Do you want access to SpaceX, OpenAI, Anthropic, and Anduril?

Now you can.

A brand new fund called the Fundrise Innovation Fund (VCX) launched on March 19th.

It gives everyday investors exposure to some of the most sought-after private companies in the world, all from a regular brokerage account.

On the surface, it looks like an incredible opportunity.

Finally, a way to invest in companies that have been off-limits for years.

But consider this article a warning.

Because we’ve already seen what happens when investors rush into a fund like this.

It usually follows a very specific pattern:

A fund launches with access to elite private companies → Investors pile in → The price disconnects from fundamentals → And then eventually falls back to reality.

To see exactly how this plays out, you need to look at a fund called Destiny Tech 100 (DXYZ).

DXYZ was built on the same idea as VCX – give investors access to private companies like SpaceX through a public ticker.

At first it worked great.

Demand surged. Investors rushed in.

But then the fund began trading at an extreme premium to its net asset value (NAV).

At one point the value of DXYZ’s underlying holdings – which includes investments in companies like SpaceX, OpenAI, etc. – was just $4.84 per share.

Yet investors were buying DXYZ shares in their brokerage accounts for $105.

That’s 21 times what DXYZ’s underlying assets were actually worth!

Keep in mind, the underlying companies didn’t suddenly become more valuable.

There was just limited access for DXYZ shares and demand was overwhelming, so DXYZ shares themselves ballooned higher.

That’s the key dynamic.

Closed-end funds like DXYZ and VCX don’t trade based purely on the value of their holdings.

They trade based on supply and demand for the fund’s shares themselves.

When demand overwhelms supply, the share price of the fund rises.

When that demand fades or supply increases, the share price falls.

Take a look at just how far DXYZ has fallen over the last year.

Destiny Tech 100 1-Year Price Chart

Over this same period that SpaceX’s valuation quadrupled, DXYZ – a fund most investors bought specifically to get exposure to SpaceX – fell 41%.

Today, DXYZ trades around $26 per share, compared to a net asset value (NAV) of roughly $20.

Much more reasonable.

But that normalization came at a cost.

And now, the same setup is happening again.

After opening for trading on March 19th around $42 per share, VCX currently trades around $285 as I type.

Yet VCX only has a net asset value of $19 per share.

That’s 15 times NAV.

So think about this:

• VCX has the same structure as DXYZ.

• VCX holds many of the same companies as DXYZ.

• VCX is experiencing the same insatiable investor demand that DXYZ once did.

• VCX is trading at a ridiculous double-digit times NAV like DXYZ once did.

And there’s an additional factor here that makes the VCX setup even more extreme.

A reported 90% of VCX shares are locked up for six months.

That means only a small number of VCX shares are trading right now, which is a big reason the price has been able to rise so far above what the underlying assets are actually worth.

But this won’t last.

When the lockup expires, a large number of previously restricted shares will suddenly be available for sale.

Many early investors are sitting on significant gains, and for the first time they’ll have the ability to sell.

And when a wave of new sellers hits the market at once, prices likely won’t adjust gradually… they’ll fall sharply.

Not because anything went wrong with SpaceX or the other companies.

Just because the supply/demand dynamic of VCX shares themselves changed.

And at 15 times net asset value, it’s currently a long way down to any price resembling a reasonable valuation.

That’s what makes this setup so dangerous.

The underlying companies can do well – SpaceX can keep growing and OpenAI can become even more valuable.

But none of this protects you if the price you paid is too high.

We’ve already seen how this plays out with DXYZ.

It gave investors access to incredible companies and it still produced poor outcomes for those who bought at inflated prices.

VCX is setting up the same way.

Consider this your warning.