Mentioned:
Robinhood wants to change the future of venture capital. And they’re launching a new fund on the New York Stock Exchange to do it.
What’s happening:
- Robinhood (NASDAQ: HOOD) has filed a Form N-2 with the United States Securities and Exchange Commission to launch a new closed end fund focused on retail investors being able to participate in private companies known as Robinhood Ventures Fund I
Why it matters:
- This is the first time ever that Robinhood has ventured into launching a closed end fund listed on a major American stock exchange
Going deeper:
- Robinhood plans to list the fund as a closed end fund on the New York Stock Exchange and deploy capital into private companies that are raising meaningful venture capital rounds and preparing for an eventual IPO
- Robinhood has publicly stated that Robinhood Ventures Fund I is aiming to disrupt the traditional model of needing to be an accredited investor or have a registered venture capital fund to be able have access to invest in private companies and will look to provide broad access to some of the most exciting private companies globally directly to retail investors
The fine print:
- Robinhood Ventures Fund I will still require an official review and approval from the United States Securities and Exchange Commission prior to being able to list on the New York Stock Exchange
