Robinhood to Open Pre-IPO Investing to Retail Traders With New Fund

Robinhood Markets Inc. has unveiled plans to give everyday traders access to private companies before they go public, marking one of its most ambitious efforts yet to expand retail participation in markets traditionally reserved for the wealthy.

On Monday, the company announced the launch of Robinhood Ventures Fund I (RVI), a closed-end fund that has filed an initial registration statement with the U.S. Securities and Exchange Commission.

RVI Fund Designed to Track Private Firms Through IPOs and Beyond

According to the announcement, the fund, managed by Robinhood Ventures DE LLC, a wholly owned subsidiary, is designed to offer retail investors exposure to private firms in sectors such as technology while they are still privately held.

Once approved, RVI shares are expected to trade on the New York Stock Exchange under the ticker RVI and will be available through brokerages, including Robinhood Financial.

“For decades, wealthy people and institutions have invested in private companies while retail investors have been unfairly locked out,” said Robinhood CEO Vlad Tenev.

He added, “With Robinhood Ventures, everyday people will be able to invest in opportunities once reserved for the elite.”

The initiative comes at a time when the number of U.S. public companies has shrunk dramatically. According to Robinhood, there were about 7,000 listed firms in 2000 compared with roughly 4,000 today. In contrast, the value of private companies has swelled, with U.S. private firms now estimated at more than $10 trillion.

By creating a publicly traded fund, Robinhood attempts to bridge the gap, giving small investors access to a part of the market that has been growing but remains largely inaccessible.

The fund will target a concentrated portfolio of private companies considered to be at the “frontiers of their industries.” Robinhood said the investments will be held for the long term, continuing through IPOs and beyond.

The strategy mirrors the company’s earlier moves in Europe, where it introduced private tokenized stocks earlier this year, allowing EU customers to gain exposure to prominent private names such as OpenAI and SpaceX.

The filing with the SEC is still under review, and shares cannot be sold until the registration statement is declared effective. The company emphasized that the program is structured to align with public market rules while extending opportunities that were once closed to retail traders.

The announcement follows a series of milestones for Robinhood in recent months. In September, the retail brokerage was named to the S&P 500 Index, sending its shares higher in after-hours trading.

Robinhood stock (HOOD) has more than doubled this year, climbing over 150% year to date and closing above $101 before surging past $108 on the S&P inclusion news.

The firm also reported stronger-than-expected earnings in the second quarter of 2025, with revenue rising 45% year on year to $989 million, surpassing analyst estimates.

Earnings per share came in at $0.42, compared with expectations of $0.31, boosted by a 65% increase in transaction-based revenue, particularly from cryptocurrencies.

Robinhood has also been expanding its footprint in digital assets. In June, it completed its $200 million acquisition of crypto exchange Bitstamp, which has since recorded higher trading volumes than those on Robinhood’s core platform.

The move is seen as central to Robinhood’s broader ambitions in real-world asset tokenization.

AI Startups Dominate VC Flows in 2025 as Crypto Funding Wavers

Venture capital activity has accelerated in 2025, driven by record allocations to artificial intelligence startups.

According to S&P Global Market Intelligence, global VC investment reached $189.9 billion in the first half of the year, up from $152.2 billion in the same period of 2024.

The rebound follows a strong first quarter for AI, with PitchBook reporting that AI companies secured $73 billion, including OpenAI’s $40 billion round led by SoftBank.

By contrast, crypto funding has shown signs of volatility. Data from CryptoRank show more than $10 billion raised by blockchain startups in the second quarter, the strongest level since 2022. Tokenization, stablecoin infrastructure, and decentralized finance were key themes. June alone accounted for over half of Q2’s total, reflecting renewed interest in digital asset projects.

Still, other datasets paint a more cautious picture. Figures compiled by Galaxy Digital show crypto VC flows plunging to $1.97 billion across 378 deals in the same quarter, down 59% from Q1.

The sharp decline followed an inflated start to the year, when Binance secured a $2 billion injection from UAE-linked fund MGX. Excluding that round, the pullback would have been less severe, but sentiment toward early-stage ventures remains mixed.

Mining and blockchain infrastructure captured the largest share of allocations, with U.S. startups regaining nearly half of all capital raised.

Analysts say rising interest rates and competition from alternative investment vehicles, including spot ETFs and digital asset treasuries, continue to pressure venture funding in the sector.

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