Fundrise
Innovation
Fund,
LLC
Annual
Report
For
the
Year
Ended
March
31,
2026
TABLE
OF
CONTENTS
Management
Discussion
of
Fund
Performance
(Unaudited)
3
Performance
Chart
and
Analysis
(Unaudited)
5
Portfolio
Composition
6
Schedule
of
Investments
7
Statement
of
Assets
and
Liabilities
10
Statement
of
Operations
11
Statements
of
Changes
in
Net
Assets
12
Statement
of
Cash
Flows
13
Financial
Highlights
14
Notes
to
Financial
Statements
16
Report
of
Independent
Registered
Public
Accounting
Firm
29
Shareholder
Update
(Unaudited)
30
Additional
Information
(Unaudited)
46
Fundrise
Innovation
Fund,
LLC
Management
Discussion
of
Fund
Performance
(UNAUDITED)
March
31,
2026
3
Dear
Fellow
Shareholders,
We
are
pleased
to
present
the
annual
report
of
the
Fundrise
Innovation
Fund,
LLC
(the
“Fund”).
After
the
Fund’s
third
full
year
of
operations,
we
continue
to
be
excited
about
the
strength
of
the
portfolio
and
the
outlook
for
the
Fund
moving
forward.
The
first
quarter
of
2026
was
a
memorable
one
with
the
historical
listing
of
the
Fund
(ticker:
VCX)
on
the
New
York
Stock
Exchange.
The
Fund
saw
an
initial
listing
that
exceeded
even
our
most
optimistic
expectations
(more
on
this
below),
with
the
market
price
appreciating
+319.04%
from
the
listing
date
of
March
19,
2026
through
the
year
ended
March
31,
2026.
For
the
year
ended
March
31,
2026,
the
Fund
returned
+68.39%
on
net
asset
value,
driven
by
continued
exceptional
growth
from
our
portfolio
companies.
The
portfolio
as
it
exists
today
is
a
meticulously
curated
and
intentionally
concentrated
collection
of
companies
that
we
continue
to
believe
are
“the”
category
defining
businesses
in
their
respective
industries.
As
of
March
31,
2026,
these
category
leading
companies
account
for
the
majority
of
the
value
in
the
Fund,
with
a
particular
concentration
among
the
top
5-10
companies.
We
expect
the
category
leading
nature
of
these
companies
to
continue
to
drive
attractive
returns
going
forward,
but
with
the
illiquid
nature
of
the
asset
class,
there
may
be
a
lag
between
underlying
company
growth
and
fund
net
asset
value
performance.
The
Fund
returned
+68.39%
during
the
year
ended
March
31,
2026.
The
Cambridge
Associates
LLC
U.S.
Venture
Capital
Index
(the
“Index”)
returned
+5.67%
in
the
third
calendar
quarter
of
2025
and
+4.29%
for
the
second
calendar
quarter
of
2025.
The
Fund
returned
+20.72%
and
+8.30%
in
those
respective
periods.
The
Index
tracks
thousands
of
U.S.-based
venture
capital
funds.
The
private
nature
of
these
funds,
the
lag
in
reporting
and
aggregation
of
their
data
precludes
it
as
a
formal
benchmark,
but
given
our
focus
on
the
private
markets,
we
believe
the
Index
is
the
most
relevant
comparison.
While
we
do
not
have
Index
data
for
the
first
calendar
quarter
of
2026
or
the
fourth
calendar
quarter
of
2025
and
the
third
calendar
quarter
of
2025
data
is
only
preliminary,
we
anticipate
that
our
deliberate
approach
to
deployment
allowed
us
to
outperform
the
Index
by
a
significant
margin.
AI
continues
to
be
a
central
theme
of
the
Fund
as
it
has
been
since
it
was
launched
in
2022.
In
2025
we
saw
the
explosion
of
AI
and
all
things
AI
related,
moving
the
conversation
from
being
one
about
the
hypothetical
potential
of
an
innovative,
yet
unproven
technology,
to
being
focused
on
its
emergence
as
the
central
driver
of
not
only
the
US
but
world
economy.
Whether
it
was
cutting-
edge
product
releases
from
frontier
research
labs,
new
all-time
highs
for
big
tech
stocks,
or
unprecedented
infrastructure
investments
in
data
center
development,
2025
was
the
year
of
AI.
VCX
listing
As
we’ve
shared
previously,
we
believe
the
listing
of
the
Fundrise
Innovation
Fund
(now
VCX)
was
a
historic
moment
not
just
for
shareholders
in
the
Fund,
but
for
the
core
idea
behind
Fundrise
itself
–
that
fundamentally,
individuals
deserve
access
to
the
same
high-quality
investments
that
have
driven
the
returns
of
institutions
and
the
ultra
wealthy
for
years.
Despite
our
strong
convictions,
many
of
you
know
that
we
received
a
great
deal
of
skepticism
around
the
listing,
with
many
critics
confidently
asserting
that
there
would
be
little
interest
from
the
public
market.
Many,
including
some
of
the
proclaimed
experts
in
the
industry,
also
told
us
it
was
a
bad
idea
because
the
Fund
would
inevitably
trade
poorly.
At
this
point,
we
feel
it’s
safe
to
say
that
they
were
wrong.
In
fact,
it
traded
at
a
huge
premium,
even
at
one
point
trading
above
$500
per
share.
This
level
of
volatility
attracted,
and
will
continue
to
bring,
scrutiny
by
the
market
and
regulators,
like
the
SEC,
FINRA,
and
seemingly
everyone
else,
as
they
work
to
understand
it.
We
got
questions
and
requests
related
not
just
to
the
trading
activity,
but
also
to
the
lockup
and
the
holdings.
VCX
is
novel.
We
welcome
the
review
and
believe
that
public
venture
capital
will
eventually
become
widespread
and
normal,
but
it
will
take
time
and
continued
execution.
But,
ultimately,
it
isn’t
the
trading
price
over
any
near
term
period
that
matters.
As
Buffett
would
say,
the
market
is
a
voting
machine
in
the
short
run,
but
a
weighing
machine
in
the
long
run.
Our
job,
as
managers,
is
to
deliver
long-term
performance
by
continuing
to
invest
in
the
best
private
technology
companies.
As
one
investor
put
it,
for
maybe
the
first
time
ever,
the
individual
retail
investor
got
to
be
on
the
right
side
of
the
trade.
What
does
matter
is
that
100,000
individual
investors
in
the
Fund
were
given
the
opportunity
to
participate
in
this
milestone.
And
while
we
hope
that
the
success
of
VCX
ultimately
translates
to
good
outcomes
for
the
broader
Fundrise
platform,
the
real
tangible
benefits
of
the
listing
went
to
individual
investors,
those
of
you
who
helped
create
Fundrise
in
the
first
place
–
not
us
as
the
Fundrise
Innovation
Fund,
LLC
Management
Discussion
of
Fund
Performance
(UNAUDITED)
March
31,
2026
4
management
team,
and
most
importantly
not
a
bunch
of
hedge
funds
and
institutional
investors
seeking
to
flip
shares
and
make
a
quick
buck.
We’ve
also
been
humbled
to
receive
an
outpouring
of
personal
notes
and
letters
from
investors
who’ve
shared
their
remarkable
stories
of
what
the
success
of
the
listing
has
meant
for
them.
Some
shared
that
they
experienced
financial
returns
that
have
been
life
changing
in
nature;
retiring
parents,
getting
rid
of
long-standing
debt,
or
paying
for
their
entire
weddings!
This
is
why
we
started
Fundrise
in
the
first
place,
and
it’s
these
stories
that
drive
our
team
to
do
what
we
do.
Looking
ahead
We
typically
end
all
of
our
investor
letters
looking
ahead
and
sharing
with
investors
our
views
on
where
the
macroeconomy
and
our
own
portfolio
may
be
heading.
It’s
an
exercise
that
always
feels
a
bit
ironic
given
we
tend
to
invest
from
a
position
of
recognizing
that
it’s
dangerous
to
get
overconfident
in
one’s
ability
to
predict
the
future.
After
a
momentous
first
calendar
quarter
of
2026,
it
feels
today
as
if
the
spectrum
of
outcomes
in
front
of
us
is
as
wide
and
varied
as
it’s
been
at
any
point
in
the
history
of
the
company.
We
are
in
the
midst
of
the
first
military
conflict
in
decades
that
arguably
has
the
very
real
potential
to
spill
over
into
a
full
fledged
global
war,
while
also
propelling
the
entire
world
economy
into
recession.
At
the
same
time,
leading
AI
companies
seem
to
be
confident
that
we
are
rapidly
approaching
AGI
–
a
world
where
AI
intelligence
vastly
outperforms
humans,
completely
upending
the
norms
about
everyday
life
that
have
been
in
place
since
the
industrial
revolution.
Massive
downside
risk
with
extreme
upside
potential.
Global
depression
or
a
singularity
driven
explosion
of
living
standards
–
how
does
one
prepare
for
both?
Though
we’re
cognizant
of
the
naïveté
of
the
sentiment,
we
believe
that
it’s
our
responsibility
to
do
the
best
we
can
to
position
the
portfolio
and
our
investors
for
the
potential
of
either
outcome.
Through
VCX
we
are
aiming
to
capture
for
our
investors
a
meaningful
portion
of
the
massive
value
creation
being
driven
by
AI.
Every
few
years,
we
reach
certain
milestones
that
feel
more
significant
in
some
ways
–
marks
of
having
fulfilled
another
major
step
in
what
may
be
an
endless
pursuit
of
the
bigger
vision.
This
past
quarter
has
felt
like
one
of
those
milestones,
and
as
always,
we
are
extremely
appreciative
of
the
support
and
confidence
all
our
investors
have
given
us.
Onward,
Ben
Miller
Chief
Executive
Officer
Fundrise
Advisors,
LLC
Past
performance
does
not
guarantee
future
results.
Current
and
future
holdings
are
subject
to
risk.
As
with
any
stock,
the
price
of
the
fund’s
common
shares
will
fluctuate
with
market
conditions
and
other
factors.
Shares
of
closed-end
management
investment
companies
frequently
trade
at
a
price
that
is
less
than
(a
“discount”)
or
more
than
(a
“premium”)
their
net
asset
value.
If
the
fund’s
shares
trade
at
a
premium
to
net
asset
value,
there
is
no
assurance
that
any
such
premium
will
be
sustained
for
any
period
of
time
and
will
not
decrease,
or
that
the
shares
will
not
trade
at
a
discount
to
net
asset
value
thereafter.
Additionally,
the
fund’s
distribution
rate
may
be
affected
by
numerous
factors,
including
changes
in
realized
and
projected
market
returns,
fund
performance,
and
other
factors.
There
can
be
no
assurance
that
a
change
in
market
conditions
or
other
factors
will
not
result
in
a
change
in
the
fund
distribution
rate
at
a
future
time.
Listed
closed-end
funds,
unlike
open-end
funds,
are
not
continuously
offered.
Shares
are
sold
on
the
open
market
through
a
stock
exchange.
Closed-end
funds
may
be
leveraged
and
carry
various
risks
depending
upon
the
underlying
assets
owned
by
a
fund.
Investment
policies,
management
fees
and
other
matters
of
interest
to
prospective
investors
may
be
found
in
each
closed-end
fund
annual
and
semi-annual
report.
Fundrise
Innovation
Fund,
LLC
PERFORMANCE
CHART
AND
ANALYSIS
(UNAUDITED)
March
31,
2026
5
Performance
Chart
and
Analysis
The
following
reflects
the
change
in
the
value
of
a
hypothetical
$10,000
investment,
including
reinvested
dividends
and
distributions,
in
the
Fundrise
Innovation
Fund,
LLC
compared
with
the
performance
of
the
benchmarks,
NASDAQ
Composite
Index
and
the
BVP
NASDAQ
Emerging
Cloud
Index,
for
the
period
July
25,
2022*
through
March
31,
2026.
\
The
performance
data
quoted
is
historical.
Past
performance
is
no
guarantee
of
future
results.
The
performance
table
and
graph
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
The
investment
return,
market
price,
and
principal
value
of
an
investment
will
fluctuate.
An
investor’s
shares,
when
sold,
may
be
worth
more
or
less
than
the
original
cost.
Total
returns
are
calculated
using
closing
Net
Asset
Value
as
of
March
31,
2026
and
are
calculated
assuming
reinvestment
of
all
dividends
and
distributions.
*The
Fund
commenced
investment
operations
on
July
25,
2022.
