New Funds Aim to Give Retail Investors Access to Private Tech Giants

But experts warn of high fees and inflated valuations in these private investment vehicles

Published on Feb. 19, 2026

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As more high-growth startups like SpaceX and OpenAI stay private for longer, new publicly traded venture funds are offering retail investors exposure to these private companies. However, these private investments come with high fees, risky valuations, and may not live up to the hype when these firms eventually go public.

Why it matters

The trend of startups staying private for longer deprives everyday Americans of the opportunity to invest in high-growth companies in their early stages. While new funds aim to bridge this gap, there are concerns that the private market valuations may be inflated and the fees charged by these funds could eat into potential returns.

The details

Increasingly, fast-growing startups are favoring staying private over going public to avoid regulatory burdens and market volatility. This has left many Americans missing out on the growth of companies like SpaceX and OpenAI. In response, new publicly traded venture funds have emerged, offering retail investors exposure to these private firms. However, these private investments come with high fees, often over 2%, and the valuations may be inflated, as seen with recent IPO flops like Figma (-81%) and Venture Global (-63%). There are also concerns that some funds are buying shares indirectly through complex legal structures like Special Purpose Vehicles (SPVs), adding an extra layer of fees.

  • Over the last two years, publicly traded funds like the Destiny Tech 100 ($DXY) have launched to provide retail access to private startups.
  • Robinhood is set to launch its Robinhood Venture Fund I in the coming weeks, offering exposure to private firms like Stripe, Databricks, and Revolut.

The players

Destiny Tech 100 ($DXY)

A publicly traded fund that provides retail investors exposure to high-growth private startups.

Robinhood Venture Fund I

A new public fund from brokerage firm Robinhood that will offer access to private companies like Stripe, Databricks, and Revolut.

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What they’re saying

“Private investments have problems of their own: they're expensive and risky. Almost all private funds boast management fees in excess of 2%, making them wildly more expensive than exchange-traded funds tracking public companies.”

— Noah Weidner, Financial Markets Reporter (thestreet.com)

“If you're in it for the long haul, that might not be much of a problem. But if you're hoping for it to be a wealth builder, you might be better off sticking with your S&P 500 fund.”

— Noah Weidner, Financial Markets Reporter (thestreet.com)

What’s next

As more high-profile startups like SpaceX and OpenAI prepare for potential IPOs, the performance of these new public venture funds will be closely watched to see if they can deliver the promised exposure to private market growth.

The takeaway

While new funds aim to give retail investors a way to access the growth of private tech giants, the high fees and inflated valuations of these private investments pose risks that may outweigh the potential rewards. Investors should carefully consider the tradeoffs before allocating capital to these types of funds.