We recently introduced you to the Fundrise iPO (internet public offering), a wholly unique ownership model whereby individual investors on Fundrise are given the opportunity to become investors in the company itself.
Because this type of early-stage investment is not typically available to most investors, it is common to have some questions. Below are answers to some of the most frequently asked questions we receive about the Fundrise iPO:
What exactly am I investing in?
When you invest in the Fundrise iPO, you are purchasing shares of Rise Companies Corp., the parent company and owner of Fundrise.
How is the Fundrise iPO different from a traditional IPO?
The Fundrise iPO is an internet public offering (not an initial public offering) where we are selling shares in the parent company as part of an early stage investment. This is different from a traditional IPO (initial public offering) in that Rise Companies Corp. is a private company that is still in its high-growth, start-up stage, making this investment more akin to a venture capital or growth equity investment. The shares are being sold directly to investors and will not be listed on a stock exchange or publicly traded.
How do I make money?
Your returns will be based on the change in the value of the company over time and will only be realized if and when the company experiences a liquidation event such as “going public” through a traditional IPO or the sale of the company.
While we believe the long-term market potential for Fundrise is substantial and our traction to date demonstrates our performance trajectory, it’s important to remember that this is an investment in a high-growth technology company that is not cash-flow positive. Investors should not expect to receive any distribution or current return, there is no guarantee of profit, and investors may be subject to a partial or total loss of their investment.
How long should I expect to hold this investment?
The Fundrise iPO is meant to be a long-term investment and is illiquid. Unlike our real estate funds and the Innovation Fund, the Fundrise iPO does not expect to provide the possibility for redemption, and investors in the Fundrise iPO should be prepared to hold the investment indefinitely until such time as the Company experiences a liquidation event (which liquidation event is not guaranteed), as described previously.
Where can I learn more about the company’s historical performance?
Similar to the reporting structures of public companies, Rise Companies (the parent company of Fundrise) provides regular, ongoing public reporting on its operations, including semi-annual financial reporting and annual audits. As part of this reporting, the company provides detailed financial reporting, as well as a summary of key business metrics related to overall performance. All of the company’s public filings, going back as far as 2015, are available publicly here on the SEC’s EDGAR website.
When and how can I invest?
Over the coming weeks, we’ll provide you with all of the information you’ll need to invest. We expect to make the iPO available to you for investment later next month. When the offering becomes available — don’t worry, we’ll send you an email — you will be able to log in to your account and place an investment from the iPO offering page.
If you have a question that wasn't answered here, please feel free to reach out to our Investor Relations team at investments@fundrise.com.
The Fundrise Team