speaker 9: like three percent of it, but sometimes that three percent

488
00:26:55,880 --> 00:26:59,479
Speaker 9: is the difference between doing very well and not so

489
00:27:00,680 --> 00:27:04,159
Speaker 9: pretty happy with with how it ended up. And I

490
00:27:04,200 --> 00:27:07,080
Speaker 9: do think that, you know, we're trying very very hard

491
00:27:07,160 --> 00:27:13,400
Speaker 9: to stay true to your missions. Dame stands for yeah, yes, okay.

492
00:27:13,680 --> 00:27:16,800
Speaker 4: So what what year does Robinhood actually get up and

493
00:27:16,880 --> 00:27:18,719
Speaker 4: run out to the public.

494
00:27:18,800 --> 00:27:21,639
Speaker 9: Yes, we get the idea twenty twelve, We spend a

495
00:27:21,640 --> 00:27:24,040
Speaker 9: lot of time getting the licenses, We launch a wait

496
00:27:24,119 --> 00:27:28,200
Speaker 9: list December of twenty thirteen, and then the app hits

497
00:27:28,240 --> 00:27:31,240
Speaker 9: the app Store in beta December of twenty fourteen, so

498
00:27:31,320 --> 00:27:37,439
Speaker 9: about a year after the waitlist and maybe a year

499
00:27:37,480 --> 00:27:39,520
Speaker 9: and a half two years after we get the idea

500
00:27:39,920 --> 00:27:42,439
Speaker 9: two and a half years actually, and then public launch

501
00:27:42,640 --> 00:27:43,840
Speaker 9: March of twenty fifteen.

502
00:27:44,520 --> 00:27:49,280
Speaker 4: So at what point do you guys start to market

503
00:27:49,359 --> 00:27:52,359
Speaker 4: Because it feels like I never I didn't really remember

504
00:27:52,400 --> 00:27:55,200
Speaker 4: seeing like Robinhood commercials. It's just one of these things

505
00:27:55,200 --> 00:27:58,359
Speaker 4: that everybody just had Robinhood overnight. So like, what was

506
00:27:58,359 --> 00:28:01,800
Speaker 4: the marketing plan for to just become as popular as

507
00:28:01,800 --> 00:28:02,600
Speaker 4: it become.

508
00:28:02,880 --> 00:28:03,400
Speaker 2: Well, so.

509
00:28:05,240 --> 00:28:09,560
Speaker 9: It's largely been word of mouth from the very beginning.

510
00:28:10,280 --> 00:28:13,119
Speaker 9: And in December of twenty thirteen, what we launched was

511
00:28:13,160 --> 00:28:17,439
Speaker 9: a weight list, So basically, you could sign up for

512
00:28:17,480 --> 00:28:19,960
Speaker 9: the weight list, we would let you know when we

513
00:28:20,000 --> 00:28:23,080
Speaker 9: could onboard you, when we could onboard you onto the product,

514
00:28:23,680 --> 00:28:27,920
Speaker 9: and the weight list kind of gives you early access

515
00:28:28,160 --> 00:28:32,600
Speaker 9: to the product. So the weightlist itself, I think you

516
00:28:32,600 --> 00:28:36,800
Speaker 9: could think of as marketing, although the idea was we

517
00:28:36,840 --> 00:28:40,320
Speaker 9: wanted to kind of create a slow and steady way

518
00:28:40,360 --> 00:28:42,920
Speaker 9: to onboard people in the order that they were most

519
00:28:42,920 --> 00:28:45,040
Speaker 9: passionate about the product, So get the people that are

520
00:28:45,080 --> 00:28:49,040
Speaker 9: most excited to try it access first, and that way

521
00:28:49,080 --> 00:28:54,719
Speaker 9: we could get high quality feedback. And yes, of course

522
00:28:55,520 --> 00:29:01,160
Speaker 9: we did just like interviews, so CNBC pretty early on Bloomberg,

523
00:29:01,520 --> 00:29:04,800
Speaker 9: those kinds of places wanted to interview us because it

524
00:29:04,880 --> 00:29:08,280
Speaker 9: was it was a simple to understand idea right commission

525
00:29:08,320 --> 00:29:11,800
Speaker 9: free trading. People kind of knew that trades cost seven dollars,

526
00:29:11,840 --> 00:29:14,920
Speaker 9: so how are these how are these uh these people

527
00:29:14,960 --> 00:29:18,000
Speaker 9: doing it for free? And uh, you know, we were

528
00:29:18,040 --> 00:29:21,520
Speaker 9: able to get close to a million people on the

529
00:29:21,520 --> 00:29:24,560
Speaker 9: wait list in a year, which was a lot of

530
00:29:24,600 --> 00:29:28,560
Speaker 9: pre launch I mean for a financial product, probably among

531
00:29:28,640 --> 00:29:34,000
Speaker 9: the biggest pre launch weight lists in history at the time.

532
00:29:34,280 --> 00:29:37,000
Speaker 4: And then once it comes out, it's just wow, wildfire

533
00:29:37,120 --> 00:29:38,280
Speaker 4: just started spreading like wildfire.

534
00:29:38,520 --> 00:29:41,480
Speaker 9: Yes, we knew when the weight list was was live

535
00:29:41,520 --> 00:29:44,440
Speaker 9: that people were interested in it, so we kind of

536
00:29:44,480 --> 00:29:47,080
Speaker 9: had our We kind of had the wind at our

537
00:29:47,120 --> 00:29:51,080
Speaker 9: back since the the waitlist launch and then uh when

538
00:29:51,080 --> 00:29:55,040
Speaker 9: it when it went live, I mean it was it

539
00:29:55,080 --> 00:29:59,320
Speaker 9: was pretty consistent. I mean, we grew pretty consistently people

540
00:30:00,280 --> 00:30:03,400
Speaker 9: people were interested in the idea, and then that's when

541
00:30:03,480 --> 00:30:07,120
Speaker 9: kind of the iteration engine started, so we would I

542
00:30:07,120 --> 00:30:09,080
Speaker 9: think one of the one of the interesting things you

543
00:30:09,160 --> 00:30:12,000
Speaker 9: learn is that in a consumer product, you get a

544
00:30:12,000 --> 00:30:15,320
Speaker 9: lot of customer feedback, and so you listen to the feedback,

545
00:30:15,520 --> 00:30:19,040
Speaker 9: and we really built a process from the very beginning

546
00:30:19,320 --> 00:30:23,120
Speaker 9: of you know, going to people's houses in some cases,

547
00:30:23,160 --> 00:30:25,960
Speaker 9: watching them use the product, having them come to our office,

548
00:30:26,440 --> 00:30:28,920
Speaker 9: seeing you know, what they were struggling with, what their

549
00:30:28,960 --> 00:30:33,400
Speaker 9: pain points were, and then and then kind of reasoning

550
00:30:33,400 --> 00:30:35,720
Speaker 9: from first principles to figure out how to solve them.

551
00:30:36,000 --> 00:30:39,280
Speaker 9: So a bunch of our early products, like Robinhood instant

552
00:30:39,480 --> 00:30:43,600
Speaker 9: Robinhood Gold. They solved customer pain points and we would

553
00:30:43,640 --> 00:30:46,840
Speaker 9: see as soon as we rolled them out that you know,

554
00:30:46,960 --> 00:30:49,840
Speaker 9: we'd grow a little bit faster, the business would improve.

555
00:30:50,320 --> 00:30:53,000
Speaker 9: And then you know that really built the product development

556
00:30:53,120 --> 00:30:54,320
Speaker 9: process that we have today.

557
00:30:55,360 --> 00:30:57,640
Speaker 3: When so when you built the app and you had

558
00:30:57,680 --> 00:31:02,280
Speaker 3: the design team where you very super intentional about saying,

559
00:31:02,320 --> 00:31:05,400
Speaker 3: I want to make this appealing to a younger audience

560
00:31:05,480 --> 00:31:08,640
Speaker 3: because if you look at your demographics now, right eighteen

561
00:31:08,680 --> 00:31:11,880
Speaker 3: to forty is that's the sweet spot for robber Hood users.

562
00:31:12,360 --> 00:31:14,400
Speaker 3: So what you're thinking, all right, we're gonna get We're

563
00:31:14,400 --> 00:31:17,440
Speaker 3: gonna start younger with a younger audience. Here's how we'll

564
00:31:17,480 --> 00:31:20,080
Speaker 3: do with this interface. It's user friendly, it'll be appealing

565
00:31:20,080 --> 00:31:21,760
Speaker 3: to a young audience. Is that was at the initial

566
00:31:21,880 --> 00:31:23,040
Speaker 3: thought when building interface.

567
00:31:23,600 --> 00:31:26,240
Speaker 9: I think the initial thought was that we would target

568
00:31:26,360 --> 00:31:31,880
Speaker 9: a younger customer. And it wasn't It wasn't necessarily because

569
00:31:33,600 --> 00:31:37,200
Speaker 9: you know, we didn't want to target target people that

570
00:31:37,520 --> 00:31:40,080
Speaker 9: you know, were more experienced or older. It's just that

571
00:31:40,120 --> 00:31:43,440
Speaker 9: as we thought about it, we thought that there were

572
00:31:43,440 --> 00:31:46,560
Speaker 9: people that were underserved, and it was people with less

573
00:31:46,600 --> 00:31:50,720
Speaker 9: money and people that you know didn't already have a

574
00:31:50,760 --> 00:31:55,840
Speaker 9: brokerage account and also juxtaposed that with like people who

575
00:31:55,840 --> 00:32:01,360
Speaker 9: are mobile savvy, and you know, they were mobile savvy

576
00:32:01,880 --> 00:32:06,680
Speaker 9: and were likely to be early adopters of new financial products.

577
00:32:06,760 --> 00:32:09,960
Speaker 9: So you're kind of like zero into two younger demographic

578
00:32:10,760 --> 00:32:14,000
Speaker 9: in any case, And not to mention we were building

579
00:32:14,600 --> 00:32:16,800
Speaker 9: We were building it ourselves, right, and we were in

580
00:32:16,840 --> 00:32:19,320
Speaker 9: our twenties at the time, so we wanted to build

581
00:32:19,360 --> 00:32:23,080
Speaker 9: something that we could use and could appeal to us

582
00:32:23,160 --> 00:32:28,040
Speaker 9: and also could appeal to, you know, to a broader demographic.

583
00:32:28,920 --> 00:32:31,080
Speaker 4: So let me ask you this because there's always hiccups

584
00:32:31,080 --> 00:32:33,840
Speaker 4: and there's always problems, but I think it's important that

585
00:32:33,880 --> 00:32:37,280
Speaker 4: people actually know the truth. So obviously everybody heard about

586
00:32:37,280 --> 00:32:41,040
Speaker 4: the game Stop situation, yeah, and you spoke about that,

587
00:32:41,080 --> 00:32:44,640
Speaker 4: but our audience might not have been on those platforms.

588
00:32:44,160 --> 00:32:46,400
Speaker 8: That you've actually articulated what happened.

589
00:32:46,440 --> 00:32:48,880
Speaker 4: So can you explain, because we actually got caught not

590
00:32:48,920 --> 00:32:52,200
Speaker 4: with Robinhood another brokerage we won't we won't name, but

591
00:32:52,480 --> 00:32:54,640
Speaker 4: we got we got caught with that where we put

592
00:32:54,680 --> 00:32:58,480
Speaker 4: a put on Game Stop, oh yeah, and the put

593
00:32:58,520 --> 00:33:05,160
Speaker 4: one crazy and one we were up upwards of Fiery

594
00:33:05,880 --> 00:33:08,760
Speaker 4: and tried to sell it and we couldn't sell it,

595
00:33:09,280 --> 00:33:10,960
Speaker 4: and then we ended up losing money on a long

596
00:33:11,000 --> 00:33:13,680
Speaker 4: story short, So I sympathized with people that couldn't sell

597
00:33:13,680 --> 00:33:15,760
Speaker 4: their game stops positions because it just so happens that

598
00:33:15,800 --> 00:33:16,760
Speaker 4: we were one of those people.

599
00:33:17,120 --> 00:33:18,760
Speaker 8: Like I said, it wasn't Robinhood, it was another. It

600
00:33:18,800 --> 00:33:19,719
Speaker 8: was another that's good to hear.

601
00:33:20,960 --> 00:33:23,280
Speaker 4: So a lot of people that you know, just got

602
00:33:23,320 --> 00:33:26,080
Speaker 4: into investing, they would they wasn't sure exactly what happened.

603
00:33:26,080 --> 00:33:28,640
Speaker 4: Can you just kind of explain what happened when you

604
00:33:28,680 --> 00:33:32,520
Speaker 4: had the halt trading? I believe right you halted selling

605
00:33:32,560 --> 00:33:36,000
Speaker 4: and buying a robbin of GameStop for a day or two.

606
00:33:36,120 --> 00:33:42,000
Speaker 9: Just the Yeah, we had to halt opening positions. So

607
00:33:42,280 --> 00:33:46,959
Speaker 9: it was it was any any position that sort of

608
00:33:47,160 --> 00:33:50,920
Speaker 9: increased risk. So for example, since we don't allow shorting,

609
00:33:52,160 --> 00:33:57,360
Speaker 9: it was you couldn't buy the Meme stocks, because you know,

610
00:33:57,440 --> 00:33:59,320
Speaker 9: if we had allowed shorting, it would be you couldn't

611
00:33:59,320 --> 00:34:03,160
Speaker 9: open short position as well. But that's why it was

612
00:34:03,200 --> 00:34:06,680
Speaker 9: the buy side. And then in options, since you guys

613
00:34:06,720 --> 00:34:11,000
Speaker 9: mentioned that opening up options contracts, whether they be on

614
00:34:11,080 --> 00:34:15,759
Speaker 9: the long side or the short side, was not allowed either.

615
00:34:16,280 --> 00:34:20,120
Speaker 9: But you could always throughout the process, you could always

616
00:34:20,160 --> 00:34:25,120
Speaker 9: close out your existing positions, so we didn't. We didn't

617
00:34:25,120 --> 00:34:27,640
Speaker 9: disallow you know, selling a stock if you had it,

618
00:34:27,800 --> 00:34:30,719
Speaker 9: or selling a put or a call, or closing out.

