Robinhood’s RVI Stock Plunges 16% After IPO Falls Short of $1B Target

Robinhood’s RVI stock has fallen by 16% at the start of its trading yesterday. This came after the initiative failed to meet its $1 billion in its IPO raise plan. Robinhood’s RVI Stock Stumbles After Weak IPO Raise Venture Fund I of the investment firm Robinhood fell 16% in its public market debut on the New York Stock Exchange on Friday after its IPO failed to meet its IPO target. The fund, which now trades under the symbol “RVI,” provides access to prominent private companies. In an interview on CNBC’s “Squawk Box” on Friday, Vlad Tenev, the CEO of Robinhood, said the RVI stock seeks to allow access to a segment of the capital markets that has traditionally been closed to retail investors. “You have companies that are out there at valuations in the hundreds of billions, even getting into the trillions in private markets before retail investors get a chance to come in at all, and this is happening more and more,” he said. “We’re trying to solve this by not just opening the door to private markets but completely blowing them off the hinges so that they can never be closed.” Investors can buy and sell shares of the closed-end fund, which is structured like an investment firm. However, this went public at a difficult time for the markets. The major U.S. stock averages are on course for a weekly decline. This comes as investors sell shares due to fears of the U.S.-Iran conflict potentially lasting longer than expected. Robinhood’s RVI stock priced its initial public offering at $25 a share. The stock opened at $22 a share and closed on Friday at $21 a share. RVI IPO Pulls In $668M, Missing $1B Goal The fund listed on the stock exchange, after missing its target by more than $300 million. As CoinGape reported in February, Robinhood Markets said it plans to raise $1 billion from its initial public offering of the closed-end fund. The initial date for the start of trading was set for February 26, but the listing was delayed by a week. Robinhood’s RVI stock also holds stakes in top private companies. This includes Databricks, Ramp, and Revolut. The crypto exchange sold 12.6 million shares, fewer than the company had initially sought from its IPO. There is still some caution from investors regarding crypto IPOs, as the markets are still volatile in the current cycle