#223 Baiju Bhatt - Co-Founder of Robinhood & CEO of Aetherflux

Shawn Ryan shares the tale of Baiju Bhatt, a Virginia-born son of Indian immigrants whose formative experiences were defined by family hardship and academic determination.

Baiju's Passion for Science and Early Education

Baiju Bhatt, who grew up in Poquoson, Virginia, close to the Langley Air Force Base, was inspired by his father, who worked at NASA's Langley Research Center. Although his father had to pivot from dreams of physics to optometry, he eventually earned a Ph.D. in the United States.

Baiju's Tough Childhood: Family Health and Financial Challenges

Bhatt's family faced severe financial strains because of his father's kidney failure and subsequent medical treatments, which began when Baiju was around five. His father had to leave his Ph.D. program and secure a job to cover medical bills. Growing up as an overweight and non-athletic only child, Baiju navigated feelings of helplessness, especially as his father's health declined. The profound hardship left the family unable to afford trips back to India, with their last visit being in 1997.

During eighth grade, Baiju's father was hospitalized and underwent major surgeries. Baiju grappled with the thought of losing his father, who had been hospitalized due to severe kidney disease requiring dialysis and eventually a kidney transplant.

A Path Shaped By Academic Success and Resilience

Despite the tur ...

Shawn Ryan and Baiju Bhatt delve into the birth of Robinhood, its mission to democratize finance, and its profound influence on the finance industry.

Robinhood: Baiju and Vlad Tenev Started It to Democratize Finance and Make Investing Accessible to Everyone

Baiju Bhatt co-founded Robinhood alongside his college roommate Vlad Tenev with the aim of revolutionizing the brokerage industry and making Wall Street more accessible to everyone, regardless of financial status. Bhatt harbored a belief that free access to the market would diminish people's frustration with not being part of the financial system, potentially leading to a happier, more harmonious society. The mission behind Robinhood, as Bhatt describes it, is "democratizing finance for all."

Inspired by Occupy Wall Street and Wealth Inequality Frustrations

The backdrop for Robinhood's inception was the Occupy Wall Street movement and public discontent due to wealth inequality after the 2008 financial crisis. Bhatt observed that the recovery seemed to disproportionately benefit the wealthy, which contributed to the perception of a "messed up" or "rigged" financial system. Bhatt and Tenev were inspired by these frustrations and the feeling that the system should be inclusive. They believed that government policies wouldn't rectify the disparity, but technology, like Robinhood, might democratize finance and tackle broader wealth inequality issues.

Robinhood's Zero-Commission Model and App Revolutionized Brokerage Industry

Bhatt designed Robinhood's interface to stand out from existing products and took steps to unpack financial concepts for better public understanding. Bhatt traveled outside of Silicon Valley to ensure the app addressed various financial needs. The interest in Robinhood surged, evidenced by the significant number of sign-ups on their waitlist after announcing the product.

Robinhood Gained Millions, Disrupting Traditional Finance Players

The app attracted many first-time investors and seasoned traders drawn to the benefit of zero-commission trading. It took a few years for other brokers to respond; by the end of 2019, most had eliminated commissions. Robinhood's initial waitlist ballooned to 50,000 to 100,000 people within the first month, signaling potential disruption to traditional finance p ...

After co-founding Robinhood and turning the stock market on its head by democratizing access to capital markets, Baiju Bhatt has shifted his innovative spirit toward the final frontier with his new venture in space technology, Aetherflux.

Baiju, After Co-leading Robinhood, Sought a New Space Tech Challenge

Following his departure from a full-time role at Robinhood, where he remained a board member, Baiju Bhatt searched for a commercial venture that would allow him to explore his interest in space. A long-time space enthusiast, he speaks of capitalism as an important driver for innovation and individual advancement. At Robinhood, Bhatt aimed to make capital markets accessible to everyone, a testament to his belief in democratizing powerful systems.

Baiju Saw an Opportunity to Harness Space Solar Power and Beam It to Earth, Inspired by the Industry's Lack of Progress

Bhatt's frustration with an industry often relegated to past achievements sparked his determination to mount a forward-looking space venture. Surprised that society had seemingly moved on from the zeal of space exploration to become absorbed by the internet, Baiju’s interest in space was rekindled by SpaceX’s rocket advancements, and he was determined to partake proactively. Bhatt wanted to expand the limited commercial activities in space – defense, earth imaging, and telecom – to harness space-based natural resources, an area ripe for innovation.

Baiju Founded Aetherflux to Launch Satellites Transmitting Solar Energy To Earth

Shawn Ryan unveils that Bhatt's venture, Aetherflux, is designed to harness solar energy in space and then beam it down directly to Earth. This cutting-edge approach would eliminate the need for extensive power lines and could lead to a more decentralized grid system. Understanding that space solar power is an old yet solid concept developed by NASA and the DOD in the 1970s, Baiju views it as a foundation for a contemporary revolution in power transmission.

Aetherflux's Satellite Aims to Demonstrate Concept, With Future Plans to Scale Power and Coverage

Bhatt plans to demonstrate th ...

Baiju Bhatt provided deep insights into Aetherflux's ambitious plans to harness solar energy in space and convert it into laser beams directed to Earth for electricity generation, outlining the technical aspects, satellite design considerations, and the broader vision for a decentralized space-based energy grid.

Aetherflux Satellites Use Solar-Powered Laser Transmission

Bhatt elaborated on the workings of Aetherflux's planned satellites—a key feature being their ability to collect solar energy and convert it into laser beams transmitted to Earth. The satellites will be equipped with solar panels to convert sunlight into electrical current. This current is then used to power a fiber laser system that converts the charge into a focused beam of light. This beam is projected to a specific point on the ground with pinpoint accuracy using satellite-mounted telescopes.

Ground Receivers Will Convert Laser Energy Into Electricity For Facilities or a Grid

The satellites being developed will charge as they pass overhead and beam power in the form of light to ground stations. Initially, the stations on the ground will be larger due to the smaller satellite optics. As the satellite optics grow larger, a smaller area on the ground can be targeted. These ground stations will be capable of receiving the laser energy transmitted from the satellite and converting it back into electrical energy that can be used to power facilities or feed into a grid.

The design of the ground station is strategically meant to ensure mobility and to minimize value if captured, making the system ideal for applications such as powering remote installations or military outposts.

Baiju on Satellite Design Tradeoffs: Cost, Efficiency, Scalability

Regarding satellite design, Bhatt spoke of determining the ideal balance between cost and efficiency. He alluded to the first satellites outputting around one kilowatt of power and mentioned the trade-offs between using cheaper components versus more expensive but higher efficiency ones. The vision includes starting with smaller satellites and scaling up, potentially leveraging Starship's launch capacity for deploying multiple satellites at once. The satellites will initially have onboard batteries to store the power from the solar panels with the intention to scale up power output eventually.

Bhatt also contemplated the choice between a network of smaller satellites that would hand off power beaming duties to one another and a single large sa ...