ETF Spotlight: The Destiny Tech100 — Investing in pre-IPO companies
Just like the SPDR S&P 500 Trust ETF (NYSE:SPY) — which invests in 500 of the largest public US companies — the Destiny Tech100 will invest in 100 high-growth private tech companies.
- ETF management fee: 2-2.5%.
- Current portfolio: Instacart, Superhuman and Public.
- Looking at companies with valuations that can still grow 10-50x.
The trend: Companies are staying private longer — opting to go public when they’re already massive. This leaves the majority of their growth inaccessible to everyday investors.
Comparing returns of companies before they go public and after:
- Before IPO (during the last funding round before going public): Affirm (967%), Airbnb (229%), Doordash (333%).
- After IPO (when shares were available to retail investors): Affirm (55%), Airbnb (18%), Doordash (9%).
The new ETF will give investors access to these companies earlier.
But investing in pre-IPO companies comes with higher risk, often only available to accredited investors — those with $2M+ in assets or $200k+ in annual income.
- The Destiny Tech100 will be structured so that anyone can invest.
- Risk will be spread out by investing in 100 different companies.
When is the ETF coming? The ETF hasn’t officially filed to register — we also don’t know what the ETF ticker will be or on what exchange it’ll be traded. We’ll update you when it does. Join the waitlist here.