619
00:34:31,080 --> 00:34:34,160
Speaker 9: You couldn't open new positions for the time period that

620
00:34:34,320 --> 00:34:37,880
Speaker 9: we restricted the trading. And you know, really what it

621
00:34:38,080 --> 00:34:43,759
Speaker 9: was was I call it five sigma event, So I

622
00:34:43,800 --> 00:34:46,279
Speaker 9: think one in three point five million. I mean, we'd

623
00:34:46,280 --> 00:34:53,759
Speaker 9: never seen anything like that before, which was basically you

624
00:34:53,760 --> 00:34:56,560
Speaker 9: combine social media and the financial markets.

625
00:34:57,160 --> 00:34:58,239
Speaker 2: The idea of.

626
00:35:00,160 --> 00:35:04,480
Speaker 9: You know, people getting together and banding together all to

627
00:35:04,520 --> 00:35:09,000
Speaker 9: buy a handful of stocks, you know, game Stop, AMC

628
00:35:09,120 --> 00:35:15,360
Speaker 9: and a few others, and yeah, these people essentially made

629
00:35:15,400 --> 00:35:18,480
Speaker 9: the purchasing of the stocks go viral on social media,

630
00:35:19,080 --> 00:35:21,719
Speaker 9: and so it went viral and social media, but then

631
00:35:21,880 --> 00:35:25,720
Speaker 9: sort of spilled over into the financial markets because people

632
00:35:25,719 --> 00:35:29,319
Speaker 9: would download broker j apps. You know, Robinhood went to

633
00:35:30,080 --> 00:35:33,000
Speaker 9: number one on the App store during that time period overall,

634
00:35:33,080 --> 00:35:35,799
Speaker 9: which is very rare for a financial product.

635
00:35:35,520 --> 00:35:38,680
Speaker 2: Because number fifteen right now in finance, I.

636
00:35:38,600 --> 00:35:41,239
Speaker 9: Think, yeah, yeah, this was number one overall, ahead of

637
00:35:41,280 --> 00:35:45,960
Speaker 9: like TikTok and Snapchat, Instagram, And I think the market's

638
00:35:46,040 --> 00:35:49,000
Speaker 9: just what ended up happening. Was the markets weren't built

639
00:35:49,000 --> 00:35:49,200
Speaker 9: for that.

640
00:35:49,360 --> 00:35:51,360
Speaker 8: Too much stress being put on the market.

641
00:35:51,640 --> 00:35:56,680
Speaker 9: Yeah, so the collateral requirements, that deposit requirements went up,

642
00:35:56,960 --> 00:35:58,840
Speaker 9: and a lot of this is covered. I had to

643
00:35:58,840 --> 00:36:01,320
Speaker 9: give a testimony to the House Financial Services.

644
00:36:02,600 --> 00:36:03,680
Speaker 5: Yeah, it was a little short.

645
00:36:03,800 --> 00:36:05,439
Speaker 9: Then it was a little bit I had to clean

646
00:36:05,480 --> 00:36:10,520
Speaker 9: it up, but I've let it grow out since then. Yeah,

647
00:36:10,760 --> 00:36:14,399
Speaker 9: I got a lot of a lot of criticism from

648
00:36:14,480 --> 00:36:15,080
Speaker 9: a haircut.

649
00:36:15,239 --> 00:36:19,400
Speaker 4: So you you yes, I don't know who Lord Valiant

650
00:36:19,600 --> 00:36:22,640
Speaker 4: look that up, Prince Valiant or something. So in front

651
00:36:22,640 --> 00:36:24,879
Speaker 4: of college you said it wasn't really you had enough

652
00:36:25,640 --> 00:36:28,400
Speaker 4: for capital, but it was it was not enough liquidity

653
00:36:28,440 --> 00:36:29,759
Speaker 4: for the immediate collateral.

654
00:36:30,880 --> 00:36:31,600
Speaker 2: Well, it was.

655
00:36:31,719 --> 00:36:38,080
Speaker 9: It was basically, you know, the the requirements were growing exponentially.

656
00:36:38,600 --> 00:36:41,399
Speaker 9: So certainly we had enough to meet our capital call

657
00:36:41,520 --> 00:36:46,480
Speaker 9: that Thursday, and we met our deposit requirements. But if

658
00:36:46,480 --> 00:36:49,799
Speaker 9: you're number one on the app store, it's it's sort of, uh,

659
00:36:50,760 --> 00:36:54,240
Speaker 9: how far could it continue? Yeah, so you know, Robinhood

660
00:36:54,280 --> 00:36:58,520
Speaker 9: Securities are clearing firm. A lot of other brokers ended

661
00:36:58,600 --> 00:36:59,800
Speaker 9: up with the same issue.

662
00:37:00,040 --> 00:37:00,399
Speaker 2: M hmm.

663
00:37:00,880 --> 00:37:03,560
Speaker 9: A bunch of other brokers essentially had to had to

664
00:37:03,600 --> 00:37:08,200
Speaker 9: come up with the same thing, but since we were

665
00:37:08,800 --> 00:37:11,279
Speaker 9: since we were vertically integrated and we had our own

666
00:37:11,280 --> 00:37:16,040
Speaker 9: clearing firm, it was all inside Robinhood. So Robinhood Security

667
00:37:16,040 --> 00:37:19,960
Speaker 9: has had to make the decision to pco the stocks

668
00:37:19,960 --> 00:37:22,480
Speaker 9: and the options for all these things, and then we

669
00:37:22,520 --> 00:37:24,960
Speaker 9: went out and raised billions of dollars to try to

670
00:37:25,040 --> 00:37:25,799
Speaker 9: unrestrict them.

671
00:37:25,840 --> 00:37:27,560
Speaker 4: I'm gonna I'm gonna ask you about that. But before

672
00:37:27,600 --> 00:37:29,640
Speaker 4: I ask you about this, I still this is clear.

673
00:37:29,640 --> 00:37:31,440
Speaker 4: I haven't I used to be a financial advisor, and

674
00:37:31,520 --> 00:37:33,080
Speaker 4: I haven't heard this term in a long time.

675
00:37:33,120 --> 00:37:34,239
Speaker 8: But when I was reading.

676
00:37:33,960 --> 00:37:36,960
Speaker 4: It the T plus two timeline, Yeah, and you were

677
00:37:37,040 --> 00:37:41,440
Speaker 4: saying that that's problematic. Well, hey, can you explain what

678
00:37:41,440 --> 00:37:42,040
Speaker 4: that is for people?

679
00:37:42,080 --> 00:37:42,439
Speaker 8: And why?

680
00:37:42,600 --> 00:37:44,560
Speaker 4: Why is that something that needs to be changed? You

681
00:37:44,600 --> 00:37:46,359
Speaker 4: said that that's to be something that should be done

682
00:37:46,360 --> 00:37:47,000
Speaker 4: immediately and.

683
00:37:46,960 --> 00:37:51,480
Speaker 9: Not yeah, two days. So yeah, this is a very

684
00:37:51,680 --> 00:37:57,200
Speaker 9: sort of arcade thing. But I'll try to I'll try

685
00:37:57,200 --> 00:38:03,359
Speaker 9: to explain it in as easy terms as possible. So, uh, yeah,

686
00:38:03,400 --> 00:38:08,160
Speaker 9: imagine Robinhood is like a ice cream store, right, instead

687
00:38:08,160 --> 00:38:12,279
Speaker 9: of selling stocks, we sell people ice cream. And you

688
00:38:12,280 --> 00:38:14,279
Speaker 9: know you're a customer, you want your ice cream you

689
00:38:14,320 --> 00:38:20,719
Speaker 9: go to Robinhood, and the current financial market situation would

690
00:38:20,760 --> 00:38:27,000
Speaker 9: be basically as if we take your money, we put

691
00:38:27,000 --> 00:38:31,440
Speaker 9: it in a safe for two days, then we give

692
00:38:31,480 --> 00:38:32,680
Speaker 9: you the ice cream.

693
00:38:33,080 --> 00:38:33,480
Speaker 8: Uh.

694
00:38:33,840 --> 00:38:39,040
Speaker 9: But then we take we take our corporate money, right,

695
00:38:39,160 --> 00:38:43,000
Speaker 9: our corporate cash, and you know, give it to our suppliers.

696
00:38:43,600 --> 00:38:46,360
Speaker 9: So you know, you'd think we just take your cash,

697
00:38:46,400 --> 00:38:48,920
Speaker 9: give you your ice cream, and it's very simple like that,

698
00:38:49,360 --> 00:38:52,839
Speaker 9: but we actually have to lock up the customer cash, uh,

699
00:38:53,760 --> 00:38:57,239
Speaker 9: just in case something happens with the bank transaction like

700
00:38:57,280 --> 00:39:00,480
Speaker 9: it's it's reversed to control for you know, what's called

701
00:39:00,520 --> 00:39:04,319
Speaker 9: the liquidity risk and the market risk. And then we

702
00:39:04,440 --> 00:39:06,960
Speaker 9: have to use our corporate cash to fund the purchases.

703
00:39:07,360 --> 00:39:13,280
Speaker 9: And you know, the corporate cash is finite. So people

704
00:39:13,320 --> 00:39:15,880
Speaker 9: ask a lot of times, why can't you know, I

705
00:39:15,960 --> 00:39:19,480
Speaker 9: have my thousand dollars, Why can't I just use my

706
00:39:19,600 --> 00:39:20,560
Speaker 9: thousand dollars to.

707
00:39:20,480 --> 00:39:21,240
Speaker 2: Buy the stock.

708
00:39:21,600 --> 00:39:25,759
Speaker 9: Well, for the way that the settlement system works, we

709
00:39:25,840 --> 00:39:27,759
Speaker 9: have to lock up your cash, keep it safe for

710
00:39:27,800 --> 00:39:31,000
Speaker 9: two days, and only then only then can we use

711
00:39:31,040 --> 00:39:33,040
Speaker 9: it to give you your stock. And in the innim

712
00:39:33,120 --> 00:39:35,719
Speaker 9: period we have to put up our own firm cash.

713
00:39:36,000 --> 00:39:39,160
Speaker 9: So obviously in a situation where these where the buying

714
00:39:39,200 --> 00:39:44,759
Speaker 9: activity just goes parabolic, there's limits how much corporate cash

715
00:39:45,120 --> 00:39:49,080
Speaker 9: we can we can actually provide. And so what going

716
00:39:49,080 --> 00:39:51,279
Speaker 9: from T plus two to T plus zero would do

717
00:39:51,920 --> 00:39:55,920
Speaker 9: is allow us to essentially immediately do that that transaction,

718
00:39:56,200 --> 00:39:58,719
Speaker 9: so we wouldn't have to put up corporate cash for

719
00:39:58,880 --> 00:40:03,239
Speaker 9: two days. We could actually exchange exchange the cash and

720
00:40:03,280 --> 00:40:06,000
Speaker 9: the shares immediately. I don't know if the ice cream

721
00:40:06,000 --> 00:40:10,640
Speaker 9: analogy really helped, hopefully.

722
00:40:12,160 --> 00:40:15,680
Speaker 3: So I'm interested on your thoughts about meme stocks because again,

723
00:40:15,960 --> 00:40:17,839
Speaker 3: this is one of the things out a revolutionary right there.

724
00:40:18,040 --> 00:40:20,120
Speaker 5: Weren't meme stocks before.

725
00:40:22,600 --> 00:40:25,160
Speaker 3: Before we heard them about Robinhood and it was like, okay,

726
00:40:25,200 --> 00:40:26,080
Speaker 3: well this is synonymous.

727
00:40:26,120 --> 00:40:28,040
Speaker 5: Well this is the easiest place to get it.

728
00:40:28,440 --> 00:40:30,880
Speaker 3: And so this is kind of a twofold thing because yes,

729
00:40:31,760 --> 00:40:34,000
Speaker 3: more people are involved, right, I don't know how many

730
00:40:34,000 --> 00:40:36,840
Speaker 3: people access should I get game stop just randomly like

731
00:40:36,880 --> 00:40:38,799
Speaker 3: in the supermarket, people like I'm in game stop, I'm

732
00:40:38,800 --> 00:40:41,879
Speaker 3: a game stop. It does bring more people, but they're

733
00:40:41,960 --> 00:40:44,880
Speaker 3: newer investors, not always educated in a sense.

734
00:40:44,960 --> 00:40:47,360
Speaker 5: But the more customers that you have it does help business.

735
00:40:47,480 --> 00:40:50,640
Speaker 3: So what's your thought on the Meme stocks first, and

736
00:40:50,640 --> 00:40:53,120
Speaker 3: then I thought to myself, since it's kind of become

737
00:40:53,120 --> 00:40:54,960
Speaker 3: the home of the stocks because of the accessibility of

738
00:40:54,960 --> 00:40:58,200
Speaker 3: how quickly we can get access to these positions. Yeah,

739
00:40:58,520 --> 00:41:02,760
Speaker 3: we've seen AMC, we've seen GameStop, and now you're publicly

740
00:41:02,800 --> 00:41:05,279
Speaker 3: traded company. What are your thoughts about, like if that

741
00:41:05,320 --> 00:41:08,560
Speaker 3: happens to Robinhood stock itself, Like, what are your thoughts there?

742
00:41:09,000 --> 00:41:12,400
Speaker 9: Well, I would say if you look at the products

743
00:41:12,400 --> 00:41:17,960
Speaker 9: that Robinhood rolls out, my personal opinion is that, you know,

744
00:41:18,000 --> 00:41:21,880
Speaker 9: we'd like to encourage long term habitual investing. It's you

745
00:41:21,920 --> 00:41:22,799
Speaker 9: know over.

746
00:41:24,160 --> 00:41:26,399
Speaker 3: This episode is brought to you by P and C Bank.

747
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764
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766
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769
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778
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780
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781
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782
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783
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784
00:43:37,760 --> 00:43:42,560
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785
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786
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787
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788
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789
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790
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791
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792
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793
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794
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Speaker 2: Sponsored by the United Spaces Department of Homeland Security.

