Robin (HOOD) moves more deeply into private markets with a new venture capital fund designed to give daily investors access to companies before making public.
The Company filed with the Securities and Exchange Commission (SECOND) A first recording declaration to launch Robinhood Ventures Fund i (RVI)A closed end investment vehicle which aims to buy participations in private companies which are leaders of their industries.
The fund, managed by a newly formed subsidiary called Robinhood Ventures, would be negotiated on the New York Stock Exchange, pending regulatory approval.
Robinhood was criticized earlier this year after announcing that it offered users of the European Union access to investment capital tokens.
The company has opened access to these tokens through token actions in Openai and SpaceX, while launching its own layer 2 blockchain network so that users of the European Union have access to colored American shares on the stock market.
At the time, the company was forced to explain that its investment capital tokens were held by a vehicle for special use, after Optai warned that the tokens did not represent equity in the company. However, the company advances the offer of access to private capital to retail investors.
“For decades, the rich and the institutions have invested in private companies while retail investors have been unjustly locked up,” said Robinhood and CEO Vlad Tenev.
Robinhood stressed that the number of public companies in the United States has decreased almost half since 2000, while the private market has reached more than 10 billions of dollars in estimated value, according to data from the Federal Reserve.
If it is approved, Robinhood Ventures Fund, I would invest in a small basket of private companies in various industries and would hold them via the IPO and beyond. Actions would be available to buy and sell via traditional brokerage houses.
Robinhood’s shares are down 1.4% during today’s negotiation session to $ 113.39.
