Skip to main content
What We Do: A Letter To Investors From Cathie Wood Read Now

Looking For Our European Funds?

Click Here
About How To Invest
ARK Invest logo
You Are Entering ark-funds.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 ETF Trust Thematic Actively Managed ETF’s are 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.

ARK Venture Commentary, 11/13/2023

November 13, 2023 | Venture Fund

ARK's Venture Commentary is meant to provide ARK's thoughts on the current state of the Venture Capital space.

The AI Executive Order

Last week, the Biden Administration issued a broad Executive Order[1] related to artificial intelligence (AI), effective immediately, with compliance deadlines in the next three to nine months. The order subjects all private large training models to reporting and testing requirements and requires cloud computing and other large datacenter providers to validate and monitor customer identity and behavior. The order also places stringent requirements on AI systems that use biological data.

ARK’s take

In our view, the Executive Order is likely to benefit companies like OpenAI and Anthropic[2] that are focused on foundation models and already operate at commercial scale, at the expense of “scrappier” open-source efforts. Anthropic, for example, has highlighted its founding principle of AI alignment and should meet the new compliance requirements seamlessly. Over time, regulatory oversight could bias more profits to the foundation model layer of the AI value chain which, even before the Executive Order, seemed poised to account for a disproportionate share during the next ten years.

Structurally, however, we believe that the world needs more—not less—innovation and that regulating deep neural nets at this early stage could foreclose important technological pathways. The Executive Order seems so broad that almost any model—even a simple Excel spreadsheet—could qualify as “artificial intelligence.” Imagine what the fate of Excel would have been if dozens of federal agencies had oversight over its evolution!

Although The Leviathan is biting now, a world with more intelligent software systems should prove more humane. A world in which fewer entities compete to provide that software—a near-certain byproduct of an overly broad, more onerous regulatory framework—could prove more brittle, perhaps dangerously so.

We would not be surprised if regulatory overreach, not only in AI but also cryptocurrencies, becomes an election year issue during the next three to nine months of compliance with the Executive Order. That said, the Executive Order could disappear if the Administration changes in January 2025.

Starlink’s Satellites Turn The Cashflow Corner

Elon Musk has announced that Starlink, SpaceX’s low-earth orbit satellite communications network,[3] has reached cashflow breakeven.[4] The satellite subsidiary just crossed 2 million customers—doubling within ~9 months[5]—and now serves more than 60 countries. Starlinks constitute more than half of all active satellites currently in orbit.[6]


For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security.

ARK’s take

While already impressive, Starlink’s network remains nascent. The company has ~4,200 satellites in service[7] but has announced ambitions for 10 times as many.[8] Although the modeling is complex, we estimate that at full penetration each incremental satellite could on-board roughly ~30,000 global customers at broadband-type speeds economically. SpaceX’s ability to loft this constellation and achieve direct-to-cellular ambitions quickly is dependent upon its Starship rocket, still in development and slated for a second test launch late this year. Notwithstanding technical risks, the promise of truly global internet accessibility is clear. Positive cashflow is just one marker along that pathway.

Running Out Of Runway?

Third-quarter 2023 venture statistics have been released, and the funding environment remains challenging across all stages. Measured against the third quarter of 2021, total funding has fallen ~80%, and quarter-over-quarter funding is down ~40%.[9] Excluding late-stage companies, valuations haven’t fallen nearly so much, but earlier-stage valuation stability belies weak volume. Seed-stage companies are roughly flat year-over-year, but total cash raised in seed fundings, meanwhile, fell by 20% in the third quarter.[9]

ARK’s take

We are not surprised that funding remains suppressed, given recent public equity market performance and the relative paucity of merger and acquisition (M&A) activity, but the duration of the capital markets’ doldrums may be about to throw a wrinkle into the venture landscape. Usually, venture companies plan to raise capital every 18 to 24 months; today we are 21 months removed from the highest venture funding quarter in history. Thus far, many companies have managed to avoid coming to market—only 1 out of 5 funding rounds has a sticker price lower than the previous raise—but without capital markets relief, companies may be forced to accept valuation reality. There are pockets of strength—AI companies, most notably—but, barring an equity market recovery, we would expect bankruptcies to spike and valuation weakness to extend back into earlier stage companies.

Disclosures

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.

To view the top 10 holdings in the ARK Venture Fund, click here. To view the most up to date portfolio, click here.

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.

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.

Explore ARK Funds

Featured Funds:

ARKVX Icon

ARK Venture Fund

See All

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 Titan App and get started today.

Invest Now Here