Allowing retail to gain access to private companies via an IPO fund.
First they go over the challenges of trying to invest in private equity:
And how Robinhood is overcoming these barriers to bring it to retail:
Here are the companies:
And of course I requested some Shares
Boom sounds like a really cool company in the video it was mentioned they recently broke the
sound barrier I think with a passenger plane!!
After the concord was shut down no one is actively trying to work on this problem.
The fund may pay dividends and when a company IPOs you can cash in on the exit.
I think this is a cool cheap way to allow retail access to this types of investments.
Just watched the roadshow, might pick up a few shares after the IPO if it tanks, would rather the market find the value of exposure to Boom instead of giving them a blank check
All these workarounds for private companies stink a little bit, the incentives of this may be worse than regular VC since there's no carry to incentivize performance. It's giving the managers only an incentive to self-deal the blank check.
Something like this has to break I think before the go-public process gets really fixed, apparently SPAC's weren't bad enough.
Decided to take a chance on requesting a couple of shares. Figure I'll let fate (aka whatever process RH uses) decide if I'm meant to own this. It does sound interesting.
I watched on my app, but I also peeked at the YT thread, where the users were all complaining that the sound quality was crap, but no one seemed to actually comment on the fund itself.