ARK Invest logo

You Are Entering ark-ventures.com

Please read this page before proceeding, as it explains certain restrictions imposed by law on the distribution of this information and the countries in which the funds are authorized for sale. By proceeding, you are confirming you understand that ARK Investment Management LLC or its affiliates (collectively, “ARK”), makes no representation that the content of the website is appropriate for use in all locations, or that the transactions, securities, products, instruments or services discussed at this website are available or appropriate for sale or use in all jurisdictions or countries, or by all investors or counterparties.

This section of the website is operated by ARK, and is only directed at U.S. investors or those otherwise authorized to conduct investment business in the U.S. Persons resident in territories other than the United States should not access this website.

It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction. Certain of the funds and advisory products and services referenced on this website may be managed or offered/provided by affiliates of ARK. Additionally, certain of the funds described in the following pages may be marketed in certain jurisdictions only. Any entity forwarding the material or information contained on this website, which is produced by ARK in the United States, to other parties takes full responsibility for ensuring compliance with applicable securities laws in connection with its distribution.

This website only includes information on those funds that are registered for sale in the United States. By accessing this website, you are confirming that you agree to the Terms and Conditions of this website and that you are resident in the United States or those otherwise authorized to conduct investment business in the U.S.

The contents of this website have been prepared for informational purposes only without regard to the investment objectives, financial situation, or means of any particular person or entity, and ARK is not soliciting any action based upon them. No information included on this website is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any fund; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. ARK recommends that you seek independent financial and tax advice before making any investment decisions. Investment in any of the funds described in this website should only be made on the basis of the terms and conditions of the most recent applicable offering documents (including any relevant supplements).

All material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. Some of the content on this website may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. From time to time, ARK may also make additional features available to users on this website on such terms and conditions as may be set forth in a modification to this Agreement or otherwise on the ARK website.

The ARK Venture Fund is distributed by Foreside Fund Services, LLC (“Foreside“), which is not affiliated with ARK Investment Management LLC. Check the background of Foreside on FINRA’s BrokerCheck.

You should carefully consider the investment objective, risks, charges and expenses of a Fund before investing. A Fund’s prospectus and summary prospectus contain this and other important information about a Fund, which can be obtained by clicking the corresponding link or dialing the indicated phone number herein. Please read the appropriate prospectus carefully before investing.

GENERAL RISK FACTORS

You should be aware that past performance is not a reliable indicator of future performance. Please note that the price of units or shares and the income from them can fall as well as rise and you may not get back the amount originally invested. Income receivable may vary from the amount of income projected at the time of making the investment.

Exchange rate fluctuations may affect the value of an investment and any income derived from it. If you exercise any right to redeem, you may not get back the amount initially invested if the unit or share price has fallen since you invested. Deductions for charges and expenses, particularly the initial charge (if any), are not made uniformly throughout the life of the investment, so if you redeem out of the investment during the early years, you may not get back the amount invested.

There can be no guarantee that the tax position or proposed tax position prevailing at the time of an investment will not change. Dividends and capital gains on securities issued in the relevant funds may be subject to withholding taxes imposed by the countries in which each particular fund invests.

The offering documents for the investment funds contain important information summarizing the relevant risk factors pertaining to the investment or relevant funds. Please note, however, that no summary of risk factors is exhaustive, and there may be other risks that could affect your investment. For your own benefit and protection you should read the most recent offering documents (including any relevant supplements) carefully before investing. If you do not understand any point please ask for further information.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject any of the funds described herein, ARK (including its affiliates) or any of their products or services to any registration, licensing or other authorization requirement within such jurisdiction or country. Nothing on this website shall be considered a solicitation to buy or sell a security, product or service (including advisory service) to any person.

HYPERLINKS

ARK does not recommend or endorse and accepts no responsibility for the content of any website not operated by ARK which you may visit by following a link from this website. You acknowledge and agree that neither ARK nor any of its affiliates is responsible for the availability of such third-party websites or resources, does not endorse, approve, investigate or verify, and is not responsible or liable for any content, advertising, products, or other materials on or available from such websites or resources. You further agree that neither ARK nor any of its affiliates shall be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, products or services available on such external websites or resources. These links are provided as a convenience and solely for informational purposes. ARK is not making any recommendation to invest in, purchase, or sell any securities or other products or services offered on the linked websites, nor has ARK sought to verify or confirm the information contained in the linked websites. Accordingly, ARK disclaims any responsibility for the linked websites.

No other website, without the prior written permission of ARK, is authorized to link to any part of this website.

