Robinhood to List Venture Capital Fund RVII on NYSE in Public Offering

Robinhood Markets is planning an initial public offering for its second venture capital fund, Robinhood Ventures Fund II (RVII), which is expected to list on the New York Stock Exchange on August 13. The IPO is anticipated to be priced at $25 per share, according to a company announcement.

Fund Structure and Offering Details

RVII is structured as a business development company (BDC), a type of closed-end fund that invests in small and mid-sized private companies. This structure allows the fund to be publicly traded, which Robinhood states will provide investors with daily liquidity.

• Investor Access: Customers of Robinhood Financial can request IPO shares through the platform until the window closes on August 12. Allocations may also be sought by registered investment advisers on the TradePMR Fusion platform.
• No Minimums: The fund has no accreditation requirements or investment minimums, broadening its accessibility to retail investors.

Portfolio and Investment Strategy

The fund's portfolio currently consists of positions in 80 private companies. Its investment strategy focuses on early-stage startups that are either current or former participants in the Y Combinator accelerator program, or were founded by individuals who have gone through the program. The company noted that additional portfolio companies are expected to be added over time.

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While the fund invests in companies associated with Y Combinator, the press release clarifies that the prominent accelerator does not sponsor, endorse, or promote RVII.

Fees and Regulatory Status

Investing in RVII carries a fee structure common to such investment vehicles, including a base management fee of 2.00% of net assets annually. Additionally, an incentive fee of 20% of realized capital gains is payable annually, subject to certain conditions.

The fund's registration statement on Form N-2 has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. The company's announcement cautioned that an investment in RVII is speculative and involves a high degree of risk, including the potential for substantial loss.