Robinhood’s venture fund, which gives investors access to private companies, tanks 11% on first day

Robinhood’s Venture Fund I plunged 11% in its public market debut on the New York Stock Exchange on Friday, casting doubt on investors’ appetite for riskier investment amid swirling geopolitical tensions.

The fund, which is trades under the ticker RVI, offers exposure to notable private companies such as financial services firm Revolut and software company Databricks. It aims to democratize access to an area of capital markets that has often been off limits to retail investors, Robinhood CEO Vlad Tenev told CNBC’s “Squawk on the Street” on Friday.

“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,” Tenev 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.”

Retail investors can buy and sell shares of the closed-end fund, which is structured like an investment firm, much like they would shares of a traditional company.

However, the launch comes during a tough time for public markets. The major U.S. stock averages are on pace for weekly declines as traders sell equities on fears the U.S.-Iran conflict could continue longer than anticipated.

Robinhood Ventures Fund priced its initial public offering at $25 per share. It opened at $22 and hit a low of $21 before trading around back around $22.12.

RVI were last trading at $22.17 per share.