Retail investors chasing early exposure to private heavyweights such as SpaceX, OpenAI, and Anthropic before their widely anticipated initial public offerings (IPOs) have massively bid up the Fundrise Innovation Fund (VCX). This has driven the closed-end fund to about 13 times its net asset value.
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Retail Investors Pile into VCX
This comes even as the VCX’s price soared 317% on its debut last week, with massive buy-ins skyrocketing it 590% higher in three days. In addition to the companies mentioned above, VCX — which is managed by the non-diversified investment firm Fundrise — provides exposure to other top private firms such as Databricks, Anduril, and Ramp.
Around the period of its debut on the New York Stock Exchange, VCX had a net asset value per share of $18.97. This gave it an initial assets under management value of more than $650 million.
However, that price has since seen a massive jump as investors rush to snap up its limited shares. Moreover, as of 11:39 a.m. EST, VCX was up about 50% on Tuesday, trading at $287 per share.
What’s Next for VCX?
Before its market debut, the fund had about 100,000 investors, who are now required to hold on to shares purchased before February 20 for six months following the listing, per the company’s filing with the U.S. securities regulator.
The strong demand for VCX comes as its top holdings, such as Anthropic, Databricks, and OpenAI, are expected to go public this year, with the latter eyeing hitting a valuation of up to $1 trillion upon its debut. However, it remains to be seen whether VCX will be able to sustain the momentum over the coming weeks or bow to selling pressure, like Robinhood Markets’ (HOOD) Robinhood Ventures Fund I (RVI).
It is important to note that the RVI, whose holdings include private companies such as Databricks and Ramp, raised below its $1 billion target upon debut earlier this month.
Is VCX a Buy?
TipRanks’ technical indicators suggest that Fundrise Innovation Fund is a Buy. This is based on seven Bearish and nine Bullish signals logged over the past week.
