Robinhood (HOOD) is shifting deeper into private markets with a brand new venture capital fund designed to provide day to day patrons secure admission to to companies earlier than they trot public.
The corporate has filed with the Securities and Switch Commission (SEC) an preliminary registration observation to launch Robinhood Ventures Fund I (RVI), a closed-terminate investment automobile that targets to maintain stakes in private companies which could presumably be leaders of their industries.
The fund, managed by a newly formed subsidiary known as Robinhood Ventures, would be traded on the Novel York Inventory Switch, pending regulatory approval.
Robinhood faced criticism earlier this 300 and sixty five days after it launched that it used to be offering users in the European Union secure admission to to private fairness tokens.
The corporate opened secure admission to to those tokens by tokenized shares in OpenAI and SpaceX, whereas also launching its have layer-2 blockchain network for users in the European Union to have secure admission to to tokenized publicly traded U.S. stocks.
On the time, the company used to be forced to point to that its private fairness tokens have been held by a curious reason automobile, after OpenAI warned that the tokens did no longer signify fairness in the firm. Soundless, the company is pushing forward with offering private fairness secure admission to to retail patrons.
“For a protracted time, prosperous folks and institutions have invested in private companies whereas retail patrons have been unfairly locked out,” Robinhood Chairman and CEO Vlad Tenev stated.
Robinhood pointed out that the selection of public companies in the U.S. has dropped by nearly half of since 2000, whereas the non-public market has ballooned to over $10 trillion in estimated rate, consistent with Federal Reserve files.
If accredited, Robinhood Ventures Fund I’d put money into a small basket of non-public companies right by varied industries and preserve them by IPO and past. Shares would be readily available to maintain and promote by venerable brokerages.
Robinhood shares are down 1.4% in on the present time’s shopping and selling session to $113.39.
