A new initiative has been launched to provide retail investors with the opportunity to invest in private markets through a closed-end fund. The recently announced Robinhood Ventures Fund I (RVI) has submitted an initial registration statement to the Securities and Exchange Commission (SEC) to initiate a public offering of its shares.
The management of this fund is under the newly established Robinhood Ventures DE, LLC, which operates as a subsidiary of Robinhood Markets, Inc. The fund aims to democratize access to investments in private companies, which have traditionally been available only to wealthy individuals and institutional investors. The intention is to provide everyday investors with the chance to participate in opportunities that have previously been exclusive to a select few.
RVI is designed as a vehicle for retail investors in the United States to gain exposure to early-stage companies within their industries before they go public. Similar to the concept of private tokenized stocks in Europe, this fund seeks to create a bridge for average investors to benefit from the potential growth of private enterprises.
The investment strategy for RVI centers on a concentrated portfolio that focuses on private companies leading their respective sectors. The fund plans to adopt a long-term investment horizon, holding onto its investments through their initial public offerings (IPOs) and beyond, while diversifying across a range of industry sectors.
The submission of the Form N-2 registration statement is part of the process that must undergo SEC review, and shares of the fund will not be available for sale until the registration is officially effective. It is intended that the shares of RVI will be traded under the ticker symbol RVI on the New York Stock Exchange (NYSE), making it accessible to retail investors who wish to buy and sell through various brokerage platforms.
Overall, the creation of this fund represents a significant move towards providing broader access to investment opportunities in private markets, aiming to empower retail investors to capitalize on the growth of innovative companies before they reach the public market stage.