Robinhood’s latest investment fund has acquired shares in Stripe and ElevenLabs.

The closed-end fund seeks to provide everyday investors access to private companies prior to their public offerings.

Key details:

• Robinhood’s newly established closed-end Robinhood Ventures Fund I (RVI) has revealed its initial investments, acquiring approximately $14.6 million in Stripe shares and $20 million in preferred stock from ElevenLabs in March.
• The fund, which commenced trading on the New York Stock Exchange on March 6, allows retail investors to buy and sell shares, thereby gaining exposure to private companies that have typically been accessible only to affluent and institutional investors.
• Investments in fintech company Stripe and AI voice startup ElevenLabs complement a portfolio that already features Databricks, Revolut, Ramp, and Oura.

Robinhood’s (HOOD) newly initiated venture fund has acquired stakes in Stripe and ElevenLabs, representing its first publicly disclosed investments since launching trading earlier this month.

Robinhood Ventures Fund I (RVI), a closed-end fund aimed at providing retail investors access to private companies, announced it purchased roughly $14.6 million in Stripe shares and $20 million in preferred stock of ElevenLabs in transactions finalized in March.

The fund began trading on the New York Stock Exchange on March 6, as part of Robinhood’s larger initiative to democratize private markets for everyday investors. Shares of this fund can be traded similarly to traditional stocks, granting access to companies typically reserved for institutional investors and the affluent.

Founded in 2010, Stripe offers payment and financial software utilized by a wide range of businesses, from startups to large corporations. The investment was executed through a secondary transaction, indicating that Robinhood acquired shares from existing shareholders rather than purchasing directly from the company.

ElevenLabs, a London-based AI firm established in 2022, specializes in voice and audio technology. Its offerings enable businesses and developers to create speech, develop conversational agents, and produce media content in multiple languages. Robinhood’s investment was part of a primary funding round, meaning the capital is directed to the company itself.

These new investments enhance a portfolio that already includes private companies such as Databricks, Revolut, Ramp, and Oura, with further investments anticipated in the future.

Robinhood has positioned the fund as a reaction to changes in capital markets. The number of publicly traded companies in the U.S. has decreased over the last two decades, while private markets have expanded to an estimated $10 trillion, restricting access for retail investors.

“For decades, wealthy individuals and institutions have had the opportunity to invest in private companies while retail investors have been excluded,” stated CEO Vlad Tenev previously.

In contrast to conventional venture funds, Robinhood’s model does not necessitate investors to be accredited and does not impose performance fees, thus lowering the entry barriers.

This strategy aligns with previous attempts by the company to provide exposure to private markets, including tokenized shares in well-known companies for users in Europe, an initiative that faced scrutiny regarding the structure of those products.

With these recent investments, Robinhood indicates its intent to continue expanding its portfolio of private companies, focusing on fintech and artificial intelligence, two sectors that maintain strong investor interest in anticipation of possible public offerings.

Shares of HOOD rose by 2% on Tuesday, trading at $76.78. RVI experienced a decline of 0.4%.