Robinhood announced Monday it has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a new publicly traded fund that will hold shares of startups.
The proposed “Robinhood Ventures Fund I” aims to open startup investing to retail investors, giving them access to high-growth companies before they go public. However, the filing leaves many details blank, including how many shares will be sold, management fees, and which startups the fund will target. The paperwork suggests investments could focus on aerospace and defense, artificial intelligence, fintech, robotics, and consumer and enterprise software.
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Robinhood argues retail investors are locked out of the gains traditionally reaped by venture capital firms and other accredited investors. While wealthy individuals and institutions already have avenues to buy equity in private companies, ordinary investors have fewer options. Comparable vehicles exist, such as Cathie Wood’s ARK Venture Fund, which holds stakes in firms like Anthropic, Databricks, OpenAI, and SpaceX.
This isn’t Robinhood’s first attempt to broaden access to startup exposure. Earlier this year, it launched “tokenized” private stocks in the EU, marketing them as a way to profit from companies like OpenAI. But OpenAI criticized the product, clarifying that buyers weren’t actually purchasing OpenAI stock, only tokens pegged to private valuations.
The “Ventures Fund I” differs by following a more traditional closed-end mutual fund model. Still, Robinhood has not disclosed when or if the new fund will be available. The company, currently in a quiet period, declined to comment further.
