Robinhood Launches $200 Million Fund, Focuses on Y Combinator-Incubated Startups

BlockBeats News, August 5th, Robinhood is moving forward with the listing of the Robinhood Ventures Fund II (RVII), providing retail investors with an opportunity to invest in Y Combinator seed-stage startups. The fund is issued at $25 per share with 7.6 million shares, aiming to raise up to $2 billion. It is set to debut on the NYSE on August 13th (ticker: RVII), subject to regulatory approval.

Unlike the March-listed Fund I, RVII will focus on seed-stage startups, including projects currently or previously incubated by Y Combinator, as well as companies founded by YC alumni. The fund already holds stakes in 80 private companies, charging a 2% annual management fee and a 20% performance fee, with an estimated annual total expense ratio of about 4.18%. Robinhood itself describes the investment portfolio as "speculative," highlighting "significant risk of loss" and no redemption rights. The subscription window will close on August 12th, with Goldman Sachs serving as the lead underwriter.