Robinhood Targets Seed-Stage Startups with $200 Million Venture Fund

The fund, which is expected to begin trading on the New York Stock Exchange under the ticker RVII on August 13, will offer 7.6 million shares at $25 each. Goldman Sachs leads the bookrunning syndicate, supported by Citigroup, JPMorgan, UBS, and Wells Fargo. Unlike Robinhood’s first venture vehicle, which focused on established giants like OpenAI and Stripe, RVII launches with holdings in approximately 80 private, seed-stage businesses. Portfolio manager Rich Aberman, a former Y Combinator founder, aims to integrate retail capital into the earliest stages of capitalization tables.

This aggressive expansion into private markets brings a significant shift in fee structures. While the initial fund operated without performance fees, RVII introduces a 2% annual management fee and a 20% incentive fee on realized gains, with an estimated annual expense ratio of 4.18%. The prospectus carries clear warnings regarding the speculative nature of these investments, noting that shareholders lack redemption rights. This launch arrives as Robinhood diversifies its revenue streams beyond traditional brokerage and crypto trading, following a second-quarter report showing a 32% year-over-year revenue increase to $1.31 billion.