Robinhood plans to launch a publicly traded fund, named Robinhood Ventures Fund I, granting retail investors access to pre-IPO startup investments. This initiative aims to democratise investment opportunities, traditionally limited to accredited investors with substantial net worth. The fund will focus on sectors including aerospace, defence, artificial intelligence, fintech, robotics, and enterprise software.
Robinhood's move follows a previous attempt to launch private 'tokenized' stocks in Europe, which faced backlash. The new fund, structured as a traditional mutual fund, seeks to provide a clearer path for retail investors. While specifics such as fund size, startup selections, and fees are still pending, this initiative could reshape how Americans invest in tech start-ups.
CEO Vlad Tenev highlights the structural shifts in US markets, where the number of publicly listed companies has decreased while the value of private start-ups has surged. By opening venture capital to a broader audience, Robinhood aims to bridge the gap between Main Street and Silicon Valley, potentially giving everyday investors access to high-growth opportunities.
