Robinhood is bringing its second venture fund to the public market. Robinhood Ventures Fund II, ticker RVII, is expected to list on the New York Stock Exchange on August 13 at $25 a share, with the window to request IPO shares closing August 12. The fund packages stakes in roughly 80 early-stage private companies into something any Robinhood customer can buy on the same app they use to trade stocks. The offering follows Robinhood's record second-quarter revenue of $1.31 billion, up more than 32% year over year. The structure is a business development company regulated under the Investment Company Act of 1940, the only legal way to offer retail investors access to portfolios holding more than 15% in illiquid private securities.
RVII Structure and Holdings Composition
RVII is a business development company, a type of closed-end fund regulated under the Investment Company Act of 1940. It plans to hold a diversified portfolio of about 80 early- and growth-stage private companies, with a focus on current and former participants in the Y Combinator startup accelerator. The offering is for up to 8 million shares at $25, raising roughly $200 million, with Robinhood Markets itself selling 400,000 of those shares.
The SEC requires that retail-accessible vehicles holding more than 15% in illiquid private securities use the closed-end structure, because private-startup stakes cannot be redeemed on demand the way an ETF's holdings can. RVII shareholders cannot redeem their shares from the fund. To exit, they must sell to another investor on the NYSE at whatever price the market sets, which may be well above or below the value of the underlying holdings.
Robinhood Q2 Earnings Context
The company reported record second-quarter revenue of $1.31 billion, up more than 32% year over year and ahead of estimates, with earnings of $0.62 a share. The stock rose on the print, though it remains down about 15% over the past month and 18% year-to-date.
Robinhood has spent the year converting one adjacent asset class after another into a retail product on its app, from tokenized stocks on its own blockchain to prediction markets to crypto services abroad. RVII extends that playbook to private-company equity.
RVI Price Movement from March to August
Robinhood Ventures Fund I listed on March 6 at $25 against a NAV of $24.70, roughly fair value, then surged to nearly $77 by late May, a premium of almost 90% over the value of its holdings. By August the fund traded near $28, a fraction of its peak and back in the region of its net asset value.
RVI's rise was driven by what it held, with SpaceX, OpenAI and Anthropic among its largest positions, all headed toward public listings, and the excitement pushed the price far above the underlying value. Then it reversed, and holders watched roughly two-thirds of the price evaporate in three months.
Fund Fee Structure and NAV Calculation
The fund charges a 2% annual management fee plus a 20% incentive fee on realized capital gains, a hedge-fund-style fee structure applied to a retail product. The fund's net asset value, the per-share worth of its private holdings, is calculated by Robinhood Ventures itself, not set by an open market, since the underlying companies do not trade publicly.
FAQ
What is Robinhood Ventures Fund II and when does it list?
Robinhood Ventures Fund II, ticker RVII, is a closed-end fund holding stakes in roughly 80 early-stage private companies. It is expected to list on the New York Stock Exchange on August 13 at $25 a share, with the IPO share request window closing August 12.
How did Robinhood Ventures Fund I perform after its listing?
Robinhood Ventures Fund I listed on March 6 at $25, surged to nearly $77 by late May, then fell back to near $28 by August. The price movement reflected a premium of almost 90% over net asset value at the peak, followed by a sharp reversal as the premium collapsed.
What fees does RVII charge investors?
RVII charges a 2% annual management fee plus a 20% incentive fee on realized capital gains. The fund's net asset value is calculated by Robinhood Ventures itself, since the underlying private companies do not trade publicly.
