Robinhood Markets filed to launch a new fund giving
retail traders exposure to companies before they go public, aimed at opening private
markets to everyday investors.
According to the fintech giant, the new platform,
dubbed Robinhood Ventures DE, LLC,
submitted an initial registration statement to the U.S. Securities and Exchange
Commission for Robinhood Ventures Fund I (RVI). Once approved, the closed-end fund would invest in private companies and make its shares available to the public.
Shifting Investment Landscape
“For decades, wealthy people and institutions have
invested in private companies while retail investors have been unfairly locked
out. With Robinhood Ventures, everyday people will be able to invest in
opportunities once reserved for the elite,” commented Robinhood Chairman and
CEO Vlad Tenev.
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The filing comes as the pool of U.S. public companies
continues to shrink. Listed firms have reportedly dropped from about 7,000 in 2000 to
roughly 4,000 in 2024, limiting choices for retail traders. In contrast,
private companies have grown in both scale and value, with estimates placing
the market above $10 trillion.
RVI will reportedly focus on a concentrated portfolio
of firms in high-growth industries, holding stakes through IPO and beyond. The
fund intends to diversify across multiple sectors while keeping a long-term
view.
SEC Review Still Pending
Shares of RVI cannot be sold until the SEC declares that the registration is effective. Robinhood said it expects the fund to list on the
New York Stock Exchange under the ticker symbol RVI. Investors would be able to
buy and sell shares through brokerages such as Robinhood Financial LLC.
Related: Robinhood CEO Reveals: “I Was Never Really Doing It for the Money”
The planned fund follows Robinhood’s earlier move in
Europe to launch private tokenized stocks. With RVI, the company is seeking to
extend that model to U.S. markets and widen access to private firms for retail
investors.
Most recently, Robinhood has been strengthening its offerings.
Recently, the company announced plans for a new social trading platform that
will let users share live positions and performance.
The company unveiled Robinhood Social at its annual
HOOD Summit in Las Vegas, alongside new AI-powered trading tools and an
expansion of its futures offerings. The platform will reportedly roll out by
invitation to select U.S. customers early next year, with wider access to
follow.
This article was written by Jared Kirui at www.financemagnates.com.
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