Robinhood to list a fund that lets anyone back Y Combinator startups

Robinhood this week unveiled a financial instrument that lets anyone feel like they, too, can make money by backing Y Combinator startups.

Robinhood Venture Fund II (RVII) is expected to become a publicly traded fund on August 13 at an opening price of $25 per share.

The fund intends to raise as much as $200 million, Reuters reports, and use that money to invest in startups founded by current and former Y Combinator participants, should those startups agree to sell their shares.

While any retail investor can buy shares in the fund, they will not directly hold any shares in the startups. Investors will be able to trade their shares in the fund, but it’s unclear how much profit they can expect to make should the YC companies manage big exits.

The fund intends to pay the 2/20 fees typical in the VC world to another entity owned by...

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