Robinhood is preparing to give retail investors access to a fund focused on startups linked to Y Combinator, one of Silicon Valley’s best-known startup accelerators. The new product, Robinhood Venture Fund II (RVII), is expected to begin trading publicly on August 13 at $25 per share.
However, investors will buy shares in the fund, not direct ownership stakes in the startups it targets.
How RVII Will Work
RVII plans to raise up to $200 million, according to Reuters. The fund will use that capital to purchase shares in companies founded by current or former Y Combinator participants, but only when those startups agree to sell their shares.
That structure gives everyday investors a way to gain indirect exposure to private startups that are normally difficult to access. Still, the returns are not guaranteed. Investors will depend on the value of RVII shares and the performance of the companies held by the fund.
The fee structure also differs from that of a typical publicly traded stock. A Robinhood-owned entity will receive management and other fees that together exceed 4%. The arrangement includes a 2% management fee based on net returns and 20% carried interest. Carry allows the fund manager to receive 20% of qualifying profits when investments generate successful exits.
RVII also does not appear to have a fixed end date for returning capital to investors. Traditional venture capital funds often operate for roughly 10 years before winding down. RVII may make cash distributions, but investors could largely depend on changes in the fund’s share price to realize gains.
RVI Shows Both Sides of the Model
Robinhood already operates Robinhood Ventures Fund I (NYSE: RVI), which invests in private companies such as Databricks, Mercor, and OpenAI. RVI launched with an IPO price of $21 and has traded well above that level.
The fund also shows the risks involved. RVI climbed above $56 in May but later fell to around $28 per share. That movement highlights how quickly the market value of a fund tied to private companies can change.
Robinhood has faced scrutiny over other products connected to private companies. In 2025, the company sold crypto assets described as tokenized shares of OpenAI and SpaceX. OpenAI said it was not involved and that the tokens did not represent ownership in the company.
RVII is structured differently because it plans to purchase actual shares in private startups rather than create tokenized assets.
What Investors Should Know
RVII offers public-market access to an investment type usually associated with venture capital. Yet the structure comes with fees, uncertain liquidity, and no clear promise of regular profit distributions.
The fund’s performance will ultimately depend on the private companies it holds, their valuations, and whether those businesses achieve profitable exits.
Robinhood Venture Fund II could make startup investing more accessible, but that access does not eliminate the risks associated with venture capital. Investors will not own Y Combinator startups directly, and returns will depend on the fund’s performance.
The $25 opening price, fee structure, trading activity, and eventual startup exits will be important factors to watch once RVII begins trading.