795
00:44:14,680 --> 00:44:18,560
Speaker 9: Time compound, interest and compounding of returns says I'm sure

796
00:44:18,600 --> 00:44:21,960
Speaker 9: you guys, You guys tell your listeners is a very

797
00:44:22,000 --> 00:44:25,760
Speaker 9: powerful force. Einstein I think called it the eighth wonder

798
00:44:25,800 --> 00:44:28,640
Speaker 9: of the world. Compound interest. So just time in the

799
00:44:28,719 --> 00:44:33,239
Speaker 9: market and time spent investing over a long period of

800
00:44:33,239 --> 00:44:36,200
Speaker 9: time really really adds up. And so that's why we

801
00:44:36,320 --> 00:44:41,120
Speaker 9: encourage long term investing through recurring, through fractional diversification, through

802
00:44:41,160 --> 00:44:45,160
Speaker 9: fractional shares, and then of course education, making sure that

803
00:44:46,000 --> 00:44:48,600
Speaker 9: you know, we provide content not just to our customers

804
00:44:48,600 --> 00:44:52,320
Speaker 9: but to the broader world through Robinhood, learn, through in app,

805
00:44:52,640 --> 00:44:57,719
Speaker 9: through snacks and all of our other properties. So I

806
00:44:57,760 --> 00:45:00,520
Speaker 9: tell people and it's on our website. Now, Robinhood a

807
00:45:00,520 --> 00:45:03,800
Speaker 9: safety first company. That's our top value. What that means

808
00:45:03,840 --> 00:45:08,920
Speaker 9: is it means service reliability, right, it means education, it

809
00:45:09,000 --> 00:45:12,359
Speaker 9: means all the safeguards. So you know, we warn you

810
00:45:12,480 --> 00:45:15,640
Speaker 9: if a stock that if you're looking at, if what

811
00:45:15,719 --> 00:45:18,880
Speaker 9: a stock you're looking at is leveraged, if it's a

812
00:45:18,960 --> 00:45:23,680
Speaker 9: leverage et ETF or et AD, if if it's experiencing

813
00:45:23,760 --> 00:45:27,719
Speaker 9: unusual volatility, and then we provide all of the information

814
00:45:28,080 --> 00:45:31,760
Speaker 9: and the data that you might need. And of course

815
00:45:31,800 --> 00:45:33,759
Speaker 9: on top of that, it is self directed. So if

816
00:45:33,760 --> 00:45:35,560
Speaker 9: you want to make a decision to buy into a

817
00:45:35,600 --> 00:45:41,880
Speaker 9: recent IPO or something because it's you know, popular on

818
00:45:41,920 --> 00:45:44,680
Speaker 9: social media. You're you're free to do so, but we

819
00:45:44,719 --> 00:45:46,560
Speaker 9: do want to make sure you have all the information

820
00:45:46,880 --> 00:45:49,319
Speaker 9: and that we give you the tools to encourage that

821
00:45:49,440 --> 00:45:51,200
Speaker 9: long term habitual wealth building.

822
00:45:51,600 --> 00:45:53,480
Speaker 8: See you said something else, very interesting. You said it

823
00:45:53,520 --> 00:45:56,480
Speaker 8: was like one and a.

824
00:45:55,640 --> 00:45:57,360
Speaker 5: Three million or three point five million.

825
00:45:57,520 --> 00:46:00,279
Speaker 4: Yeah, but being that way in a new AI, each

826
00:46:01,600 --> 00:46:05,440
Speaker 4: and these things can continue to happen now because these

827
00:46:05,440 --> 00:46:07,800
Speaker 4: reddic groups and different things that nature are not going anywhere.

828
00:46:07,800 --> 00:46:10,160
Speaker 4: Social media is only getting bigger, more and more young

829
00:46:10,160 --> 00:46:13,160
Speaker 4: people are getting into invest in. So what if this

830
00:46:13,320 --> 00:46:16,480
Speaker 4: happens on an ongoing basis and it doesn't become a

831
00:46:16,480 --> 00:46:18,040
Speaker 4: one in three million, What if it becomes a one

832
00:46:18,080 --> 00:46:21,600
Speaker 4: to ten on a one hundred Yeah, what's your plan

833
00:46:21,640 --> 00:46:24,040
Speaker 4: of action to not have that happen again?

834
00:46:24,600 --> 00:46:24,839
Speaker 8: Well?

835
00:46:24,920 --> 00:46:29,360
Speaker 9: I think immediately, you know, raising the over three billion

836
00:46:29,520 --> 00:46:33,680
Speaker 9: certainly helped provide a cushion, but of course there is

837
00:46:33,800 --> 00:46:36,560
Speaker 9: some There is always a limit to how much firm

838
00:46:36,680 --> 00:46:41,520
Speaker 9: cash that any broker would hold. So you know, if

839
00:46:41,719 --> 00:46:45,279
Speaker 9: one hundred million or a billion people theoretically wanted to

840
00:46:45,280 --> 00:46:48,399
Speaker 9: buy the same stock at the same time, I don't

841
00:46:48,400 --> 00:46:51,160
Speaker 9: think the system would be able to handle that to

842
00:46:51,200 --> 00:46:53,920
Speaker 9: handle that currently, so we would need some some changes

843
00:46:53,960 --> 00:46:56,960
Speaker 9: to the underlying infrastructure of the markets.

844
00:46:56,640 --> 00:46:59,799
Speaker 4: Maybe because that's where TV government regulation changes a little

845
00:46:59,840 --> 00:47:01,200
Speaker 4: bit to help in that situation.

846
00:47:01,560 --> 00:47:05,279
Speaker 9: Well, yeah, I think the industry has already said that

847
00:47:05,760 --> 00:47:09,400
Speaker 9: they would support faster settlement, which is a big, a

848
00:47:09,400 --> 00:47:12,319
Speaker 9: big thing. So TI plus zero I think would take

849
00:47:12,320 --> 00:47:15,800
Speaker 9: a while. That's real time settlement, but one day settlement

850
00:47:15,880 --> 00:47:18,400
Speaker 9: gets us about half of the way there. So I

851
00:47:18,400 --> 00:47:24,680
Speaker 9: think steady improvements, steady improvements in the infrastructure are going

852
00:47:24,760 --> 00:47:25,360
Speaker 9: to be helpful.

853
00:47:25,719 --> 00:47:28,400
Speaker 4: Yeah, you mentioned you raised three point five billion. That's

854
00:47:28,440 --> 00:47:32,680
Speaker 4: extremely intervesting because it's like most of the time people

855
00:47:32,719 --> 00:47:34,720
Speaker 4: would think that that hurts your business, but you actually

856
00:47:34,800 --> 00:47:36,920
Speaker 4: raised and you actually got a lot more customers actually

857
00:47:37,000 --> 00:47:37,560
Speaker 4: after that too.

858
00:47:37,680 --> 00:47:39,280
Speaker 8: So what was your strategy?

859
00:47:39,600 --> 00:47:41,480
Speaker 4: Was it like just face it head on, don't run

860
00:47:41,520 --> 00:47:45,240
Speaker 4: from it, acknowledge what happened, and then go to investors

861
00:47:45,280 --> 00:47:46,920
Speaker 4: and say this is why we need more money to

862
00:47:47,239 --> 00:47:48,480
Speaker 4: invent these things from happening.

863
00:47:48,600 --> 00:47:50,920
Speaker 9: Well, it was kind of simultaneous, right, we were raising

864
00:47:50,960 --> 00:47:54,360
Speaker 9: the capital while we were explaining to customers and the

865
00:47:54,400 --> 00:47:55,520
Speaker 9: broader public.

866
00:47:57,280 --> 00:47:58,040
Speaker 2: What was going on.

867
00:47:58,480 --> 00:48:02,520
Speaker 9: And yeah, it was sort of like solving any hard problem,

868
00:48:02,680 --> 00:48:07,200
Speaker 9: you have to just you have to make sure that

869
00:48:07,960 --> 00:48:10,600
Speaker 9: you put the right people on it. And we have

870
00:48:10,640 --> 00:48:14,760
Speaker 9: a great team, you know, great folks and operations engineering. Meanwhile,

871
00:48:14,800 --> 00:48:17,960
Speaker 9: engineering is trying to keep the service up dealing with

872
00:48:18,000 --> 00:48:21,399
Speaker 9: all the influx of customers and all the activity. So

873
00:48:21,640 --> 00:48:26,839
Speaker 9: you know, everyone was working very, very hard at that time.

874
00:48:26,960 --> 00:48:30,160
Speaker 9: It was like all hands on deck close to twenty

875
00:48:30,200 --> 00:48:32,600
Speaker 9: four to seven without a break for very long.

876
00:48:32,640 --> 00:48:33,600
Speaker 5: We were just speaking about that.

877
00:48:33,840 --> 00:48:36,239
Speaker 3: I'm thinking to myself, like we were living it as

878
00:48:36,520 --> 00:48:37,400
Speaker 3: retail investors.

879
00:48:37,400 --> 00:48:39,680
Speaker 5: But what was that moment.

880
00:48:39,440 --> 00:48:42,359
Speaker 3: On day a week like for you as the co

881
00:48:42,440 --> 00:48:45,120
Speaker 3: founder of this company that has been since we say

882
00:48:45,200 --> 00:48:48,799
Speaker 3: social media, well street bets has gathered people and you're

883
00:48:48,960 --> 00:48:50,720
Speaker 3: like the social media of investing.

884
00:48:50,840 --> 00:48:51,920
Speaker 5: What was that day like for you?

885
00:48:52,320 --> 00:48:56,719
Speaker 9: It was a little stressful. It was a little stressful.

886
00:48:56,840 --> 00:48:59,520
Speaker 9: You think normally that you know, if you're number one

887
00:48:59,560 --> 00:49:02,279
Speaker 9: on the Apps store overall, it's sort of like it's

888
00:49:02,280 --> 00:49:07,080
Speaker 9: a great thing. But yeah, it's also you know, we

889
00:49:07,080 --> 00:49:10,200
Speaker 9: we're very cognizant to make sure that wanted to be

890
00:49:10,239 --> 00:49:15,040
Speaker 9: there for our customers, and you know it's on the

891
00:49:15,040 --> 00:49:18,600
Speaker 9: one hand, having so much activity that you know, you

892
00:49:18,640 --> 00:49:22,200
Speaker 9: need to raise additional capital to facilitate the trading is

893
00:49:22,239 --> 00:49:24,319
Speaker 9: a good thing. On the other hand, you know, there

894
00:49:24,400 --> 00:49:29,319
Speaker 9: was this like you know, not being able to having

895
00:49:29,320 --> 00:49:33,719
Speaker 9: to restrict the trading for customers. You know, that was disappointing.

896
00:49:33,800 --> 00:49:36,840
Speaker 9: A lot of customers were disappointed. And there were a

897
00:49:36,880 --> 00:49:39,319
Speaker 9: lot of false narratives. You know, you saw them all

898
00:49:39,360 --> 00:49:42,080
Speaker 9: over the internet. To this day, a lot of them exist,

899
00:49:42,440 --> 00:49:45,400
Speaker 9: you know, of collusion with hedge funds, and you know,

900
00:49:45,440 --> 00:49:48,960
Speaker 9: people people are i think, really interested in collusion. They

901
00:49:49,080 --> 00:49:52,840
Speaker 9: like to think that people are colluding. So having to

902
00:49:52,920 --> 00:49:56,440
Speaker 9: kind of dispel that narrative and say well, actually we

903
00:49:56,480 --> 00:49:59,120
Speaker 9: were just like doing what we could to operate within

904
00:50:00,360 --> 00:50:04,440
Speaker 9: within the regulatory framework and make sure everything was done properly.

905
00:50:05,800 --> 00:50:10,520
Speaker 9: But yeah, despite that, I think I think the false

906
00:50:10,600 --> 00:50:13,680
Speaker 9: narratives are sometimes so compelling that they just like keep going.

907
00:50:14,120 --> 00:50:14,319
Speaker 5: Yeah.

908
00:50:14,400 --> 00:50:16,560
Speaker 4: People would rather be believe a lot in the truth.

909
00:50:16,680 --> 00:50:17,520
Speaker 4: It's more entertaining.

910
00:50:17,600 --> 00:50:19,520
Speaker 2: Yeah, yeah, let me think that's true.

911
00:50:19,640 --> 00:50:23,080
Speaker 4: Speaking about that, when you spoke in front of Congress,

912
00:50:23,120 --> 00:50:26,560
Speaker 4: I believe one congressman had asked you and they said, well, it's.

913
00:50:26,360 --> 00:50:27,080
Speaker 8: Free to trade.

914
00:50:27,160 --> 00:50:31,120
Speaker 4: But they spoke about the sell order flow market makers

915
00:50:31,200 --> 00:50:34,120
Speaker 4: and getting a piece of a spread, and they were

916
00:50:34,160 --> 00:50:36,120
Speaker 4: trying to say like, well, it's not really free to

917
00:50:36,160 --> 00:50:39,279
Speaker 4: trade because the market makers are making money, and it's

918
00:50:39,400 --> 00:50:41,400
Speaker 4: money every time somebody makes a transaction.

919
00:50:41,560 --> 00:50:43,040
Speaker 8: So what do you say to.

920
00:50:43,040 --> 00:50:46,560
Speaker 9: That, Well, well, they're talking about payment for orderflow, which

921
00:50:46,600 --> 00:50:49,760
Speaker 9: is one of the which is our main source of revenue.

922
00:50:50,480 --> 00:50:52,880
Speaker 9: And what I would say to that is payment for

923
00:50:52,960 --> 00:50:55,680
Speaker 9: orderflow is not new. I mean it existed when people

924
00:50:55,680 --> 00:50:58,200
Speaker 9: were paying seven to ten dollars per trade as well.

925
00:50:58,320 --> 00:51:01,560
Speaker 9: The broker would just make seven to ten dollars and

926
00:51:01,600 --> 00:51:02,960
Speaker 9: then in addition they would make the.

927
00:51:03,200 --> 00:51:04,399
Speaker 5: It was an additional cost, the.

