Brokerage app Robinhood made headlines this week when it surfaced as a serious participant within the pitched contest between retail buyers and hedge funds over GameStop inventory.
Based in 2013, the corporate launched its app in 2014, offering buying and selling entry to anybody with a telephone.
Robinhood has helped to democratize finance, and it supplied the portal by way of which on-line communities had been in a position to set up and begin a brief squeeze on hedge funds that had been seeking to quick GameStop’s inventory.
After making a controversial name to cease all purchases of GameStop on Thursday, Robinhood has come beneath vital scrutiny, each within the public eye and in Congress.
Right here’s what you must learn about Vlad Tenev, the person who’s already dealing with the results of Robinhood’s choices over the previous week.
1. Tenev resides the American dream
Tenev represents the American dream: Born in Bulgaria, he migrated to America together with his mother and father when he was 5 years outdated, in keeping with his profile on Rosenblatt Securities.
Tenev grew up in Washington,, D.C., and studied arithmetic at Stanford College. He went on to UCLA to earn a PhD in arithmetic, however dropped out to begin an organization together with his pal, Baiju Bhatt.
The duo launched their first enterprise, Celeris, in 2010, however deserted it to create Chronos analysis, a software program agency.
WARREN RIPS SEC AMID GAMESTOP SURGE, PUSHES FOR STRICTER WALL STREET REGULATION
Their subsequent enterprise, Robinhood, would catapult the pair into a brand new stratosphere of business.
When the pair raised further funding for Robinhood in 2018, the corporate’s valuation hit $6 billion, turning every of its founders into billionaires, in keeping with The Focus.
2. Tenev and Bhatt began Robinhood due to the Occupy Wall Road motion
The thought to “democratize investing” began with Tenev and Bhatt’s experiences in FinTech throughout the recession.
The duo labored out of New York Metropolis once they tried their first two ventures, the second of which coincided with the Occupy motion.
BIDEN ADVISER DEESE PUSHES STIMULUS RELIEF AFTER GDP, JOBLESS DATA
Whereas different companies had been shutting down, Tenev and Bhatt had been thriving, which led one in all their associates to accuse them of making the most of others’ distress, in keeping with Forbes.
After some soul looking out, they created Robinhood with two key objectives: no commissions and no minimal balances.
These two factors made Robinhood stand out in comparison with its rivals and helped it thrive within the early days because it pitched itself as a device for the little man.
3. Tenev has bseen celebrated for his success…till now
Earlier than the GameStop choice on Thursday, Tenev had loved acclaim for his work.
On the age of 28, Tenev was acknowledged as a part of the Forbes 30 beneath 30 sequence for Finance. Tenev has additionally been featured on the Fortune 40 beneath 40 lists.
DOW TUMBLES 620 POINTS IN STOCK SELLOFF AS GAMESTOP WORRIES PERSIST
Nonetheless, his latest choice to cease purchases of GameStop, then restrict shopping for of the inventory thereafter, has earned him accusations of market manipulation.
Tenev has gone from a celebrated entrepeneur to the goal of intense hatred among the many retail merchants who had been utilizing Robinhood.
Some customers have accused Tenev of kowtowing to monetary backers and defending hedge funds, which reveals how radically opinion has modified relating to the person who has long-championed democratizing investing.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Tenev’s legacy will relaxation on how he handles the following few weeks and any subsequent investigations into Robinhood’s actions over the previous month.