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Robinhood opens orders for Ventures Fund II ahead of NYSE debut
The closed-end fund plans to raise about $200 million at an expected $25 share price and lists on Aug. 13 under ticker RVII.
Robinhood opened the order window for its second closed-end venture capital vehicle, Robinhood Ventures Fund II, offering retail investors exposure to seed-stage startups from the Y Combinator ecosystem. The fund is expected to price at $25 per share and is structured to provide access without minimum investment amounts or accreditation requirements, with customers able to request shares through the app until Aug. 12, according to The Defiant.
The offering totals 8 million shares, including 7.6 million shares sold by the fund and 400,000 shares sold by Robinhood Markets, with about $200 million targeted at the expected price. Underwriters also have a 30-day option to purchase an additional 1.2 million shares, The Defiant said.
Robinhood Ventures Fund II is expected to list on the NYSE on Aug. 13 under ticker RVII, about five months after Robinhood Ventures Fund I listed in March. At launch, RVII expects positions in 80 private companies, with Goldman Sachs as lead bookrunner and Citigroup, J.P. Morgan, UBS, and Wells Fargo also participating, The Defiant reported.
The fund is described as a business development company, a closed-end fund regulated under the Investment Company Act of 1940 and managed by Robinhood Ventures DE, an SEC-registered adviser owned by Robinhood Markets. Investors pay a 2% annual management fee plus a 20% incentive fee on realized gains, The Defiant added, and the offering documents estimate total annual expenses at 4.18%, while warning the investment is speculative and carries a substantial risk of loss.