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Time consumption.
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Pre-seed and seed funding: This is the earliest stage of funding, where VCs invest in a startup to validate the business idea and develop the product or service. Series A: This is the first major round of financing, generally used to grow the business, expand the team, and refine the product. Series B: At this stage, the startup is more established, and the financing helps scale the company further and enter new markets. Series C (and later rounds): These rounds are meant for mature startups, with the funds being used to fuel global expansion, acquire competitors, or prepare for an initial public offering (IPO) or acquisition.
Tenev: Not to my knowledge, and some people have promotions like your first five or 10 trades are free. That's been tried before, but I think what allows us to offer unlimited commission-free trading was a technological step change and the ability to attract a customer base organically in a space where customer acquisition has been entirely paid-advertising-driven.
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Marc Andreessen took a bet by investing in Robinhood before the product existed. Michael Kovac/Getty Images.
We thank Dasha Anosova and Kevin Huang for their research assistance. We thank the Kauffman Fellows Program, the National Venture Capital Association, the University of Chicago Booth School of Business, Harvard Business School, and the Stanford Graduate School of Business for providing us access to their members and alumni. We thank Phil Wickham of the Kauffman Fellows Program, Bobby Franklin and Maryam Haque of the National Venture Capital Association for their help in disseminating the survey. We thank Shai Bernstein, Felda Hardymon, Michal Kosinski, and participants at the NBER Summer Institute for helpful discussions and comments. We also are very grateful to our many survey respondents. Gornall thanks the SSHRC for its financial support. Gompers, Kaplan, and Strebulaev have consulted to general partners and limited partners investing in venture capital. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
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