Robinhood Ventures Fund 1 operates like a publicly traded venture capital firm, raising IPO capital from Robinhood's retail customers and investing it in startups.

“You can kind of think of it as a publicly traded venture capital firm. And so what we did was we used our IPO channel, which we're the largest retail channel for IPOs, and we used that to raise capital in an IPO from Robinhood customers, individual retail, and then we used that to invest in startups.”