Cathie Wood’s new fund gives small investors access to the VC market for just $500

Ark Invest Chief Executive Officer and Chief Investment Officer Cathie Wood speaks during the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.

Patrick T Fallon | AFP | Getty Images

Cathie Woods Ark Invest has launched a new venture capital fund aimed at individual investors with a minimum investment of just $500.

The actively managed ARK Venture Fund invests 70% in private companies and 30% in public companies focused on technology-enabled innovation, as well as selectively in other venture capital funds, the company said on Tuesday. The fund will initially be available to private investors through the investment app Titan, a startup backed by Andreessen Horowitz.

“We’re doubling down on our innovation power,” Wood said in an interview on CNBC’s “Squawk Box” on Tuesday. “Ark is moving from social media and social marketing to social distribution, direct to the consumer. Pretty exciting. We’re offering investors something they didn’t have access to before.”

The ARK Venture Fund charges a flat 2.75% management fee and does not charge carried interest or load fees. The fund’s total expense ratio is estimated at 4.22%, Ark said.

Ark’s flagship innovation fund (ARKK) has been under water all year as Wood’s disruptive darlings have been among the biggest victims of rising interest rates. ARKK is down 60% this year and 70% in November from its 52-week high.

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