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

Business

Cathie Wood, chief executive officer and chief investment officer, Ark Invest, speaks during the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images

Cathie Wood’s Ark Invest launched a new venture capital fund, targeting individual investors with a minimum investment of just $500.

The actively managed ARK Venture Fund invests in 70% private companies and 30% public firms focused on technologically enabled innovation, and selectively in other venture capital funds, the company said Tuesday. The fund is available to individual investors initially through investing app Titan, a startup backed by Andreessen Horowitz.

“We are doubling down on innovation,” Wood said in an interview on CNBC’s “Squawk Box” Tuesday. “Ark is moving from social media and social marketing into social distribution, direct to consumer. Pretty exciting. We are offering investors something they’ve not been able to access before.”

The ARK Venture Fund charges a flat management fee of 2.75%, and does not charge any carried interest or load fees. The total expense ratio of the fund is estimated to be 4.22%, Ark said.

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

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