Robinhood's startup fund stumbles in NYSE debut | TechCrunch

"Robinhood announced the fund had raised $658.4 million - which could reach $705.7 million if underwriters exercise their full allotment. The shares, priced at $25 in the offering, began trading on Friday and closed the day at $21, a 16% decline."

"When Destiny Tech100 - a publicly traded, closed-end fund holding stakes in 100 venture-backed companies including SpaceX, OpenAI, and Discord - direct-listed on the NYSE in March 2024, its shares surged from a reference price of $4.84 to an opening trade of $8.25, eventually closing its first day at $9.00."

"The most likely explanation is RVI's lack of exposure to the companies widely expected to go public at enormous valuations: OpenAI, Anthropic, and SpaceX. Robinhood is looking to address this. RVI intends to add more startups to the fund, eventually aiming to hold what Rob"

Robinhood launched Robinhood Ventures Fund I to democratize startup investing for retail investors, securing access to eight private companies including Databricks, Stripe, and Oura. The fund targeted $1 billion but raised $658.4 million, with shares priced at $25 declining to $21 on their first trading day. This contrasts sharply with Destiny Tech100, a competing venture fund that surged 85% on its debut and now trades at a 33% premium to net asset value. The key difference appears to be Robinhood's lack of exposure to highly anticipated companies like OpenAI, Anthropic, and SpaceX, which Destiny Tech100 holds. Robinhood plans to expand the fund's holdings to improve its appeal.

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