Robinhood files for second venture fund targeting early-stage startups

Robinhood is launching a second venture fund focused on early-stage and growth startups, just two months after listing its first investment vehicle on the stock market.

The company confirmed in a blog post that it has confidentially filed registration documents for Robinhood Ventures Fund II (RVII).

Unlike Robinhood’s first venture fund — which focused largely on later-stage private companies, including a US$75 million investment in OpenAI — the second fund will target early-stage and growth startups. The shift substantially changes the fund’s risk profile, as early-stage investing typically carries higher failure rates but also offers the potential for outsized returns.

The move underscores Robinhood’s broader strategy to blur the traditional boundaries between retail brokerage services and venture capital investing.
Historically, access to private-company investments in the United States has been limited to accredited investors, defined as individuals with a net worth exceeding US$1 million, excluding their primary residence, or annual income above US$200,000 individually or US$300,000 jointly with a spouse.

Robinhood has framed both venture funds as part of an effort to democratize access to private markets.

“For decades, wealthy people and institutions have invested in private companies while retail investors have been unfairly locked out,” Vlad Tenev, CEO of Robinhood, said. “With Robinhood Ventures, everyday people will be able to invest in opportunities once reserved for the elite.”

The company's expansion into venture capital reflects broader shifts in financial markets, where technology firms are remaining private for longer periods before pursuing public listings. As a result, many retail investors have grown frustrated with public markets, arguing that much of a company’s rapid growth occurs before shares become publicly available.

Robinhood has not disclosed a fundraising target for RVII. Its first venture vehicle reportedly aimed to raise US$1 billion but fell short by several hundred million dollars.

Still, the fund has delivered strong market performance since debuting on the New York Stock Exchange in March at US$21 per share, recently closing at US$43.69. Investor enthusiasm has been driven in part by strong interest in artificial intelligence startups, which account for a sizable portion of the portfolio.