Robinhood (Hood) Moving deeper into private markets with a new venture capital fund designed to provide sun -accessing investors to accessing companies before they go public.
The company has filed with the Securities and Exchange Commission (Sec) An initial registration statement to launch Robinhood Ventures Fund I (Rvi)A closed-end investment vehicle aimed at buying stakes at private companies that are headed in their industries.
The fund, managed by a newly formed subsidiary called Robinhood ventureswill be exchanged with the New York Stock Exchange, pending regulation approved.
Robinhood faced criticism earlier this year after it was announced that it was offering users in the European Union accessing private equity tokens.
The company has opened access to these tokens by tokenized shares with Openai and Spacex, while also Launching Own Layer-2 Blockchain Network For European Union users to have access to tokenized that has been publicly exchanged with US stocks.
At this time the company forced to explain that private equity tokens were Holding a special purpose vehicleAfter Openai warned that the tokens did not represent equity to the firm. However, the company is pushing forward with the offer of private access to retail investors.
“For decades, wealthy and institutions have invested in private companies while retail investors are unfairly locked,” Robinhood chairman and CEO Vlad Tenev said.
Robinhood pointed out that the number of public companies in the US has dropped nearly half since 2000, as the private market flew over $ 10 trillion in approximately, according to Federal Reserve data.
If approved, the Robinhood Ventures Fund will I invest in a small basket of private companies in different industries and hold them by IPO and more. Shares are available to buy and sell through traditional brokers.
Robinhood’s sharing dropped 1.4% in today’s trading session at $ 113.39.
