Robinhood Markets filed to launch a brand new fund giving
retail merchants publicity to firms earlier than they go public, geared toward opening non-public
markets to on a regular basis traders.

Based on the fintech large, the brand new platform,
dubbed Robinhood Ventures DE, LLC,
submitted an preliminary registration assertion to the U.S. Securities and Alternate
Fee for Robinhood Ventures Fund I (RVI). As soon as permitted, the closed-end fund would spend money on non-public firms and make its shares accessible to the general public.

Shifting Funding Panorama

“For many years, rich folks and establishments have
invested in non-public firms whereas retail traders have been unfairly locked
out. With Robinhood Ventures, on a regular basis folks will have the ability to spend money on
alternatives as soon as reserved for the elite,” commented Robinhood Chairman and
CEO Vlad Tenev.

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The submitting comes because the pool of U.S. public firms
continues to shrink. Listed corporations have reportedly dropped from about 7,000 in 2000 to
roughly 4,000 in 2024, limiting decisions for retail merchants. In distinction,
non-public 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 corporations in high-growth industries, holding stakes via IPO and past. The
fund intends to diversify throughout a number of sectors whereas protecting a long-term
view.

SEC Evaluate Nonetheless Pending

Shares of RVI can’t be offered till the SEC declares that the registration is efficient. Robinhood stated it expects the fund to checklist on the
New York Inventory Alternate underneath the ticker image RVI. Buyers would have the ability to
purchase and promote shares via 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 non-public tokenized shares. With RVI, the corporate is looking for to
prolong that mannequin to U.S. markets and widen entry to non-public corporations for retail
traders.

Most not too long ago, Robinhood has been strengthening its choices.
Not too long ago, the corporate introduced plans for a brand new social buying and selling platform that
will let customers share stay 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
growth of its futures choices. The platform will reportedly roll out by
invitation to pick U.S. prospects early subsequent yr, with wider entry to
observe.

This text was written by Jared Kirui at www.financemagnates.com.