Robinhood Ventures Fund I, a portfolio of private companies, has raised $658.4 million in its NYSE debut, falling short of its $1 billion target.
The fund, which includes stakes in Databricks, Stripe, and Oura, among others, priced its shares at $25 but closed the day at $21, a 16% decline.
According to Robinhood Ventures President Sarah Pinto, the fund aims to hold 15 to 20 of the best late-stage growth companies, with plans to add more startups, including potentially OpenAI.
The Funding Round
The fund's reception on Wall Street contrasts with that of Destiny Tech100, a publicly traded fund that surged 33% above its net asset value after its direct listing in March 2024.
Retail investors' lack of excitement about Robinhood's fund may be due to its lack of exposure to companies expected to go public at enormous valuations, such as OpenAI and SpaceX.
Market Context
Securing access to high-profile startups is challenging, even for a firm with deep roots in Silicon Valley, as it requires either being invited by the company or purchasing shares from existing investors with the company's blessing.
As acknowledged by Pinto, getting into these companies is difficult, and the investment rounds are expensive, making it hard for Robinhood to democratize private markets.
Company Background
Retail investors are famously locked out of the startup world, and Robinhood is attempting to change that by allowing the general public to invest in a portfolio of private companies.
The company's CFO, Shiv Verma, told Axios Pro that Robinhood is eyeing exposure to OpenAI, but the process is far from straightforward.
