Nate is a serial entrepreneur, part-time investor, and founder of WallStreetZen. He holds a Juris Doctor (JD) degree from UAlberta Law - but don’t hold that against him. He’s passionate about building great software that delights users. He occasionally writes about himself in the 3rd person.
In July 2024, I invested in the Fundrise Innovation Fund.
Not a huge amount. Just about $150.
Why? Because I was curious to see if it was worthwhile.
Spoiler: It was.
At writing in May 2025, my net return is 22.0%. (I’ll dig into the specifics below.)
In my opinion, Fundrise’s Innovation Fund is the easiest way for non-accredited investors to gain diversified exposure to pre-IPO tech companies. Considering its accessible minimum investment and an easy-to-use website, I would recommend it to anyone.
In this review, I’ll share experience so you can decide if the fund is right for you.
Let’s get to it.
Disclaimer: I am an investor in the Fundrise Innovation Fund.
What is The Fundrise Innovation Fund?
Launched in 2022, the Innovation Fund is a diversified venture capital fund. It’s offered through investment platform Fundrise, which also offers diversified funds for real estate and private credit exposure. You can find out more in my Fundrise review.
Fundrise has a proven track record, with over 2 million investors having invested over $7 billion on the platform. The Innovation Fund alone has 63K active investors and over $200 million invested.
Like the other funds, the Innovation Fund is open to all U.S. investors — not just accredited investors.
Here’s why that matters.
If you’re an average (non-accredited) investor like me, venture capital is hard to access. Typically, only sites like Hiive offer this type of exposure — and they require accreditation.
With the Innovation Fund, without accreditation, you can gain access to a diversified portfolio across AI, machine leaning, data infrastructure, and yet more high-growth sectors — all within a single investment vehicle.
The Innovation Fund primarily targets late-stage startups approaching IPO, but it also includes early-stage investments and can hold companies after they go public.
For example, right now the mix includes cutting-edge, private tech companies, including Anthropic, Databricks, and OpenAI.
It’s structured as an evergreen fund. This means it continuously raises and invests capital over time, instead of closing after a typical VC cycle of 5–10 years. The goal is to deliver long-term growth.
Fundrise Innovation Fund: The Basics
- Overall rating: ⭐⭐⭐⭐
- What it is: Venture portfolio
- Requirements: Open to all U.S. residents / no accreditation required
- Best for: Risk-tolerant investors with a long-term horizon
- Fees: 1.85% annual management fee
Note: We earn a commission for this endorsement of Fundrise.
Investment Strategy: 5 Key Drivers
The Innovation Fund bases its approach on five core principles:
- Technology-driven disruption: Many sectors still lag in adopting modern software solutions. The fund targets companies leading this digital transformation, particularly those poised to deliver major productivity gains.
- Access to pre-IPO innovation: Top tech startups are staying private longer, making early-stage investing harder for everyday investors. The Innovation Fund helps close that gap by offering exposure to these high-growth companies before they go public.
- Thematic flexibility: While the fund focuses on powerful growth trends like AI, machine learning, and PropTech, it’s built to adapt as new themes and opportunities emerge.
- Diversified private tech exposure: Like an index fund for the private market, the Innovation Fund spreads investments across many promising startups, increasing the odds of capturing future breakout winners.
- Agile investment strategy: The fund’s team adjusts allocations based on shifting valuations and market trends, taking a flexible, opportunity-driven approach.
Why This Approach Appeals to Me
I like that the fund has objectives that guide its investments. With this laser focus, they’ll likely be able to identify opportunities that will serve their investors in the long term.
Current Holdings
As of May 2025, the fund’s portfolio is diversified across sectors:
- Modern data infrastructure: 53.1%
- Artificial intelligence & machine learning: 19.1%
- Real estate & property tech: 5.7%
- Financial technology: 0.7%
- Other sectors: 21.2%
Here are some of the company’s current top holdings:
Company | Type | Industry |
OpenAI | Late-stage company | AI / Machine Learning |
Databricks | Late-stage company | Modern Data Infrastructure |
Anthropic | Late-stage company | AI / Machine Learning |
Canva | Late-stage company | Other |
IPO | Other | |
Vanta | Mid-stage company | Modern Data Infrastructure |
Anduril | Late-stage company | Other |
(and many more) |
Fundrise Innovation Fund Performance
The Fundrise Innovation Fund has been gaining traction.
Since its inception, it has delivered an annualized return of 5.0%.
Based on a hypothetical investment of $10,000, that would be about $500 per year.
As for a real investment?
I first invested in the Innovation Fund in January 2024. I did not invest much — just about $150.
Since then, my net return annualized is 22.0%.
Since I didn’t invest too much in the fund, this isn’t a huge amount of money. However, the appreciation is impressive in a relatively short time.
Innovation Fund Fees
The Innovation Fund does come with a few fees, but I find them to be in-line with other financial service companies:
- Annual management fee: 1.85%
- Performance fee: None
So, for example, a $100 investment would incur $1.85 in fees.
Pros and Cons
Pros | Cons |
Access to private tech companies | Venture investing is high risk |
Available to all U.S. investors | Limited track record – still fairly new |
$10 minimum investment | Low liquidity |
Simple sign-up process |
Is the Fundrise Innovation Fund Legit?
Yes, Fundrise and the Fundrise Innovation Fund are both legit.
The Innovation Fund is publicly registered with the SEC under the Investment Company Act of 1940 and operates as a tender offer fund.
Beyond that, though, the numbers don’t lie. Fundrise has attracted legions of fans — over 2 million people invest on the platform, with over $7 billion invested.
At writing, the platform reports 431,030,764.06 cumulative net distributions earned by advisory clients.
Security:
Fundrise employs bank-level encryption protocols and hosts its data on secure servers compliant with AWS (Amazon Web Services) security standards.
That said, all investments carry risk — including the potential loss of principal.
Final Verdict: Should You Invest?
I’ve been very happy as a Fundrise Innovation Fund investor. Will you be, too?
The Fundrise Innovation Fund may be for you if:
- You want access to pre-IPO companies
- You’re patient (less liquidity than traditional stocks)
- You’re OK with the 1.85% annual fee
I have allocated 3.5% of my portfolio to the Innovation Fund. But considering my net return, I’m looking into increasing my exposure. I’m comfortable with a bit of risk, and like having access to these hard-to-access companies.
That’s my opinion — and while I’m a financial writer, I’m not qualified to give financial advice. You’ve got to do you. Always do your own due diligence before investing.
FAQs:
Is the Fundrise Innovation fund legit?
Yes, it’s legitimate.
The Innovation Fund is publicly registered with the SEC under the Investment Company Act of 1940 and operates as a tender offer fund.
What is the Fundrise Innovation fund?
The Fundrise Innovation Fund is a venture capital fund designed to provide everyday investors with access to high-growth private technology companies—an opportunity traditionally reserved for institutional and accredited investors.
Launched in July 2022, the fund employs a multi-stage investment approach, targeting companies from early to late stages, and may continue to hold investments even after they go public .
Can you really make money with Fundrise?
Yes. As an investor in Fundrise, I have made money on all of the funds i’ve invested in. My largest gains have been in the Fundrise Innovation Fund.
Is it good to invest in an Innovation fund?
Risk and reward are involved in any investment. I have found the Innovation Fund to be a worthwhile investment.
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