Robinhood Markets Inc. has filed with the SEC to launch a public fund that allows retail investors to invest in private companies before their IPO.
Plans for Robinhood Ventures Fund I
The Robinhood Ventures Fund I will trade on the New York Stock Exchange under the ticker RVI. The company claims that the fund will hold long-term stakes in private firms through IPO and beyond, covering multiple sectors.
Market Changes
The company noted that the number of public companies in the U.S. has dropped from about 7,000 in 2000 to just 4,000 in 2024, while private firms now have a value of over $10 trillion.
Potential Impact on Investors
According to CEO Vlad Tenev, the fund will enable everyday people to invest in opportunities once reserved for the wealthy. If approved, this could significantly change how retail investors access private markets.
The launch of Robinhood Ventures Fund I may open new avenues for retail investors to access private markets, providing them with unique investment opportunities.
