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Robinhood Unveils $1B Private Tech Fund, Opening Startup Giants to Everyday Investors

TL;DR

• Robinhood launched a closed-end fund aiming to raise $1 billion to give retail investors access to pre-IPO private companies.
• The vehicle will sell 35 million shares at $25 each, while Robinhood will offer an additional 5 million shares; it will charge a 2% annual management fee.
• The portfolio includes holdings or investment agreements in Databricks, Stripe, Revolut, SpaceX, and Oura Health, among other companies; it will invest in at least 10 private firms.

Robinhood Markets Inc. announced the launch of Robinhood Ventures Fund I (RVI), a closed-end fund designed to provide U.S. retail investors with access to pre-IPO private companies. The company is seeking to raise $1 billion through an initial public offering of the vehicle, which will be listed on the New York Stock Exchange under the ticker RVI.

The fund will sell 35 million shares at a target price of $25 per share, while Robinhood will additionally offer 5 million shares. Goldman Sachs will participate in the transaction as bookrunner. Users on the platform began requesting shares yesterday, and trading is expected to begin on February 26.

Daily Liquidity and a 2% Annual Fee

RVI adopts a closed-end fund structure. Once listed, it will offer daily liquidity on the secondary market, although its shares may trade at a premium or discount to net asset value. The vehicle does not set a minimum investment requirement and will not charge a performance fee.

The management fee will be 2% annually, reduced to 1% during the first six months following the IPO. The fund may invest in special purpose vehicles that could apply additional fees. It does not plan to pay regular dividends and will only make distributions if excess cash accumulates.

What Will Robinhood Invest In?

The initial portfolio includes holdings or investment agreements in Databricks, Stripe, Revolut, SpaceX, and Oura Health. Airwallex, Boom, Mercor, and Ramp are also included. The fund will invest in at least 10 private companies, and no single position may exceed 20% of total assets. Any additional capital raised will be allocated to new investments.

The initiative expands Robinhood’s IPO Access program and forms part of a strategy aimed at bringing late-stage private markets closer to retail investors. In recent years, more startups have remained private for longer periods, and closed-end funds have become one of the structures used to provide this type of exposure.