Overview
- On Aug. 5 Robinhood filed to raise up to $200 million for Robinhood Ventures Fund II by offering 7.6 million shares at $25 and selling 400,000 additional shares, with the subscription window closing Aug. 12 and an expected NYSE listing on Aug. 13 pending regulatory approval.
- The fund will launch with stakes in roughly 80 seed-stage companies tied to Y Combinator and the prospectus says Robinhood has permission to use the Y Combinator name while YC does not sponsor or endorse the fund.
- RVII is structured as a closed-end business development company, meaning shareholders hold tradable stock in the fund rather than direct startup equity and generally will not be able to redeem shares with the fund.
- The vehicle charges a 2% annual management fee plus a 20% incentive fee on realized gains, routes those fees and carry to a Robinhood-owned unit, and lists total annual expenses at about 4.18%.
- Investors should expect high risk and price swings similar to Robinhood’s first public venture fund, which raised $658.4 million and saw sharp early volatility, and the prospectus explicitly warns of substantial loss, valuation uncertainty and illiquidity.