Robinhood files for a second startup investment fund called RVII

In short: Robinhood has filed confidential paperwork to launch RVII, a second fund meant to let everyday investors invest in private startups through the stock market.

What happened

Robinhood said it has submitted a confidential registration for a new fund called RVII. This is a normal step that lets a company work with regulators before it shares full details publicly.

The new fund would follow Robinhood’s first venture fund, RVI, which started trading on the New York Stock Exchange in March. According to TechCrunch, RVI began at $21 per share and later rose to $43.69. Robinhood has said RVI holds stakes in 10 private companies, including OpenAI, Stripe, and Databricks.

Robinhood says RVII will invest more broadly than the first fund. It plans to buy stakes in both growth-stage startups (companies that are already bigger and further along) and early-stage startups (younger companies that can be riskier). The company has not set a fundraising target for RVII yet.

Why it matters

Most people cannot invest directly in private startups under US rules unless they qualify as “accredited” investors, which generally means having a high income or over $1 million in net worth. Robinhood’s funds are designed to work like a basket of startup investments that trades like a regular stock. That can make it easier for ordinary investors to get access, but it also means they are taking on the risks of startup investing, where some bets can fail.

Source: TechCrunch AI