The
Fund’s
shares
of
common
stock
commenced
trading
on
the
New
York
Stock
Exchange,
LLC
on
March
19,
2026
at
$31.25
per
share.
Total
Return
on
Market
Price
is
based
on
the
period
from
March
19,
2026
to
March
31,
2026.
The
NASDAQ
Composite
Index
is
an
unmanaged
stock
market
index
which
includes
almost
all
stocks
listed
on
the
NASDAQ
stock
exchange
and
includes
the
reinvestment
of
all
dividends.
Investors
cannot
invest
directly
in
an
index
or
benchmark.
The
BVP
NASDAQ
Emerging
Cloud
Index
is
an
unmanaged
index
that
tracks
the
performance
of
emerging
public
companies
primarily
involved
in
providing
cloud
software
to
their
customers
and
includes
the
reinvestment
of
all
dividends.
Investors
cannot
invest
directly
in
an
index
or
benchmark.
The
Fund’s
most
recent
annualized
distribution
rate
as
of
March
31,
2026,
was
0.14%
(1)
.
All
distributions
made
during
the
year
ended
March
31,
2026
were
from
capital
gain.
Average
Annual
Total
Returns
One
Year
Since
Inception*
Fundrise
Innovation
Fund,
LLC
-
NAV
68.39%
19.45%
Fundrise
Innovation
Fund,
LLC
-
Market
Price
N/A
319.04%
NASDAQ
Composite
Index
24.81%
17.86%
BVP
NASDAQ
Emerging
Cloud
Index
(15.33)%
(1.39)%
(1)
Distribution
rate
is
based
on
an
annualization
of
the
distributions
per
share
for
the
31
days
of
January
2026.
Fundrise
Innovation
Fund,
LLC
PORTFOLIO
COMPOSITION
March
31,
2026
6
TOP
TEN
HOLDINGS
The
following
table
below
shows
the
Fund’s
ten
largest
investments
by
economic
issuer,
excluding
short-term
holdings,
including
each
investment’s
fair
value
and
its
percentage
of
the
Fund’s
total
net
assets.
PORTFOLIO
COMPOSITION
The
following
chart
provides
a
visual
breakdown
of
the
Fund,
by
the
industry
sectors
that
the
underlying
securities
represent,
as
a
percentage
of
total
investments.
Description
Value
as
of
March
31,
2026
%
of
Net
Assets
Anthropic,
PBC
(1)
$
112
,418‌
16.5%
Databricks,
Inc.
(1)
95,736‌
14.1%
OpenAI
Group
PBC
(1)
84,16
3‌
12.4%
Anduril
Industries,
Inc.
(1)
37,581‌
5.5%
Ramp
Business
Corp.
27,741‌
4.1%
Space
Exploration
Technologies
Corp.
(1)
26,856‌
4.0%
Flock
Group,
Inc.
23,41
6‌
3.5%
Epic
Games,
Inc.
19,180‌
2.8%
dbt
Labs,
Inc.
15,000‌
2.2%
SWITCH
Data
Centers
-
SWCH
2025-DATA
E
12,316‌
1.8%
Total
Top
Ten
$
454,407‌
66.9%
(1)
All
or
a
portion
of
the
Fund's
economic
exposure
to
this
portfolio
company
is
held
indirectly
through
one
or
more
co-investment
vehicles,
special
purpose
vehicles,
or
other
investment
vehicles,
as
described
in
the
Shareholder
Update,
Item
2
-
Principal
Risks
of
the
Fund,
General
SPV
Risks
and
General
CIV
Risks
;
the
remainder
is
held
directly.
Fundrise
Innovation
Fund,
LLC
Schedule
of
Investments
March
31,
2026
7
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
Description
Par/Shares
Security
Type
Value
as
of
March
31,
2026
%
of
Net
Assets
Technology
Private
Equity
Portfolio
Companies
Artificial
Intelligence
Anthropic,
PBC
(1)(2)(3)(4)
N/A
Co-Investment
Vehicles
$
112,418‌
16.
5‌
%
OpenAI
Group
PBC
(1)(2)(3)(4)
N/A
Co-Investment
Vehicles
84,163‌
12.4‌%
Databricks,
Inc.
(1)(2)(4)(5)
N/A
SPV
72,480‌
10.7‌%
Anduril
Industries,
Inc.
(1)(2)(3)(4)
N/A
Co-Investment
Vehicle
30,231‌
4.5‌%
Space
Exploration
Technologies
Corp.
(1)(2)(3)(4)
5
SPV
26,856‌
4.0‌%
Databricks,
Inc.
(1)(2)(3)
122
Common
Stock
23,256‌
3.4‌%
Flock
Group,
Inc.
(1)(2)(3)
631
Class
B
-
Preferred
Stock
9,557‌
1.4‌%
Anduril
Industries,
Inc.
(1)(2)(3)
76
Series
Seed
-
Preferred
Stock
7,350‌
1.1‌%
Flock
Group,
Inc.
(1)(2)(3)
440
Class
A
-
Preferred
Stock
6,661‌
1.0‌%
Flock
Group,
Inc.
(1)(2)(3)
373
Class
A
First
SAFE
-
Preferred
Stock
5,639‌
0.8‌%
Visual
Layer,
Inc.
(1)(2)(3)(6)
N/A
Simple
Agreement
for
Future
Equity
5,000‌
0.7‌%
AI-LLM,
LLC
(1)(2)(3)
N/A
Co-Investment
Vehicle
3,105‌
0.5‌%
Handshake
(1)(2)(3)
38
Series
C
-
Preferred
Stock
2,814‌
0.4‌%
Anyscale,
Inc.
(1)(2)(3)
511
Common
Stock
2,494‌
0.4‌%
Intercom,
Inc.
(1)(2)(3)
45
Common
Stock
2,385‌
0.4‌%
Flock
Group,
Inc.
(1)(2)(3)
103
Class
C
-
Preferred
Stock
1,559‌
0.2‌%
Handshake
(1)(2)(3)
8
Series
D
-
Preferred
Stock
601‌
0.1‌%
Intercom,
Inc.
(1)(2)(3)
8
Series
A
-
Preferred
Stock
417‌
0.1‌%
Risotto
(1)(2)(3)(7)
261
Series
Seed
2
-
Preferred
Stock
375‌
0.
0‌
%
Luminos,
Inc.
(1)(2)(3)(7)
170
Series
Seed
2
-
Preferred
Stock
285‌
0.0‌%
Risotto
(1)(2)(3)(7)
87
Series
Seed
1
-
Preferred
Stock
125‌
0.0‌%
Luminos,
Inc.
(1)(2)(3)(7)
47
Series
Seed
1
-
Preferred
Stock
79‌
0.0‌%
Gumloop
(1)(2)(3)(7)
5
Series
A-2
-
Preferred
Stock
22‌
0.0‌%
Total
Artificial
Intelligence
(
Cost
$
190
,
26
3
)
$
397
,
8
72‌
58
.
6‌
%
Financial
Technology
Ramp
Business
Corp.
(1)(2)(3)
149
Series
A-2
-
Preferred
Stock
$
13,365‌
2.0‌%
Ramp
Business
Corp.
(1)(2)(3)
133
Series
C-1
-
Preferred
Stock
12,000‌
1.8‌%
Erebor
Bank,
N.A.
(1)(2)(3)
19
Series
B
-
Preferred
Stock
5,000‌
0.7‌%
Ramp
Business
Corp.
(1)(2)(3)
26
Common
Stock
2,376‌
0.3‌%
Stripe,
Inc.
(1)(2)(3)
10
Common
Stock
618‌
0.1‌%
Total
Financial
Technology
(
Cost
$21,253
)
$
33,359‌
4.9‌%
Data
Infrastructure
dbt
Labs,
Inc.
(1)(2)(3)(8)
441
Series
D
-
Preferred
Stock
$
15,000‌
2.2‌%
Vanta,
Inc.
(1)(2)(3)
555
Series
B-1
-
Preferred
Stock
10,116‌
1.5‌%
Immuta,
Inc.
(1)(2)(3)
80
Common
Stock
1,022‌
0.2‌%
DittoLive,
Inc.
(1)(2)(3)
73
Series
B
-
Preferred
Stock
1,000‌
0.
2‌
%
Omni
Analytics,
Inc.
(1)(2)(3)
58
Series
B-1
-
Preferred
Stock
588‌
0.1‌%
Hightouch
(1)(2)(3)
12
Common
Stock
583‌
0.
1‌
%
Hightouch
(1)(2)(3)(7)
2
Series
C
-
Preferred
Stock
100‌
0.0‌%
Total
Data
Infrastructure
(
Cost
$22,8
90
)
$
28,409‌
4.
3‌
%
Gaming/Entertainment
Epic
Games,
Inc.
(1)(2)(3)
43
Common
Stock
$
19,180‌
2.8‌%
Total
Gaming/Entertainment
(
Cost
$19,180
)
$
19,180‌
2.8‌%
Vertical/Horizontal
Software
Canva,
Inc.
(1)(2)(3)
6
Common
Stock
$
9,599‌
1.4‌%
Total
Vertical/Horizontal
Software
(
Cost
$6,220
)
$
9,599‌
1.4‌%
Biotechnology
Loyal
Animal
Health,
Inc.
(1)(2)(3)
780
Series
C
-
Preferred
Stock
$
9,560‌
1.4‌%
Total
Biotechnology
(
Cost
$9,56
0
)
$
9,560‌
1.4‌%
Fundrise
Innovation
Fund,
LLC
Schedule
of
Investments
(Continued)
March
31,
2026
8
See
accompanying
notes
to
financial
statements.
Description
Par/Shares
Security
Type
Value
as
of
March
31,
2026
%
of
Net
Assets
Property
Technology
Inspectify,
Inc.
(1)(2)(3)(9)
1,295
Series
A-5
-
Preferred
Stock
$
5,000‌
0.7‌%
Rhino
Labs,
Inc.
(1)(2)(3)
10
Series
P
-
Preferred
Stock
1,023‌
0.2‌%
Inspectify,
Inc.
(1)(2)(3)(6)(9)
N/A
Simple
Agreement
for
Future
Equity
1,000‌
0.
2‌
%
Rhino
Labs,
Inc.
(1)(2)(3)(7)
300
Series
D-1A
-
Preferred
Stock
250‌
0.
0‌
%
Rhino
Labs,
Inc.
(1)(2)(3)(7)
170
Series
D-1
-
Preferred
Stock
141‌
0.0‌%
Total
Property
Technology
(
Cost
$7,391
)
$
7,414‌
1.1‌%
Total
Technology
Private
Equity
Portfolio
Companies
(Cost
$276,757)
$
5
05
,
3
93‌
74
.
5‌
%
Technology
Fixed
Income
SWITCH
Data
Centers
-
SWCH
2025-DATA
E,
7.01%(3.34%
+
SOFR),
02/15/27
(10)(11)
$
12,500‌
Commercial
Mortgage-Backed
Security
$
12,316‌
1.8‌%
QTS
Data
Centers
-
BX
2025-VOLT
C,
6.02%(2.35%
+
SOFR),
12/15/27
(10)(11)(12)
10,000‌
Commercial
Mortgage-Backed
Security
9,962‌
1.5‌%
QTS
Data
Centers
-
BX
2025-VLT6
E,
6.86%(3.19%
+
SOFR),
03/15/27
(10)(11)
10,000‌
Commercial
Mortgage-Backed
Security
9,938‌
1.5‌%
Vantage
Data
Centers
-
VDCM
2025-AZ
D,
5.81%,
07/13/30
(10)(13)
9,000‌
Commercial
Mortgage-Backed
Security
9,097‌
1.4‌%
QTS
Data
Centers
-
BX
2025-VLT7
D,
6.92%(3.25%
+
SOFR),
07/15/27
(10)(11)(12)
7,000‌
Commercial
Mortgage-Backed
Security
6,969‌
1.0‌%
QTS
Data
Centers
-
BX
2025-VLT7
E,
7.42%(3.75%
+
SOFR),
07/15/27
(10)(11)(12)
7,000‌
Commercial
Mortgage-Backed
Security
6,954‌
1.0‌%
EdgeCore
Data
Centers
-
ECORE
2025-1A
B,
4.55%,
07/25/30
(10)
6,000‌
Commercial
Mortgage-Backed
Security
5,559‌
0.8‌%
QTS
Data
Centers
-
BX
2025-VLT6
D,
6.26%(2.59%
+
SOFR),
03/15/27
(10)(11)
5,000‌
Commercial
Mortgage-Backed
Security
4,956‌
0.7‌%
Total
Technology
Fixed
Income
(Cost
$66,131)
$
65,751‌
9.7‌%
Promissory
Note
Promissory
Note
-
Theory
Ventures,
10.00%,
04/28/33
(2)(3)(14)
5,000‌
Promissory
Note
$
4,732‌
0.7‌%
Total
Promissory
Note
(Cost
$4,732)
$
4,732‌
0.7‌%
Short-Term
Investment
JP
Morgan
U.S.
