Innovation Fund

Open Venture

Our Innovation fund is designed to deliver long-term growth from a diversified portfolio of technology companies. The fund is focused on investing in potentially high-growth private technology businesses. The Innovation fund takes a “multi-stage” approach, investing across the lifecycle of a private company – from early to late stage and continuing to hold after any potential IPOs. The fund invests across thematic sectors including artificial intelligence (AI) and machine learning (ML), data infrastructure, vertical and horizontal software, and other categories with attractive long-term growth potential.

13.3%

$361M

0.16%

Inception date

Jul 18, 2022

Current NAV per share

$15.19

Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. Returns are net of fees.

case study

ServiceTitan’s IPO: an Innovation Fund milestone

case study

ServiceTitan’s IPO: an Innovation Fund milestone

ServiceTitan celebrates its transition to a public company becoming the first innovation fund portfolio company to IPO.

Read the full update

Fund strategy

The Fundrise Innovation Fund seeks to achieve its investment objective by investing in a diversified portfolio of potentially high-growth private technology companies.

While the Fund expects to focus primarily on late-stage, pre-IPO companies, it is intended to be a “multi-stage” Fund investing in both early-stages and late-stages, as well as holding some public equities.

Due to the nature of high-growth technology companies, it is expected that returns may vary substantially over the near-term and, as a result, the Fund is intended only for long-term investors with an understanding of the risks associated with illiquid investments.

Investment strategy drivers:

Waves of technology breakthroughs: The transformation enabled by software is still in the early stages, with recent breakthroughs in artificial intelligence as a prime example. There remain large industries, real estate among them, where key workflows are unaffected by software. Just as e-commerce has grown as a greater percentage of retail spending, software represents an increasing share of enterprises’ operating budgets, from 8% in 2023 to potentially the majority in the future. The exponential growth in computing power (Moore’s Law) coupled with the efficiency gains enabled by software and internet connectivity will continue to drive technology adoption for the coming decades. This dynamic has allowed venture capital to become one of the highest returning asset classes historically.
Tech companies staying private longer: The best private technology businesses of the current generation are staying private for much longer than prior generations, when companies like Amazon, Apple, and Microsoft went public much earlier and at smaller revenue scales. The best private businesses are able to raise the capital they need from the private markets without the additional cost and complexity of public reporting, eliminating the opportunity for individual investors to participate during a high growth phase of a company’s lifecycle. We see an attractive opportunity to build a portfolio of high growth private technology companies that would otherwise be inaccessible to individual investors.
Thematic focus: We intended to bring a broad, macro-based thematic investing approach to mid and late stage venture capital. We identify industries and sectors with potential to benefit from persistent secular tailwinds and we aim to back the leaders in each. Our initial focus is on artificial intelligence (AI) and machine learning (ML), data infrastructure, vertical and horizontal software, and property technology (PropTech). As the technology landscape is constantly evolving, we will continue to evaluate these themes and others and position the portfolio accordingly.
Private index approach: We aim to build a broad portfolio of private companies with the goal of diversifying risk and increasing the probability of benefiting from an outlier success. We believe that once a private tech company reaches a certain stage, it’s possible to identify a subset of category leading businesses with strong fundamentals.
Opportunistic tech investing: Ability to pivot quickly and take advantage of changing market conditions to deploy capital opportunistically across asset classes and market.

Industry

Modern data infrastructure

43.6%

Artificial intelligence & Machine learning

37.1%

Other

12.7%

Financial technology

4.4%

Real estate & Property tech

2.3%

Annual fund operating expenses

Management fee1.85%

Other expenses1.34%

Annual fund operating expenses3.19%

Less acquired fund fees and expenses-0.19%

Total annual fund operating expenses*3.00%

Tax reporting

Form 1099-DIV

*This figure removes acquired fund fees and expenses (costs from other funds the fund invests in). While this fee is not recognized as an operating expense in the fund's financial statements, it is required for prospectus fee disclosures to represent their economic impact on NAV. The actual expenses paid by the fund were 3.00% during the year ended March 31, 2025.

Hypothetical growth of $10,000

Hypothetical performance of investment between Jul 2022 and today with dividend reinvestment enabled. Past performance does not guarantee future results.

Initial investment value

$10,000.00

Total appreciation

$5,203.63

Total distributions¹

$43.36

Current investment value

$15,246.98

Value

$15,246.98

Contribution

$10,000.00

Net Return

$5,246.98

Historical net return

2025

NAV at end of period

$11.27

$11.15

$11.40

$12.23

$12.39

$12.34

$12.90

$12.87

$14.89

Distribution rate

0.0%

Appreciation

-0.3%

-1.1%

2.2%

7.3%

1.3%

-0.4%

4.5%

-0.2%

15.7%

Total return

-0.2%

-1.0%

2.3%

7.3%

1.3%

-0.4%

4.6%

-0.2%

15.7%

2024

1.1%

-0.3%

-0.1%

-0.3%

0.2%

0.3%

0.7%

-0.1%

0.3%

3.9%

1.0%

4.6%

11.8%

2023

0.0%

-0.3%

0.8%

0.0%

-0.8%

0.1%

-0.4%

2.6%

-0.3%

0.6%

-1.0%

1.3%

2022

0.0%

Learn more about the assumptions in this section, or view our full disclosure.