COOKIES

ARK uses cookies for collecting user information from certain pages of this website. A cookie is a file that is stored on the hard disk of a computer by the web browser on a computer. It contains information sent by the website that a user has visited. A cookie identifies users and can store information about them and their use of a website. ARK uses cookies to keep track of user activity, which allows ARK to identify which areas of the website are more interesting to the users so that improvements can be made to this website.

ARK expressly reserves the right to monitor any use of this website.

I confirm that I have read and accept the Terms and Conditions of using this website and that I am based in the United States or those otherwise authorized to conduct investment business in the United States.

An Allocation To Venture Capital Could Enhance The Returns Of Individual Retirement Accounts

Venture capital and retirement funds possess extended investment timeframes, potentially rendering them well-suited to complement each other effectively.
by ARK Invest

Summary

Venture capital and retirement funds possess extended investment timeframes, potentially rendering them well-suited to complement each other effectively. Individual Retirement Accounts (IRAs) are long-term investment vehicles, and venture capital aims to earn outsized returns over the long run. Of course, the investment objectives and risk tolerance of each individual investor will also determine whether adding venture capital to their retirement account is appropriate.

For decades until recently, venture capital has catered primarily to endowments, universities, institutional investors, and high-net-worth investors. Historically, only institutions and wealthy individuals have enjoyed direct access to venture capital: the SEC has limited access to venture capital funds to accredited investors with the financial resources to weather the risks—individuals or institutions that meet asset and/or income thresholds like net worth of $1 million and/or annual income of at least $200,000.[1] Most individual investors have had no choice but to seek exposure to innovative strategies in the public equity markets. Now, thanks to fintech platforms like Titan, individual investors can access venture capital for their retirement portfolios, diversifying beyond public equities and bonds.

Retirement Accounts And Venture Capital Are Built For Long Term Investing

Two common retirement accounts are the Traditional IRA and the Roth IRA, the former funded with pre-tax income and the latter with after-tax income. Both encourage long-term investing: if beneficiaries are younger than 59.5 years old, for example, the IRS penalizes redemptions by 10% and demands immediate payment of any income taxes due.[2] [3]

Venture capital is a form of private equity financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. In exchange for providing capital, the investor receives a part of the company ownership. The investment provides capital for startup operations or the growth of an existing company.

Venture capital funds typically invest in early-stage private companies developing exciting new products, services, or technologies that, in the short term, have little or no revenues and steep losses but, in the long term, have the potential for outsized returns.[4] Increasingly these days, they stay private for longer. One reason is that the regulatory burden associated with going public has increased over time—exacerbated by legislation like the Sarbanes-Oxley Act of 2002 —and has increased the expense and time to go public. Another reason is that the US tax code has favored private “carried interest”[5] [6] over public equity returns, so much so that venture capital firms, private equity firms, institutional investors, and secondary markets have been burgeoning.[7]

Venture capital and retirement funds possess extended investment timeframes, potentially rendering them well-suited to complement each other effectively. Individual Retirement Accounts (IRAs) are long-term investment vehicles, and venture capital aims to earn outsized returns over the long run.[8] Of course, the investment objectives and risk tolerance of each individual investor will also determine whether adding venture capital to their retirement account is appropriate.

Accredited Investors Have Dominated The Demand For Venture Capital

Historically, only institutions and wealthy individuals have enjoyed direct access to venture capital: the SEC has limited access to venture capital funds to accredited investors with the financial resources to weather the risks—individuals or institutions that meet asset and/or income thresholds like net worth of $1 million and/or annual income of at least $200,000.[9]

A key risk associated with venture capital is illiquidity, which we believe is a feature, not a bug, for investors with a long-term investment time horizon. By committing capital to venture funds, investors are placing bets on the future success of early-stage companies that have the potential to deliver significant returns through liquidity events like initial public offerings or acquisitions.

Many large institutions invest a portion of their overall portfolio in venture capital because they can take on risk to potentially achieve higher returns.

Now, Individual Investors Can Invest In Venture Capital

ARK believes that individual investors should be able to potentially benefit from the exposure to venture and other private funds that previously was limited to accredited investors in private equity and venture capital funds. To democratize venture capital, in partnership with Titan, the ARK Venture Fund is enabling investors to allocate a portion of their retirement and other savings to venture capital through an app. With a minimum investment of $500 on the Titan app, individual investors can access opportunities in private equity for both traditional IRAs and Roth IRAs. The ARK Venture Fund is an “Interval Fund” to which investors can contribute daily and redeem quarterly, subject to the Fund’s repurchase terms that limit the amount of outstanding shares that may be redeemed each quarter as described in the Fund’s prospectus. There is no guarantee that an investor will be able to tender all or any of their requested Fund shares in a quarterly repurchase offer.