Treasury
Plus
Money
Market
Fund,
Capital
Shares,
3.62%
(15)
38,310‌
Money
Market
Fund
$
38,310‌
5.6‌%
Total
Short-Term
Investment
(Cost
$38,310)
$
38,310‌
5.6‌%
Total
investments,
at
value
(Cost
$385,930)
$
6
1
4,
1
86‌
9
0
.
5‌
%
Other
assets
in
excess
of
liabilities
6
4,
73
2‌
9.5‌
%
Total
Net
Assets
$
678,
918‌
100.0‌%
LLC
Limited
Liability
Company
LP
Limited
Partnership
(1)
Non-income
producing
investment.
(2)
Restricted
security.
The
aggregate
value
of
restricted
securities
at
March
31,
2026
is
approximately
$510,125
(
amount
in
thousands)
and
represents
approximately
75.2%
of
net
assets.
See
Note
2,
Summary
of
Significant
Accounting
Policies
for
additional
information.
(3)
Investments
classified
as
Level
3
within
the
three-tier
fair
value
hierarchy.
See
Note
2,
Summary
of
Significant
Accounting
Policies
-
Fair
Value
Measurement
for
an
explanation
of
this
hierarchy,
as
well
as
a
list
of
significant
unobservable
inputs
used
in
the
valuation
of
these
instruments.
(4)
Investment
held
through
one
or
more
co-investment
vehicles,
special
purpose
vehicles,
or
other
investment
vehicles,
of
which
the
named
investment
is
the
sole
underlying
portfolio
investment.
If
applicable,
shares
listed
indicate
shares
of
the
special
purpose
vehicle.
See
Shareholder
Update,
Item
2
-
Principal
Risks
of
the
Fund,
General
SPV
Risks
and
General
CIV
Risks
.
(5)
Investment
valued
using
net
asset
value
per
share
(or
its
equivalent)
as
a
practical
expedient.
See
Note
2,
Summary
of
Significant
Accounting
Policies
-
Fair
Value
Measurement
for
additional
information.
(6)
This
Simple
Agreement
for
Future
Equity
(“SAFE”)
will
convert
into
preferred
shares
upon
an
equity
financing.
The
number
of
shares
issued
upon
conversion
is
determined
by
dividing
the
Fund's
cost
of
investment
by
a
conversion
price,
which
is
based
on
the
applicable
discount
or
SAFE
price.
(7)
Value
is
less
than
0.05%
of
Total
Net
Assets.
(8)
As
of
March
31,
2026,
dbt
Labs,
Inc.
had
announced
a
proposed
merger
with
Fivetran,
Inc.
that
had
not
yet
closed.
(9)
Investment
in
an
affiliate.
See
Note
5,
Investment
Manager
Fees
and
Other
Related
Party
Transactions
for
additional
information.
(10)
Security
is
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
to
qualified
institutional
buyers
in
transactions
exempt
from
registration.
The
aggregate
value
of
these
securities
at
March
31,
2026
is
approximately
$65,751
(
amount
in
thousands)
and
represents
approximately
9.7%
of
net
assets.
(11)
This
investment
has
a
floating
interest
rate.
Coupon
rate,
reference
index
and
spread
shown
at
March
31,
2026.
(12)
All
or
a
portion
of
this
security
has
been
pledged
as
collateral
for
securities
sold
under
agreement
to
repurchase.
See
Note
7,
Reverse
Repurchase
Agreements
for
additional
information.
Fundrise
Innovation
Fund,
LLC
Schedule
of
Investments
(Continued)
March
31,
2026
9
See
accompanying
notes
to
financial
statements.
(13)
This
investment
has
a
variable
interest
rate
which
adjusts
periodically
based
on
changes
in
current
interest
rates.
Coupon
rate
shown
at
March
31,
2026.
(14)
As
of
March
31,
2026,
the
Fund
had
total
unfunded
capital
commitments
of
$599
(amount
in
thousands)
for
the
promissory
note
investment.
(15)
Rate
disclosed
is
representative
of
the
seven-day
effective
yield
as
of
March
31,
2026.
(Amounts
in
thousands)
Reverse
Repurchase
Agreements
Counterparty
Settlement
Date
Maturity
Date
Interest
%(Borrowing
Rate)
Principal
Payable(Including
Accrued
Interest)
Barclays
Bank
PLC
03/02/26
04/02/26
4.77%
$
4,883
$
(4,902)
Barclays
Bank
PLC
03/02/26
04/02/26
4.67%
5,198
(5,218)
Barclays
Bank
PLC
03/02/26
04/02/26
4.62%
5,737
(5,759)
Total
$
15,818
$
(15,879)
Fundrise
Innovation
Fund,
LLC
STATEMENT
OF
ASSETS
AND
LIABILITIES
March
31,
2026
10
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands,
except
share
and
per
share
data)
Assets
Investments
in
unaffiliated
entities,
at
fair
value
(Cost
$380,930)
$
608,186‌
Investments
in
non-controlled
affiliated
entities,
at
fair
value
(Cost
$5,000)
6,000‌
Cash
75,717‌
Other
assets
10,450‌
Interest
and
dividend
receivable
from
unaffiliated
investments
632‌
Prepaid
expenses
508‌
Total
Assets
$
701,493‌
Liabilities
Payable
for
reverse
repurchase
agreements
$
15,879‌
Deferred
tax
liability,
net
3,850‌
Accounts
payable
and
accrued
expenses
1,529‌
Management
fees
payable
1,099‌
Current
tax
liability
164‌
Distributions
payable
42‌
Redemptions
payable
12‌
Total
Liabilities
$
22,575‌
Commitments
and
Contingencies
(1)
Total
Net
Assets
$
678,918‌
Components
of
Net
Assets
Paid-in
capital
$
456,723‌
Distributable
earnings
222
,
195‌
Total
Net
Assets
$
678,918‌
Net
Asset
Value
Net
Assets
$
678,918‌
Common
shares
outstanding
as
of
March
31,
2026;
unlimited
shares
authorized
35,797,138‌
Net
Asset
Value
Per
Share
$
18.97‌
(1)
See
Note
2,
Summary
of
Significant
Accounting
Policies
for
additional
information.
Fundrise
Innovation
Fund,
LLC
STATEMENT
OF
OPERATIONS
FOR
THE
YEAR
ENDED
MARCH
31,
2026
11
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
Investment
Income
Interest
income
from
unaffiliated
investments
$
3,391‌
Dividend
income
from
unaffiliated
investments
1,390‌
Total
Investment
Income
$
4,781‌
Expenses
Management
fees
$
6,870‌
Marketing
expenses
1,351‌
Miscellaneous
expenses
894‌
Management
fees
recouped
by
the
Adviser
724‌
Professional
fees
622‌
Custody
fees
301‌
Transfer
agent
fees
243‌
Interest
expense
203‌
Directors’
fees
135‌
Total
Expenses
$
11,343‌
Net
Investment
Income
(Loss)
$
(
6,562‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
from
Investments
Net
realized
gain
(loss)
from
unaffiliated
investments
$
5,800‌
Net
change
in
unrealized
appreciation/depreciation
from
unaffiliated
investments
196,179‌
Net
change
in
unrealized
appreciation/depreciation
from
deferred
tax
benefit
(expense)
1,811‌
Total
Net
Realized
and
Unrealized
Gain
(Loss)
from
Investments
$
203,
790‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
19
7
,
22
8‌
Fundrise
Innovation
Fund,
LLC
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
12
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
For
the
Years
Ended
March
31,
2026
2025
Operations:
Net
investment
income
(loss)
$
(6,562‌)
$
(3,748‌)
Net
realized
gain
(loss)
from
investments
5,800‌
222‌
Net
change
in
unrealized
appreciation/depreciation
from
investments
197,
990‌
22,973‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
19
7
,
22
8‌
$
19,447‌
Distributions
to
Common
Shareholders
From:
Distributable
earnings
$
(
5,259‌)
$
–‌
Return
of
capital
–‌
(381‌)
Net
Decrease
in
Net
Assets
from
Distributions
to
Common
Shareholders
$
(5,259‌)
$
(381‌)
Capital
Share
Transactions:
Proceeds
from
sale
of
shares
$
302,187‌
$
76,634‌
Distributions
reinvested
1,660‌
17‌
Repurchase
of
shares
(28,564‌)
(11,753‌)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
$
275,283‌
$
64,898‌
Net
Increase
(Decrease)
in
Net
Assets
$
467
,
25
2‌
$
83,964‌
Net
Assets:
Beginning
of
Year
$
211,666‌
$
127,702‌
End
of
Year
$
678,
918‌
$
211,666‌
Fundrise
Innovation
Fund,
LLC
STATEMENT
OF
CASH
FLOWS
FOR
THE
YEAR
ENDED
MARCH
31,
2026
13
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
Operating
Activities:
Net
increase
in
net
assets
resulting
from
operations
$
197,228‌
Adjustments
to
reconcile
net
increase
(decrease)
in
net
assets
resulting
from
operations
to
net
cash
provided
by
(used
in)
operating
activities:
Investments
in
unaffiliated
entities
(195,759‌)
Investments
in
non-controlled
affiliated
entities
(1,000‌)
Net
change
in
investments
in
short-term
investments
(24,922‌)
Accretion
of
discounts
(43‌)
Net
realized
(gain)
loss
from
unaffiliated
investments
(5,800‌)
Net
change
in
unrealized
appreciation/depreciation
from
unaffiliated
investments
(196,179‌)
Proceeds
from
sale
of
unaffiliated
investments
25,645‌
Changes
in
assets
and
liabilities:
Net
(increase)
decrease
in
other
assets
(10,450‌)
Net
(increase)
decrease
in
interest
and
dividend
receivable
from
unaffiliated
investments
(526‌)
Net
(increase)
decrease
in
due
from
Adviser
204‌
Net
(increase)
decrease
in
prepaid
expenses
(459‌)
Net
(increase)
decrease
in
payable
for
reverse
repurchase
agreements
15,879‌
Net
increase
(decrease)
in
current
tax
liability
164‌
Net
increase
(decrease)
in
deferred
tax
liability,
net
(1,975‌)
Net
increase
(decrease)
in
settling
subscriptions
(551‌)
Net
increase
(decrease)
in
management
fees
payable
1,099‌
Net
increase
(decrease)
in
accounts
payable
and
accrued
expenses
1,195‌
Net
cash
provided
by
(used
in)
operating
activities
$
(196,
250‌
)
Financing
Activities:
Proceeds
from
sale
of
shares
$
302,187‌
Cash
paid
for
shares
repurchased
(28,552‌)
Distributions
paid
(3,665‌)
Net
cash
provided
by
(used
in)
financing
activities
$
269,
970‌
Net
increase
(decrease)
in
cash
$
73,720‌
Cash,
beginning
of
year
1,997‌
Cash,
end
of
year
$
75,717‌
Supplemental
Disclosure
of
Non-Cash
Activity:
Distributions
reinvested
$
1,660‌
Equity
in
promissory
note
received
through
in-kind
transaction
4,627‌
SAFE
in
portfolio
company
converted
to
equity
through
in-kind
transaction
498‌
Fundrise
Innovation
Fund,
LLC
FINANCIAL
HIGHLIGHTS
14
See
accompanying
notes
to
financial
statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period.
For
the
Years
Ended
March
31,
For
the
Period
July
25,
2022
(1)
Through
2026
2025
2024
March
31,
2023
Net
Asset
Value,
Beginning
of
Period
$
11.40‌
$
10.20‌
$
10.05‌
$
10.00‌
Income
from
Investment
Operations
Net
investment
income
(loss)
(2)
$
(0.27‌)
$
(0.25‌)
$
(0.06‌)
$
0.05‌
Net
realized
and
unrealized
gain
(loss)
on
investments
8
.
0
5‌
1.48‌
0.21‌
0.00‌
(3)
Total
Income
(Loss)
from
Investment
Operations
$
7.
