Robinhood Ventures Fund RVII

Robinhood Ventures Fund II is an externally managed, diversified, closed-end management investment company that has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. It seeks long-term capital appreciation by investing primarily in a diversified portfolio of early-stage and growth-stage private companies, with a focus on entities that are current or former participants in the Y Combinator startup accelerator program or have founders who participated in Y Combinator. The company makes direct investments in the form of non-controlling equity and equity-related securities, including SAFEs, common stock, warrants, convertible preferred stock, and other equity-linked instruments.

Robinhood Ventures Fund II generates revenue through capital appreciation and investment income from its portfolio of private company securities. As a BDC, it earns returns via increases in the fair value of its investments, particularly through future equity conversions, initial public offerings, or acquisitions of its portfolio holdings. The firm does not currently generate recurring operating income from dividends or interest, as its investments are primarily in early-stage companies that do not distribute earnings. Its financial results are driven by changes in the fair value of its SAFE and equity investments, which are valued quarterly using Level 3 inputs due to the absence of active public markets.

The company operates through a single investment segment focused on early-stage and growth-stage private companies.

• Early-Stage and Growth-Stage Private Companies: This segment involves identifying and investing in promising private companies that demonstrate significant growth potential, particularly those affiliated with Y Combinator. The Adviser evaluates factors such as founding team experience, market size, product differentiation, commercial traction, and business model when selecting investments. Investments are made in the form of SAFEs, convertible preferred stock, common stock, warrants, and other equity or equity-related securities. As of June 30, 2026, the entire portfolio consisted of SAFEs valued at $19,600,000, representing 100% of total investments at fair value. The segment follows a strategy of making follow-on investments in promising companies to maintain exposure to high-growth opportunities.

Robinhood Ventures Fund II operates within the competitive landscape of business development companies and venture capital funds targeting early-stage technology startups. Its competitive advantage lies in its specialized focus on Y Combinator-affiliated companies, providing access to a curated deal flow through the accelerator network. As a BDC electing RIC status, it aims to combine the regulatory benefits of a BDC with the tax efficiency of a regulated investment company, differentiating itself from traditional venture capital funds. The company faces competition from other BDCs, venture capital firms, and angel investment groups that also target early-stage private companies, particularly those with strong founder networks and proven traction.

Robinhood Ventures Fund II serves as an investment vehicle for public market shareholders seeking exposure to early-stage and growth-stage private companies. Its investors include individuals and institutions that purchase its shares on the New York Stock Exchange under the ticker symbol "RVII." The company does not directly serve end customers or consumers; instead, its beneficiaries are shareholders who gain indirect exposure to the performance of its portfolio companies. Following its IPO, the company issued 8,000,000 common shares at a public offering price of $25.00 per share, generating gross proceeds of $200,000,000, with net proceeds of $191,000,000 after the sales load.