About Robinhood Ventures
We’re launching a way to invest in private markets, something once limited to institutions and the elite. You can invest in Robinhood Ventures Fund I (RVI) to get exposure to private companies.
RVI is a listed closed-end fund (CEF) managed by Robinhood Ventures. RVI will invest primarily in private companies that, in the view of Robinhood Ventures, are operating at the frontier of their industries. A listed closed-end fund (CEF) is a type of fund that raises a fixed amount of capital through an Initial Public Offering (IPO), creating a set number of shares that may then trade on a stock exchange, like stocks.
You can participate in RVI’s initial public offering (IPO) through IPO Access. RVI will be offered at a set price, which will be announced prior to the IPO.
Once your conditional order to buy is placed, you'll have until the confirmation window is closed to edit or cancel your order. After the confirmation window closes, the orders will be allocated.
After the IPO period ends, you may then be able to buy and sell RVI shares in the market through your self-directed Robinhood investing account or IRA. For more details about the fund, check out Robinhood Ventures FAQ.
Like any listed CEF, RVI pays fees and expenses, including management fees, administration fees, and expenses associated with its organization and ongoing operation. These fees and expenses are paid out of RVI cash and cash equivalents, which means they're paid indirectly by RVI's shareholders. Read the preliminary prospectus in the registration statement and other documents that RVI has filed with the SEC for complete details on fees and expenses before investing.
The other fees and expenses, combined with the management fee, make up RVI's expense ratio that’s shown on its detail page within your account. The expense ratio reflects the amount of money a fund charges every year for management, administration, and other expenses, expressed as a percentage of total net assets. It does not include any fee waiver or expense reimbursement agreements that may be in effect.
Note that RVI charges no carried interest (carry), which means it doesn’t take a performance-based share of profits.
RVI may not be suitable for all investors. There is no guarantee RVI will achieve its investment objective or that RVI's management will produce the desired results. Before investing, carefully consider your investment objectives and risks, and the charges and expenses of RVI. There are risks inherent in any investment, including the possible loss of up to 100% of invested capital. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value.
An investment in the Fund is speculative and involves a high degree of risk with substantial risk of loss.
RVI is a newly organized, non‑diversified closed‑end fund investing in a concentrated portfolio of private “Frontier Companies.” This strategy entails limited information, illiquidity, valuation uncertainty, and risk of loss; shares and the value of the Fund’s net assets may be volatile and shares may trade at a discount or premium, and exposures may be via illiquid private vehicles with capital calls and extra fees. The Fund may use leverage, has limited operating history, and does not anticipate that it will pay dividends on a quarterly basis or become a predictable distributor of dividends, all of which can reduce or delay returns. A “Frontier Company” means a private company that, in the Robinhood Ventures’ view, is a best-in-class, growing business operating at the cutting edge of its sector or industry. A company is “best-in-class” if Robinhood Ventures believes it has one or more competitive advantages relative to other companies in its sector.
Listed CEFs differ from open-ended funds in that listed CEFs do not redeem their shares at the request of an investor. No shareholders have the right to require the Fund to redeem their shares. While the Fund’s shares are expected to be listed on an exchange, an active public market for the shares may not develop. As a result, shareholders may not be able to liquidate their investment. Accordingly, shareholders should consider that they may not have access to the funds they invest in the Fund for an indefinite period of time.
There is no assurance that the private companies in which the Fund invests will ever have a liquidity event.
Robinhood Ventures Fund I (“RVI” or the “Fund”) has filed a registration statement (including a preliminary prospectus) on Form N-2 (File No. 333-290253) with the Securities and Exchange Commission (the “SEC”) for the offering to which this free writing prospectus relates. Before you invest, you should read the preliminary prospectus in that registration statement and other documents RVI has filed with the SEC for more complete information about RVI and this offering. You may get these documents for free by visiting the SEC website at www.sec.gov. Alternatively, copies of the prospectus may be obtained by contacting Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com. Investors are advised to carefully consider the investment objectives, risks and charges and expenses of RVI before investing. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Robinhood Ventures (“RHV” or the “Adviser”) is the investment adviser for RVI. Robinhood Ventures is the dba name for Robinhood Ventures DE, LLC, an SEC-registered investment adviser. RHV is a wholly owned subsidiary of Robinhood Markets, Inc. Robinhood and its affiliates generally earn more money from affiliated funds, such as RVI than from unaffiliated funds.
Securities trading offered through Robinhood Financial LLC, Member SIPC, a registered broker-dealer, and a subsidiary of Robinhood Markets, Inc.
IPOs can be risky and speculative investments, and may not be appropriate for every investor. For details, review our Initial Public Offering Risk Disclosures.
The Fund pays the Adviser a management fee (the “Management Fee”) calculated and payable quarterly at the annual rate of 2% of the value of the Fund's Net Assets as of the end of each quarter. “Net Assets” means the total assets of the Fund minus the Fund's liabilities. For purposes of determining the Management Fee payable to the Adviser, the value of the Fund's Net Assets will be calculated prior to the reduction for any fees and expenses of the Fund for that quarter, including, without limitation, the Management Fee and/or any distributions by the Fund. The Adviser has contractually agreed to reduce its Management Fee to an annual rate of 1% for a 6-month period following the Fund’s initial public offering (the “Management Fee Waiver Agreement”). Unless the Management Fee Waiver Agreement is otherwise extended by agreement between the Fund and the Adviser, the Management Fee payable by the Fund upon conclusion of the 6-month term will be at the annual rate of 2%. The Adviser may not terminate the Management Fee Waiver Agreement during its 6-month term and the amounts waived are not subject to recoupment.
The Fund will also bear additional fees and expenses including, without limitation, those associated with the organization, offering, and ongoing operation of the Fund, as well as those imposed by any special purpose vehicles through which the Fund gains indirect exposure to investments. These fees and expenses are in addition to the Management Fee, and will reduce the value of the Fund’s Net Assets.
All rights to the trademarks included herein, other than RVI’s trademarks, belong to their respective owners and Robinhood’s use hereof does not imply any endorsement by the owners of these trademarks.