New York Times reports on the matter
The report says that despite drawing on credit lines yesterday, Robinhood still needed more cash to ensure that it did not have to place further trading limits on its customers and contacted several of its investors to procure the funding.
The persons involved in the negotiations said that venture capital firms such as Sequoia Capital and Ribbit Capital came together last night to offer Robinhood with the money. In turn, they will receive additional equity in the company. The full report can be found here.
The number one rule in any service business is that the customer comes first. Whatever the case is for Robinhood, the damage is already done surely.
From a risk management perspective, one can understand why the decisions were made given the options expiring today and the need to ensure that they have funds to pay out. But that's not the customers' fault that they got in way over their head.
