Key Takeaways Schwab is considering giving retail investors direct access to private companies.CEO Rick Wurster said growing private firms make expanded access a priority.Robinhood has also filed plans for a fund, giving everyday investors private access.Charles Schwab (SCHW) has been wanting to allow retail investors direct access to private companies. In an interview with Bloomberg Television, as published in an MSN article, SCHW’s CEO and president, Rick Wurster, said that the brokerage giant is explorin ...

Core Insights - Robinhood Markets is expanding into private markets by filing to launch a publicly traded closed-end fund, Robinhood Ventures Fund I, which will invest in sectors such as aerospace, AI, fintech, and robotics [1][3][8] - This initiative provides retail investors with direct access to startup investing, a privilege previously reserved for accredited investors, amidst a decline in public companies and a surge in private valuations exceeding $10 trillion in the U.S. [2][3] - The fund aims to enhance Robinhood's revenue streams, deepen engagement with high-value users, and expand its addressable market, while also contributing to recurring assets under management (AUM) [4][8] Company Performance - Robinhood's shares have increased by 208.2% this year, significantly outperforming the industry average increase of 26.9% [7] - The current trading price of HOOD shares reflects a substantial premium, with a price-to-tangible book (P/TB) ratio of 13.92X compared to the industry average of 2.97X [9] Earnings Estimates - The Zacks Consensus Estimate indicates year-over-year earnings growth of 45.9% for 2025 and 18.3% for 2026, with revised earnings estimates of $1.59 for 2025 and $1.88 for 2026 [10][11]

Group 1 - Robinhood has filed an application with the U.S. Securities and Exchange Commission to launch a new publicly traded fund called "Robinhood Ventures Fund I," aimed at providing retail investors access to shares of startups before they go public [1] - The application is currently public, but lacks detailed information such as the number of shares to be sold and the management fee [2] - The fund is expected to invest in sectors including aerospace and defense, AI, fintech, robotics, and software for consumers and enterprises [2] Group 2 - The initiative addresses the gap where retail investors are often excluded from the gains made by startup investors like venture capitalists [3] - Accredited investors have more options for investing in startups, while non-accredited retail investors have limited choices [4] - Previous efforts by Robinhood, such as the launch of private "tokenized" stocks in the EU, faced controversy due to misleading implications about ownership of shares [5] Group 3 - The new "Ventures Fund I" represents a more traditional mutual fund approach compared to Robinhood's earlier initiatives [6]

Core Insights - Robinhood is launching a fund called Robinhood Ventures Fund I to provide retail investors access to private markets, which have traditionally been available only to wealthy individuals and institutions [2][3] - The fund aims to invest in a concentrated portfolio of private companies at the forefront of their industries, with shares expected to trade under the symbol RVI on the New York Stock Exchange [4] - This initiative follows Robinhood's recent entry into the tokenized equities market in Europe and comes shortly after the company was added to the S&P 500 [4] Company Performance - Robinhood has seen a significant increase in transaction-based revenues, which rose 77% year over year, largely driven by its cryptocurrency business [5] - The company's second quarter earnings indicated a shift from its original focus on commission-free trading to a more diversified financial platform, with crypto-related revenues soaring 98% year over year to $160 million [6] - Total notional crypto trading volumes reached $35 billion, with a notable contribution of $7 billion in Q2 volume coming from the acquisition of Bitstamp, enhancing its institutional client base [7]

(Bloomberg) -- Robinhood Markets Inc. is launching a closed-end fund to give US retail investors exposure to private companies.The retail-trading platform said it filed an initial registration statement with the Securities and Exchange Commission, beginning the process to offer public shares of the fund, dubbed Robinhood Ventures Fund I, according to a statement Monday.With many companies staying private for longer and valuations skyrocketing, retail investors have largely been stuck on the sidelines with f ...

Core Insights - Robinhood Markets Inc. is launching a closed-end fund named Robinhood Ventures Fund I to provide US retail investors access to private companies [1][2] - The initiative aims to democratize investment opportunities that have traditionally been available only to wealthy individuals and institutions [2] - The fund will focus on a concentrated portfolio of private companies at the forefront of their industries, pending SEC approval for trading on the New York Stock Exchange under the symbol RVI [3] Company Strategy - Robinhood has prioritized giving retail investors access to private equity, which has been restricted in the past [2] - The firm previously announced plans to offer tokenized equities in Europe and provided a limited giveaway of equity tokens for companies like OpenAI and SpaceX [2] Market Context - Many companies are remaining private longer, leading to skyrocketing valuations and leaving retail investors with limited options to participate in this growth [2] - The CEO of Robinhood highlighted the unfairness of retail investors being locked out of private company investments for decades [2]