Robinhood’s core philosophy has always been giving everyday users access to the same tools, such as options trading, as their institutional counterparts. Tenev argues that walling off such products to accredited investors contributes to the wealth gap. Robinhood’s mileage on this ethos has varied, with the platform only rebounding from the reputational hit of the 2021 GameStop debacle in recent years. But Tenev continues to double down on expanding the investment suite on his brokerage platform. That includes a recent foray into prediction markets—the new oracle of truth and hedging, or a new way to lose money on parlay bets, depending on who you’re asking. 

But Tenev’s pet passion has been “blowing” open the door to private markets, as he said on CNBC last week. On the surface, it’s a noble project. Everyone wants access to companies like Anthropic and SpaceX, but only the most connected investors can get access—at least without paying exorbitant fees or buying into scams. When (and if) the private market equivalents of the Magnificent Seven go public, it’ll be the most elite firms on Wall Street raking in the profits. Over the summer, Tenev called it a “big tragedy” that all the excitement is in private markets. 

But Robinhood’s attempts to create access for its retail users have been spotty at best. In June, Tenev announced a plan to offer European users tokenized versions of OpenAI shares. (“We did not partner with Robinhood, were not involved in this, and do not endorse it,” OpenAI responded on X.) Robinhood has been noticeably silent on any similar launches in the U.S., even under today’s anything-goes regulatory environment. 

The new offering, however, seems more buttoned-up. Named Robinhood Ventures Fund I, the vehicle is closed-end, meaning that people can buy and sell shares with each other, but not redeem them with Robinhood for the underlying assets. The fund holds some of the most sought after private market tech companies—with other names including Mercor and Oura—though it notably doesn’t include the biggest names, like SpaceX, Anthropic, and Anduril (which has been on a warpath against secondaries). The prospectus lays out that Robinhood invests in the companies through different methods, from direct share purchases to special purpose vehicles.

The glaring challenge for investors will be the actual worth of the holdings. Venture firms might get access to private portfolio companies’ financials, but anyone who owns Robinhood Ventures Fund shares won’t. The prospectus says as much, stating plainly deep in the fine print, “There will be uncertainty as to the value of its portfolio investments.” We’ll soon see which is stronger: FOMO or fear of losing lots of money. The new fund’s shares traded down 11% on Friday. 

Leo Schwartz
X: @leomschwartz
Email: leo.schwartz@fortune.com

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VENTURE DEALS

- Science Corporation, an Alameda, Calif.-based developer of brain-computer interface technology, raised $230 million in Series C funding from Lightspeed Venture Partners, Khosla Ventures, Y Combinator, and others.

- Sage, a New York City-based developer of technology for senior care, raised $65 million in Series C funding. Growth Equity at Goldman Sachs Alternatives led the round and was joined by existing investors IVP and Goldcrest.

- Mega, a Brooklyn, N.Y.-based developer of agentic AI technology designed for marketing operations, raised $11.5 million in Series A funding. Goodwater Capital led the round and was joined by Andreessen Horowitz, Atreides, SignalFire, Kearny Jackson, and others.

- Voomi Supply, a Latrobe, Pa.-based ecommerce platform for HVAC equipment, raised $10 million in Series A funding. Asymmetric Capital Partners led the round.

- DilligenceSquared, a New York City-based AI-powered platform designed for market research for investment teams, raised $5 million in seed funding. Relentless led the round and was joined by Y Combinator.

- Mirai Robotics, a Bari, Italy-based developer of AI-powered robotics systems and intelligence platforms for maritime operations, raised $4.2 million in pre-seed funding. Primo Ventures, Techshop, and 40Jemz Ventures led the round and was joined by angel investors.

PRIVATE EQUITY

- Saber Power Services, a portfolio company of Greenbelt Capital Partners, acquired Bounds Construction II, a Tylertown, Miss.-based foundation construction company forindustrial, utility, and energy infrastructure projects. Financial terms were not disclosed.

EXITS

- Tawin Holdings Group agreed to acquire inTime Group, an Isernhagen, Germany-based logistics services provider, from Mutares. Financial terms were not disclosed.