Robinhood Launches $1B Closed-End Fund to Open Access to Pre-IPO Private Markets
Robinhood is preparing to launch a $1 billion closed-end fund, “Robinhood Ventures Fund I,” designed to provide U.S. retail investors with access to private companies before they go public, marking a strategic expansion into alternative investment vehicles.
According to a press release, the company will offer 5 million shares, while the fund itself will sell an additional 35 million shares, all priced at $25 per share.
Robinhood users will be able to request participation in the IPO starting February 17, with trading set to begin on February 26.
The move comes amid growing interest in investing in private companies such as SpaceX, as expectations build for major future public listings. Historically, access to private shares was largely limited to wealthy individuals and institutions, but new financial instruments are increasingly opening this market to retail investors.
The fund already includes stakes in IPO candidates such as Databricks, Oura Health, and UK-based fintech Revolut. Robinhood also plans to invest in payments company Stripe, according to regulatory filings.
The new vehicle joins other closed-end funds offering exposure to private firms, including “Destiny Tech100,” which holds stakes in SpaceX and OpenAI. However, analysts note that such funds are subject to supply and demand fluctuations in the market, not solely their net asset value.
The fund will invest in at least 10 private companies, with no single holding exceeding 20% of total assets. There is no minimum investment requirement, and the fund will not distribute regular dividends except in cases of surplus. Management fees will start at 2%, declining to 1% during the first six months after the IPO.
Goldman Sachs will lead the offering, with trading expected to begin on February 26, according to CEO Vlad Tenev.
