We believe listing the Innovation Fund creates three major potential benefits:

  • Potential premium capture: If VCX trades at a premium, you could benefit significantly beyond the underlying portfolio performance. Obviously this is not guaranteed.
  • True daily liquidity: Unlike the current quarterly tender process, you'll be able to sell shares any trading day (after the lockup) without the Fund needing to hold excess cash reserves.
  • Reduced cash drag: Because the Fund won't need to hold 20-25% in liquid reserves for redemptions, more capital can be deployed into high-growth companies. We estimate this cost shareholders ~10% in returns in 2025.

It’s important for all investors to note that there is absolutely no guarantee that the Innovation Fund will trade at a premium.