Robinhood Files to Launch Fund for Private Pre-IPO Investments
Robinhood Markets Inc. (HOOD) has filed with the U.S. Securities and Exchange Commission (SEC) to create a publicly traded fund. This fund will let retail investors buy shares in private, pre-IPO companies.
The proposed Robinhood Ventures Fund I would trade on the New York Stock Exchange under the ticker RVI. The fund plans to hold long-term stakes in private companies through their IPO and beyond. Investments will cover multiple sectors.
“For decades, wealthy people and institutions have invested in private companies while retail investors have been unfairly locked out,” said CEO Vlad Tenev. “With Robinhood Ventures, everyday people will be able to invest in opportunities once reserved for the elite.”
Private Market Trends and Robinhood’s Strategy
Robinhood highlighted the shrinking number of U.S. public companies. The count fell from about 7,000 in 2000 to 4,000 in 2024. Meanwhile, private companies now hold more than $10 trillion in value.
In response, Robinhood has expanded access to assets usually unavailable to retail investors. Earlier, it launched tokenized stock products in Europe linked to companies like OpenAI and SpaceX. The new U.S. fund aims to open private markets to retail investors.
Potential Impact on Retail Investors
If approved, Robinhood Ventures Fund I could change how U.S. retail investors access private markets. It would turn exclusive private company investments into publicly tradable shares.
