Public.com looking at $200M raise at $1.2B valuation
FNG has learned from discussions over the weekend in venture capital circles and blogs that Jannick Malling’s app-based brokerage and social trading startup Public.com is looking to join the $1 billion unicorn club, by virtue of serious discussions being held to raise an additional $200 million at a valuation of around $1.2 billion.
If concluded, that would represent a 4x increase in valuation for the Robinhood-challenging Public.com, since its $65 million financing round just last December, done at a valuation of about $300 million.
The $200 million investment is being negotiated with public/private tech investment firm Tiger Global Management – whose previous investments include companies such as Airbnb, Yandex, Facebook, Uber, and LinkedIn – and venture capital firm Accel, a current investor in the company.
Like Robinhood and a number of other online brokerages which cater to a younger, mobile / social focused generation, Public.com has reportedly seen a huge increase in usage and new client signups over the past two months. App Annie data shows that Public.com app downloads increased more than 6x from January 28, 2021, the date that rival Robinhood imposed trading limitations in the midst of the GameStop short squeeze trading frenzy.
Founded just two years ago and co-run by well-known FX industry executive Jannick Malling (ex Saxo Bank, CFH Group, Tradable) and serial web entrepreneur Leif Abraham, Public.com is an app-only online broker, targeting younger traders with a social-trading bent. Its roster of investors and backers includes celebrities such as actor/rapper Will Smith, NFL star JJ Watt, popular Youtuber Casey Neistat, and skateboarder Tony Hawk.
Public.com has publicly stated its aversion to the “Payment for Order Flow” business model, which sees other retail brokers sell retail trader order flow to professional market makers. Instead, Public.com is introducing an optional tipping feature, as well as looking to monetize by launching a “pro” paid service of some sort.