7
8‌
$
1.23‌
$
0.15‌
$
0.05‌
Distributions
to
Common
Shareholders
From:
Capital
gains
$
(0.
21‌
)
$
–‌
$
–‌
$
–‌
Return
of
capital
–‌
(0.03‌)
(0.00‌)
(3)
–‌
Total
Distributions
to
Common
Shareholders
$
(0.
21‌
)
$
(0.03‌)
$
(0.00‌)
$
–‌
Net
Asset
Value,
End
of
Period
$
18.9
7‌
$
11.40‌
$
10.20‌
$
10.05‌
Total
Investment
Return
Based
on
Net
Asset
Value
(4)
68.
39‌
%
12.02‌%
(5)
1.53‌%
(5)
0.50‌%
(5)(6)
Total
Investment
Return
Based
on
Market
Value
319.04‌%
(
6
)
(
7)
N/A‌
N/A‌
N/A‌
Ratios
and
Supplemental
Data
Net
assets
at
end
of
period
(thousands)
$
678,918‌
$
211,666‌
$
127,702‌
$
73,132‌
Including
interest
expense:
Ratio
of
gross
expenses
to
average
net
assets
(8)(9)
2.57‌
%
(1
0
)
8.94‌%
(1
0
)
3.50‌%
(
1
1
)
6.18‌%
(1
2
)
Ratio
of
net
expenses
to
average
net
assets
(9)
2.57‌
%
(1
0
)
6.58‌%
(1
0
)
3.07‌%
(1
3
)
2.74‌%
(1
2
)
Ratio
of
net
investment
income
(loss)
to
average
net
assets
(1.77‌)%
(2.31‌)%
(0.55‌)%
(1
4
)
0.68‌%
(1
2
)
Excluding
interest
expense:
Ratio
of
gross
expenses
to
average
net
assets
(8)(9)
2.51‌
%
(1
0
)
8.94‌%
(1
0
)
3.50‌%
(1
1
)
6.18‌%
(1
2
)
Ratio
of
net
expenses
to
average
net
assets
(9)
2.51‌
%
(1
0
)
6.58‌%
(1
0
)
3.07‌%
(13)
2.74‌%
(1
2
)
Ratio
of
net
investment
income
(loss)
to
average
net
assets
(1.71‌)%
(2.31‌)%
(0.55‌)%
(14)
0.68‌%
(1
2
)
Portfolio
turnover
rate
7‌%
(15)
8‌%
(15)
18‌%
–‌%
(
6
)
(1)
Commencement
of
investment
operations.
(2)
Based
on
average
shares
outstanding
during
each
period.
(3)
Less
than
$0.01
per
share.
(4)
Total
investment
return
based
on
net
asset
value
is
based
upon
the
change
in
net
asset
value
per
share
between
the
opening
and
ending
net
asset
values
per
share
in
the
period
indicated
and
assumes
that
dividends
are
reinvested
in
accordance
with
the
Fund’s
dividend
reinvestment
policy.
Returns
shown
do
not
reflect
the
deduction
of
taxes
that
a
Shareholder
would
pay
on
Fund
distributions
or
the
sale
of
Fund
shares.
(5)
Total
investment
returns
for
the
period
would
have
been
lower
had
certain
expenses
not
been
waived
or
borne
by
the
Adviser
during
the
period.
The
Fund's
Board
of
Directors
terminated
the
Expense
Limitation
Agreement
effective
as
of
the
Fund’s
listing
of
Shares
on
the
NYSE.
See
Note
5,
Investment
Manager
Fees
and
Other
Related
Party
Transactions
for
further
information.
(6)
Not
annualized.
(7)
The
Fund’s
shares
of
common
stock
commenced
trading
on
NYSE
on
March
19,
2026
at
$31.25
per
share.
Total
Return
on
Market
Value
is
based
on
the
period
from
March
19,
2026
to
March
31,
2026.
(8)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
(9)
Excludes
acquired
fund
fees
and
expenses
of
underlying
investment
companies.
(10)
Ratios
include
(0.49)%
and
3.58%
of
deferred
tax
expense/(benefit)
for
the
years
ended
March
31,
2026
and
March
31,
2025,
respectively.
(11)
The
ratio
of
gross
expenses
to
average
net
assets
includes
income
tax
expense.
The
ratio
excluding
income
tax
expense
was
3.43%
for
the
year
ended
March
31,
2024.
(12)
Annualized,
except
for
non-recurring
items.
(13)
The
ratio
of
net
expenses
to
average
net
assets
includes
income
tax
expense.
The
ratio
excluding
income
tax
expense
was
3.00%
for
the
year
ended
March
31,
2024.
(14)
The
ratio
of
net
investment
income
(loss)
to
average
net
assets
includes
income
tax
expense.
The
ratio
excluding
income
tax
expense
was
(0.48)%
for
the
year
ended
March
31,
2024.
(15)
Excludes
the
impact
of
in-kind
transactions.
Fundrise
Innovation
Fund,
LLC
FINANCIAL
HIGHLIGHTS
(CONTINUED)
15
See
accompanying
notes
to
financial
statements.
Senior
Securities
The
Fund
engaged
in
and
held
senior
securities
as
of
the
periods
as
presented
as
follows:
As
of
the
Years
Ended
March
31,
July
25,
2022
(1)
Through
2026
2025
2024
March
31,
2023
Reverse
Repurchase
Agreements
Total
amount
outstanding
(thousands)
$
15,879‌
$
–‌
$
–‌
$
–‌
Asset
coverage
per
$1,000
44,756‌
–‌
–‌
–‌
Involuntary
liquidation
preference
N/A‌
N/A‌
N/A‌
N/A‌
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
March
31,
2026
16
1.
Formation
and
Organization
Fundrise
Innovation
Fund,
LLC
(the
“Fund”
or
the
“Registrant”)
is
a
Delaware
limited
liability
company.
The
Fund
intends
to
elect
and
intends
to
qualify
to
be
taxed
as
a
regulated
investment
company
(“RIC”)
under
the
Internal
Revenue
Code
of
1986,
as
amended
(the
“Code”),
for
its
taxable
year
ending
March
31,
2026.
During
prior
taxable
years,
the
Fund
was
taxed
as
a
C
corporation
for
U.S.
federal
income
tax
purposes.
The
Fund
is
organized
as
a
non-diversified,
closed-end
management
investment
company
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”).
The
Fund
commenced
investment
operations
on
July
25,
2022.
At
a
meeting
held
on
January
9,
2026,
the
Fund’s
Board
of
Directors
approved
a
legal
name
change
of
the
Fund
from
“Fundrise
Growth
Tech
Fund,
LLC”
to
“Fundrise
Innovation
Fund,
LLC,”
effective
January
20,
2026.
On
January
14,
2026,
the
Fund’s
Board
of
Directors
also
approved
proposals
concerning
the
conversion
of
the
Fund
from
a
closed-end
fund
operating
as
a
tender
offer
fund
under
the
Securities
Act
of
1934,
as
amended,
to
a
listed
closed-end
fund
with
Fund
shares
listed
on
the
New
York
Stock
Exchange,
LLC
(“NYSE”)
and
the
implementation
of
a
six-month
lockup
for
all
Fund
shares
purchased
before
February
20,
2026
to
facilitate
the
listing
of
the
Fund
on
the
NYSE.
Fund
shareholders
approved
these
proposals
at
a
special
meeting
of
shareholders
convened
on
February
19,
2026.
The
Fund’s
shares
began
trading
on
the
NYSE
on
March
19,
2026
under
the
symbol
“VCX”.
In
addition,
in
connection
with
the
conversion
of
the
Fund
to
a
listed
closed-end
fund,
certain
updates
to
the
Fund’s
Limited
Liability
Company
Agreement
(the
“LLC
Agreement”)
were
approved
by
the
Fund’s
Board
of
Directors.
Further,
the
Fund’s
Board
members
have
been
divided
into
three
classes
–
Class
I
Directors,
Class
II
Directors,
and
Class
III
Directors.
The
updates
to
the
LLC
Agreement
and
the
classification
of
the
Fund’s
Board
of
Directors
became
effective
upon
the
Fund’s
listing
on
the
NYSE.
The
Fund
may
offer
and
sell
securities
directly
to
one
or
more
purchasers,
to
or
through
underwriters,
through
dealers
or
agents
that
the
Fund
designates
from
time
to
time,
or
through
a
combination
of
these
methods.
The
Fund’s
investment
objective
is
to
provide
total
return
primarily
through
long-term
capital
appreciation.
The
Fund
seeks
to
achieve
its
investment
objective
by
investing
in
private
and
public
technology
companies,
directly
or
indirectly,
with
a
primary
focus
on
the
equity
securities
(e.g.,
common
stock,
preferred
stock,
and
convertible
debt)
of
certain
privately
held,
mid-to-late
stage,
growth
companies
(“Portfolio
Companies”),
or
other
investments
(including
derivatives,
exchange-traded
funds
and
other
pooled
investment
vehicles)
that
have
economic
characteristics
similar
to
investments
in
technology
companies.
Under
normal
circumstances,
the
Fund’s
investment
strategy
is
to
invest
at
least
80%
of
its
net
assets
(plus
the
amount
of
any
borrowings
for
investment
purposes)
in
the
securities
of
technology
and
technology-related
companies
(referred
to
herein
as
“technology
companies”)
and
other
investments
(including
derivatives)
that
have
economic
characteristics
similar
to
investments
in
technology
companies.
The
investment
adviser
to
the
Fund
is
Fundrise
Advisors,
LLC
(the
“Adviser”),
an
investment
adviser
registered
with
the
U.S.
Securities
and
Exchange
Commission
(“SEC”)
under
the
Investment
Advisers
Act
of
1940,
as
amended.
The
Adviser
is
a
wholly-
owned
subsidiary
of
Rise
Companies
Corp.
(“Rise
Companies”
or
the
“Sponsor”),
the
Fund’s
sponsor.
Subject
to
the
supervision
of
the
Board
of
Directors
of
the
Fund
(the
“Board”),
the
Adviser
is
responsible
for
directing
the
management
of
the
Fund’s
business
and
affairs,
managing
the
Fund’s
day-to-day
affairs,
and
implementing
the
Fund’s
investment
strategy.
2.
Summary
of
Significant
Accounting
Policies
Basis
of
Presentation
The
accompanying
financial
statements
of
the
Fund
are
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
(“U.S.
GAAP”).
The
Fund
is
an
investment
company
and
follows
the
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(“FASB”)
Accounting
Standards
Codification
(“ASC”)
Topic
946,
Financial
Services
-
Investment
Companies
(“ASC
946”).
The
Fund
maintains
its
financial
records
in
U.S.
dollars
and
follows
the
accrual
basis
of
accounting.
The
estimates
and
assumptions
underlying
these
financial
statements
are
based
on
information
available
as
of
March
31,
2026,
including
judgments
about
the
financial
market
and
economic
conditions
which
may
change
over
time.
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
17
Estimates
The
preparation
of
financial
statements
in
conformity
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
Valuation
Oversight
Pursuant
to
SEC
Rule
2a-5
under
the
1940
Act,
the
Board
has
approved
the
Adviser
as
the
Fund’s
Valuation
Designee
(“Valuation
Designee”),
to
provide
administration
and
oversight
of
the
Fund’s
valuation
policies
and
procedures.
The
Fund
values
its
investments
in
accordance
with
such
procedures.
Generally,
portfolio
securities
and
other
assets
for
which
market
quotations
are
readily
available
are
valued
at
market
value,
which
is
ordinarily
determined
on
the
basis
of
official
closing
prices
or
the
last
reported
sales
prices.
If
market
quotations
are
not
readily
available
or
are
deemed
unreliable,
the
Fund
will
use
the
fair
value
of
the
securities
or
other
assets
as
determined
by
the
Adviser
in
good
faith,
taking
into
consideration
all
available
information
and
other
factors
that
the
Adviser
deems
pertinent,
in
each
case
subject
to
the
overall
supervision
and
responsibility
of
the
Board.
In
calculating
the
Fund’s
net
asset
value
(“NAV”),
the
Adviser,
subject
to
the
oversight
of
the
Board,
uses
various
valuation
methodologies.
To
the
extent
practicable,
the
Adviser
generally
endeavors
to
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
by
requiring
that
the
most
observable
inputs
are
to
be
used
when
available.
The
availability
of
valuation
techniques
and
observable
inputs
can
vary
from
investment
to
investment
and
are
affected
by
a
wide
variety
of
factors.
