Fundrise’s Innovation Fund (INNOX), a Reg A securities offering that enables access for retail investors for well-known private firms, will be made available on the SoFi (NASDAQ:SOFI) platform. This move should boost investor access to the fund, which does not trade on an exchange and is currently only available for direct investment on the Fundrise platform.
Fundrise started its existence as a real estate investment platform offering smaller investors access to various property investments. In recent years, Fundrise has leveraged its experience with real estate offerings to expand its business into early-stage investing.
Fundrise co-founder and CEO Ben Miller recently appeared on CNBC to tout the company’s venture-focused fund, comparing it to other similar offerings. Miller noted that, unlike some offerings, their fund “went in the front door” of the SEC to get its Innovation Fund qualified.
SoFi is one of the most successful Fintechs in the US, which started as a lending platform and now offers a portfolio of banking and investment services. SoFi reports over 10.9 million “members.”
Fundrise states that by offering its Innovation Fund on SoFi this signals a “broader shift in how individuals access venture capital.”
Fundrise highlights that its venture fund does not hold any carried interest or performance based fees, comparing it to the tradition venture model. It also provides quarterly liquidity.
Miller says they started Fundrise to offer individuals the highest quality investments. Today, as firms strive to remain private for as long as possible, retail investors are cut out of the wealth creation, which is captured by big money.
“But thanks to the Innovation Fund and partnerships like this one with SoFi, that’s no longer the case. Now millions of investors can participate in the growth of these transformative pre-IPO technology companies alongside the biggest name VCs,” said Miller.
Anthony Noto, SoFi CEO, said the company is expanding its alternative investment offerings for a new generation of investors. This includes private equity, credit, real estate, and venture.
Fundrise notes that it has experienced its first portfolio company IPO in ServiceTitan, along with new historic fundraising milestones from OpenAI, Anthropic, and Anduril, along with recent new investments in Ramp and Omni.
The Innovation Fund is now available to all eligible SoFi Invest members.
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