US asset manager Fundrise's closed-end fund, VCX, launched this month, claims to democratize finance by offering retail investors access to private tech giants like Anthropic and SpaceX. VCX shares traded at nine times its net asset value, a premium far exceeding typical closed-end fund discounts. This high valuation comes despite fees of nearly 2% annually, double the norm for closed-end funds investing in listed equities. While VCX bypasses Wall Street intermediaries, its structure gives investors no influence over portfolio companies, entrenching founders like Elon Musk. Robinhood Ventures launched a similar fund weeks earlier, mirroring the trend. BlackRock's 'voting choice' program offers genuine influence but sees only 25% participation, highlighting the gap between marketing and meaningful democracy.

The article concludes this 'democratization' trend, seen also in gyms and food chains, is often powerful marketing, not real power redistribution.