Fundrise Growth Tech Interval Fund, LLC

Last Updated 04/05/2024

This fund recently launched or we are in the process of collecting the data

Shows hypothetical growth of $1000 since inception

Nav Per Share

0%

Current Yield

0.00%

Total Return

05/11/2022

Inception

$73,827,207

Total Managed Assets*

Not Available

Ticker

$1,000

Minimum Investment

%

Net Expense Ratio

*represents total managed funds for the fund complex

About The Fund

Overview: The Fundrise Growth Tech Interval Fund, filed on 6/17/2021, represents the second interval fund filed by Fundrise, LLC. Their first was the Fundrise Real Estate Interval Fund which held over $275m in assets as of 6/30/2021.

While Fundrise built a brand on offering retail investors fractional shares of real estate investments through a series of REITs and their first interval fund, the Fundrise Growth Tech Interval Fund is focused on private investments into pre-IPO, late-stage technology companies.

The move may appear to be a departure from Fundrise's core business, but their parent company Rise Companies Corp.'s mission focuses on expanding retail investor access to alternative asset investing, and they don't box themselves into the real estate sector. As such, Fundrise is well positioned to leverage their existing distribution channels, investor engagement platform, and automated compliance tools to gain a foothold in this space.

The space itself is ripe for competition. At a time when the SEC is asking Congress for additional resources to manage a surge of IPOs, only one other interval fund offers retail investors similar access to pre-IPO companies - the Private Shares Fund (PRIVX), formerly known as the SharesPost 100 Fund. 


From the fund's prospectus:

The Mission: Rise Companies Corp. (“Rise Companies”), the Fund’s sponsor, owns and operates through its subsidiary Fundrise, LLC, an investment platform available both online at www.fundrise.com and through various mobile applications sponsored by Rise Companies (collectively referred to herein along with the Fund’s website www.fundriseintervalfund.com, the “Fundrise Platform”). Rise Companies believes in leveraging technology to build a better financial system that empowers individuals. With technology, Rise Companies can create a more efficient mechanism than the conventional financial system to invest in alternative assets. Please see “Plan of Distribution” for more information on Rise Companies’ mission to make alternative asset investing easier and more efficient for retail investors.

Investment Objective: The Fund’s investment objective is to provide total return primarily through long-term capital appreciation. There can be no assurance that the Fund will achieve its investment objective.


Investment Strategies: Under normal circumstances, the Fund will invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the securities of technology and technology-related companies (referred to herein as “technology companies”) and other investments (including derivatives) that provide the Fund with economic exposure to technology companies. Technology companies include companies operating in the information technology and telecommunication services sectors and companies operating in the following industries: internet and catalog retail; media; electrical equipment; biotechnology; health care equipment and supplies; and health care technology. Technology companies may also include, in the judgment of the Fund’s investment adviser, companies operating in other sectors, sub-sectors and industries.

The Fund seeks to achieve its investment objective by investing in technology companies, with a primary focus on the equity securities (e.g., common stock, preferred stock, and convertible debt) of, or other investments (including derivatives) that provide the Fund with economic exposure to, certain privately held, late-stage, growth companies (“Portfolio Companies”). Late-stage companies are privately held companies that have typically demonstrated sustainable business operations and generally have a well-known product or service with a strong market presence. Late stage companies have generally reached a point of meaningful revenue generation from their core business operations with strong financial indicators of product-market fit. Late-stage private companies may also be referred to as “pre-IPO companies” (i.e., companies that are typically in their last few financing rounds before an initial public offering (“IPO”) or an exit event such as a sale or merger) and have previously been funded primarily by private institutional investors through pooled investment vehicles (commonly referred to as venture capital funds) and other institutional investment groups (“venture-backed companies”).


The ability to invest in privately held, late-stage technology companies can offer the potential to capture more upside potential than investments in the securities of technology companies that are already publicly traded. The Fund’s portfolio management team seeks to capture this value accretion, or what may be referred to as a private-public valuation arbitrage, by investing primarily in Portfolio Companies that they believe have high growth potential.


The Fund generally seeks to invest in primary and secondary offerings of Portfolio Companies with the goal of remaining invested until a liquidity event occurs, including but not limited to a public offering of the Portfolio Company’s shares, another round of private fund raising, or a sale or merger of the Portfolio Company. Upon the occurrence of a liquidity event with respect to a Portfolio Company, such as an initial public offering or a merger or acquisition transaction, the Fund may or may not choose to sell its investment in the Portfolio Company.


Notwithstanding the occurrence of such a liquidity event, the Fund may continue to hold securities of Portfolio Companies after those companies have gone public. This investment strategy is generally referred to as “Buy and Hold”.


Advisor: Fundrise Advisors, LLC


Administrator: Fundrise Advisors, LLC


Legal Counsel: Stradley Ronon Stevens & Young, LLP


Partner: Sara P. Crovitz


Distributor: The Fundrise Platform by Fundrise, LLC


Custodian: Millennium Trust Company, LLC


Transfer Agent: Computershare, Inc.

HISTORICAL DATA

Percentage and dollar changes represent the increase or decrease in the NAV from the preceding trading day.

Regulatory Materials

Prospectus - 6/16/2021 - Fundrise Growth Tech Interval Fund, LLC

Fundrise Growth Tech Interval Fund, LLC - Shares of Beneficial Interest

SEC

Date

2021