928
00:51:04,320 --> 00:51:08,960
Speaker 9: Payment for orderflow. So yes, we do generate revenue. But

929
00:51:09,239 --> 00:51:11,600
Speaker 9: at the same time, it's never been a better time

930
00:51:11,719 --> 00:51:15,440
Speaker 9: to be a retail investor. And you know, it's it's

931
00:51:15,520 --> 00:51:21,960
Speaker 9: highly regulated. It's it's it's it's been regulated for a

932
00:51:22,080 --> 00:51:22,880
Speaker 9: very long time.

933
00:51:23,400 --> 00:51:26,040
Speaker 2: And basically there's there's rules.

934
00:51:26,320 --> 00:51:29,080
Speaker 9: So a lot of people say, you know, why don't

935
00:51:29,080 --> 00:51:31,160
Speaker 9: you send your orders to an exchange, Why don't you

936
00:51:31,200 --> 00:51:33,680
Speaker 9: send it to the Nasdaq or the nicey? Why are

937
00:51:33,800 --> 00:51:38,680
Speaker 9: market makers executing the orders? And market makers provide competition

938
00:51:38,800 --> 00:51:42,120
Speaker 9: for the exchanges, And there's actually rules that say in

939
00:51:42,200 --> 00:51:45,399
Speaker 9: order for a market maker to execute your order, they

940
00:51:45,400 --> 00:51:48,960
Speaker 9: have to actually beat the exchange price or beat it

941
00:51:49,080 --> 00:51:52,759
Speaker 9: or match it, and so as a customer, generally you're

942
00:51:52,760 --> 00:51:56,720
Speaker 9: getting a better price through a market maker. Market Makers

943
00:51:56,719 --> 00:52:00,319
Speaker 9: are still for profit businesses, so they generate revenue, and

944
00:52:00,360 --> 00:52:02,359
Speaker 9: you can think of payment for orderflow as a rev

945
00:52:02,440 --> 00:52:05,239
Speaker 9: share a share of the revenue that they make with

946
00:52:05,360 --> 00:52:11,720
Speaker 9: the broker. So we think it's it's it's a fantastic model.

947
00:52:11,760 --> 00:52:14,080
Speaker 9: I mean, it's led to commission free trading. It's led

948
00:52:14,120 --> 00:52:19,200
Speaker 9: to the lowest possible cost of trading for consumers out

949
00:52:19,239 --> 00:52:24,799
Speaker 9: of all developed at of all time. And you know,

950
00:52:25,280 --> 00:52:29,400
Speaker 9: it's led to the US markets being the most vibrant

951
00:52:29,440 --> 00:52:33,600
Speaker 9: capital markets for retail investors in the world. So we're

952
00:52:34,800 --> 00:52:37,560
Speaker 9: you know, we stand behind the business model one hundred percent.

953
00:52:37,840 --> 00:52:41,359
Speaker 9: And I think that people debate it and have been

954
00:52:41,360 --> 00:52:44,640
Speaker 9: debating it for a long time, in large part because

955
00:52:44,640 --> 00:52:48,440
Speaker 9: it's very complicated to understand. And I actually didn't understand

956
00:52:48,480 --> 00:52:50,840
Speaker 9: it in detail when I started trading. I didn't know

957
00:52:50,880 --> 00:52:53,520
Speaker 9: what you know, when I bought my first stock, I

958
00:52:53,560 --> 00:52:56,400
Speaker 9: didn't really know what a bid ask spread was. You know,

959
00:52:56,440 --> 00:52:59,080
Speaker 9: there there was a process of learning through some of

960
00:52:59,080 --> 00:53:02,040
Speaker 9: those things. So we've we've been trying to educate people

961
00:53:02,120 --> 00:53:07,319
Speaker 9: and share information about the revenue stream and and you know,

962
00:53:07,440 --> 00:53:08,680
Speaker 9: explain it a little bit better.

963
00:53:08,680 --> 00:53:12,520
Speaker 4: It's important because it's one of these things when people

964
00:53:12,560 --> 00:53:16,360
Speaker 4: are confused, then they can think that something is bad

965
00:53:16,640 --> 00:53:19,960
Speaker 4: or it just automatically goes negative. This is why explaining

966
00:53:21,160 --> 00:53:23,399
Speaker 4: is beneficial, because I think once people have a full

967
00:53:23,480 --> 00:53:26,280
Speaker 4: understanding of something, most people will say, Okay, everybody deserves

968
00:53:26,280 --> 00:53:27,839
Speaker 4: to make a living. This is America, Like you can

969
00:53:27,880 --> 00:53:30,719
Speaker 4: make money. Yeah, it's when, like you said, when people

970
00:53:30,719 --> 00:53:33,000
Speaker 4: are confused, and I feel like the financial industry for

971
00:53:33,040 --> 00:53:34,799
Speaker 4: a long time has confused people. Like you said, just

972
00:53:34,840 --> 00:53:36,880
Speaker 4: to bid the asks, right, like all of that stuff.

973
00:53:37,080 --> 00:53:40,160
Speaker 4: If you don't have background knowledge on it is very

974
00:53:40,160 --> 00:53:43,880
Speaker 4: confusing and your perception can be swayed in any direction

975
00:53:44,360 --> 00:53:46,040
Speaker 4: depending on who's telling you the story.

976
00:53:46,480 --> 00:53:48,640
Speaker 9: Yeah, I think that's true. It's the same. It's the

977
00:53:49,280 --> 00:53:54,799
Speaker 9: the simple lie in the complex truth again, right, when

978
00:53:54,800 --> 00:53:59,840
Speaker 9: the truth is complex as the financial industry is, people believe.

979
00:54:00,120 --> 00:54:03,960
Speaker 9: You know, people are also used to financial companies being

980
00:54:04,200 --> 00:54:06,560
Speaker 9: rent seeking and taking advent.

981
00:54:06,360 --> 00:54:09,160
Speaker 8: Advantage of people, so very lary of that.

982
00:54:09,440 --> 00:54:12,359
Speaker 9: Yeah, you remember the financial crisis of two thousand and eight,

983
00:54:12,480 --> 00:54:16,480
Speaker 9: and you know the way that that felt, right, A

984
00:54:16,480 --> 00:54:18,560
Speaker 9: lot of people lost their houses, a lot of people

985
00:54:18,640 --> 00:54:21,880
Speaker 9: lost their jobs. The government came in and sort of

986
00:54:21,880 --> 00:54:25,320
Speaker 9: bailed out a lot of these companies. Nobody really got punished,

987
00:54:25,719 --> 00:54:28,040
Speaker 9: and there was a lot of distrust. I think that

988
00:54:28,160 --> 00:54:32,040
Speaker 9: lingers from that time period. I mean, you remember the

989
00:54:32,400 --> 00:54:35,959
Speaker 9: Occupy Wall Street protests where people are just a little

990
00:54:36,000 --> 00:54:39,880
Speaker 9: bit skeptical about whether the old guard financial industry is

991
00:54:39,920 --> 00:54:43,000
Speaker 9: actually working for them, and I think some of that

992
00:54:43,200 --> 00:54:45,359
Speaker 9: A lot of that sort of persists to this day.

993
00:54:45,719 --> 00:54:45,919
Speaker 5: Yeah.

994
00:54:45,960 --> 00:54:47,680
Speaker 3: So I just want to go back really quick, because

995
00:54:47,680 --> 00:54:49,919
Speaker 3: we talked about bid and ask, and so a lot

996
00:54:49,960 --> 00:54:52,399
Speaker 3: of people are new to invest in, and so when

997
00:54:52,400 --> 00:54:55,040
Speaker 3: they see bidden ask, I'll try to explain it like this.

998
00:54:55,200 --> 00:54:57,359
Speaker 3: Like the ask like if you've went car shopping, right,

999
00:54:57,840 --> 00:54:59,920
Speaker 3: the ask is what they're asking you to pay for.

1000
00:55:00,120 --> 00:55:01,640
Speaker 5: The bid is what you're willing to pay for it.

1001
00:55:02,040 --> 00:55:04,240
Speaker 3: And so when is a difference in it, that difference,

1002
00:55:04,360 --> 00:55:07,400
Speaker 3: let's say somebody that plays the market price or the

1003
00:55:07,440 --> 00:55:10,200
Speaker 3: ass price, that difference between the bid is that's what's

1004
00:55:10,200 --> 00:55:13,439
Speaker 3: going to the brokerage. Is that what you're saying? Yeah, okay, Yeah,

1005
00:55:13,480 --> 00:55:14,320
Speaker 3: so I'll just break it in.

1006
00:55:14,440 --> 00:55:18,600
Speaker 9: Well, it's actually the bid in the ask. Not all

1007
00:55:18,640 --> 00:55:22,560
Speaker 9: of that goes to the brokerage. It's actually split three ways, right,

1008
00:55:23,320 --> 00:55:25,759
Speaker 9: Some of it goes to the market maker, some of

1009
00:55:25,840 --> 00:55:30,240
Speaker 9: it goes to the customer, which is what's called price

1010
00:55:30,239 --> 00:55:35,480
Speaker 9: improvement over over the NBBO, and then a small portion

1011
00:55:35,560 --> 00:55:40,480
Speaker 9: goes to the brokerage. And Bloomberg's done. Bloomberg Intelligence I

1012
00:55:40,520 --> 00:55:44,880
Speaker 9: think recently had an analysis and the portion going to

1013
00:55:44,920 --> 00:55:48,040
Speaker 9: the brokerage is typically much smaller than the portion going

1014
00:55:48,040 --> 00:55:51,440
Speaker 9: to the customer and to the market maker as well,

1015
00:55:51,840 --> 00:55:54,839
Speaker 9: and the customer actually gets the bulk of it as

1016
00:55:54,880 --> 00:55:57,400
Speaker 9: price improvement according to that study.

1017
00:55:57,480 --> 00:55:59,000
Speaker 4: Let me ask you, is you the first person that

1018
00:55:59,040 --> 00:56:00,960
Speaker 4: we have spoken to it has taking a company public

1019
00:56:00,960 --> 00:56:02,279
Speaker 4: and you just did it recently, So I have a

1020
00:56:02,320 --> 00:56:02,880
Speaker 4: few questions.

1021
00:56:02,880 --> 00:56:05,280
Speaker 8: Gratulations, thank you, yeah, congratulations for sure.

1022
00:56:06,480 --> 00:56:11,040
Speaker 4: Okay, So was that always your idea to go public

1023
00:56:11,239 --> 00:56:14,960
Speaker 4: or at what point did you realize, no longer am

1024
00:56:15,000 --> 00:56:16,839
Speaker 4: I going to have a private company? This makes sense

1025
00:56:16,880 --> 00:56:18,160
Speaker 4: to take it to the public markets.

1026
00:56:19,640 --> 00:56:22,680
Speaker 9: I think I think we realized once we got to

1027
00:56:22,719 --> 00:56:25,759
Speaker 9: a certain level of scale, and then once you get

1028
00:56:25,800 --> 00:56:27,800
Speaker 9: to that scale, you realize Oh, this is a capital

1029
00:56:27,840 --> 00:56:30,600
Speaker 9: intensive business. You know, we have these capital requirements, we

1030
00:56:30,719 --> 00:56:35,240
Speaker 9: have these deposit requirements, and this we're growing very quickly,

1031
00:56:35,719 --> 00:56:40,800
Speaker 9: and you know, accessing public markets is just a great

1032
00:56:40,840 --> 00:56:44,360
Speaker 9: source of funding for the business. I think it was

1033
00:56:44,400 --> 00:56:47,759
Speaker 9: also pretty clear that it was mission aligned and we

1034
00:56:47,800 --> 00:56:51,680
Speaker 9: would like to figure out a way to allow our

1035
00:56:51,680 --> 00:56:56,200
Speaker 9: customers to be shareholders. And the self referential nature of

1036
00:56:56,920 --> 00:57:00,120
Speaker 9: Robinhood kind of a stock market company going live on

1037
00:57:00,160 --> 00:57:04,160
Speaker 9: the stock market just made sense. So I think all

1038
00:57:04,560 --> 00:57:10,520
Speaker 9: those things together made it made it sort of the

1039
00:57:10,520 --> 00:57:11,680
Speaker 9: the reasonable.

1040
00:57:11,200 --> 00:57:11,680
Speaker 2: Thing to do.

1041
00:57:12,200 --> 00:57:13,920
Speaker 9: But the way we think about it also, it's kind

1042
00:57:13,960 --> 00:57:18,040
Speaker 9: of a I mean, it's kind of just a financing

1043
00:57:18,080 --> 00:57:21,280
Speaker 9: event if you think about it. We already, because we're

1044
00:57:21,320 --> 00:57:24,320
Speaker 9: so regulated, have to share a lot of detail about

1045
00:57:24,680 --> 00:57:29,120
Speaker 9: our revenue and our operations with the public, and so

1046
00:57:29,600 --> 00:57:33,080
Speaker 9: probably the delta between Robinhood being going from private to

1047
00:57:33,160 --> 00:57:37,400
Speaker 9: public and your typical other technology company is a little

1048
00:57:37,440 --> 00:57:41,800
Speaker 9: bit smaller. So there're certainly changes, but a lot of

1049
00:57:42,360 --> 00:57:46,120
Speaker 9: our activities and revenues were already transparent and shared on

1050
00:57:46,160 --> 00:57:47,160
Speaker 9: a quarterly basis.

1051
00:57:47,400 --> 00:57:49,480
Speaker 3: Yeah, one of the things that I've heard you speak

1052
00:57:49,480 --> 00:57:52,640
Speaker 3: on and be very proud of is having a large

1053
00:57:52,680 --> 00:57:57,040
Speaker 3: allocation of shares advocate for retail investors. Was that something

1054
00:57:57,160 --> 00:57:59,440
Speaker 3: that you as a team said, you know what, we're

1055
00:57:59,480 --> 00:58:01,240
Speaker 3: built for the people, We want to.

1056
00:58:01,240 --> 00:58:03,880
Speaker 5: Have people involved. Was that part of the thought process

1057
00:58:03,920 --> 00:58:05,320
Speaker 5: when making that decision.

