St. Petersburg-based ARK Invest, an investment firm focused solely on investing in disruptive innovation, has launched a new investment fund that democratizes venture capital for retail investors.
In partnership with Andreessen Horowitz-backed brokerage Titan, the duo has established the ARK Venture Fund (MUTF: XARKX). The fund creates opportunities to invest in venture funds pre-IPO and is only available to users of the Titan platform, according to the joint announcement Tuesday.
Traditionally, investing in private companies through venture capital has been reserved for institutions or individuals with at least $5 million in investable assets, creating barriers for investors.
However, through the new fund, it allows investors to participate in venture capital and expands the ability to invest in disruptive private and public companies at their earliest stage of growth, for a low minimum of $500.
“By launching the ARK Venture Fund, we seek to disrupt venture capital, offering all investors access to what we believe are the most innovative companies throughout their private and public market life cycles,” Wood said in the announcement.
ARK will manage the ARK Venture Fund’s investments while Titan will power the tech stack from UX to brokerage infrastructure to the analytics and more, according to a LinkedIn post.
“We understand that the everyday investor has historically been locked out of venture capital (VC) due to accreditation requirements, high investment minimums, and lack of access to top-tier VC firms and deal flow,” Clayton Gardner, co-CEO and co-founder of Titan, said in a news release.
“By offering Titan investors exclusive access to the ARK Venture Fund, we’re unlocking VC for most investors – another step in our mission to democratize investing. We’re excited to work closely with Cathie Wood and the ARK team to launch this fund, especially in the current market environment where compelling investment opportunities abound.”
Gardner also wrote on LinkedIn that, “unlike traditional VC funds, there is no accreditation required for ARK Venture. Plus, liquidity is offered quarterly, instead of requiring multi-year lockups on your capital.”
He said as of today, the fund includes private companies like Epic Games, Flexport and Chipper Cash.