Baiju Bhatt (right) and Vlad Tenev, founders of the online brokerage Robinhood. (Photo by Spencer ... [+] Platt/Getty Images)Getty ImagesRobinhood revolutionized investing by attracting a new wave of retail traders many drawn to high-risk options and meme stocks like GameStop. Vlad Tenev and Baiju Bhatts bold strategy of targeting an underserved segment with bold, high-risk investments not only propelled Robinhood into billion-dollar territory but also pressured traditional financial firms to adapt.Here are 5 key lessons entrepreneurs can learn from Robinhood and its co-founder, Vlad Tenev.#1. Strategy over product.Robinhood didnt invent online trading. E-Trade and others had already done that. Instead, its success stemmed from a strategic shift rather than a new product. The company focused on:High-risk financial instruments such as options on meme stocks attracting risk-tolerant traders.A new demographic segment Young, mobile-first users seeking a no-cost approach where fees were hidden rather than being upfront. This strategy leverages large hedge funds to facilitate trades, benefiting both the hedge funds and Robinhood.An overlooked opportunity Traditional competitors were focused on other products and markets and had yet to embrace commission-free trading.#2. Control the TechUnlike many fintech startups that rely on third-party providers, Robinhood built and controlled its own trading infrastructure. This independence and expertise allowed it to:Scale rapidly without being constrained by vendor limitations.Maintain proprietary control over key functions reducing reliance on external partners.Reduce costs and increase agility, allowing for faster product development and innovation.3. Make the Platform AddictiveRobinhood leveraged engagement tactics from Amazon and Las Vegas casinos to keep users hooked. The company employed strategies such as:Creating stickiness by introducing complementary products and services making it harder for users to leave layering benefits like credit cards and IRAs to offer a complete suite of financial services tailored to its target demographic.Imitating Las Vegas and promoting gamblification, also known as gamification designing the app to deliver small spikes of pleasure and kept users coming back by creating a dopamine-driven experience that mimicked gambling.Capturing vulnerable segments encouraging high-frequency trading and risky bets by making complex financial instruments like options trading feel accessible and exciting.#4. Use Capital-as-a-Weapon.Robinhood strategically cultivated relationships with the top VC funds like Sequoia and Andreessen Horowitz, leveraging their deep pockets. These elite VCs can be very handy when a venture needs access to emergency capital and must raise $3 billion in a few days to satisfy regulatory requirements. Thats the key advantage for a Silicon Valley unicorn with VC connections they can raise billions overnight. The VCs also did well. They got favorable terms a 30% pre-IPO discount reinforcing the power of strategic investor relationships.#5. Hype the Unicorn Myth.Silicon Valley unicorns thrive on mythmaking because VCs need a compelling story to hype. Robinhood was no exception. Despite both co-founders having been raised in the U.S. since childhood, the company leaned into a rags to riches immigrant narrative, positioning itself as a scrappy startup disrupting Wall StreetHype drives valuation. A well-crafted story attracts media attention, investors, and users, boosting perceived value.Perception matters. Even established founders can frame their journey as an against-the-odds success to fuel growth and investment. By mastering storytelling, startups can shape public perception, create buzz, and gain a competitive edge whether the myth aligns with reality or not.MY TAKE: Robinhoods rise highlights repeatable principles behind billion-dollar startups strategic disruption, technology control, and stickier customers. And the key financing lesson is that if youre considering VC, timing is key. Wait until you have leverage to keep control and avoid excessive dilution. Robinhoods key lesson isnt about trading its about playing the startup game on your terms and mastering the rules before others dictate them to you.