Robinhood Launches $200M Venture Fund Giving Retail Investors Access to Y Combinator Startups

Robinhood Files $200 Million Venture Fund for Y Combinator Startups

Robinhood has filed to launch Robinhood Ventures Fund II (RVII), a $200 million venture fund designed to give retail investors exposure to seed-stage startups backed by Y Combinator (YC).

The fund is expected to list on the New York Stock Exchange (NYSE) under the ticker RVII on August 13, subject to regulatory approval.

Focused on Early-Stage YC Companies

Unlike Robinhood's first venture fund, which invested in mature private companies such as Databricks, Stripe, OpenAI, and SpaceX, RVII will target seed-stage startups that are:

• Current Y Combinator companies

• Former YC startups

• Founded by YC alumni

The fund launches with investments in 80 private companies, providing retail investors with earlier access to venture-backed startups before they reach public markets.

New Fee Structure

Robinhood Ventures Fund II introduces a more traditional venture capital fee model.

The fund will charge:

• 2% annual management fee

• 20% performance fee on realized gains

By comparison, Robinhood Ventures Fund I did not charge a performance fee.

According to Robinhood, the fund is intended for investors who understand the higher risks associated with early-stage venture investing.

Responding to Longer Private Market Cycles

Robinhood says companies are remaining private significantly longer than in previous decades, making it difficult for retail investors to participate in early-stage growth.

The company believes venture funds like RVII can help close that access gap by allowing individual investors to participate before startups reach an IPO.

Leadership

The fund is led by Sarah Pinto, Head of Robinhood Ventures, with Rich Aberman, a former Y Combinator founder and visiting partner, serving as portfolio manager.

Robinhood notes that while the fund focuses on YC startups, Y Combinator does not sponsor, endorse, or manage RVII.