Assets

Viewing 19 assets

Artificial intelligence & Machine learning

Modern data infrastructure

Artificial intelligence & Machine learning

Modern data infrastructure

Artificial intelligence & Machine learning

Modern data infrastructure

Literature

All investors should consider the investment objectives, risks and charges and expenses of the Fund carefully before investing. Information regarding such considerations, including the prospectus of the ‘40 Act registered fund may be found below. Investors should read the prospectus carefully before investing.

ProspectusPDF attachment

Statement of Additional InformationPDF attachment

Tender Offer NoticePDF attachment

December 31, 2024 Quarterly Portfolio HoldingsPDF attachment

2025 Annual ReportPDF attachment

2025 Semi-Annual ReportPDF attachment

June 30, 2025 Quarterly Portfolio HoldingsPDF attachment

Subscription AgreementPDF attachment

Innovation Fund Distribution NoticePDF attachment

An investment in the Fund is subject to, among others, the following risks:

Shares are not listed on any securities exchange and it is not anticipated that a secondary market for Shares will develop. Shares are subject to substantial restrictions on transferability and resale and may not be transferred or resold except as permitted under the Fund’s Limited Liability Company Agreement (the “LLC Agreement”). Although the Fund may offer to repurchase Shares from time to time, Shares will not be redeemable at a Shareholder’s option nor will they be exchangeable for Shares or shares of any other fund. As a result, an investor may not be able to sell or otherwise liquidate his or her Shares. Shares are appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment and for whom an investment in the Fund does not constitute a complete investment program.
If a Shareholder is able to sell its Shares outside the repurchase process, the Shareholder likely will receive less than the then-current NAV per Share.
There is no assurance that distributions paid by the Fund will be maintained at a certain level or that dividends will be paid at all.
The Fund’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to Shareholders through distributions will be distributed after payment of fees and expenses.
A return of capital to Shareholders is a return of a portion of their original investment in the Fund, thereby reducing the tax basis of their investment. As a result of such reduction in tax basis, Shareholders may be subject to tax in connection with the sale of Shares, even if such Shares are sold at a loss relative to the Shareholder’s original investment.

Investing in Shares is speculative and involves substantial risks. You should purchase Shares of the Fund only if you can afford a complete loss of your investment.

Past performance does not guarantee future results. Current and future holdings are subject to risk. Returns of one company are not indicative of an investment in the fund. To obtain fund performance click here. The fund’s most recent schedule of investments is available here.

Investors should consider the Fund’s investment objectives, risks, charges, and expenses before investing. This information is included in the Fund Prospectus and can be accessed by calling (202) 804-0023. Read the prospectus carefully before investing.

The Fund’s portfolio will be concentrated in securities issued by technology companies and other investments that provide economic exposure to technology companies and as such, it may be subject to more risks than if it were broadly diversified across additional sectors and industries of the economy. Certain technology companies may face special risks that their products or services may not prove to be commercially successful. Technology companies are also strongly affected by worldwide scientific or technological developments, and as a result, their products may rapidly become obsolete. The Fund’s investments in companies involved in, or exposed to, artificial intelligence-related businesses may be negatively impacted because of, among other things, limited product lines, markets, financial resources and/or personnel; intense competition and potentially rapid product obsolescence these companies may face; loss or impairment of intellectual property rights; and the inability to successfully develop products or services even after spending significant amount of resources.

The Fund’s investment in private company securities, whether made directly or indirectly (e.g., through derivatives or private pooled investment vehicles) are generally illiquid. Because private company securities are thinly traded, such securities may display especially volatile or erratic price movements, sometimes in response to relatively small changes in investor supply or demand or other market conditions.

Distribution payments are not guaranteed. The Fund may pay distributions from sources other than net investment income and capital gains, including, without limitation, the sale of assets, borrowings, return of capital (ROC) or offering proceeds, and advances or the deferral of fees and expense reimbursements.

Based on current estimates, it is expected that amounts distributed to investors would include a return of capital. ROC should not be confused with yield or income. The Return of Capital amount is 100% based on the recent 19(A) notice. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund distribution rate at a future time.

Annualized distribution rate is calculated by annualizing the current day's declared distribution rate, divided by the current day's net asset value per share.

Distribution rate is calculated by dividing the dividends earned on one share in a given month by the NAV per share at the end of the previous month.

A portion of distributions may be a direct result of expense support payments provided by Fundrise Advisors, which are subject to repayment by the Fund within three years. The purpose of this arrangement is to ensure that the Fund bears an appropriate level of expenses. Any such distributions may not be entirely based on investment performance and can only be sustained if positive investment performance is achieved in future periods and/or Fundrise Advisors continues to make such expense support payments. Future repayments will reduce cash otherwise potentially available for distributions. There can be no assurance that such performance will be achieved in order to sustain these distributions. Fundrise Advisors has no obligation to provide expense support payments in future periods.

Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Neither Fundrise nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. Neither Fundrise nor any of its affiliates assume responsibility for the tax consequences for any investor of any investment.

The Fundrise Innovation Fund is the marketing name for the underlying legal entity, Fundrise Growth Tech Fund, LLC.

Foreside Fund Services, LLC, distributor.