Robinhood Ventures has unveiled its second venture capital fund, RVII, with a planned raise of $200 million targeting startups from Y Combinator's current and past cohorts. The fund is set to list on the New York Stock Exchange at $25 per share, with trading expected to begin on Aug. 13. Unlike the firm's first fund, RVI, which carried no performance fee, RVII charges a 2% management fee and a 20% performance fee, translating to an estimated annual total expense ratio of about 4.18%. Robinhood describes the vehicle as a "speculative" investment, warning of "significant risk of loss" and noting shareholders will not have redemption rights. RVI debuted in March, raising $658.4 million and focusing on late-stage names such as Databricks, Stripe, OpenAI and SpaceX. That fund fell 16% on its first trading day before rebounding roughly 30%. RVII, by contrast, shifts the focus toward seed-stage companies. Robinhood Ventures head Sarah Pinto says the fund lets retail investors "participate in early-stage growth without waiting for a company's IPO." Goldman Sachs is acting as lead underwriter, with Citigroup, JPMorgan, UBS and Wells Fargo as joint underwriters. The subscription window closes on Aug. 12.
Robinhood Ventures, the investment arm of Robinhood, has launched its second venture capital fund, RVII, with a planned raise of $200 million. The fund is focused on companies currently or previously incubated by Y Combinator and is expected to begin trading on the New York Stock Exchange on Aug. 13 at $25 per share.
The fee structure marks a departure from the first fund, RVI, which carried no performance fee. RVII charges a 2% management fee and a 20% performance fee, putting the estimated annual total expense ratio at about 4.18%. Robinhood describes the fund as a "speculative" investment, warning of "significant risk of loss" and noting that shareholders will not have redemption rights.
RVI listed in March and raised $658.4 million, mostly targeting late-stage companies such as Databricks, Stripe, OpenAI and SpaceX. It fell 16% on its first trading day before rebounding about 30%. RVII, in contrast, shifts the focus to seed-stage startups.
"Retail investors can participate in early-stage growth without waiting for a company's IPO," said Sarah Pinto, head of Robinhood Ventures. Goldman Sachs is serving as lead underwriter, with Citigroup, JPMorgan, UBS and Wells Fargo as joint underwriters. The subscription window is scheduled to close on Aug. 12.
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