Robinhood has introduced Venture Fund II, a new investment vehicle designed to give everyday investors exposure to startups linked to Y Combinator. The fund is expected to begin trading on August 13 at an opening price of $25 per share.
The company says the fund could raise up to $200 million and will focus on companies founded by current and former Y Combinator participants, provided those startups are willing to sell shares. Investors can buy and trade shares in the fund, though they will not own the startup equity directly.
Like traditional venture capital structures, the fund includes management fees and carried interest. Robinhood said its unit will collect a 2% management fee on net returns, along with additional charges, bringing total fees to just over 4%. It will also receive 20% of profits through carried interest if the fund performs well.
Unlike many VC funds, RVII does not appear to have a fixed end date or a standard distribution schedule. That means returns may depend largely on the fund's market price over time rather than regular cash payouts.
The launch follows Robinhood Ventures Fund I, which also targets private companies and has traded above its IPO price at times, while still showing the volatility common to new investment products. Robinhood's latest move reflects the growing demand for broader access to private-market opportunities. In the future, such products could reshape how retail investors participate in startup growth.
