Robinhood Launches Venture Fund for Retail Access to Private Markets

Robinhood (HOOD) is expanding into private markets with the launch of Robinhood Ventures Fund I (RVI), a venture capital fund aimed at providing everyday investors access to pre-IPO companies. The fund will be traded on the New York Stock Exchange, pending SEC approval.

The fund will target stakes in industry-leading private companies.
Managed by Robinhood Ventures, a new subsidiary.
Part of a broader strategy to democratize investment in private equity, traditionally limited to wealthy individuals and institutions.

This move follows criticism of Robinhood's offering of private equity tokens in Europe, which included tokenized shares of OpenAI and SpaceX via a layer-2 blockchain network.

Tokens were held by a special purpose vehicle, not representing direct equity, following warnings from OpenAI.

Robinhood highlights a significant shift in the market landscape, noting a halving of public companies in the U.S. since 2000 and a $10 trillion valuation growth in the private market.

If approved, RVI will invest across various industries and hold positions through the IPO process. Shares of this fund would be tradable through traditional brokerages.

Currently, Robinhood shares are down 1.4% to $113.39.