1058
00:58:05,520 --> 00:58:07,720
Speaker 9: Yeah, yeah, I think that was That was an easy

1059
00:58:07,760 --> 00:58:10,960
Speaker 9: decision because you look back to our mission democratize finance

1060
00:58:11,000 --> 00:58:14,320
Speaker 9: for all, and it's really all about giving things that

1061
00:58:14,440 --> 00:58:21,520
Speaker 9: were previously accessible to relatively few, select rich people and

1062
00:58:21,680 --> 00:58:25,760
Speaker 9: making them available to everyone. So like the original product,

1063
00:58:25,800 --> 00:58:29,880
Speaker 9: commission free equities trading, that aligns with it. Commission free

1064
00:58:29,920 --> 00:58:32,880
Speaker 9: options trading very much aligned with it as well, things

1065
00:58:32,960 --> 00:58:36,280
Speaker 9: like high yield savings. And so when we got to

1066
00:58:36,320 --> 00:58:41,000
Speaker 9: the IPO, I think it was clear that hey, why not,

1067
00:58:41,400 --> 00:58:44,320
Speaker 9: you know, rather in addition to kind of taking our

1068
00:58:44,360 --> 00:58:47,840
Speaker 9: own company public, why don't we try to democratize IPOs

1069
00:58:47,880 --> 00:58:49,800
Speaker 9: as well. And that's why we launched a new product,

1070
00:58:49,920 --> 00:58:53,480
Speaker 9: IPO Access, which actually launched before our own IPO, we

1071
00:58:53,560 --> 00:58:57,720
Speaker 9: launched with a few other a few other companies. And

1072
00:58:57,760 --> 00:59:03,000
Speaker 9: then that's really become a mechanism to give retail consumers

1073
00:59:03,600 --> 00:59:07,240
Speaker 9: on equal terms access to IPOs as the institutions, so

1074
00:59:07,280 --> 00:59:12,080
Speaker 9: they could get in at the IPO price, and you know,

1075
00:59:12,160 --> 00:59:16,600
Speaker 9: get get access to those which would have previously been

1076
00:59:16,640 --> 00:59:21,720
Speaker 9: available only to high net worth individuals or institutions or underwriters.

1077
00:59:21,880 --> 00:59:23,080
Speaker 8: I want to ask you about that.

1078
00:59:23,280 --> 00:59:26,040
Speaker 4: I was gonna wait till later, but as you brought

1079
00:59:26,080 --> 00:59:28,320
Speaker 4: it up, let's talk about that as very intervesting.

1080
00:59:28,360 --> 00:59:29,840
Speaker 8: Can you explain that a little bit more so?

1081
00:59:30,520 --> 00:59:34,240
Speaker 4: What what exactly when does it exactly allow people to invest,

1082
00:59:34,280 --> 00:59:36,840
Speaker 4: like right when it hits the stock market, right before

1083
00:59:36,840 --> 00:59:39,760
Speaker 4: it hits the stock market? Like, what's what's the details

1084
00:59:39,800 --> 00:59:40,000
Speaker 4: on it?

1085
00:59:40,360 --> 00:59:40,600
Speaker 8: Yeah?

1086
00:59:40,640 --> 00:59:45,120
Speaker 9: So, typically the IPO allocation happens before it hits the

1087
00:59:45,120 --> 00:59:50,520
Speaker 9: stock market. So the underwriters and the company agree on

1088
00:59:50,680 --> 00:59:55,320
Speaker 9: a listing price, and Robinhood currently acts as what's called

1089
00:59:55,320 --> 00:59:58,480
Speaker 9: a selling group member. So we're allowed to give people

1090
00:59:58,680 --> 01:00:03,400
Speaker 9: a portion of that allocate. We we give that to the community,

1091
01:00:03,760 --> 01:00:06,840
Speaker 9: so they get in at the IPO price. Typically that

1092
01:00:06,880 --> 01:00:12,080
Speaker 9: price is set the day before the stock actually starts trading,

1093
01:00:12,680 --> 01:00:17,280
Speaker 9: and and you know, once it's it's trading, that price,

1094
01:00:17,760 --> 01:00:19,080
Speaker 9: that price is a different price.

1095
01:00:19,680 --> 01:00:22,439
Speaker 4: Yeah, So it could be like twenty dollars a day

1096
01:00:22,440 --> 01:00:25,440
Speaker 4: before than thirty five dollars when it actually opens.

1097
01:00:25,560 --> 01:00:28,840
Speaker 9: It could be act opens and there is some risk.

1098
01:00:28,920 --> 01:00:30,080
Speaker 9: Obviously it's not always going.

1099
01:00:30,080 --> 01:00:31,280
Speaker 2: To be just lower, but.

1100
01:00:31,440 --> 01:00:32,520
Speaker 8: It could be, it could be higher.

1101
01:00:32,600 --> 01:00:36,720
Speaker 4: Yeah, but that's great that you're doing that, and that's

1102
01:00:36,760 --> 01:00:38,960
Speaker 4: something that I think is really going to change the game.

1103
01:00:39,040 --> 01:00:39,919
Speaker 5: I think that's a game change.

1104
01:00:39,960 --> 01:00:40,640
Speaker 8: It's a game change.

1105
01:00:41,600 --> 01:00:44,200
Speaker 4: I want to actually also, is there any plans of

1106
01:00:44,320 --> 01:00:48,320
Speaker 4: so we just got into the angel investing world ourselves.

1107
01:00:48,800 --> 01:00:50,600
Speaker 4: A good friend of our, John Henry, shot out to him.

1108
01:00:50,760 --> 01:00:54,120
Speaker 4: He got an insurance company named Loop and we put

1109
01:00:54,160 --> 01:00:56,640
Speaker 4: some some money into that and a few other companies.

1110
01:00:57,000 --> 01:01:00,720
Speaker 4: So as we're learning more about these things, we realized

1111
01:01:00,720 --> 01:01:06,200
Speaker 4: that stock market extremely important. Yeah, important engine to build wealth.

1112
01:01:06,240 --> 01:01:10,000
Speaker 4: But you talked about real, real massive returns is done

1113
01:01:10,120 --> 01:01:12,360
Speaker 4: more so on the angels, like even way before a

1114
01:01:12,400 --> 01:01:16,200
Speaker 4: company even thinks about going public. And there are some platforms,

1115
01:01:16,200 --> 01:01:21,200
Speaker 4: you know, crowdfunding, but the large companies, all star companies,

1116
01:01:21,200 --> 01:01:24,080
Speaker 4: they're not on those crowdfunding platforms. So have you ever

1117
01:01:24,120 --> 01:01:28,760
Speaker 4: thought about finding a way to have regular people in

1118
01:01:28,840 --> 01:01:31,680
Speaker 4: a crowdfunding type of thing, but being able to form

1119
01:01:31,720 --> 01:01:33,960
Speaker 4: a syndicate to invest in early startup companies.

1120
01:01:34,440 --> 01:01:39,800
Speaker 9: Yeah, so typically historically what's been the impediment there is

1121
01:01:39,920 --> 01:01:44,960
Speaker 9: just the accreditation requirements. So for a long time, in

1122
01:01:45,040 --> 01:01:48,000
Speaker 9: order to invest in you know, a hedge fund or

1123
01:01:48,080 --> 01:01:53,520
Speaker 9: venture capital fund or private private company that's non non public,

1124
01:01:53,920 --> 01:01:57,120
Speaker 9: you had to be an accredited investor, which has either

1125
01:01:57,160 --> 01:02:00,640
Speaker 9: a net worth requirement or an income environment requirevironment for

1126
01:02:00,800 --> 01:02:03,880
Speaker 9: wealthy people. Now, recently I think it was with the

1127
01:02:03,960 --> 01:02:04,520
Speaker 9: Jobs Act.

1128
01:02:04,560 --> 01:02:06,600
Speaker 8: Yeah, President Obama, Yeah, Yeah, there.

1129
01:02:06,520 --> 01:02:12,360
Speaker 9: Was Reggae Plus, which allowed some private companies to allocate

1130
01:02:12,400 --> 01:02:15,760
Speaker 9: some portion per year that they could raise via equity

1131
01:02:15,800 --> 01:02:19,200
Speaker 9: crowdfunding from general public. I think initially it was fifty million,

1132
01:02:19,280 --> 01:02:22,520
Speaker 9: now it's seventy five. So there are mechanisms still a

1133
01:02:22,520 --> 01:02:27,360
Speaker 9: little bit complicated, but I think there is an opportunity there.

1134
01:02:27,720 --> 01:02:30,000
Speaker 9: I think generally how we think about it at Robinhood

1135
01:02:30,200 --> 01:02:36,600
Speaker 9: is selection is important. People want access to different investable assets.

1136
01:02:36,840 --> 01:02:40,400
Speaker 9: So we started with stocks. Then a lot of demand

1137
01:02:40,440 --> 01:02:43,360
Speaker 9: for options, a lot of demand for cryptos as well

1138
01:02:43,560 --> 01:02:47,280
Speaker 9: has led us led us to offer those on the platform.

1139
01:02:47,520 --> 01:02:52,040
Speaker 9: So I think we'll continue to add to add more things.

1140
01:02:52,320 --> 01:02:55,800
Speaker 9: And you know, there's lots of different assets out there

1141
01:02:55,920 --> 01:02:59,440
Speaker 9: that are things that people want to invest in that

1142
01:02:59,480 --> 01:03:00,040
Speaker 9: we don't.

1143
01:03:00,120 --> 01:03:02,840
Speaker 4: For I want, I want to ask you, I want

1144
01:03:02,840 --> 01:03:04,640
Speaker 4: to actually our crypto but before that, can we just

1145
01:03:04,680 --> 01:03:07,120
Speaker 4: briefly go back to the bringing a company public? What

1146
01:03:07,160 --> 01:03:08,880
Speaker 4: are some difficulties? I just want to give people, like

1147
01:03:09,080 --> 01:03:11,439
Speaker 4: just a quick overview, because not a lot of people

1148
01:03:11,480 --> 01:03:13,440
Speaker 4: are really familiar what it takes to actually take a

1149
01:03:13,440 --> 01:03:16,800
Speaker 4: company public. I know there's regulation, is filings, and you

1150
01:03:16,840 --> 01:03:19,160
Speaker 4: have to have the underwriter that actually underwrites the situation.

1151
01:03:19,280 --> 01:03:21,480
Speaker 5: I'm going to start an answer for him, stressful.

1152
01:03:23,920 --> 01:03:25,720
Speaker 4: Can you just get people a crash course in taking

1153
01:03:25,720 --> 01:03:27,280
Speaker 4: a company public? Oh?

1154
01:03:27,400 --> 01:03:31,880
Speaker 9: Let's see. So one thing that I've I've been told

1155
01:03:32,000 --> 01:03:35,720
Speaker 9: is interesting but I didn't get to experience is actually

1156
01:03:36,360 --> 01:03:39,080
Speaker 9: going to all the offices of the different investors and

1157
01:03:39,120 --> 01:03:41,720
Speaker 9: like meeting them in person. So I was kind of

1158
01:03:41,760 --> 01:03:45,880
Speaker 9: in the in the limbo period. You COVID is very

1159
01:03:45,960 --> 01:03:48,520
Speaker 9: much still a thing. But we ended up traveling to

1160
01:03:48,600 --> 01:03:51,560
Speaker 9: New York and we wanted to kind of get into

1161
01:03:51,600 --> 01:03:56,520
Speaker 9: the get into the zone as much as possible. So, yeah,

1162
01:03:56,520 --> 01:03:58,680
Speaker 9: it was funny. Rather than doing it at home and

1163
01:03:59,640 --> 01:04:03,640
Speaker 9: completely over zoom as as a lot of people did,

1164
01:04:04,120 --> 01:04:06,640
Speaker 9: we went to we flew to New York and did

1165
01:04:06,640 --> 01:04:10,640
Speaker 9: everything in zoom out of the underwriters offices. So we're

1166
01:04:10,680 --> 01:04:15,360
Speaker 9: in these conferences and stuff on zoom calls basically for

1167
01:04:15,440 --> 01:04:18,920
Speaker 9: like ten hours a day, bring my blue tie in me.

1168
01:04:21,200 --> 01:04:24,200
Speaker 9: So yeah, it was it was a lot of work. Uh,

1169
01:04:24,480 --> 01:04:27,120
Speaker 9: it took a lot of time. But you know, at

1170
01:04:27,120 --> 01:04:30,560
Speaker 9: the end of the day, it was also uh when

1171
01:04:30,600 --> 01:04:32,920
Speaker 9: when all was said and done and we priced and

1172
01:04:32,960 --> 01:04:35,480
Speaker 9: we listed and we got it over, got it over with,

1173
01:04:35,640 --> 01:04:37,440
Speaker 9: you know, it was it was pretty cool to be

1174
01:04:37,520 --> 01:04:40,840
Speaker 9: there with the team in person, to be in New

1175
01:04:40,920 --> 01:04:44,479
Speaker 9: York where Beaiju and I got started as entrepreneurs and

1176
01:04:44,760 --> 01:04:47,560
Speaker 9: where I actually arrived as an immigrant to this country

1177
01:04:48,240 --> 01:04:51,920
Speaker 9: when I was five years old. Yeah, with my aunt,

1178
01:04:52,280 --> 01:04:55,520
Speaker 9: my aunt who was in her early twenties. And then

1179
01:04:55,560 --> 01:04:57,360
Speaker 9: you know, seeing my parents at the airport. I had

1180
01:04:57,480 --> 01:05:00,200
Speaker 9: seen my dad in I think a year and a

1181
01:05:00,200 --> 01:05:02,160
Speaker 9: half at that point, I hadn't seen my mom in

1182
01:05:02,240 --> 01:05:06,240
Speaker 9: six months. So it brought back, it brought back those memories,

1183
01:05:06,280 --> 01:05:10,720
Speaker 9: and it was just a nice little moment along the journey,

1184
01:05:10,880 --> 01:05:13,680
Speaker 9: you know. And a lot of people think, oh, you know,

1185
01:05:13,920 --> 01:05:17,440
Speaker 9: the IPO, that's that's kind of the end, right, That's that's.

1186
01:05:17,360 --> 01:05:18,360
Speaker 2: The end goal.

