Robinhood Markets Inc. (NASDAQ:HOOD) is moving to expand retail investor access to private companies through the launch of Robinhood Ventures Fund I (RVI), a closed-end fund that has filed an initial registration statement on Form N-2 with the Securities and Exchange Commission. The fund will be managed by Robinhood Ventures DE, LLC, a newly created, wholly owned subsidiary of the company.
The initiative aims to give individual investors exposure to firms before they go public, an opportunity historically reserved for wealthy investors and institutions.
"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," said Robinhood Chairman and CEO Vlad Tenev.
Also Read: Robinhood Reports August Operating Figures
The move comes as the pool of publicly listed U.S. companies has continued to shrink, falling from roughly 7,000 in 2000 to about 4,000 in 2024.
At the same time, private companies have become increasingly significant, with their estimated value now exceeding $10 trillion in the United States.
By creating RVI, Robinhood is positioning itself to bridge that gap, allowing retail investors to participate in a growing segment of the market that has traditionally remained inaccessible.
Robinhood has already tested similar concepts abroad, having introduced private tokenized stocks in the European Union earlier this year.
The company says RVI is designed to serve as the U.S. counterpart, offering retail investors a vehicle to invest in private firms across multiple sectors. The fund intends to hold investments for the long term, including through potential initial public offerings and beyond.
Shares of RVI are intended to be listed on the New York Stock Exchange under the ticker symbol RVI, pending SEC approval. Once effective, investors will be able to buy and sell shares through brokerages, including Robinhood Financial LLC.
The registration filing is subject to review, and no shares can be sold until it is declared effective by the SEC.
Price Action: HOOD shares are trading higher by 0.63% to $115.76 at last check Monday.
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