When
valuation
is
based
on
models
or
inputs
that
are
less
observable
or
unobservable
in
the
market,
the
determination
of
fair
value
requires
more
judgment,
and
may
involve
alternative
methods
to
obtain
fair
values
where
market
prices
or
market-based
valuations
are
not
readily
available.
As
a
result,
the
Adviser
may
exercise
a
higher
degree
of
judgment
in
determining
fair
value
for
certain
securities
or
other
assets.
Fair
Value
Measurement
The
following
is
a
current
summary
of
certain
methods
generally
used
to
value
investments
of
the
Fund
under
the
Fund’s
valuation
procedures:
The
Fund
applies
FASB
ASC
Topic
820,
Fair
Value
Measurement,
as
amended,
which
establishes
a
framework
for
measuring
fair
value
in
accordance
with
U.S.
GAAP
and
required
disclosures
of
fair
value
measurement.
U.S.
GAAP
defines
the
fair
value
as
the
price
that
the
Fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Fund
determines
the
fair
value
of
certain
investments
in
accordance
with
the
fair
value
hierarchy
that
requires
an
entity
to
maximize
the
use
of
observable
inputs.
The
fair
value
hierarchy
includes
the
following
three
levels
based
on
the
objectivity
of
the
inputs,
which
were
used
for
categorizing
the
assets
or
liabilities
for
which
fair
value
is
being
measured
and
reported:
Level
1
–
Quoted
market
prices
in
active
markets
for
identical
assets
or
liabilities.
Level
2
–
Significant
other
observable
inputs
(e.g.,
quoted
prices
for
similar
items
in
active
markets,
quoted
prices
for
identical
or
similar
items
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
such
as
interest
rate
and
yield
curves,
and
market-corroborated
inputs).
Level
3
–
Valuation
generated
from
model-based
techniques
that
use
inputs
that
are
significant
and
unobservable
in
the
market.
These
unobservable
assumptions
reflect
estimates
of
inputs
that
market
participants
would
use
in
pricing
the
asset
or
liability.
Valuation
techniques
may
include
use
of
discounted
cash
flow
methodologies
or
similar
techniques,
which
incorporate
management’s
own
estimates
of
assumptions
that
market
participants
would
use
in
pricing
the
instrument
or
other
valuation
assumptions
that
require
significant
management
judgment
or
estimation.
Fixed
income
securities
are
valued
by
an
independent
pricing
service
overseen
by
the
Valuation
Designee.
The
pricing
service
employs
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
In
the
event
prices
or
quotations
are
not
readily
available
or
that
the
application
of
these
valuation
methods
results
in
a
price
for
an
investment
that
is
deemed
to
be
not
representative
of
the
fair
value
of
such
investment,
fair
value
will
be
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
18
determined
in
good
faith
by
the
Valuation
Designee,
in
accordance
with
the
valuation
policy
and
procedures
approved
by
the
Board.
These
securities
are
generally
classified
in
Level
2
of
the
fair
value
hierarchy.
Investments
in
registered
investment
companies,
including
money
market
funds,
are
valued
at
the
NAV
as
of
the
close
of
each
business
day.
These
securities
are
generally
classified
in
Level
1
of
the
fair
value
hierarchy.
Based
on
the
short-term
nature
of
the
borrowings
under
the
reverse
repurchase
agreements,
the
carrying
value
of
the
payable
for
reverse
repurchase
agreements
approximated
its
fair
value
as
of
March
31,
2026.
These
reverse
repurchase
agreements
are
generally
classified
in
Level
2
of
the
fair
value
hierarchy.
The
majority
of
the
Fund’s
investments
have
no
readily
available
market
quotations
and,
as
such,
are
valued
at
fair
value
in
good
faith.
There
is
no
single
standard
for
determining
the
fair
value
of
a
security.
Rather,
fair
value
calculations
will
involve
significant
professional
judgment
in
the
application
of
both
observable
and
unobservable
attributes.
For
mid-to-late
stage
growth
Portfolio
Companies,
traditional
valuation
methods
(e.g.,
discounted
cash
flow)
are
often
a
less
reliable
tool
for
valuing
investments
in
accordance
with
ASC
820.
As
such,
until
the
Portfolio
Companies
grow
to
a
point
where
traditional
valuation
methods
apply,
the
Adviser
may
deem
it
more
appropriate
to
utilize
other
valuation
methodologies.
Late-stage
private
companies
or
“pre-IPO
companies”
traditionally
raise
capital
from
investors
in
organized
funding
rounds.
During
such
funding
rounds,
a
pre-IPO
company
will
seek
a
lead
investor
who
will,
to
their
best
effort,
define
a
valuation
of
the
company.
Therefore,
the
valuation
of
the
Fund’s
Portfolio
Companies
may
be
adjusted
when
a
new
valuation
is
set
by
the
lead
investor
in
the
next
funding
round.
As
such,
the
Adviser
may
use
the
market
approach
to
estimate
the
fair
value
of
the
Fund’s
Portfolio
Companies
by
adjusting
the
valuation
of
the
Portfolio
Companies
with
each
new
funding
round.
However,
while
the
valuation
as
of
the
latest
funding
round
is
a
prominent
factor
in
the
Adviser’s
valuation
process,
it
is
not
the
only
factor
that
the
Adviser
considers
when
valuing
its
portfolio
investments.
The
Adviser
may
establish
certain
thresholds
or
triggers
that
intend
to
capture
fundamental
changes
in
the
value
of
the
Portfolio
Company
that
would
affect
the
anticipated
return
on
the
Fund’s
investment.
Examples
of
certain
thresholds
or
triggers
may
include,
an
unexpected
business
or
technology
breakthrough,
faster
than
anticipated
revenue
growth,
a
fundamental
failure
of
the
technology,
the
loss
of
a
key
customer,
or
the
success
of
a
competitor
in
the
same
industry.
Additionally,
the
Adviser
may
consider
several
additional
factors
(if
present),
including
but
not
limited
to
the
implied
valuation
of
the
asset
as
reflected
by
stock
purchase
contracts
reported
in
private
markets,
fundamental
analytical
data
relating
to
the
investment
in
the
security,
the
nature
and
duration
of
any
restriction
on
the
disposition
of
the
security,
the
cost
of
the
security
at
the
date
of
purchase,
or
the
liquidity
of
the
market
for
the
security.
The
Adviser
may
also
consider
periodic
financial
statements
(audited
and
unaudited)
or
other
information
provided
by
the
Portfolio
Companies
to
investors
or
prospective
investors,
to
the
extent
that
it
is
available.
The
Fund
invests
in
Portfolio
Companies
by
purchasing
securities
directly
from
such
Portfolio
Companies,
through
simple
agreements
for
future
equity
(“SAFEs”),
or
through
co-investment
vehicles
(“CIV”)
and
special
purpose
vehicles
(“SPV”).
SAFEs
represent
a
contractual
right
to
future
equity
of
a
company,
in
exchange
for
which
the
holder
of
the
SAFE
contributes
capital
to
the
company.
SAFEs
enable
investors
to
convert
their
investment
to
equity
upon
the
occurrence
of
triggering
events
set
forth
in
the
applicable
SAFE.
For
investments
in
companies
that
are
not
considered
“pre-IPO
companies”,
valuation
methods
utilized
may
include,
but
are
not
limited
to
the
following:
sales
comparison
approach;
discounted
cash
flow
method;
hypothetical
sales
method;
and
appraisals
received
from
one
or
more
pricing
services.
In
addition,
the
Fund
may
utilize:
an
analysis
of
financial
ratios
and
valuation
metrics
of
the
Portfolio
Companies
that
issued
private
equity
securities
to
peer
companies
that
are
public;
an
analysis
of
the
Portfolio
Companies’
most
recent
financial
statements
and
forecasts;
an
analysis
of
the
markets
in
which
the
Portfolio
Company
does
business;
and
other
relevant
factors.
Certain
Portfolio
Companies
are
generally
valued
based
on
the
latest
NAV
reported
by
the
Portfolio
Company's
portfolio
manager
(“Portfolio
Manager”)
as
a
practical
expedient,
where
such
valuation
methodologies
employed
by
certain
Portfolio
Companies
reflect
fair
value
pricing
and
the
effects
of
using
fair
value
pricing.
New
purchases
of
certain
Portfolio
Companies
may
be
valued
at
original
transaction
price
initially
until
a
NAV
is
provided
by
the
Portfolio
Manager.
If
the
Valuation
Committee
concludes
in
good
faith
that
the
latest
NAV
reported
by
a
Portfolio
Manager
does
not
represent
fair
value
(e.g.,
there
is
more
current
information
regarding
a
portfolio
asset
which
significantly
changes
its
fair
value),
the
Valuation
Committee
will
make
a
corresponding
adjustment
to
reflect
the
current
fair
value
of
such
asset
within
such
Portfolio
Company.
Attributes
of
those
investments
include
the
investment
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
19
strategies
of
the
investees
and
may
also
include,
but
are
not
limited
to,
restrictions
on
the
investor’s
ability
to
redeem
its
investments
at
the
measurement
date
and
any
unfunded
commitments.
Because
of
the
inherent
uncertainty
in
valuation,
the
estimated
values
may
differ
from
the
values
that
would
have
been
used
had
a
ready
market
for
the
securities
existed,
and
the
differences
could
be
material.
Due
to
the
inherent
uncertainty
of
determining
the
fair
value
of
investments
that
do
not
have
a
readily
available
market
value,
the
fair
value
of
the
Fund’s
investments
may
differ
significantly
from
the
values
that
would
have
been
used
had
a
readily
available
market
value
existed
for
such
investments,
and
the
differences
could
be
material.
The
following
is
a
summary
of
the
Fund’s
assets
and
liabilities
measured
at
fair
value
on
a
recurring
basis
as
of
March
31,
2026
,
and
indicates
the
fair
value
hierarchy
of
the
inputs
utilized
by
the
Fund
to
determine
such
fair
value
(amounts
in
thousands)
:
The
Fund
utilizes
the
NAV
as
a
practical
expedient
to
value
certain
investments.
The
table
below
sets
forth
those
investments,
including
their
unfunded
commitments
and
other
attributes,
that
were
significant
as
of
March
31,
2026
(1)
.
Assets
Level
1
Level
2
Level
3
Practical
Expedient
(1)
Total
Portfolio
Companies
$
–‌
$
–‌
$
432,913‌
$
72,480‌
$
505,393‌
Promissory
Note
–‌
–‌
4,732‌
–‌
4,732‌
Commercial
Mortgage-Backed
Securities
–‌
65,751‌
–‌
–‌
65,751‌
Short-Term
Investment
38,310‌
–‌
–‌
–‌
38,310‌
Total
Assets
$
38,310‌
$
6
5
,
751‌
$
4
3
7
,
6
45‌
$
7
2
,
480‌
$
6
1
4
,
1
86‌
Liabilities
Level
1
Level
2
Level
3
Practical
Expedient
(1)
Total
Reverse
Repurchase
Agreements
$
–‌
$
(15,879‌)
$
–‌
$
–‌
$
(15,879‌)
Total
Liabilities
$
–‌
$
(15,879‌)
$
–‌
$
–‌
$
(15,879‌)
(1)
As
a
practical
expedient,
certain
investments
that
are
measured
at
fair
value
using
the
NAV
per
share
(or
its
equivalent)
have
not
been
categorized
in
the
fair
value
hierarchy.
The
fair
value
amounts
presented
in
this
table
are
intended
to
permit
reconciliation
of
the
fair
value
hierarchy
to
the
amounts
presented
in
the
Schedule
of
Investments.
Investment
Category
Investment
Strategy
Fair
Value
(amounts
in
thousands)
Unfunded
Commitments
(amounts
in
thousands)
Estimated
Remaining
Life
Redemption
Frequency
Redemption
Notice
Period
(In
Days)
Redemption
Restriction
Terms
Portfolio
Company
To
serve
as
an
investment
vehicle
through
which
the
assets
of
its
partners
may
be
utilized
to
make
investment(s)
in
the
securities
of
Databricks,
Inc.
$
72,480
N/A
Indefinite
None
N/A
N/A
(1)
The
information
summarized
in
the
table
above
represents
the
general
terms
for
the
specified
financing
stage.
Individual
investment
funds
may
have
terms
that
are
more
or
less
restrictive
than
those
terms
indicated
for
the
asset
class
as
a
whole.
