Robinhood files for second retail venture IPO (RVII) after first fund doubles

Robinhood has filed a confidential registration for its second venture fund, RVII, following the strong performance of its first fund (RVI). Launched just two months ago, RVI debuted on the NYSE at $21 per share and has since soared to $43.69, more than doubling as enthusiasm for AI startups like OpenAI and Databricks drove demand. The first fund, which sought $1 billion, fell short by several hundred million but still delivered outsized returns. RVII will differ from its predecessor by casting a wider net, investing in both growth-stage and early-stage startups. Early-stage investments carry higher risk but offer greater potential returns, a bet Robinhood is willing to take as it doubles down on retail venture access.

Robinhood CEO Vlad Tenev pitched the venture as a publicly traded VC firm with daily liquidity, no accreditation requirements for investors, and no carry fees (the typical 20% profit share taken by traditional VCs). This model allows retail investors to participate in the private market's appreciation, which has historically been concentrated among the wealthy. Tenev's broader vision includes allowing retail investors to participate in seed and Series A rounds alongside institutional investors, democratizing startup financing. If successful, RVII could significantly alter how early-stage startups raise capital, opening the door for ordinary investors to capture gains from companies like ElevenLabs, Oura, and Ramp, which are already in Robinhood's portfolio.