Recently, Fundrise‘s founder and CEO, Ben Miller, appeared on CNBC. He discussed the growing industry of retail access to private securities, often issued under the Reg D exemption. This exemption requires an investor to be “Accredited”, meaning they earn over $200,000 a year.
Fundrise, Miller’s company, has made a significant mark in this field. They’ve designed an innovative fund, giving retail investors direct access to these private securities. Traditionally, these securities have been exclusive to high-net-worth individuals and institutional investors due to the ‘Accredited’ requirement.
Fundrise‘s approach is disruptive and embodies a commitment to democratise investment opportunities. It’s a big step towards levelling the playing field, letting everyday retail investors partake in a market once reserved for the wealthy.
Innovation Fund: A Game Changer in the Investment Landscape
The Innovation Fund launched by Fundrise is shaking up the investment landscape. By offering retail access to private securities, the fund broadens the scope of retail investment. This shift empowers retail investors to venture into areas once restricted to those with high income and substantial assets.
Furthermore, this move by Fundrise significantly expands the range of investment options for retail investors. It offers them the chance to diversify their portfolios with private securities, a privilege once solely for ‘Accredited’ investors.
While other fintech companies also offer retail access to private securities, Fundrise distinguishes itself with its unique approach. The company successfully carved a niche for itself by prioritising innovation and inclusivity in investment.
However, despite Fundrise‘s progress, scepticism remains about the accessibility of private securities to retail investors. This scepticism stems from the complexity of these securities and the regulatory hurdles of the Reg D exemption. Yet, with ongoing efforts from companies like Fundrise, the future of retail investment in private securities looks bright.
