Robinhood launches publicly traded fund to invest in Y Combinator startups

Robinhood disclosed that its second venture fund, Robinhood Venture Fund II, is slated to debut on the exchange on August 13 with shares priced at $25 each, targeting a capital raise of as much as $200 million. The fund will acquire equity stakes from startups founded by current or former Y Combinator participants, provided those companies consent to sell their shares. Retail investors can buy and trade the fund’s stock, but they will not directly hold the underlying private company shares.

The structure includes standard 2% management fees plus additional charges, bringing total fees to just over 4%, and a 20% carried interest payable to a Robinhood-owned entity. The fund does not specify an end date or promise regular cash payouts, leaving investors to rely mainly on potential share-price appreciation. Comparisons were drawn to Robinhood Ventures Fund I, which trades above its IPO price, illustrating both upside potential and risk of loss.