Robinhood just kicked off marketing for its second publicly traded closed-end fund focused on Y Combinator-backed private companies, targeting a $200 million raise through an IPO expected to price after market close on August 12. The fund, called Robinhood Ventures Fund II (RVII), plans to offer up to 8 million shares at $25 each.
What the fund actually does
RVII is structured as a business development company, or BDC. In English: it’s a publicly traded vehicle that pools investor money and deploys it into private businesses that don’t trade on stock exchanges.
The fund’s mandate is focused squarely on early- and growth-stage private companies, with a particular emphasis on current or former Y Combinator participants. That includes startups actively in the accelerator and companies founded by YC alumni who’ve moved on to build new things.
For context, Y Combinator is arguably the most influential startup accelerator in Silicon Valley. Its alumni list reads like a tech hall of fame: Airbnb, Stripe, DoorDash, Coinbase, Dropbox. Getting access to the next generation of YC companies before they go public has traditionally required either being a venture capitalist or knowing one personally.
