Robinhood is launching an initial public offering for its second venture fund, aiming to raise as much as $200 million and give retail investors access to a slice of the riskiest end of the startup world: seed-stage companies backed by Y Combinator.

The vehicle, called Robinhood Ventures Fund II, is structured as a business development company, a type of closed-end fund. It is expected to list on the New York Stock Exchange under the ticker RVII on August 13, with shares priced at $25 each. At launch, the fund will hold positions in 80 private companies, all of which are either current or former Y Combinator participants or were founded by YC alumni.

Unlike Robinhood’s first venture fund, which focused on giving retail investors exposure to later-stage private companies such as OpenAI, Databricks, and Mercor, this new fund pushes further down the risk curve into seed-stage startups, most of which fail. The structure allows any retail investor to buy shares in the fund without investment minimums or accreditation requirements, though investors will not directly hold shares in the underlying startups themselves.

The fund carries a base management fee of 2 percent of net assets annually, plus an incentive fee equal to 20 percent of realized capital gains from inception through the end of each fiscal year, minus realized losses, unrealized depreciation, and any previously paid incentive fees.

Robinhood’s first venture fund, RVI, offers a preview of how these products can perform. The fund’s shares, which listed at $21, climbed above $56 by May before falling back to around $28 more recently, illustrating the volatility retail investors can expect from a vehicle tied to private company valuations.

Robinhood has faced criticism before over products that tie financial instruments to the names of valuable private companies. In 2025, the company sold crypto tokens described as representing shares of OpenAI and SpaceX, a move OpenAI publicly condemned, saying it was not involved and that the tokens did not represent any actual holding in the company. This new fund differs structurally, since it involves Robinhood actually purchasing real shares in the underlying startups rather than issuing tokenized claims, positioning it more as a special purpose investment vehicle than a synthetic financial product.