Robinhood Ventures Puts Pre-IPO Bets Within Reach for Everyday Investors

TLDR:

• Robinhood filed Form N-2 with the SEC for Robinhood Ventures Fund I, aiming to list shares under ticker RVI.
• The fund targets private, pre-IPO companies and plans to hold investments through IPO and beyond.
• U.S. retail investors will be able to buy and sell RVI shares through brokerages like Robinhood Financial LLC.
• The move follows Robinhood’s EU rollout of tokenized private stocks earlier this year.

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Retail traders could soon get a way into private markets once reserved for the wealthy. 

Robinhood announced that it is taking steps to launch a new investment vehicle that will focus on private, pre-IPO companies. The goal is to give everyday investors access to early-stage growth opportunities that have traditionally been off-limits. 

The company confirmed that it has filed a registration statement with the SEC to move the process forward. Once cleared, the fund’s shares could trade on the NYSE.

Robinhood Ventures Fund I Targets Private Market Exposure

According to the SEC filing, the vehicle is called Robinhood Ventures Fund I (RVI). It will be managed by Robinhood Ventures DE, LLC, a newly formed subsidiary of Robinhood Markets, Inc. 

The fund is structured as a closed-end investment vehicle and aims to build a concentrated portfolio of private companies across multiple sectors.

Robinhood stated that the number of publicly traded companies in the U.S. has fallen from about 7,000 in 2000 to around 4,000 in 2024. As a result, fewer growth opportunities exist for everyday investors. At the same time, private firms have grown in size and value, with an estimated market now exceeding $10 trillion.

RVI aims to give investors exposure to those companies before they list publicly. Robinhood said the plan is to hold stakes through IPOs and beyond. The filing noted that once the registration is declared effective, the fund’s shares will trade under the ticker RVI.

The company emphasized that retail investors will be able to buy and sell RVI shares using brokerages like Robinhood Financial LLC. This will mirror how other publicly listed funds trade, offering a familiar experience for traders.

Building on Robinhood’s Global Push

This filing follows Robinhood’s earlier launch of private tokenized stocks in the EU. That initiative allowed European users to access exposure to private companies before IPO. Robinhood said RVI is part of its broader plan to expand retail access to assets traditionally limited to institutions.

Vlad Tenev, Robinhood’s co-founder and CEO, said the initiative aims to “level the playing field.” He stressed that for decades only wealthy individuals and large funds could participate in private market growth stories.

The fund will focus on companies at the frontier of their industries. According to the filing, sectors will include technology, health, and other areas with high growth potential. Robinhood said it expects to hold investments long term, allowing investors to benefit from growth past the IPO stage.

The SEC will still need to review and approve the registration statement before shares can be sold. Once cleared, the listing on the NYSE will allow U.S. retail traders to participate alongside institutions.

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