Robinhood Expands Private Markets Access with New Venture Capital Fund

Robinhood is launching a new venture capital fund to give retail investors access to private companies before they go public. The fund, called Robinhood Ventures Fund I, will be traded on the NYSE and will invest in a basket of private companies across various industries. The move aims to democratize access to private markets, which have grown to over $10 trillion in value since 2000.

Robinhood, the popular retail brokerage, has filed with the SEC to launch a new venture capital fund, Robinhood Ventures Fund I (RVI), aimed at giving everyday investors access to private companies before they go public. The fund will invest in a basket of private companies across various industries and will be traded on the New York Stock Exchange (NYSE), pending regulatory approval.

The fund, managed by a newly formed subsidiary called Robinhood Ventures, seeks to democratize access to private markets, which have grown to over $10 trillion in estimated value since 2000. This move follows Robinhood's earlier initiatives to provide European Union users with access to private equity tokens and tokenized publicly traded U.S. stocks through its layer-2 blockchain network.

Robinhood Chairman and CEO Vlad Tenev stated, "For decades, wealthy people and institutions have invested in private companies while retail investors have been unfairly locked out." The new fund aims to address this disparity by offering retail investors the opportunity to invest in promising private companies before they go public.

If approved, Robinhood Ventures Fund I would invest in a small basket of private companies across various industries and hold them through IPO and beyond. Shares would be available to buy and sell through traditional brokerages. This development is part of Robinhood's broader strategy to expand its services and cater to a wider range of investors.

As of today's trading session, Robinhood shares are down 1.4% to $113.39.