Robinhood to Open Pre-IPO Investing to Retail Traders With New Fund

Core Viewpoint - Robinhood Markets Inc. is launching Robinhood Ventures Fund I (RVI) to provide retail investors access to private companies before they go public, aiming to democratize investment opportunities traditionally available only to wealthy individuals [1][3]. Group 1: Fund Overview - RVI is a closed-end fund managed by Robinhood Ventures DE LLC, designed to give retail investors exposure to private firms, particularly in the technology sector [2]. - Once approved, RVI shares will trade on the New York Stock Exchange under the ticker RVI and will be accessible through various brokerages, including Robinhood Financial [2]. Group 2: Market Context - The initiative addresses the significant decline in U.S. public companies, which decreased from about 7,000 in 2000 to roughly 4,000 today, while the value of private companies has surged to over $10 trillion [3]. - By creating a publicly traded fund, Robinhood aims to bridge the gap for small investors to access a growing market that has been largely inaccessible [4]. Group 3: Investment Strategy - The fund will focus on a concentrated portfolio of private companies at the forefront of their industries, with a long-term investment strategy that continues through IPOs and beyond [4]. - This strategy is similar to Robinhood's earlier initiatives in Europe, where it introduced private tokenized stocks to allow EU customers to invest in notable private companies like OpenAI and SpaceX [5]. Group 4: Recent Developments - The announcement follows Robinhood's recent inclusion in the S&P 500 Index, which positively impacted its share price in after-hours trading [6].