1187
01:05:18,680 --> 01:05:23,960
Speaker 9: But it it didn't feel like that because obviously, well

1188
01:05:23,960 --> 01:05:26,160
Speaker 9: we had earnings A couple of weeks later, so getting

1189
01:05:26,200 --> 01:05:29,320
Speaker 9: ready for that, But I just think there's so much

1190
01:05:29,400 --> 01:05:33,360
Speaker 9: left to build. Right Robinhood's still a US company. We're

1191
01:05:33,400 --> 01:05:38,160
Speaker 9: still offering investment products, but we don't have IRA accounts,

1192
01:05:38,320 --> 01:05:40,320
Speaker 9: we don't have the ability for you to have an

1193
01:05:40,560 --> 01:05:45,040
Speaker 9: individual retirement account. So there's even within investing in the US,

1194
01:05:45,080 --> 01:05:47,240
Speaker 9: there's a lot more that that we have to offer.

1195
01:05:47,480 --> 01:05:50,040
Speaker 3: Yeah, I was watching so July. What was the July

1196
01:05:50,360 --> 01:05:52,960
Speaker 3: that you guys be IPO officially in July twenty eighth,

1197
01:05:53,040 --> 01:05:56,040
Speaker 3: twenty eighth, twenty ninth, so when you I think you

1198
01:05:56,080 --> 01:05:58,720
Speaker 3: was supposed to get listed at like ten o'clock, but

1199
01:05:58,800 --> 01:06:01,160
Speaker 3: that it took like maybe till two o'clock before I

1200
01:06:01,160 --> 01:06:04,280
Speaker 3: feel like the public was allowed. What's happening during that time?

1201
01:06:04,800 --> 01:06:07,360
Speaker 3: And as it I mean as a retail investor, I'm

1202
01:06:07,360 --> 01:06:09,480
Speaker 3: looking at it like, what's just the co founder thing

1203
01:06:09,480 --> 01:06:10,640
Speaker 3: about is it underwriting going on?

1204
01:06:10,680 --> 01:06:11,200
Speaker 5: What's happening?

1205
01:06:11,280 --> 01:06:12,920
Speaker 3: What's goin a time when you supposed to IPO on

1206
01:06:12,960 --> 01:06:15,440
Speaker 3: the date and the time it actually goes public.

1207
01:06:15,520 --> 01:06:18,360
Speaker 9: I think there were just like, yeah, it's still it's

1208
01:06:18,360 --> 01:06:22,760
Speaker 9: actually not a fully automated process. So there's like shares

1209
01:06:22,800 --> 01:06:27,200
Speaker 9: that are being exchanged and some kind of largely administrative things.

1210
01:06:27,760 --> 01:06:30,959
Speaker 9: But yeah, during that day that that was all sort

1211
01:06:30,960 --> 01:06:35,200
Speaker 9: of the accounting, finance, and legal teams, and you know,

1212
01:06:35,640 --> 01:06:39,000
Speaker 9: my co founder and I were at the Nasdaq. I

1213
01:06:39,000 --> 01:06:42,600
Speaker 9: think it was just like lots and lots of interviews

1214
01:06:42,640 --> 01:06:46,320
Speaker 9: and then the opening bell ceremony. So you know my

1215
01:06:46,760 --> 01:06:52,240
Speaker 9: understanding is, yeah, even though I wasn't in there, that

1216
01:06:52,360 --> 01:06:56,080
Speaker 9: pretty typical to have, especially with a large retail allocation,

1217
01:06:56,240 --> 01:06:57,520
Speaker 9: a lot of different investors.

1218
01:06:57,560 --> 01:07:00,440
Speaker 3: For the actual this book took a long time. I

1219
01:07:00,440 --> 01:07:02,480
Speaker 3: felt like I was the watchual shares. I was watching

1220
01:07:02,480 --> 01:07:05,080
Speaker 3: the stop prices go up. But I'm like, we're gonna

1221
01:07:05,080 --> 01:07:07,320
Speaker 3: get it at sixteen. No, it's at thirty four. No,

1222
01:07:07,400 --> 01:07:08,600
Speaker 3: it's gonna open at thirty six.

1223
01:07:08,880 --> 01:07:12,200
Speaker 8: At thirty five exact exactly exactly increase.

1224
01:07:12,680 --> 01:07:14,760
Speaker 3: So it's before you go to that because I know,

1225
01:07:14,920 --> 01:07:16,760
Speaker 3: I know you want to go to the crypto situation.

1226
01:07:16,840 --> 01:07:20,200
Speaker 3: But you said that you reported earnings. Now that seemed

1227
01:07:20,200 --> 01:07:23,600
Speaker 3: pretty quickly. Usually companies report after an entire quarter. Did

1228
01:07:23,600 --> 01:07:25,960
Speaker 3: you guys even have a quarter before you reporting earnings?

1229
01:07:26,600 --> 01:07:30,000
Speaker 9: Well, I think it's it's kind of on a it's

1230
01:07:30,040 --> 01:07:34,600
Speaker 9: it's on a there's a there's a range. So because

1231
01:07:34,640 --> 01:07:39,760
Speaker 9: we went public near the end of the second quarter. Uh,

1232
01:07:39,880 --> 01:07:42,680
Speaker 9: there was actually, you know, a relatively short amount of

1233
01:07:42,680 --> 01:07:47,480
Speaker 9: time between sort of going public and then reporting the the.

1234
01:07:47,440 --> 01:07:50,680
Speaker 2: Second quarter A small glimpse. Yeah, okay, so I.

1235
01:07:50,640 --> 01:07:53,960
Speaker 9: Think a lot of a lot of the information for

1236
01:07:54,040 --> 01:07:57,640
Speaker 9: that quarter was shared in the S one, so you know,

1237
01:07:58,240 --> 01:08:01,840
Speaker 9: there was there was a little preview in there, but

1238
01:08:01,920 --> 01:08:04,760
Speaker 9: it was more just the turnaround from kind of the

1239
01:08:04,800 --> 01:08:07,959
Speaker 9: I p O to the to the earnings release, which

1240
01:08:07,960 --> 01:08:10,040
Speaker 9: takes preparation, was was pretty short.

1241
01:08:10,800 --> 01:08:14,840
Speaker 4: So let's talk about the future cryptocurrency. We think about

1242
01:08:14,880 --> 01:08:18,160
Speaker 4: crypto currency in America. Coin base comes to mind. Would

1243
01:08:18,160 --> 01:08:21,759
Speaker 4: you guys have some interesting news that you just recently

1244
01:08:22,720 --> 01:08:25,400
Speaker 4: at least as far as I believe crypto wallet coming

1245
01:08:25,479 --> 01:08:29,960
Speaker 4: obviously doge Coin is available on your platform. It is, Yes,

1246
01:08:30,120 --> 01:08:34,320
Speaker 4: it became very very popular a few months ago. Was

1247
01:08:34,360 --> 01:08:37,559
Speaker 4: really do you know I thought that this this dog room,

1248
01:08:37,960 --> 01:08:39,519
Speaker 4: I thought that that might have to do something with dose,

1249
01:08:39,600 --> 01:08:42,120
Speaker 4: but I understand that it was around before before the

1250
01:08:42,160 --> 01:08:43,040
Speaker 4: doge coin craze.

1251
01:08:43,360 --> 01:08:45,680
Speaker 5: I got a nominee that I'm thinking of to be

1252
01:08:45,760 --> 01:08:46,000
Speaker 5: the dog.

1253
01:08:46,479 --> 01:08:48,800
Speaker 2: But who's the nominee?

1254
01:08:49,040 --> 01:08:49,800
Speaker 5: Talk about that? After?

1255
01:08:51,040 --> 01:08:51,960
Speaker 8: Does he have long hair?

1256
01:08:52,760 --> 01:08:54,000
Speaker 5: It depends on what he's talking to.

1257
01:08:54,120 --> 01:08:57,920
Speaker 4: You know, you never know. So where where's Robinhood moving

1258
01:08:57,920 --> 01:08:59,960
Speaker 4: in the cryptos? What's your plans for crypto current?

1259
01:09:00,760 --> 01:09:05,360
Speaker 9: Well, so up until this year, there was actually a

1260
01:09:05,400 --> 01:09:08,800
Speaker 9: relatively small team at Robinhood working on crypto, so we've

1261
01:09:08,840 --> 01:09:12,920
Speaker 9: been hiring a lot and you know, we announced two

1262
01:09:13,040 --> 01:09:17,840
Speaker 9: new product features recently, so the crypto recurring investments and

1263
01:09:17,960 --> 01:09:21,519
Speaker 9: the Crypto wallets, which the wait list for the wallets

1264
01:09:21,600 --> 01:09:24,120
Speaker 9: launched last week, and then I think on the same

1265
01:09:24,200 --> 01:09:26,639
Speaker 9: day we announced crypto recurring out to one hundred percent

1266
01:09:26,680 --> 01:09:29,720
Speaker 9: of customers. So I think that the value that we

1267
01:09:29,880 --> 01:09:35,680
Speaker 9: add to crypto the reason why people enjoy using Robinhood.

1268
01:09:35,800 --> 01:09:39,479
Speaker 9: It's kind of two things. One is the simplicity and

1269
01:09:39,640 --> 01:09:42,559
Speaker 9: kind of the the ease of use of the product,

1270
01:09:42,920 --> 01:09:45,080
Speaker 9: and then of course the fact that we're commissioned free,

1271
01:09:45,160 --> 01:09:48,920
Speaker 9: so we're actually very proud of and we've been benchmarked

1272
01:09:48,920 --> 01:09:51,400
Speaker 9: a number of times by third parties. You know, you

1273
01:09:51,400 --> 01:09:57,719
Speaker 9: can see influencers that use multiple platforms, and we compare

1274
01:09:57,840 --> 01:10:02,360
Speaker 9: very well. People generally get more crypto for their for

1275
01:10:02,439 --> 01:10:06,480
Speaker 9: their money on Robinhood versus versus our platforms and those benchmarks,

1276
01:10:07,040 --> 01:10:14,160
Speaker 9: So yeah, I think with wallets people have people want

1277
01:10:14,200 --> 01:10:17,320
Speaker 9: to consolidate, so they in some cases have crypto and

1278
01:10:17,360 --> 01:10:19,519
Speaker 9: a lot of platforms and want to bring it all

1279
01:10:19,560 --> 01:10:23,840
Speaker 9: in one. And some people also, you know, have their

1280
01:10:23,840 --> 01:10:28,400
Speaker 9: hardware wallets. They want to self custody their crypto and

1281
01:10:28,800 --> 01:10:32,520
Speaker 9: you know, they have their their ledger, nanos or other devices,

1282
01:10:32,760 --> 01:10:35,000
Speaker 9: and so we we allow for the ability to do

1283
01:10:35,080 --> 01:10:37,920
Speaker 9: that or in some cases participate in kind of these

1284
01:10:39,120 --> 01:10:43,640
Speaker 9: these DeFi ecosystems off platform so it'll unlock that and

1285
01:10:43,640 --> 01:10:47,320
Speaker 9: then the crypto recurring a lot of these other platforms

1286
01:10:47,360 --> 01:10:52,320
Speaker 9: they're charging you multiple percent per transaction, and with recurring

1287
01:10:52,880 --> 01:10:55,599
Speaker 9: that adds up even more. Right, it's like three percent

1288
01:10:55,720 --> 01:10:58,760
Speaker 9: four percent every transaction. Now you're doing it on a

1289
01:10:58,800 --> 01:11:03,320
Speaker 9: weekly basis, it can be very expensive. And so robin

1290
01:11:03,320 --> 01:11:09,160
Speaker 9: Hood recurring really leverages our commission free, commission free value

1291
01:11:09,160 --> 01:11:12,519
Speaker 9: proposition because you can now recur without having to worry

1292
01:11:12,560 --> 01:11:17,000
Speaker 9: about about a significant commission every single time.

1293
01:11:17,400 --> 01:11:18,960
Speaker 3: As far as technology, I feel like you guys have

1294
01:11:19,000 --> 01:11:22,120
Speaker 3: been ahead. Obviously you started as the app, but I

1295
01:11:22,120 --> 01:11:24,519
Speaker 3: wonder how you feel about competitors. Are you watching what

1296
01:11:24,560 --> 01:11:26,720
Speaker 3: they're doing and saying, oh, we can add that. I

1297
01:11:26,720 --> 01:11:29,200
Speaker 3: feel like that's what we saw in Instagram. Like anytime

1298
01:11:29,200 --> 01:11:32,240
Speaker 3: there would be a social media site, Instagram would say okay, yep,

1299
01:11:32,320 --> 01:11:34,280
Speaker 3: well thank you for creating that, we'll do it better.

1300
01:11:34,640 --> 01:11:38,320
Speaker 5: And so recently, no pun intended.

1301
01:11:41,439 --> 01:11:46,640
Speaker 3: Recently, coinbas said that they're allowing customers to direct the

1302
01:11:46,720 --> 01:11:50,559
Speaker 3: positive checks into their accounts and even have it convert

1303
01:11:50,600 --> 01:11:52,200
Speaker 3: into cryptocurrencies that their liking.

1304
01:11:53,040 --> 01:11:53,640
Speaker 5: What is that like?

1305
01:11:53,680 --> 01:11:56,000
Speaker 3: Because I feel like they're obviously going to be probably

1306
01:11:56,000 --> 01:11:59,080
Speaker 3: a main competitor in the US market, So how does

1307
01:11:59,120 --> 01:12:00,599
Speaker 3: that work with competition in this space?

1308
01:12:01,120 --> 01:12:04,360
Speaker 9: I mean, I think and a lot of respect for

1309
01:12:04,360 --> 01:12:08,400
Speaker 9: for that company and Brian, great entrepreneur, great company. I

1310
01:12:08,439 --> 01:12:12,840
Speaker 9: think again, our value proposition for customers is that we

1311
01:12:12,840 --> 01:12:14,920
Speaker 9: we want to offer you a great price. We want

1312
01:12:14,920 --> 01:12:18,479
Speaker 9: to be the best value for your money, and we

1313
01:12:18,520 --> 01:12:21,600
Speaker 9: want you to think of when you think of Robinhood,

1314
01:12:21,840 --> 01:12:24,479
Speaker 9: to automatically say this is going to be the best

1315
01:12:24,479 --> 01:12:27,639
Speaker 9: customer experience and I'm going to get the best value.

