Robinhood Markets filed to launch a brand new fund giving
retail merchants publicity to firms earlier than they go public, aimed toward opening personal
markets to on a regular basis buyers.
In line with the fintech big, the brand new platform,
dubbed Robinhood Ventures DE, LLC,
submitted an preliminary registration assertion to the U.S. Securities and Trade
Fee for Robinhood Ventures Fund I (RVI). As soon as accepted, the closed-end fund would spend money on personal firms and make its shares accessible to the general public.
Shifting Funding Panorama
“For many years, rich individuals and establishments have
invested in personal firms whereas retail buyers have been unfairly locked
out. With Robinhood Ventures, on a regular basis individuals will be capable of spend money on
alternatives as soon as reserved for the elite,” commented Robinhood Chairman and
CEO Vlad Tenev.
Uncover how neo-banks turn into wealthtech in London on the fmls25
The submitting comes because the pool of U.S. public firms
continues to shrink. Listed companies have reportedly dropped from about 7,000 in 2000 to
roughly 4,000 in 2024, limiting decisions for retail merchants. In distinction,
personal firms have grown in each scale and worth, with estimates inserting
the market above $10 trillion.
RVI will reportedly concentrate on a concentrated portfolio
of companies in high-growth industries, holding stakes by means of IPO and past. The
fund intends to diversify throughout a number of sectors whereas protecting a long-term
view.
SEC Overview Nonetheless Pending
Shares of RVI can’t be offered till the SEC declares that the registration is efficient. Robinhood mentioned it expects the fund to checklist on the
New York Inventory Trade beneath the ticker image RVI. Buyers would be capable of
purchase and promote shares by means of brokerages similar to Robinhood Monetary LLC.
Associated: Robinhood CEO Reveals: “I Was By no means Actually Doing It for the Cash”
The deliberate fund follows Robinhood’s earlier transfer in
Europe to launch personal tokenized shares. With RVI, the corporate is looking for to
lengthen that mannequin to U.S. markets and widen entry to non-public companies for retail
buyers.
Most not too long ago, Robinhood has been strengthening its choices.
Lately, the corporate introduced plans for a brand new social buying and selling platform that
will let customers share reside positions and efficiency.
The corporate unveiled Robinhood Social at its annual
HOOD Summit in Las Vegas, alongside new AI-powered buying and selling instruments and an
enlargement of its futures choices. The platform will reportedly roll out by
invitation to pick out U.S. clients early subsequent yr, with wider entry to
observe.
This text was written by Jared Kirui at www.financemagnates.com.
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