Robinhood Markets Inc. launched Robinhood Ventures Fund I (RVI), a $1 billion closed-end fund. The vehicle provides retail investors access to high-growth private companies like SpaceX and Stripe before their initial public offerings. This move challenges the traditional venture capital landscape by democratizing late-stage opportunities previously reserved for institutional and high-net-worth investors.
CEO Vlad Tenev outlined the strategy during a discussion with billionaire investor Bill Ackman. Tenev characterized the fund as a tool to address the greatest longstanding inequity in capital markets. The fund debuts with a $350 million seed portfolio including DataBricks and Ramp.
The initiative aims to make IPOs great again by establishing a stable base of long-term retail shareholders. Robinhood intends for this shareholder base to support companies that might otherwise delay going public due to regulatory complexities.