Robinhood is seeking SEC approval for a new venture fund, Robinhood Ventures Fund I (RVI), that would be accessible to retail investors. The brokerage firm filed an initial registration statement on Form N-2 with the Securities and Exchange Commission (SEC) to register a public offering of its shares. The fund, managed by Robinhood Ventures DE, LLC, a newly formed, wholly-owned subsidiary of Robinhood Markets, Inc., aims to provide everyday investors access to companies before they go public, a space traditionally reserved for institutions and high-net-worth individuals.

According to Robinhood, RVI's investment program will focus on a concentrated portfolio of private companies "at the frontiers of their respective industries" and will seek to invest across a number of sectors. While the company didn't name specific sectors, venture funds typically focus on high-growth areas such as emerging technologies, blockchain, and Web3. RVI plans to hold investments for the long term, through IPO and beyond.

Robinhood Chairman and CEO Vlad Tenev stated, "For decades, wealthy people and institutions have invested in private companies while retail investors have been unfairly locked out. With Robinhood Ventures, everyday people will be able to invest in opportunities once reserved for the elite". Similar to private tokenized stocks in the EU, RVI will serve as a vehicle for retail investors in the US to participate in private markets and gain exposure to companies while they are still private.

The launch of RVI comes amid a decline in the number of public U.S. companies, which has dropped from approximately 7,000 in 2000 to about 4,000 in 2024. Meanwhile, the aggregate value of private companies in the U.S. has surpassed $10 trillion.

If the SEC approves the fund, shares of RVI are expected to be listed on the New York Stock Exchange under the ticker symbol RVI. Retail investors would then be able to buy and sell shares through brokerages like Robinhood Financial LLC. However, shares of RVI cannot be sold until the SEC declares the registration effective.

The planned fund follows Robinhood's earlier move in Europe to launch private tokenized stocks. With RVI, the company is seeking to extend that model to U.S. markets and widen access to private firms for retail investors. Most recently, Robinhood has been strengthening its offerings. The company unveiled Robinhood Social at its annual HOOD Summit in Las Vegas, alongside new AI-powered trading tools and an expansion of its futures offerings. The platform will reportedly roll out by invitation to select U.S. customers early next year, with wider access to follow.

If approved, Robinhood Ventures Fund I could set a precedent for other retail platforms, potentially influencing broader access to private equity markets. Analysts caution that while the move is significant, retail participation in private assets carries additional risk and will require continued education and transparency.