1316
01:12:27,960 --> 01:12:32,400
Speaker 9: And you know, I think that with the wallet's launch,

1317
01:12:32,640 --> 01:12:36,760
Speaker 9: it's also important for us to encourage our customers to

1318
01:12:36,840 --> 01:12:41,840
Speaker 9: practice good safety hygiene, so enabling things like multi factor authentication,

1319
01:12:43,160 --> 01:12:49,480
Speaker 9: enabling you know, transaction monitoring for where they're sending their cryptos,

1320
01:12:49,520 --> 01:12:53,479
Speaker 9: and you know, I think, uh, I think if we

1321
01:12:53,560 --> 01:12:57,840
Speaker 9: can sort of own the uh, the user experience and

1322
01:12:58,000 --> 01:13:01,080
Speaker 9: own the fact that we could be the best value

1323
01:13:01,120 --> 01:13:03,880
Speaker 9: for your crypto, we feel, we feel really really good.

1324
01:13:04,000 --> 01:13:06,639
Speaker 9: And other than that, it's, of course we'll pay attention

1325
01:13:06,680 --> 01:13:09,519
Speaker 9: to competitors and see if they happen to be serving

1326
01:13:09,800 --> 01:13:12,960
Speaker 9: customers in some ways better and learn from them. But

1327
01:13:13,800 --> 01:13:18,120
Speaker 9: largely the north star is always that direct customer feedback. So,

1328
01:13:18,520 --> 01:13:22,639
Speaker 9: you know, sitting with customers, going to their houses, bugging them,

1329
01:13:22,760 --> 01:13:26,240
Speaker 9: really annoying them until they tell us, they tell us

1330
01:13:26,240 --> 01:13:28,519
Speaker 9: more and more about what's bothering them and how we

1331
01:13:28,560 --> 01:13:29,400
Speaker 9: can serve them better.

1332
01:13:29,520 --> 01:13:31,080
Speaker 3: I'm gonna say I'm gonna say this not just because

1333
01:13:31,080 --> 01:13:33,679
Speaker 3: you're sitting here. When we were starting our crypto journey,

1334
01:13:34,360 --> 01:13:36,439
Speaker 3: we we downloaded around, but not if it starts with

1335
01:13:36,479 --> 01:13:39,320
Speaker 3: it's for crypto. Just because the live ticker, it was

1336
01:13:39,320 --> 01:13:41,400
Speaker 3: like the little heartbeat and you can watch the price,

1337
01:13:41,680 --> 01:13:43,519
Speaker 3: I feel like it was like an eighties video game.

1338
01:13:43,560 --> 01:13:46,519
Speaker 5: I'm like, okay, this is more up to date. It was.

1339
01:13:46,840 --> 01:13:49,240
Speaker 3: It was a more of an accurate depiction of what

1340
01:13:49,280 --> 01:13:51,320
Speaker 3: was happening in the crypto space because we know it's

1341
01:13:51,400 --> 01:13:52,280
Speaker 3: very viold point.

1342
01:13:52,280 --> 01:13:54,000
Speaker 5: We won't even going to sleep. It was like we

1343
01:13:54,040 --> 01:13:54,360
Speaker 5: got to.

1344
01:13:54,280 --> 01:13:56,719
Speaker 8: Watch this, So yeah, it's very it's very user friendly.

1345
01:13:56,760 --> 01:14:00,479
Speaker 9: Yeah, yeah, it's meant to be fast, for the interface

1346
01:14:00,560 --> 01:14:03,400
Speaker 9: to load quickly, for you to get the information that

1347
01:14:03,439 --> 01:14:06,920
Speaker 9: you need as quickly as possible, and of course, when

1348
01:14:07,240 --> 01:14:09,559
Speaker 9: if you do want to make a transaction, for that

1349
01:14:09,600 --> 01:14:13,200
Speaker 9: transaction to be to be smooth and for you to

1350
01:14:13,200 --> 01:14:15,840
Speaker 9: get a lot of value from it. So those are

1351
01:14:15,840 --> 01:14:19,120
Speaker 9: a lot of the design principles and really to to

1352
01:14:19,200 --> 01:14:22,160
Speaker 9: meet people, to meet people where there are they are,

1353
01:14:22,240 --> 01:14:25,280
Speaker 9: and to align with kind of the spirit of of crypto.

1354
01:14:25,600 --> 01:14:28,599
Speaker 9: So it is twenty four to seven and you know

1355
01:14:28,800 --> 01:14:33,720
Speaker 9: it's dynamic and sort of moving at all times. And

1356
01:14:34,040 --> 01:14:38,000
Speaker 9: you know, I think the the sort of retro future

1357
01:14:38,080 --> 01:14:40,800
Speaker 9: interface sort of affords affords that as well.

1358
01:14:40,960 --> 01:14:42,800
Speaker 3: I think that's one of the things. Bloomberg had a

1359
01:14:42,840 --> 01:14:45,439
Speaker 3: piece on it. I don't even heard the word of before.

1360
01:14:45,520 --> 01:14:48,719
Speaker 3: They said the gamification of investing, and it was almost

1361
01:14:48,720 --> 01:14:50,760
Speaker 3: like in a negative context, it's almost like, you guys

1362
01:14:50,760 --> 01:14:51,759
Speaker 3: have made it too easy.

1363
01:14:52,280 --> 01:14:53,280
Speaker 5: What do you say to that?

1364
01:14:54,160 --> 01:14:56,720
Speaker 9: Well, I think it has been difficult for for a

1365
01:14:56,800 --> 01:15:01,320
Speaker 9: long time. I think we reject the the sort of

1366
01:15:01,520 --> 01:15:04,439
Speaker 9: analogy of investing to a game. We know investing is very,

1367
01:15:04,560 --> 01:15:07,920
Speaker 9: very serious, but at the same time, you know, it

1368
01:15:07,960 --> 01:15:12,120
Speaker 9: should be accessible to people. There's nothing wrong for people

1369
01:15:12,160 --> 01:15:15,519
Speaker 9: to enjoy investing or to have fun doing it, right.

1370
01:15:15,840 --> 01:15:18,040
Speaker 9: I think if people don't, they just wouldn't do it,

1371
01:15:18,040 --> 01:15:21,439
Speaker 9: and then that's not good for anyone sport. Then yeah,

1372
01:15:21,479 --> 01:15:26,200
Speaker 9: So you know, we're all about accessible, intuitive design and

1373
01:15:25,200 --> 01:15:29,479
Speaker 9: making the design better and making our customers happier. And

1374
01:15:29,720 --> 01:15:32,640
Speaker 9: I don't think that has anything to do with gamification.

1375
01:15:33,479 --> 01:15:39,400
Speaker 4: Your mission statement is democratize investing in your robbin hood,

1376
01:15:39,600 --> 01:15:41,960
Speaker 4: which the story of robbin Hood you took from the

1377
01:15:42,040 --> 01:15:45,519
Speaker 4: rich and gave to the poor. How are you staying

1378
01:15:45,520 --> 01:15:47,240
Speaker 4: true to that mission statement? And do you have a

1379
01:15:47,320 --> 01:15:49,800
Speaker 4: worry like you know, now obviously you're publicly traded company

1380
01:15:49,800 --> 01:15:52,400
Speaker 4: and you're part of Wall Street where it was once

1381
01:15:52,640 --> 01:15:57,559
Speaker 4: like you know, Wall Streets attagonist. Now you're part of

1382
01:15:57,600 --> 01:16:00,360
Speaker 4: Wall Street. So how do you feel about that? Like,

1383
01:16:00,439 --> 01:16:02,479
Speaker 4: how do you feel about staying true to your core

1384
01:16:03,080 --> 01:16:03,879
Speaker 4: mission statement?

1385
01:16:04,479 --> 01:16:10,400
Speaker 9: Well, we are still in Silicon Valley, so I think, yes,

1386
01:16:10,520 --> 01:16:14,160
Speaker 9: we are a public company, we have shareholders, but you know,

1387
01:16:14,200 --> 01:16:16,840
Speaker 9: I wrote in my letter that you know, we're not

1388
01:16:16,920 --> 01:16:21,559
Speaker 9: a company that's gonna sacrifice the long term wellbeing of

1389
01:16:21,600 --> 01:16:26,160
Speaker 9: our customers to make our quarter or for any other

1390
01:16:26,200 --> 01:16:29,479
Speaker 9: short term gains. So it's a very long term focused company.

1391
01:16:30,120 --> 01:16:33,880
Speaker 9: And there is a lens. So our top value I

1392
01:16:33,880 --> 01:16:38,000
Speaker 9: mentioned earlier, safety first. Our second value is participation is power.

1393
01:16:38,160 --> 01:16:41,439
Speaker 9: And so participation is power means at Robinhood, the rich

1394
01:16:41,520 --> 01:16:44,040
Speaker 9: don't get a better deal. So if you're if you're

1395
01:16:44,920 --> 01:16:48,760
Speaker 9: a normal customer, you don't get you don't get better

1396
01:16:48,800 --> 01:16:51,400
Speaker 9: customer support, you don't get higher quality service, you don't

1397
01:16:51,400 --> 01:16:53,920
Speaker 9: get lower prices the more money you have in your account.

1398
01:16:54,479 --> 01:16:57,519
Speaker 9: And I think IPO access is a good example of

1399
01:16:57,560 --> 01:17:01,640
Speaker 9: that because not only do we put retail customers on

1400
01:17:01,720 --> 01:17:05,920
Speaker 9: a level playing field with the institutions, but every customer,

1401
01:17:05,960 --> 01:17:08,919
Speaker 9: regardless of how much money they have or how valuable

1402
01:17:08,920 --> 01:17:14,200
Speaker 9: they are to Robinhood, gets an equal an equivalent sort

1403
01:17:14,240 --> 01:17:18,000
Speaker 9: of odds and an equivalent shot to participating in the IPO.

1404
01:17:18,600 --> 01:17:22,599
Speaker 9: So it's it's ingrained in our values and it's something

1405
01:17:22,600 --> 01:17:26,160
Speaker 9: we consider whenever we build products. And it's cultural in

1406
01:17:26,160 --> 01:17:29,519
Speaker 9: the sense that you know, if people do feel like

1407
01:17:30,000 --> 01:17:35,479
Speaker 9: we're encroaching on a decision that favors wealthier customers, rich people.

1408
01:17:37,160 --> 01:17:40,280
Speaker 9: If it's like a non participation is powered decision, you'll

1409
01:17:40,280 --> 01:17:43,280
Speaker 9: see people advocating very fiercely against it and kind of

1410
01:17:43,320 --> 01:17:46,080
Speaker 9: rejecting it culturally. And I think it's one of those

1411
01:17:46,120 --> 01:17:48,799
Speaker 9: things that we're we're very proud of as company builders

1412
01:17:48,920 --> 01:17:51,479
Speaker 9: that it's sort of ingrained in the fabric of how

1413
01:17:51,520 --> 01:17:52,080
Speaker 9: we operate.

1414
01:17:52,920 --> 01:17:55,599
Speaker 5: I like that participation is power. We already say.

1415
01:17:55,400 --> 01:18:00,759
Speaker 4: Safety first, since that's all model. Safety first is really important.

1416
01:18:01,240 --> 01:18:02,639
Speaker 4: The best offense is a good defense.

1417
01:18:03,960 --> 01:18:06,720
Speaker 9: There you go, it's the best defense is a good

1418
01:18:06,760 --> 01:18:07,320
Speaker 9: offense too.

1419
01:18:07,360 --> 01:18:13,160
Speaker 4: Though it's too shit, he's good. But it's been on

1420
01:18:13,360 --> 01:18:15,160
Speaker 4: or Before we leave, I want you to have an

1421
01:18:15,160 --> 01:18:17,080
Speaker 4: opportunity to say anything that you would like to sell.

1422
01:18:17,120 --> 01:18:18,719
Speaker 4: I would love for you to talk about the educational

1423
01:18:18,720 --> 01:18:21,000
Speaker 4: resources if we talked about that briefly. But you guys

1424
01:18:21,040 --> 01:18:23,720
Speaker 4: definitely have a podcast which is near and dear to

1425
01:18:23,760 --> 01:18:26,200
Speaker 4: our heart, and you have I believe, courses on investing

1426
01:18:26,280 --> 01:18:29,120
Speaker 4: right and you like teach people about investing on the platform.

1427
01:18:29,240 --> 01:18:31,960
Speaker 9: Yeah, we have a couple of different areas where you

1428
01:18:32,000 --> 01:18:36,479
Speaker 9: can learn about investing. So increasingly we're finding ways to

1429
01:18:36,520 --> 01:18:39,720
Speaker 9: put digestible content in the app. But we also have

1430
01:18:39,800 --> 01:18:43,680
Speaker 9: robinhood Learn with the goal of taking you from kind

1431
01:18:43,680 --> 01:18:45,960
Speaker 9: of the basics of what is a stock, what is

1432
01:18:46,000 --> 01:18:49,799
Speaker 9: an ETF all the way to more advanced options trading

1433
01:18:49,840 --> 01:18:54,160
Speaker 9: and and different strategies there and then uh and then

1434
01:18:54,200 --> 01:18:57,000
Speaker 9: snacks as well, so you know, each of those things

1435
01:18:57,000 --> 01:19:00,599
Speaker 9: were we're making a lot of progress in. And you know,

1436
01:19:00,720 --> 01:19:06,920
Speaker 9: recently we partnered with Operation Operation Hope and became the

1437
01:19:07,920 --> 01:19:10,679
Speaker 9: sort of first broker to sign onto the Investor's Bill

1438
01:19:10,720 --> 01:19:17,240
Speaker 9: of Rights and you know, standing up for investor education.

1439
01:19:17,520 --> 01:19:21,080
Speaker 9: Financial literacy is something very important for us. We'd like

1440
01:19:21,120 --> 01:19:23,719
Speaker 9: to see that taught at earlier and earlier ages.

