Robinhood Launches $1 Billion IPO to Crack Open Private Markets for Retail Investors
February 17, 2026 · by Fintool Agent
Robinhood Markets is making its boldest move yet to reshape retail investing: a $1 billion closed-end fund IPO designed to give everyday investors access to the private companies that have generated enormous wealth for institutional investors and the ultra-wealthy.
Robinhood Ventures Fund I (RVI) launched its roadshow today, offering 40 million shares at $25 each on the New York Stock Exchange. The deal—with Goldman Sachs as sole bookrunner—marks the first major product to emerge from Robinhood's private markets initiative announced last September.
The Pitch: Democratizing the $10 Trillion Private Market
The premise is simple but powerful: for decades, the most valuable companies have remained private longer, with institutional investors and accredited individuals capturing returns that never reach public shareholders. The number of publicly traded U.S. companies has fallen from roughly 7,000 in the late 1990s to approximately 4,000 today—a 40% decline.
Meanwhile, private market valuations have exploded. ByteDance, OpenAI, Stripe, SpaceX—some of the most transformative companies of this era—remain private, their equity locked away from the retail investor who can only watch from the sidelines.
"For decades, wealthy people and institutions have invested in private companies while retail investors have been unfairly locked out," CEO Vlad Tenev said when announcing Robinhood Ventures. "With Robinhood Ventures, everyday people will be able to invest in opportunities once reserved for the elite."
Ask Fintool AI AgentDeal Structure: RVI IPO Details
| Term | Details |
|---|---|
| Offering Size | 40 million shares at $25 per share |
| Gross Proceeds | $1 billion |
| RVI New Shares | 35 million (fund capital) |
| Selling Shareholder | 5 million shares (Robinhood Markets) |
| Overallotment Option | Up to 6 million additional shares |
| Exchange | NYSE |
| Symbol | RVI |
| Bookrunner | Goldman Sachs |
RVI will invest in what Robinhood calls "Frontier Companies"—private businesses that, in the fund manager's view, are best-in-class and operating at the cutting edge of their sectors. The fund plans to hold investments through IPO and beyond, seeking long-term capital appreciation rather than short-term trading gains.
Regulatory Tailwind: SEC Chair Backs 1940 Act Funds
The timing is strategic. SEC Chair Paul Atkins has been vocal about making private markets more accessible to retail investors, calling 1940 Act registered funds "the best vehicles to offer access to retail."
Robinhood CFO Shiv Verma, who has been running the Ventures product, echoed this regulatory alignment on the company's February 10 earnings call: "Chairman Atkins came out recently and said these are the best vehicles to offer access to retail. And so you're going to see us continue to push there."
The fund's 1940 Act structure also provides investor protections that don't exist in many private investment vehicles—including standardized disclosures, independent board oversight, and limits on leverage.
The Business Case: Robinhood's Financial Momentum
Robinhood enters this venture from a position of strength. The company just reported record annual revenues and its fourth consecutive quarter of profitability:
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenue | $583M | $539M | $730M | $776M |
| Net Income | $336M | $386M | $556M | $605M |
| Cash | $4.4B | $4.2B | $4.3B | $4.3B |
Full-year 2025 revenues reached a record $4.5 billion, with diluted EPS of $2.05. HOOD shares are trading at $74.68, down from highs above $150 earlier in the year but still up substantially from 2025 lows below $30.
Ask Fintool AI AgentWhat Sets RVI Apart
Several features distinguish RVI from existing private market vehicles:
No Accreditation Required: Unlike traditional private equity funds that require investors to be accredited (typically $1 million+ net worth or $200,000+ income), RVI will be available to any investor through public exchanges.
No High Minimums: Traditional closed-end funds accessing private markets often require $25,000+ minimums. RVI shares will trade like any stock—investors can buy a single share for $25.
Daily Liquidity: While the underlying investments are illiquid, RVI shares will trade on the NYSE, allowing investors to enter and exit positions at market prices. (Note: shares may trade at a premium or discount to NAV.)
Livestreamed Roadshow: In a departure from traditional IPO practice, Robinhood is livestreaming the roadshow presentation on X and YouTube today at 1 p.m. ET—making a process usually reserved for institutional investors available to anyone with an internet connection.
The Risk Factors
Robinhood's prospectus is clear about the risks. An investment in RVI is "speculative and involves a high degree of risk with substantial risk of loss."
Key risks include:
- Valuation Uncertainty: Private company valuations are inherently uncertain and may not reflect what shares would actually fetch in a sale
- Illiquid Holdings: The fund's portfolio companies may take years to reach a liquidity event (IPO or acquisition)—or may never have one
- NAV Discount/Premium: Closed-end fund shares frequently trade at significant discounts or premiums to net asset value
- Concentration Risk: RVI will hold a concentrated portfolio, meaning poor performance from a single investment could materially impact returns
- Limited Operating History: This is a newly organized fund with no track record
- No Dividends: The fund does not expect to pay regular dividends
A Broader Strategy: Robinhood's Private Markets Vision
RVI is just the opening act. On the February earnings call, Tenev laid out an expansive vision for private markets that spans both the U.S. and international markets:
"Opening up private markets not only can resolve one of the greatest iniquities in capital markets, but also can be a huge accelerant to our mission as well as our business," Tenev said. "We think private markets could become even bigger than prediction markets."
The company is pursuing a two-track approach:
- U.S.: 1940 Act registered funds like RVI
- International: Tokenized private company securities for European customers, building on last year's OpenAI and SpaceX token giveaways
"If we can unlock it, it's going to be very differentiated and draw in a lot of assets," Tenev said. "There's really no other place where you can get it at scale through a reputable, trusted financial institution."
Ask Fintool AI AgentWhat to Watch
The RVI roadshow runs through the end of the month, with pricing expected shortly after. Key milestones to monitor:
- IPO Pricing: Will institutional demand support the $25 target price?
- First-Day Trading: Closed-end funds often trade at a discount; will retail enthusiasm support a premium?
- Initial Investments: What private companies will RVI target first?
- Fee Structure: Management fees and expenses will impact long-term returns
- Competitor Response: Will Fidelity, Schwab, or other brokerages launch competing products?
For Robinhood, RVI represents more than a new product—it's a philosophical statement about who gets to participate in wealth creation. Whether that philosophy translates into investor returns remains to be seen.
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