In
addition,
most
individual
investment
funds
have
the
flexibility,
as
provided
for
in
their
constituent
documents,
to
modify
and
waive
such
terms.
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
20
The
following
is
a
summary
of
quantitative
information
about
the
significant
unobservable
inputs
of
the
Fund’s
Level
3
investments
as
of
March
31,
2026
(amounts
in
thousands)
.
The
tables
are
not
intended
to
be
all-inclusive
but
instead
capture
the
significant
unobservable
inputs
relevant
to
the
Fund’s
determination
of
fair
value.
The
following
is
a
reconciliation
of
investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
fair
value
(amounts
in
thousands)
:
Restricted
Investments
The
Fund
may
purchase
securities
for
which
there
is
a
limited
trading
market
or
which
are
subject
to
restrictions
on
resale
to
the
public.
Restricted
securities
and
securities
for
which
there
is
a
limited
trading
market
may
be
significantly
more
difficult
to
value
due
to
the
unavailability
of
reliable
market
quotations
for
such
securities,
and
investment
in
such
securities
may
have
an
adverse
impact
on
NAV.
In
addition,
the
Fund’s
investments
in
Portfolio
Companies
will
often
be
subject
to
lock-up
provisions
that
prohibit
the
Fund
from
selling
its
equity
investments
into
the
public
market
for
specified
periods
of
time
after
IPOs
of
the
Portfolio
Company,
typically
180
days.
The
Fund
may
purchase
Rule
144A
securities
for
which
there
may
be
a
secondary
market
of
qualified
institutional
buyers
as
contemplated
by
Rule
144A
under
the
Securities
Act.
Rule
144A
provides
an
exemption
from
the
registration
requirements
of
the
Securities
Act
for
the
resale
of
certain
restricted
securities
to
qualified
institutional
buyers.
The
following
are
the
restricted
investments
held
by
the
Fund
as
of
March
31,
2026
(amounts
in
thousands)
:
Investment
Fair
Value
Valuation
Technique
(1)
Unobservable
Input
Range
Impact
to
Valuation
from
an
Increase
in
Input
(2)
Portfolio
Companies
$
327,095‌
Market
Transaction
Transaction
Price
N/A
Increase
Portfolio
Companies
105,818‌
Recent
Transaction
Transaction
Price
N/A
Increase
Promissory
Note
4,732‌
Discounted
Cash
Flow
Discount
Rate
10.9%
Decrease
Collateral
Value
$4,732
Increase
Total
Investments
$
437,645‌
(1)
Market
transaction
represents
investments
valued
using
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
Recent
transaction
represents
investments
held
at
the
original
transaction
price,
either
from
the
Portfolio
Company's
funding
round
or
a
secondary
seller,
and
other
relevant
market
data.
(2)
Represents
the
expected
directional
change
in
the
fair
value
of
the
Level
3
investments
that
would
result
from
an
increase
in
the
corresponding
input.
A
decrease
to
the
unobservable
input
would
have
the
opposite
effect.
Significant
changes
in
these
inputs
could
result
in
significantly
higher
or
lower
fair
value
measurements.
Portfolio
Companies
Promissory
Note
Total
Balance
as
of
March
31,
2025
$
119,573‌
$
–‌
$
119,573‌
Purchases
or
conversions
147,004‌
4,732‌
(1)
151,736‌
Realized
gain
(loss)
–‌
–‌
–‌
Net
change
in
unrealized
appreciation/depreciation
166,834‌
–‌
166,834‌
Sales
or
conversions
(498‌)
–‌
(498‌)
Transfers
into
Level
3
–‌
–‌
–‌
Transfers
out
of
Level
3
–‌
–‌
–‌
Balance
as
of
March
31,
2026
$
432,913‌
$
4,732‌
$
437,645‌
Net
change
in
unrealized
appreciation/depreciation
for
the
year
ended
March
31,
2026
related
to
Level
3
investments
held
at
March
31,
2026
$
166,834‌
$
–‌
$
166,834‌
(1)
Represents
the
fair
value
of
a
promissory
note
received
in
exchange
for
the
Fund’s
limited
partnership
interest
in
Theory
Ventures,
L.P.
in
an
in-kind
transaction.
Description
Initial
Acquisition
Date
Shares
Cost
Value
as
of
March
31,
2026
%
of
Net
Assets
Databricks,
Inc.
-
SPV
07/14/23
N/A
$
25,019‌
$
72,480‌
10.7‌%
OpenAI
Group
PBC
-
CIV
09/27/24
N/A
25,890‌
64,614‌
9.5‌%
Anthropic,
PBC
-
CIV
12/06/23
N/A
8,534‌
56,388‌
8.3‌%
Anthropic,
PBC
-
CIV
08/14/25
N/A
21,462‌
36,030‌
5.3‌%
Anduril
Industries,
Inc.
-
CIV
10/27/23
N/A
6,021‌
30,231‌
4.5‌%
Space
Exploration
Technologies
Corp.
-
SPV
07/18/25
5‌
16,404‌
26,856‌
4.0‌%
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
21
Income
Taxes
The
Fund
intends
to
elect
and
intends
to
qualify
as
a
RIC
under
the
Code,
for
its
taxable
year
ending
March
31,
2026.
To
qualify
as
a
RIC,
the
Fund
must
meet
certain
organizational
and
operational
requirements,
including
a
requirement
to
distribute
at
least
90%
of
the
Fund’s
annual
investment
company
taxable
income
to
the
shareholders
of
the
Fund
(“Shareholders”)
(which
is
computed
without
regard
to
the
dividends
paid
deduction
and
generally
equals
the
Fund’s
ordinary
income
plus
the
excess
of
its
net
short-term
capital
gains
over
its
net
long-term
capital
losses,
minus
deductible
expenses).
As
a
RIC,
the
Fund
generally
will
not
be
subject
to
U.S.
federal
income
tax
on
income
or
gains
distributed
in
a
timely
manner
to
its
Shareholders
in
the
form
of
dividends.
Even
if
the
Fund
qualifies
for
taxation
as
a
RIC,
it
may
be
subject
to
certain
state
and
local
taxes
on
its
income
and
property,
and
federal
income
and
excise
taxes
on
its
undistributed
income.
The
tax
period
for
the
taxable
year
ending
March
31,
2023
and
all
tax
periods
following
remain
open
to
examination
by
the
major
taxing
authorities
in
all
jurisdictions
where
the
Fund
is
subject
to
taxation.
For
the
open
tax
periods,
the
Fund
has
no
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
Description
Initial
Acquisition
Date
Shares
Cost
Value
as
of
March
31,
2026
%
of
Net
Assets
Databricks,
Inc.
-
Common
Stock
11/20/23
122‌
$
8,874‌
$
23,256‌
3.4‌%
Anthropic,
PBC
-
CIV
02/10/26
N/A
20,800‌
20,000‌
2.9‌%
OpenAI
Group
PBC
-
CIV
12/29/23
N/A
5,350‌
19,549‌
2.9‌%
Epic
Games,
Inc.
-
Common
Stock
08/27/25
43‌
19,180‌
19,180‌
2.8‌%
dbt
Labs,
Inc.
-
Series
D
-
Preferred
Stock
09/22/23
441‌
15,000‌
15,000‌
2.2‌%
Ramp
Business
Corp.
-
Series
A-2
-
Preferred
Stock
10/08/25
149‌
10,200‌
13,365‌
2.0‌%
Ramp
Business
Corp.
-
Series
C-1
-
Preferred
Stock
01/31/25
133‌
5,005‌
12,000‌
1.8‌%
Vanta,
Inc.
-
Series
B-1
-
Preferred
Stock
09/07/22
555‌
5,000‌
10,116‌
1.5‌%
Canva,
Inc.
-
Common
Stock
09/15/23
6‌
6,220‌
9,599‌
1.4‌%
Loyal
Animal
Health,
Inc.
-
Series
C
-
Preferred
Stock
12/10/25
780‌
9,560‌
9,560‌
1.4‌%
Flock
Group,
Inc.
-
Class
B
-
Preferred
Stock
11/26/25
631‌
13,961‌
9,557‌
1.4‌%
Anduril
Industries,
Inc.
-
Series
Seed
-
Preferred
01/06/26
76‌
7,350‌
7,350‌
1.1‌%
Flock
Group,
Inc.
-
Class
A
-
Preferred
Stock
03/02/26
440‌
6,661‌
6,661‌
1.0‌%
Flock
Group,
Inc.
-
Class
A
First
SAFE
-
Preferred
Stock
03/02/26
373‌
5,639‌
5,639‌
0.8‌%
Visual
Layer,
Inc.
-
SAFE
06/04/24
N/A
5,000‌
5,000‌
0.7‌%
Erebor
Bank,
N.A.
-
Series
B
-
Preferred
Stock
02/20/26
19‌
5,000‌
5,000‌
0.7‌%
Inspectify,
Inc.
-
Series
A-5
-
Preferred
Stock
06/30/23
1,295‌
4,000‌
5,000‌
0.7‌%
Promissory
Note
-
Theory
Ventures
03/01/26
5,
000‌
4,732‌
4,732‌
0.7‌%
AI-LLM,
LLC
-
CIV
08/31/23
N/A
1,597‌
3,105‌
0.5‌%
Handshake
-
Series
C
-
Preferred
Stock
10/23/25
38‌
2,814‌
2,814‌
0.4‌%
Anyscale,
Inc.
-
Common
Stock
10/18/23
511‌
2,494‌
2,494‌
0.4‌%
Intercom,
Inc.
-
Common
Stock
10/17/25
45‌
2,385‌
2,385‌
0.4‌%
Ramp
Business
Corp.
-
Common
Stock
05/20/24
26‌
693‌
2,376‌
0.3‌%
Flock
Group,
Inc.
-
Class
C
-
Preferred
Stock
11/26/25
103‌
2,278‌
1,559‌
0.2‌%
Rhino
Labs,
Inc.
-
Series
P
-
Preferred
Stock
02/05/25
10‌
2,000‌
1,023‌
0.2‌%
Immuta,
Inc.
-
Common
Stock
03/28/23
80‌
1,022‌
1,022‌
0.2‌%
DittoLive,
Inc.
-
Series
B
-
Preferred
Stock
01/17/25
73‌
1,000‌
1,000‌
0.
2‌
%
Inspectify,
Inc.
-
SAFE
11/03/25
N/A
1,000‌
1,000‌
0.
2‌
%
Stripe,
Inc.
-
Common
Stock
06/28/24
10‌
355‌
618‌
0.1‌%
Handshake
-
Series
D
-
Preferred
Stock
10/23/25
8‌
601‌
601‌
0.1‌%
Omni
Analytics,
Inc.
-
Series
B-1
-
Preferred
Stock
08/27/24
58‌
500‌
588‌
0.1‌%
Hightouch
-
Common
Stock
06/06/24
12‌
26
8‌
583‌
0.1‌%
Intercom,
Inc.
-
Series
A
-
Preferred
Stock
10/17/25
8‌
417‌
417‌
0.1‌%
Risotto
-
Series
Seed
2
-
Preferred
Stock
(1)
02/20/25
261‌
300‌
375‌
0.
0‌
%
Luminos,
Inc.
-
Series
Seed
2
-
Preferred
Stock
(1)
11/09/23
170‌
198‌
285‌
0.0‌%
Rhino
Labs,
Inc.
-
Series
D-1A
-
Preferred
Stock
(1)
02/03/25
300‌
250‌
250‌
0.0‌%
Rhino
Labs,
Inc.
-
Series
D-1
-
Preferred
Stock
(1)
02/03/25
170‌
141‌
141‌
0.0‌%
Risotto
-
Series
Seed
1
-
Preferred
Stock
(1)
11/12/25
87‌
125‌
125‌
0.0‌%
Hightouch
-
Series
C
-
Preferred
Stock
(1)
05/09/25
2‌
100‌
100‌
0.0‌%
Luminos,
Inc.
-
Series
Seed
1
-
Preferred
Stock
(1)
11/05/25
47‌
79‌
79‌
0.0‌%
Gumloop
-
Series
A-2
-
Preferred
Stock
(1)
08/16/24
5‌
10‌
22‌
0.0‌%
Total
$
2
81
,
48
9‌
$
5
1
0,
1
25‌
7
5
.
2‌
%
(1)
Value
is
less
than
0.05%
of
Total
Net
Assets.
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
22
Prior
to
the
taxable
year
ending
March
31,
2026,
the
Fund
was
treated
as
a
regular
corporation,
or
a
“C”
corporation,
for
U.S.
federal
income
tax
purposes.
