Figma went public in recent quarters and its shares have plunged 81% since the IPO, ranking it among the weakest public debuts. This sharp decline has heightened scrutiny on valuations and investor appetite for newly listed tech companies.

Brokerage platforms like Robinhood are preparing to launch venture-style funds that will trade publicly, providing retail investors access to startups such as Stripe, Databricks, Revolut, and Mercor. These funds aim to capture growth opportunities traditionally reserved for private equity and venture capital.

These retail private funds typically charge management fees in excess of 2% and may hold assets with infrequent valuations, leading to potential liquidity constraints. Investors face risks if fund valuations diverge from underlying demand or if they need to liquidate holdings quickly.