Robinhood is preparing to launch its second publicly traded venture fund, aiming to raise up to $200 million and give retail investors access to early-stage startup investments that are normally reserved for venture capital firms and institutional investors.
The new fund, called Robinhood Ventures Fund II (RVII), plans to offer 7.6 million shares priced at $25 each. Robinhood will also sell an additional 400,000 shares. If approved, the fund is expected to begin trading on the New York Stock Exchange under the ticker RVII on August 13.
Goldman Sachs is leading the offering, while Citigroup, JPMorgan, UBS, and Wells Fargo are serving as joint bookrunners. The subscription period is scheduled to close on August 12.
Unlike Robinhood’s first venture fund, which focused on well-known late-stage private companies such as OpenAI, SpaceX, Stripe, and Databricks, the new fund will target much earlier investments.
RVII is expected to launch with stakes in around 80 private companies, primarily focusing on seed-stage startups connected to startup accelerator Y Combinator. These include current participants, former participants, and businesses founded by Y Combinator alumni.
Robinhood Ventures Head Sarah Pinto said the goal is to give everyday investors the opportunity to participate in a company’s growth long before it reaches the public stock market through an IPO.
Y Combinator has backed more than 5,000 startups since its founding in 2005, producing over 100 unicorn companies and generating a combined valuation of more than $1.3 trillion, according to information cited in the filing.
One major difference between the first and second venture funds is the fee structure.
While Robinhood Ventures Fund I did not charge a performance fee, RVII will include:
- A 2% annual management fee.
- A 20% performance fee on realized gains.
Regulatory filings estimate the fund’s total annual expense ratio at approximately 4.18%.
The prospectus also warns that the investment is highly speculative and carries significant risk. Investors will not have redemption rights, meaning they cannot redeem shares directly with the fund before liquidation.
Robinhood’s first venture fund raised about $658 million when it launched earlier this year. Although it initially fell roughly 16% on its first trading day, it later recovered and gained around 30%.
RVII portfolio manager Rich Aberman said Robinhood’s long-term vision is to make retail investors a regular part of startup funding rounds that have traditionally been dominated by venture capital firms.
The new fund is part of Robinhood’s broader effort to expand beyond stock and cryptocurrency trading.
In recent months, the company has launched several new products and services, including Robinhood Chain, Robinhood Earn, international stock token offerings, and expanded cryptocurrency initiatives.
Robinhood also recently secured regulatory approval in the United Kingdom, paving the way for the company to offer crypto services in the country.
The company’s latest financial results showed strong growth. Total net revenue increased 32% year-over-year to $1.31 billion, supported by growth across equities, options, and prediction markets.
Prediction markets have become one of Robinhood’s fastest-growing businesses. During the second quarter, event contracts generated $156 million in revenue, making them the company’s strongest-growing transaction category.
With the launch of RVII, Robinhood is continuing its push into private-market investing, giving retail investors access to startup opportunities that were previously difficult to reach while also expanding its presence across multiple areas of modern finance.
