Robinhood raised $225.5 million for its second venture fund, Robinhood Ventures Fund II, which began trading on the New York Stock Exchange on August 13. The fund sold 8 million shares at $25 each in its initial public offering, but opened at $22.50 — a 10% discount to the IPO price — giving early buyers an immediate paper loss.
RVII is a closed-end fund structured as a business development company, holding stakes in roughly 80 early-stage private companies tied to Y Combinator. The portfolio is spread thin and near-evenly at about 1.12% per position, with the largest holding, Tasklet, at 4.50% and around 7% of the fund in cash. Goldman Sachs led the offering, and the raise could reach $255.5 million if underwriters exercise their option for additional shares. Robinhood Ventures president Sarah Pinto said the vehicle aims to benefit ‘everyday Americans and retail investors’ who have historically been excluded from Silicon Valley wealth generation, adding that the company is already planning funds three through six.
The fund carries a 2-and-20 fee structure — a 2% annual management fee plus 20% of profits — pushing the total expense ratio near 4.18%. That cost burden is a key concern for retail buyers, especially in venture investing where returns often depend on a small number of outlier winners.
The debut below the IPO price follows the boom-and-bust of Robinhood Ventures Fund I, which launched in March 2026 at $25 against a net asset value of $24.70. RVI surged more than 90% to $57.02 by late May, then round-tripped back to roughly $25 by late July as its premium faded. RVII’s discounted open suggests the market is declining to repeat that mania and is pricing shares closer to, or below, estimated private-company values.
Robinhood’s broader expansion continues even as crypto trading volumes fell 62%. The parent company’s stock rose about 4.9% to $99.37 and crossed $100 intraday on August 13, supported by growth in options, prediction markets, venture funds, a UK crypto push, and its own blockchain initiatives. The fund offers retail investors access to private startups, but the first fund’s round-trip remains a cautionary example of paying a premium for narrative over net asset value.