1441
01:19:24,080 --> 01:19:26,000
Speaker 4: It's funny you say that, I don't know if if

1442
01:19:26,040 --> 01:19:27,320
Speaker 4: you know how background, well, you know, that's what we

1443
01:19:27,320 --> 01:19:30,400
Speaker 4: started in the classroom, teaching financial literacy. Yeah, Joy used

1444
01:19:30,400 --> 01:19:31,640
Speaker 4: to be a teacher, so we used to have a

1445
01:19:31,680 --> 01:19:34,519
Speaker 4: program where we actually taught financial literacy and that kind

1446
01:19:34,520 --> 01:19:37,400
Speaker 4: of led to what we're doing now. But the classroom

1447
01:19:37,439 --> 01:19:40,120
Speaker 4: is always nandad or heart, so financial literacy is right

1448
01:19:40,200 --> 01:19:42,640
Speaker 4: up our ali obviously, so it's great to see you

1449
01:19:42,680 --> 01:19:44,599
Speaker 4: guys doing that. If we could have a work together

1450
01:19:44,640 --> 01:19:45,880
Speaker 4: on that that would be amazing, man.

1451
01:19:45,920 --> 01:19:46,880
Speaker 2: But absolutely.

1452
01:19:47,040 --> 01:19:50,120
Speaker 9: You know, in fourth grade, I remember taking a financial

1453
01:19:50,160 --> 01:19:53,679
Speaker 9: literacy class and you know, some of the lessons there,

1454
01:19:53,840 --> 01:19:57,200
Speaker 9: because they were so simple stay with me to this day.

1455
01:19:57,280 --> 01:19:59,920
Speaker 9: Like I remember they taught me. You know, it's basic

1456
01:20:00,120 --> 01:20:03,439
Speaker 9: things like when you're writing a check, start all the

1457
01:20:03,439 --> 01:20:05,800
Speaker 9: way on the left that way. You know, nobody can

1458
01:20:05,840 --> 01:20:07,880
Speaker 9: take the check and put like one in front of

1459
01:20:07,920 --> 01:20:08,759
Speaker 9: the number.

1460
01:20:08,920 --> 01:20:11,000
Speaker 4: And you know, it's so crazy because I feel like

1461
01:20:11,000 --> 01:20:14,960
Speaker 4: in America, depending on what school you go to, depending

1462
01:20:15,000 --> 01:20:16,960
Speaker 4: on where you live, your experience is going to be

1463
01:20:17,000 --> 01:20:17,639
Speaker 4: vastly different.

1464
01:20:17,640 --> 01:20:19,120
Speaker 8: So you said you learned how to write a check

1465
01:20:19,120 --> 01:20:19,719
Speaker 8: in fourth grade.

1466
01:20:19,840 --> 01:20:23,280
Speaker 4: We would teach we were teaching fourteen year olds fifteen

1467
01:20:23,360 --> 01:20:26,720
Speaker 4: year olds financial literacy, and one of the lessons was

1468
01:20:26,760 --> 01:20:29,760
Speaker 4: we had a mock check and we said, if anybody

1469
01:20:29,920 --> 01:20:32,920
Speaker 4: can write a check correctly, we didn't give one hundred

1470
01:20:32,920 --> 01:20:33,360
Speaker 4: dollars something.

1471
01:20:33,240 --> 01:20:35,000
Speaker 5: Like that, the whole table.

1472
01:20:35,200 --> 01:20:37,400
Speaker 4: For the whole table, take fifty dollars if you add

1473
01:20:37,400 --> 01:20:40,839
Speaker 4: it up. Long story, sure, nobody was able to do it. Wow, nobody,

1474
01:20:41,000 --> 01:20:43,400
Speaker 4: not one person. The reason being is that they were

1475
01:20:43,400 --> 01:20:46,880
Speaker 4: never taught. Yeah, so it's like you said, you learned

1476
01:20:46,880 --> 01:20:48,960
Speaker 4: it in fourth grade, so and it stuck with you

1477
01:20:48,960 --> 01:20:51,559
Speaker 4: your whole life. Unfortunately, a lot of people are never

1478
01:20:51,600 --> 01:20:53,479
Speaker 4: taught not just how to write checks, they're never taught

1479
01:20:53,479 --> 01:20:56,240
Speaker 4: about real estate, they're never taught about stocks, they're never

1480
01:20:56,280 --> 01:21:00,320
Speaker 4: taught about anything. So now they're just fumbling through life

1481
01:21:00,360 --> 01:21:03,639
Speaker 4: making a ton of mistakes. But they were never taught

1482
01:21:03,720 --> 01:21:06,639
Speaker 4: financial literacy. It's still mind boggling to me. While financial

1483
01:21:06,640 --> 01:21:09,360
Speaker 4: literacy is not a core curriculum and every single school

1484
01:21:09,400 --> 01:21:12,080
Speaker 4: across the country is optional, more and more schools are

1485
01:21:12,080 --> 01:21:13,519
Speaker 4: starting to pick it up, but there's still a lot

1486
01:21:13,560 --> 01:21:16,679
Speaker 4: of schools where financial literacy is not taught. Financial literacy

1487
01:21:16,720 --> 01:21:18,479
Speaker 4: was never taught in any school that I went to

1488
01:21:18,600 --> 01:21:21,000
Speaker 4: my whole entire life, including college.

1489
01:21:21,240 --> 01:21:25,519
Speaker 5: One school, well, the big Why University. It's called the biggest,

1490
01:21:25,560 --> 01:21:26,280
Speaker 5: the biggest school.

1491
01:21:26,400 --> 01:21:29,240
Speaker 4: So yeah, I'd say that to say that it's extremely

1492
01:21:29,280 --> 01:21:32,680
Speaker 4: important the message of financial literacy to not only be

1493
01:21:32,800 --> 01:21:35,080
Speaker 4: spread in the private sector, but in the public sector

1494
01:21:35,120 --> 01:21:39,639
Speaker 4: as well, and for schools to start adapting financial literacy

1495
01:21:39,680 --> 01:21:41,840
Speaker 4: at the young age and make it mandatory. I feel

1496
01:21:41,880 --> 01:21:44,200
Speaker 4: like it's just as important as math and reading is

1497
01:21:44,600 --> 01:21:45,120
Speaker 4: right up there.

1498
01:21:45,400 --> 01:21:48,800
Speaker 9: Amen couldn't agree more. It's certainly been, you know, as

1499
01:21:48,800 --> 01:21:55,760
Speaker 9: a mathematician, more practically useful in some ways than any

1500
01:21:55,800 --> 01:21:57,960
Speaker 9: of the advanced math that I took in grad school.

1501
01:21:58,520 --> 01:22:00,840
Speaker 3: Yeah, we've been saying that, I'm like, why am I

1502
01:22:00,880 --> 01:22:02,519
Speaker 3: going to use my pket baggery them?

1503
01:22:03,000 --> 01:22:03,360
Speaker 2: Yeah?

1504
01:22:03,560 --> 01:22:06,720
Speaker 4: Yeah, Well what would you like would you like to

1505
01:22:06,720 --> 01:22:08,880
Speaker 4: sell if he win? Anything else that we didn't cover

1506
01:22:08,960 --> 01:22:10,840
Speaker 4: that you want to let people aware of, or any

1507
01:22:10,840 --> 01:22:12,719
Speaker 4: new developments. I know you got twenty four to seven

1508
01:22:12,960 --> 01:22:15,920
Speaker 4: customer service coming, so with some final words you would

1509
01:22:15,960 --> 01:22:16,800
Speaker 4: like to leave the people with.

1510
01:22:17,160 --> 01:22:19,759
Speaker 9: Yeah, well, I think twenty four to seven customer service

1511
01:22:20,000 --> 01:22:25,479
Speaker 9: are is something incredibly important for us, something that you

1512
01:22:25,479 --> 01:22:28,240
Speaker 9: know goes hand in hand with safety first, Right. We

1513
01:22:28,320 --> 01:22:31,320
Speaker 9: have to make sure that we not only provide a

1514
01:22:31,360 --> 01:22:34,599
Speaker 9: high quality service that's available to customers when they need

1515
01:22:34,720 --> 01:22:36,960
Speaker 9: us the most, but that when they have issues where

1516
01:22:37,000 --> 01:22:41,639
Speaker 9: we're there for them. So proud to be live across

1517
01:22:41,680 --> 01:22:45,960
Speaker 9: all issue types with customer support, and we're going to

1518
01:22:46,000 --> 01:22:50,880
Speaker 9: continue to go where our customers take us and and

1519
01:22:50,960 --> 01:22:55,320
Speaker 9: strive to deliver new products that are that are on

1520
01:22:55,400 --> 01:22:58,920
Speaker 9: line with with our values and build the safest and

1521
01:22:59,080 --> 01:23:02,719
Speaker 9: most culturally all of it financial product in the world.

1522
01:23:03,920 --> 01:23:06,360
Speaker 4: Safety First ladies and gentlemen. First, I love U on

1523
01:23:06,560 --> 01:23:07,759
Speaker 4: Troy Housekeeping Items.

1524
01:23:07,960 --> 01:23:08,160
Speaker 5: Yeah.

1525
01:23:08,160 --> 01:23:11,599
Speaker 3: I first like to say welcome to our newest EYL team.

1526
01:23:11,640 --> 01:23:13,720
Speaker 5: I'm Minora. Can we clap it up? He real quick?

1527
01:23:16,360 --> 01:23:18,559
Speaker 3: And I'd also like to shout out all our earners

1528
01:23:18,560 --> 01:23:20,240
Speaker 3: on Patreon dot com. I know it's all proud to

1529
01:23:20,280 --> 01:23:23,760
Speaker 3: pay program and all our people at EYL University. Our

1530
01:23:23,760 --> 01:23:27,400
Speaker 3: team is growing, not just the students, but the actual staff.

1531
01:23:27,600 --> 01:23:30,519
Speaker 3: Our family is growing. So shout to everybody. Shout over

1532
01:23:30,560 --> 01:23:33,280
Speaker 3: the ten thousand earners at the n Eyl University, and

1533
01:23:33,320 --> 01:23:37,000
Speaker 3: shout to the entire merch team Bam Smithy, the entire crew.

1534
01:23:37,080 --> 01:23:37,240
Speaker 6: Man.

1535
01:23:38,080 --> 01:23:40,360
Speaker 3: You know we're spilling some new colors this year. It's

1536
01:23:40,360 --> 01:23:42,639
Speaker 3: that time of year to get the new season involved.

1537
01:23:42,640 --> 01:23:44,559
Speaker 3: So shout out to y'all. You know how we play

1538
01:23:44,600 --> 01:23:45,280
Speaker 3: this lover is love.

1539
01:23:45,520 --> 01:23:48,200
Speaker 4: Yes, So shout out to Nora. I know she's been

1540
01:23:48,240 --> 01:23:52,040
Speaker 4: working tiresly with Mike can make this happen. And thank you,

1541
01:23:52,280 --> 01:23:55,080
Speaker 4: and thank the whole robin Hood staff for the hospitality,

1542
01:23:55,439 --> 01:23:57,839
Speaker 4: very welcoming, beautiful campus.

1543
01:23:58,080 --> 01:24:02,560
Speaker 8: Very glad to hear zen He's yes, you can't. We

1544
01:24:02,800 --> 01:24:03,439
Speaker 8: just can't walk in.

1545
01:24:03,800 --> 01:24:05,840
Speaker 5: I'm just saying sometimes we gotta. They were like, we

1546
01:24:05,880 --> 01:24:06,479
Speaker 5: want to tell to you.

1547
01:24:06,760 --> 01:24:07,120
Speaker 2: Yeah.

1548
01:24:07,200 --> 01:24:11,360
Speaker 4: Yeah, So thank you again for the hospitality anytimes. It's

1549
01:24:11,400 --> 01:24:14,599
Speaker 4: been a pleasure and we will see you guys next

1550
01:24:14,640 --> 01:24:15,240
Speaker 4: week later.

1551
01:24:16,080 --> 01:24:16,840
Speaker 5: You don't know who we know.

1552
01:24:17,360 --> 01:24:25,920
Speaker 6: Yeah, my graduates from my school being forced back drop drop, Mike,

1553
01:24:26,040 --> 01:24:27,400
Speaker 6: drop backdrop.

1554
01:24:38,680 --> 01:24:42,360
Speaker 10: An illegal alien from Guatemala charged with raping a child

1555
01:24:42,400 --> 01:24:46,200
Speaker 10: in Massachusetts. An MS thirteen gang member from Al Salvador

1556
01:24:46,439 --> 01:24:50,559
Speaker 10: accused of murdering a Texas man of Venezuelan charged with

1557
01:24:50,640 --> 01:24:54,519
Speaker 10: filming and selling child pornography in Michigan. These are just

1558
01:24:54,640 --> 01:24:58,400
Speaker 10: some of the heinous migrant criminals caught because of President

1559
01:24:58,439 --> 01:25:01,960
Speaker 10: Donald J. Trump's leadership. I'm Christy Noman, the United States

1560
01:25:02,040 --> 01:25:06,799
Speaker 10: Secretary of Homeland Security. Under President Trump, attempted illegal border

1561
01:25:06,840 --> 01:25:10,400
Speaker 10: crossings are at the lowest levels ever recorded, and over

1562
01:25:10,479 --> 01:25:13,680
Speaker 10: one hundred thousand illegal aliens have been arrested. If you

1563
01:25:13,760 --> 01:25:17,599
Speaker 10: are here illegally, your next you will be fine nearly

1564
01:25:17,680 --> 01:25:21,719
Speaker 10: one thousand dollars a day, imprisoned and deported, you will

1565
01:25:21,760 --> 01:25:25,400
Speaker 10: never return. But if you register using our CBP home

1566
01:25:25,439 --> 01:25:28,799
Speaker 10: app and leave now, you could be allowed to return legally.

1567
01:25:29,160 --> 01:25:33,960
Speaker 10: Do what's right. Leave now. Under President Trump America's laws,

1568
01:25:34,080 --> 01:25:36,559
Speaker 10: border and families will be protected.

1569
01:25:36,640 --> 01:25:38,759
Speaker 2: Sponsored by the United States Department of Homeland Security,