Robinhood Markets Inc. has recently announced its plans to democratize access to pre-IPO investments for everyday traders. This move marks a significant step towards expanding retail participation in markets traditionally dominated by the wealthy elite.
The company has introduced the Robinhood Ventures Fund I (RVI), a closed-end fund that aims to provide retail investors with exposure to private companies, particularly in sectors like technology, before they go public. Managed by Robinhood Ventures DE LLC, a wholly owned subsidiary, the fund is designed to offer retail investors a chance to invest in private firms that are typically inaccessible to the general public.
Once approved, RVI shares are expected to trade on the New York Stock Exchange under the ticker RVI and will be available through various brokerages, including Robinhood Financial. This initiative is part of Robinhood’s broader mission to level the playing field and give everyday people access to investment opportunities that were once reserved for the elite.
The decision to launch the RVI Fund comes at a time when the number of publicly listed companies in the U.S. has decreased significantly. While there were around 7,000 listed firms in 2000, there are now only about 4,000. In contrast, the value of private companies has surged, with U.S. private firms estimated to be worth more than $10 trillion. By creating a publicly traded fund focused on private companies, Robinhood aims to bridge the gap and provide small investors with access to a growing market segment.
The fund will focus on a concentrated portfolio of private companies that are considered leaders in their respective industries. Investments will be held for the long term, extending through IPOs and beyond. This strategy aligns with Robinhood’s previous efforts in Europe, where the company introduced private tokenized stocks earlier this year, allowing EU customers to invest in prominent private companies like OpenAI and SpaceX.
While the filing with the SEC is still under review, Robinhood emphasizes that the program is structured to comply with public market rules while offering retail traders access to opportunities that were previously out of reach. This announcement follows a series of milestones for Robinhood, including its inclusion in the S&P 500 Index, which led to a surge in its stock price.
Robinhood’s stock (HOOD) has more than doubled this year, with a significant increase in value following the S&P inclusion news. The company also reported strong earnings in the second quarter of 2025, surpassing analyst estimates with a 45% year-on-year increase in revenue.
In addition to its foray into pre-IPO investing, Robinhood has been expanding its presence in the digital asset space. The company recently completed its acquisition of crypto exchange Bitstamp for $200 million, positioning itself for broader ambitions in real-world asset tokenization.
Overall, Robinhood’s move to open pre-IPO investing to retail traders through the RVI Fund represents a significant step towards democratizing access to investment opportunities. By giving everyday investors a chance to participate in private companies before they go public, Robinhood is breaking down barriers and empowering retail traders to tap into a market segment that was previously off-limits.