Fundrise co-founder and CEO Ben Miller visited squaw box this morning to reflect upon the Fundrise Innovation Fund’s success with its investment in ServiceTitan (NASDAQ:TTAN).
ServiceTitan went public earlier this month. Shares were priced at $71/each, but the market deemed this too low, with shares immediately jumping to over $100. While it is not clear when the Innovation Fund exited its position (or if it did at all), the success helps to validate Fundrise’s shift into providing access to private firms for all investors.
During the discussion on CNBC, Miller questioned why anyone would want to go public. Listing shares on a public exchange is a costly venture. Regulatory requirements are high, and fees are ongoing. The regulatory onslaught foisted upon the masses has been led by policymakers who have little understanding of markets.
Miller noted that going public is unnecessary and asked why anyone would want to do it unless they are rewarded. At the same time, the success of ServiceTitan’s IPO is a “green light” for the IPO market.
Fundrise is best known for its real estate offerings utilizing the Reg A exemption. Fundrise has extended its experience with Reg A to early-stage investing with its Innovation Fund, which apparently also holds shares in publicly traded firms. Of note is the fact that investors may gain access to liquidity quarterly, and shares in private firms tend to be priced at the last funding round.
You may watch the entire discussion in the video below.