ARK’s brand stands for an investment focus on disruptive innovation, radical transparency, and broad-based access to what we believe are the most promising investment opportunities—now from their earliest days with ARK’s Venture Fund.

The Securities and Exchange Commission (SEC) sets rules for what types of investments are available to different types of investors. The SEC’s idea is that investors who meet these criteria are more likely to have the financial resources to bear the potential risks of venture capital investing. U.S. Securities and Exchange Commission. (2021). Accredited Investors. https://www.investor.gov/introduction-investing/investing-basics/glossary/accredited-investor

“Traditional IRAs” and “Roth IRAs” pages from the official website of the Internal Revenue Service (IRS). https://www.irs.gov/retirement-plans/traditional-iras https://www.irs.gov/retirement-plans/roth-iras

“Early Withdrawal Penalties for Traditional and Roth IRAs” article from The Balance. https://www.thebalance.com/early-withdrawal-penalties-for-traditional-and-roth-iras-2388514

“What Is Venture Capital?” from Investopedia. https://www.investopedia.com/terms/v/venturecapital.asp

Carried interest is a share of profits from a private equity, venture capital, or hedge fund paid as incentive compensation to the fund’s general partner.

Carried interest associated with gains from the sale of an asset held for more than three years is usually taxed at the long-term capital gains rate, which is typically lower than that for ordinary income. Additionally, carried interest is not subject to the self-employment tax.

“The Growing Popularity Of The Private Secondary Market” Forbes. June 16, 2022. https://www.forbes.com/sites/forbesfinancecouncil/2022/06/16/the-growing-popularity-of-the-private-secondary-market/?sh=2654632327ae

It is important to keep in mind that venture capital is a high-risk, potentially high-reward investment strategy. While the potential for higher returns is there, there is also the risk that you could lose some or all your investment.

The Securities and Exchange Commission (SEC) sets rules for what types of investments are available to different types of investors. The SEC’s idea is that investors who meet these criteria are more likely to have the financial resources to bear the potential risks of venture capital investing. U.S. Securities and Exchange Commission. (2021). Accredited Investors. https://www.investor.gov/introduction-investing/investing-basics/glossary/accredited-investor

Disclosures
It is important to keep in mind that venture capital is a high-risk, potentially high-reward investment strategy. While the potential for higher returns is there, there is also the risk that you could lose some or all your investment.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of the ARK Venture Fund before investing. This and other information are contained in the ARK Venture Fund’s prospectus, which may be obtained by visiting www.ark-ventures.com. The prospectus should be read carefully before investing.

An investment in the ARK Venture Fund is subject to risks and you can lose money on your investment in the ARK Venture Fund. There can be no assurance that the ARK Venture Fund will achieve its investment objectives. The ARK Venture Fund’s portfolio is more volatile than broad market averages. The ARK Venture Fund also has specific risks, which are described below. More detailed information regarding these risks can be found in the ARK Venture Fund’s prospectus.

Please note that all app screens shown are for illustrative purposes only, meant to give a sample of what a user might expect to see in the Titan app. No data is representative of actual results. The ARK Venture Fund will be distributed to RIAs, family offices, high net worth individuals and institutional investors through other distribution channels, but is available to retail investors exclusively on Titan. Titan Global Capital Management USA LLC (“Titan”) is an investment adviser registered with the Securities and Exchange Commission (“SEC”).

ARK Investment Management has entered into an agreement with Titan, where it pays a fee to Titan for the ARK Venture Fund (the “Fund”) to be made available on its platform. In addition, Foreside Fund Services, LLC, the distributor of the Fund, pays Titan a portion of the distribution and services fee it receives from the Fund. ARK Investment Management, Foreside Fund Services, and Titan are unrelated parties.

Foreside Fund Services, LLC, distributor.

ARK Investment Management LLC (“ARK Invest”) is the investment adviser to the ARK Venture Fund.

ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain of the statements contained may be statements of future expectations and other forward-looking statements that are based on ARK’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements.

Ready To Invest?

We believe all investors should have access to venture capital, cutting-edge research, impactful education, and a phenomenal user experience. Self-directed investors can download the SoFi or Titan app and get started today.

You are leaving ark-ventures.com

By clicking below you acknowledge that you are navigating away from ark-ventures.com and will be connected to ark-invest.com. ARK Investment Management LLC manages both web domains. Please take note of privacy policy, terms of use, and disclosures that may vary between sites.