TLDR: Investing In Private AI Companies Without Connections Or Big Money
Key Points:
- Two hurdles for individual investors: meeting minimum investment amount and having personal connections
- Investment in private AI companies through Innovation Fund offers alternative to traditional venture capital funds
Financial Samurai recently spoke with Ben Miller, CEO of Fundrise, about the Innovation Fund’s investments in private AI companies. The article highlights the challenges individual investors face in investing in private artificial intelligence companies, primarily in meeting minimum investment amounts and having the necessary connections to access such investments.
The article delves into the frustration of not being able to invest in a specific AI company due to high minimum investment amounts, leading the author to seek alternative investment options. The Innovation Fund, with its accessible investment opportunities and lower fees, presents a viable alternative for gaining exposure to private AI companies.
The piece also discusses the benefits of the open-ended venture capital fund model employed by the Innovation Fund, providing investors with greater transparency and control over their investments. The article emphasizes the strategic advantage of being able to review the fund’s holdings and make informed decisions based on future potential opportunities.
Furthermore, the article touches upon the potential for liquidity events through public offerings of companies in the Innovation Fund’s portfolio, such as Canva, Databricks, and ServiceTitan. The author shares insights on the expected timeline for Canva’s public listing, based on personal connections and industry trends.
Lastly, the article encourages readers to explore the Innovation Fund as a means of investing in private AI companies and gain further insights from a podcast episode featuring discussions on AI investments and the fund’s valuation strategies.
