Robinhood has raised $658.4 million for its new investment vehicle, the Robinhood Ventures Fund I, which targets a total of $1 billion. The fund includes eight startups, such as Databricks and Stripe, and allows retail investors to participate in private company investments. Shares priced at $25 began trading on Friday but closed the day down 16% at $21.
In contrast, the Destiny Tech100 fund, which launched in March 2024 and includes companies like SpaceX and OpenAI, saw its shares rise significantly on its debut. It opened at $8.25 and ended its first trading day at $9.00, continuing to climb to $26.61 last Friday, reflecting a 33% premium over its net asset value.
Factors contributing to the lukewarm reception of Robinhood's fund may include its lack of exposure to high-profile tech companies expected to go public at substantial valuations. To address this, Robinhood Ventures plans to increase its portfolio to include 15 to 20 notable late-stage growth companies, with a focus on securing investments in OpenAI.