During
the
periods
the
Fund
was
treated
as
a
“C”
corporation,
for
U.S.
federal
income
tax
purposes,
the
Fund
incurred
tax
expenses
and
was
subject
to
tax
at
regular
corporate
rates.
Pursuant
to
rules
applicable
to
RICs
that
were
previously
taxed
as
C
corporations,
because
the
Fund’s
assets
had
an
aggregate
net
unrealized
built-in
gain
at
the
time
it
first
qualified
as
a
RIC,
the
Fund
will
be
subject
to
tax
at
regular
corporate
rates
to
the
extent
the
Fund
recognizes
such
gain
within
five
years
after
so
qualifying,
even
if
the
Fund
distributes
such
gain.
In
accordance
with
U.S.
generally
accepted
accounting
principles,
the
Fund
has
already
accrued
a
deferred
income
tax
liability
balance,
at
the
currently
effective
statutory
U.S.
federal
income
tax
rate
(currently
21%)
plus
an
estimated
state
and
local
income
tax
rate,
for
its
future
tax
liability
associated
with
such
net
unrealized
built-in
gain.
Net
capital
or
ordinary
losses
recognized
during
the
recognition
period
may
be
used
to
offset
built-in
gains.
Such
deferred
tax
liability,
and
any
deferred
tax
assets,
are
accounted
for
in
calculating
the
Fund’s
quarterly
NAV
and
will
be
remeasured
from
time
to
time,
as
the
Adviser
deems
necessary,
in
accordance
with
U.S.
generally
accepted
accounting
principles.
Income
tax
and
related
interest
and
penalties
would
be
recognized
by
the
Fund
as
tax
expense
in
the
Statement
of
Operations
if
the
tax
positions
were
deemed
to
not
meet
the
more-likely-than-not
threshold.
As
of
March
31,
2026,
the
Fund
did
not
record
any
cumulative
unrecognized
tax
benefits
on
the
Statement
of
Assets
and
Liabilities.
The
Fund
accounts
for
income
taxes
under
the
asset
and
liability
method,
which
requires
the
recognition
of
deferred
tax
assets
and
liabilities
for
the
expected
future
tax
consequences
of
events
that
have
been
included
in
the
financial
statements.
Under
this
method,
deferred
tax
assets
and
liabilities
are
recognized
as
temporary
differences
between
the
financial
statement
carrying
amounts
of
existing
assets
and
liabilities
and
their
respective
tax
bases,
as
well
as
net
operating
loss
and
tax
credit
carryforwards.
Deferred
tax
assets
and
liabilities
are
measured
using
enacted
tax
rates
in
effect
for
the
year
in
which
the
differences
are
expected
to
reverse.
The
effect
of
a
change
in
tax
rates
on
deferred
tax
assets
and
liabilities
is
recognized
in
income
in
the
period
that
includes
the
enactment
date.
Distributions
To
Shareholders
The
Fund
intends
to
make
distributions
necessary
to
qualify
to
be
taxed
as
a
RIC
and,
once
qualified,
maintain
its
qualification
for
taxation
as
a
RIC.
The
Fund
expects
to
declare
and
make
distributions
on
a
quarterly
basis,
or
more
or
less
frequently
as
determined
by
the
Board,
in
arrears.
Notwithstanding
the
foregoing,
it
is
likely
that
many
of
the
Portfolio
Companies
in
whose
securities
the
Fund
invests
will
not
pay
any
dividends,
and
this,
together
with
the
Fund’s
expenses,
means
that
there
can
be
no
assurance
the
Fund
will
have
substantial
income
or
pay
dividends.
The
Board
may
authorize
distributions
in
Shares
or
in
excess
of
those
required
for
the
Fund
to
maintain
RIC
tax
status
depending
on
the
Fund’s
financial
condition
and
such
other
factors
as
the
Board
may
deem
relevant.
The
distribution
rate
may
be
modified
by
the
Board
from
time
to
time.
The
Board
reserves
the
right
to
change
or
suspend
the
distribution
policy
from
time
to
time.
Distributions
to
Shareholders
of
the
Fund
are
recorded
on
the
ex-dividend
date.
If
the
Fund
fails
to
qualify
as
a
RIC
in
any
taxable
year,
it
will
be
taxed
as
an
ordinary
corporation
on
its
taxable
income
(even
if
such
income
is
distributed
to
its
Shareholders)
and
all
distributions
out
of
earnings
and
profits
will
generally
be
taxed
to
certain
noncorporate
U.S.
shareholders
(including
individuals)
as
“qualified
dividend
income”
eligible
for
reduced
maximum
tax
rates.
Investment
Income
and
Securities
Transactions
Securities
transactions
are
accounted
for
on
the
date
the
securities
are
purchased
or
sold
(trade
date).
Realized
gains
and
losses
on
sales
of
investments
are
determined
on
a
specific
identification
basis.
Dividend
income
and
distributions
from
investments
are
recorded
on
the
ex-dividend
date.
Interest
income
is
recorded
on
an
accrual
basis
and
includes,
where
applicable,
the
amortization
of
premiums
and
accretion
of
discounts.
Distributions
received
from
investments
generally
are
comprised
of
ordinary
income
and/
or
return
of
capital.
The
Fund
estimates
the
allocation
of
distributions
between
investment
income
and
return
of
capital
based
on
historical
information
or
regulatory
filings.
These
estimates
may
subsequently
be
revised
based
on
actual
allocations
received
from
investments
after
their
tax
reporting
periods
are
concluded,
as
the
actual
character
of
these
distributions
is
not
known
until
after
the
reporting
period
of
the
Fund.
Commitments
and
Contingencies
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
and
warranties,
and
which
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
23
provide
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
However,
based
on
experience,
the
Fund
expects
the
risk
of
loss
to
be
remote.
The
Fund
may
be
required
to
provide
financial
support
in
the
form
of
investment
commitments
to
certain
investees
as
part
of
the
conditions
for
entering
into
the
investments.
As
of
March
31,
2026,
the
Fund
had
total
unfunded
capital
commitments
of
$599
(amount
in
thousands)
for
the
promissory
note
investment.
The
Fund
is
not
currently
subject
to
any
material
legal
proceedings
and,
to
the
Fund’s
knowledge,
no
material
legal
proceedings
are
threatened
against
the
Fund.
From
time
to
time,
the
Fund
may
be
a
party
to
certain
legal
proceedings
in
the
ordinary
course
of
business,
including
proceedings
related
to
the
enforcement
of
the
Fund’s
rights
under
contracts
with
its
Portfolio
Companies.
While
the
outcome
of
any
legal
proceedings
cannot
be
predicted
with
certainty,
to
the
extent
the
Fund
becomes
party
to
such
proceedings,
the
Fund
would
assess
whether
any
such
proceedings
will
have
a
material
adverse
effect
upon
its
financial
condition
or
results
of
operations.
Under
the
Fund’s
organizational
documents,
its
officers
and
directors
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
3.
Share
Transactions
Below
is
a
summary
of
transactions
with
respect
to
the
Fund’s
common
Shares
for
the
year
ended
March
31,
2026
and
for
the
year
ended
March
31,
2025
(all
tabular
amounts
are
in
thousands
except
share
data)
:
As
of
March
31,
2026,
the
Sponsor
held
10,000
common
shares.
For
the
year
ended
March
31,
2026,
total
distributions
declared
to
this
related
party
was
approximately
$2,000.
During
the
year
ended
March
31,
2026
,
the
Fund
sold
shares
to
the
Fundrise
Real
Estate
Interval
Fund,
LLC
(the
“Flagship
Fund”),
an
affiliated
fund
sponsored
by
the
Adviser.
As
of
March
31,
2026
,
the
Flagship
Fund
held
approximately
1,398,936
common
shares,
valued
at
approximately
$183,191
(amount
in
thousands).
For
the
year
ended
March
31,
2026
,
the
Fund
did
not
declare
any
distributions
to
the
Flagship
Fund
.
4.
Tender
Offers
and
Trading
of
Fund
Shares
on
the
New
York
Stock
Exchange,
LLC
In
connection
with
the
conversion
of
the
Fund
from
a
closed-end
fund
operating
as
a
tender
offer
fund
pursuant
to
the
Securities
Exchange
Act
of
1934,
as
amended,
to
a
closed-end
fund
with
its
Shares
listed
on
the
NYSE,
the
Fund’s
Board
of
Directors
approved
the
Fund’s
final
tender
offer
beginning
on
January
30,
2026,
with
an
offer
period
which
closed
on
February
28,
2026
(“Final
Tender
Offer”).
The
Fund
offered
to
repurchase
Fund
Shares
in
an
amount
up
to
5%
of
the
Fund’s
net
assets
pursuant
to
the
Final
Tender
Offer.
With
the
listing
of
the
Fund’s
shares
on
the
NYSE
effective
March
19,
2026,
the
Fund’s
Board
of
Directors
will
no
longer
authorize
tender
offers
for
the
Fund.
Prior
to
the
Final
Tender
Offer,
the
Fund
conducted
quarterly
tender
offers
authorized
by
the
Fund’s
Board
of
Directors
in
the
amount
of
up
to
5%
of
the
Fund’s
net
assets
with
respect
to
any
such
offer.
Repurchases
of
Shares
pursuant
to
such
tender
offers
were
made
to
all
holders
of
Shares,
at
such
times
and
on
such
terms
as
determined
by
the
Fund’s
Board
of
Directors
from
time
to
time
in
its
sole
discretion
in
accordance
with
the
requirements
of
Rule
13e-4
under
the
Securities
Exchange
Act
of
1934,
as
amended.
As
a
listed
closed-end
fund,
Fund
shareholders
have
the
ability
to
sell
their
shares
in
the
secondary
market
on
the
NYSE
at
any
time
during
market
hours.
The
Fund’s
Shares
may
trade
at
a
premium
or
discount
to
the
Fund’s
net
asset
value.
The
repurchase
of
For
the
Year
Ended
March
31,
2026
For
the
Year
Ended
March
31,
2025
Common
Shares
Shares
Amount
Shares
Amount
Proceeds
from
sale
of
shares
19,020,29
2‌
$
302,187‌
7,164,434‌
$
76,634‌
Reinvestment
of
distributions
100,318‌
1,660‌
1,546‌
17‌
Total
gross
proceeds
19,120,61
0‌
$
303,847‌
7,165,980‌
$
76,651‌
Repurchase
of
shares
(
1,895,119‌
)
(
28,564‌
)
(1,116,726‌)
(11,753‌)
Net
Proceeds
from
Common
Shares
17,225,49
1‌
$
275,283‌
6
,
049
,
254‌
$
64,898‌
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
24
closed-end
tender
offer
fund
shares
are
completed
at
net
asset
value
whereas
the
sale
of
listed
closed-end
fund
shares
are
completed
at
market
price.
The
following
table
presents
the
repurchase
offers
that
were
completed
during
the
year
ended
March
31,
2026
(all
tabular
amounts
are
in
thousands
except
share
data)
:
5.
Investment
Manager
Fees
and
Other
Related
Party
Transactions
On
July
18,
2022,
the
Fund
entered
into
an
Investment
Management
Agreement
with
the
Adviser.
Pursuant
to
the
Investment
Management
Agreement,
and
in
consideration
of
the
services
provided
by
the
Adviser
to
the
Fund,
the
Adviser
is
entitled
to
a
management
fee
(the
“Management
Fee”)
of
1.85%
of
the
Fund’s
average
daily
net
assets.
The
Management
Fee
will
be
calculated
and
accrued
daily
and
payable
monthly
in
arrears.
For
the
year
ended
March
31,
2026,
the
Fund
incurred
$6,870
of
Management
Fees
(amount
in
thousands)
.
The
Adviser
and
the
Fund
previously
entered
into
an
Expense
Limitation
agreement
pursuant
to
which
the
Adviser
contractually
agreed
to
waive
its
Management
Fee
and/or
pay
or
reimburse
the
ordinary
annual
operating
expenses
of
the
Fund
(including
organization
and
offering
costs,
but
excluding
interest
payments,
taxes,
brokerage
commissions,
fees
and
expenses
incurred
by
the
Fund’s
use
of
leverage,
acquired
fund
fees
and
expenses
and
extraordinary
or
non-routine
expenses,
including
with
respect
to
reorganizations
or
litigation
affecting
the
Fund)
(the
“Operating
Expenses”)
to
the
extent
necessary
to
limit
the
Fund’s
Operating
Expenses
to
3.00%
of
the
Fund’s
average
daily
net
assets.
The
Adviser
is
entitled
to
seek
recoupment
from
the
Fund
of
fees
waived
or
expenses
paid
or
reimbursed
to
the
Fund
for
a
period
ending
three
years
after
the
date
of
the
waiver,
payment
or
reimbursement,
subject
to
the
limitation
that
the
recoupment
will
not
cause
the
Fund’s
Operating
Expenses
to
exceed
the
lesser
of
(a)
the
expense
limitation
amount
in
effect
at
the
time
such
fees
were
waived
or
expenses
paid
or
recouped,
or
(b)
the
expense
limitation
amount
Repurchase
Offers
Fourth
Quarter
Repurchase
Commencement
Date
February
27,
2025
Repurchase
Request
Deadline
March
31,
2025
Repurchase
Pricing
Date
April
1,
2025
Amount
Repurchased
$
3,862‌
Shares
Repurchased
339,113‌
Repurchase
Offers
First
Quarter
Repurchase
Commencement
Date
May
29,
2025
Repurchase
Request
Deadline
June
30,
2025
Repurchase
Pricing
Date
July
1,
2025
Amount
Repurchased
$
3,510‌
Shares
Repurchased
279,466‌
Repurchase
Offers
Second
Quarter
Repurchase
Commencement
Date
August
22,
2025
Repurchase
Request
Deadline
September
30,
2025
Repurchase
Pricing
Date
October
1,
2025
Amount
Repurchased
$
5,207‌
Shares
Repurchased
349,466‌
Repurchase
Offers
Third
Quarter
Repurchase
Commencement
Date
November
26,
2025
Repurchase
Request
Deadline
December
31,
2025
Repurchase
Pricing
Date
January
2,
2026
Amount
Repurchased
$
6,683‌
Shares
Repurchased
417,679‌
Repurchase
Offers
Final
Repurchase
Commencement
Date
January
30,
2026
Repurchase
Request
Deadline
February
28,
2026
Repurchase
Pricing
Date
March
2,
2026
Amount
Repurchased
$
9,302‌
Shares
Repurchased
509,395‌
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
25
in
effect
at
the
time
of
the
recoupment.
Pursuant
to
approval
by
the
Board,
the
Fund’s
Expense
Limitation
Agreement
terminated
effective
as
of
the
Fund's
listing
of
Shares
on
the
NYSE.
For
the
year
ended
March
31,
2026,
the
Adviser
did
not
waive
management
fees
or
reimburse
expenses
.
As
of
March
31,
2026,
the
Fund
had
remaining
expense
waivers
and/or
reimbursement
subject
to
recoupment
by
the
Adviser
and
respective
dates
of
expiration
as
follows
(amounts
in
thousands)
:
For
the
year
ended
March
31,
2026,
the
Adviser
recouped
$724
(amount
in
thousands)
as
reflected
on
the
accompanying
Statement
of
Operations.
The
Adviser
or
its
affiliates
may
be
entitled
to
certain
fees
as
permitted
by
the
1940
Act
or
as
otherwise
permitted
by
applicable
law
and
regulation,
such
as
fees
and
expenses
associated
with
the
selection,
acquisition,
or
origination
of
investments
(including,
but
not
limited
to,
reimbursement
of
non-ordinary
expenses
and
employee
time
required
to
special
service
a
non-performing
asset)
whether
or
not
the
Fund
ultimately
acquires
or
originates
the
investment,
and
the
sale
of
investments.
No
such
fees
were
incurred
or
paid
by
the
Fund
to
the
Adviser
or
its
affiliates
for
the
year
ended
March
31,
2026
.
The
Adviser
and
Rise
Companies
entered
into
a
Shared
Services
Agreement
where
Rise
Companies
will
provide
the
Adviser
with
the
personnel,
services
and
resources
necessary
for
the
Adviser
to
comply
with
its
obligations
and
responsibilities
under
the
Second
Amended
and
Restated
Operating
Agreement
(“Operating
Agreement”)
and
Investment
Management
Agreement,
which
includes
responsibility
for
operations
of
the
Fund
and
performance
of
such
services
and
activities
relating
to
the
investments
and
operations
of
the
Fund
as
may
be
appropriate,
including
without
limitation
those
services
and
activities
listed
in
the
Operating
Agreement
and
Investment
Management
Agreement.
The
Fund
will
reimburse
the
Adviser
for
out-of-pocket
expenses
paid
to
third
parties
in
connection
with
providing
services
to
the
Fund.
This
does
not
include
the
Adviser’s
overhead,
employee
costs
borne
by
the
Adviser,
or
utilities
costs.
Expense
reimbursements
payable
to
the
Adviser
also
may
include
expenses
incurred
by
the
Sponsor
in
the
performance
of
services
pursuant
to
a
shared
services
agreement
between
the
Adviser
and
the
Sponsor,
including
any
increases
in
insurance
attributable
to
the
management
or
operation
of
the
Fund.
D
uring
the
year
ended
March
31,
2026
,
there
were
approximately
$97
(amount
in
thousands)
of
expenses
reimbursed
to
the
Adviser
pursuant
to
the
shared
services
agreement.
Affiliated
Investments
The
Fund
invests
in
one
or
more
affiliated
entities.
The
securities
of
the
affiliated
investment
vehicles
have
not
been
registered
under
the
Securities
Act
of
1933,
as
amended,
and
thus
investments
in
such
affiliated
investment
vehicles
are
subject
to
restrictions
on
resale.
During
the
year
ended
March
31,
2026,
investments
in
affiliates
were
as
follows
(amounts
in
thousands)
:
Recoupment
Expiration
Expenses
Remaining
Expires
during
the
year
ended
March
31,
2027
$
432‌
Expires
during
the
year
ended
March
31,
2028
3,829‌
Expires
during
the
year
ended
March
31,
2029
–‌
Total
Fee
Waiver/Expense
Reimbursement
Subject
to
Recoupment
$
4,261‌
Non-Controlled
Affiliated
Investment
Balance
as
of
March
31,
2025
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
and
Capital
Gain
Distributions
Change
in
Unrealized
Appreciation/
Depreciation
Balance
as
of
March
31,
2026
Total
Dividend
Income
Technology
Private
Equity
Inspectify,
Inc.
$
5,000
$
1,000
(1)
$
–
$
–
$
–
$
6,000
(1)
$
–
Total
$
5,000
$
1,000
$
–
$
–
$
–
$
6,000
$
–
(1)
Amount
includes
a
$1,000
SAFE
in
Inspectify,
Inc.
which
has
not
yet
converted
into
an
equity
investment
as
of
March
31,
2026
(amount
in
thousands)
.
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
26
6.
Investments
The
Fund
invests
in
technology
companies,
with
a
primary
focus
on
the
equity
securities
(e.g.,
common
stock,
preferred
stock
and
convertible
debt)
of
certain
privately
held,
mid-to-late-stage,
growth
companies,
or
other
investments
(including
derivatives)
that
have
economic
characteristics
similar
to
investments
in
technology
companies.
The
cost
of
purchases
and
proceeds
from
the
sale
of
investments,
other
than
short-term
securities
and
in-kind
transactions,
for
the
year
ended
March
31,
2026
amounted
to
$196,759
and
$25,645,
respectively
(amounts
in
thousands)
.
For
the
year
ended
March
31,
2026,
the
cost
of
purchases
and
proceeds
from
sales
of
in-kind
transactions
were
$5,125
(amounts
in
thousands).
7.
Reverse
Repurchase
Agreements
The
Fund
may
use
leverage
to
provide
additional
funds
to
support
its
investment
activities.
The
Fund
may
enter
into
reverse
repurchase
agreements,
under
which
the
Fund
will
effectively
pledge
its
assets
as
collateral
to
secure
a
short-term
loan
from
a
bank
or
dealer
at
a
specified
maturity
date.
Generally,
the
other
party
to
the
agreement
makes
the
loan
in
an
amount
equal
to
a
percentage
of
the
market
value
of
the
pledged
collateral.
At
the
maturity
of
the
reverse
repurchase
agreement,
the
Fund
will
be
required
to
repay
the
loan
and
correspondingly
receive
back
its
collateral.
While
used
as
collateral,
the
assets
continue
to
pay
principal
and
interest
which
are
for
the
benefit
of
the
Fund.
The
gross
amount
of
cash
received
in
exchange
for
assets
sold
plus
accrued
interest
payments
to
be
made
by
the
Fund
to
counterparties
are
reflected
as
a
payable
for
reverse
repurchase
agreements
on
the
Statement
of
Assets
and
Liabilities.
Interest
expense
on
reverse
repurchase
agreements
are
recorded
as
a
component
of
interest
expense
on
the
Statement
of
Operations.
As
part
of
the
reverse
repurchase
agreements
held
as
of
March
31,
2026,
the
Fund
pledged
securities
as
collateral
valued
at
$23,886
(amount
in
thousands)
,
which
have
been
identified
on
the
Schedule
of
Investments.
For
the
year
ended
March
31,
2026,
the
average
borrowings
and
the
weighted
average
interest
rate
were
$4,691
(amount
in
thousands)
and
4.71%,
respectively.
As
of
March
31,
2026,
the
remaining
contractual
maturity
of
the
outstanding
reverse
repurchase
agreements
held
by
the
Fund
were
as
follows
(amount
in
thousands)
:
8.
Tax
Basis
Information
The
timing
and
characterization
of
certain
income,
capital
gains,
and
return
of
capital
distributions
are
determined
annually
in
accordance
with
federal
tax
regulations,
which
may
differ
from
GAAP.
As
a
result,
the
net
investment
income
(loss)
and
net
realized
gain
(loss)
on
investment
transactions
for
a
reporting
period
may
differ
significantly
from
distributions
during
such
period.
These
book/tax
differences
may
be
temporary
or
permanent
in
nature.
To
the
extent
these
differences
are
permanent,
they
are
charged
or
credited
to
paid-in
capital,
accumulated
net
investment
income/loss
or
accumulated
net
realized
gain/loss,
as
appropriate,
in
the
period
in
which
the
differences
arise.
As
of
March
31,
2026,
the
tax
basis
of
distributable
earnings
(accumulated
deficit)
was
as
follows
(amounts
in
thousands)
:
Counterparty
Overnight
and
Continuous
Up
to
30
Days
30
to
90
Days
Greater
than
90
Days
Total
Barclays
Bank
PLC
$
–
$
15,879
$
–
$
–
$
15,879
Undistributed
long-term
gain
$
394‌
Tax
accumulated
earnings
(loss)
$
394‌
Accumulated
capital
and
other
losses
(2,606‌)
Other
book/tax
temporary
differences
(4,014‌)
Net
unrealized
gain
(loss)
on
investments
228,421‌
Total
Distributable
Earnings
$
222,195‌
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
27
On
the
Statement
of
Assets
and
Liabilities,
as
a
result
of
net
operating
loss
and
permanent
tax
adjustments
for
the
pre-RIC
period,
amounts
for
the
year
ended
March
31,
2026
have
been
reclassified
from
what
was
previously
reported.
The
reclassification
has
no
impact
on
the
net
assets
of
the
Fund.
On
the
Statement
of
Assets
and
Liabilities,
as
a
result
of
permanent
book
to
tax
differences,
reclassification
adjustments
were
made
as
follows
(amounts
in
thousands)
:
For
tax
purposes,
the
current
year
ordinary
loss
deferral
is
$2,606
(amount
in
thousands)
(realized
during
the
period
January
1,
2026
through
March
31,
2026).
The
loss
will
be
recognized
on
the
first
business
day
of
the
Fund’s
next
fiscal
year
beginning
April
1,
2026.
During
the
tax
period
presented
below,
the
tax
character
of
distributions
paid
by
the
Fund
was
as
follows
(amounts
in
thousands)
:
As
of
March
31,
2026
,
the
unrealized
appreciation
and
depreciation
of
investments,
based
on
cost
for
federal
income
tax
purposes,
were
as
follows
(amounts
in
thousands)
:
The
Fund
intends
to
elect
and
intends
to
qualify
to
be
taxed
as
a
RIC
under
the
Code,
for
its
taxable
year
ending
March
31,
2026.
Prior
to
the
taxable
year
ending
March
31,
2026,
the
Fund
was
treated
as
a
regular
corporation,
or
a
“C”
corporation,
for
U.S.
federal
income
tax
purposes.
During
the
periods
the
Fund
was
treated
as
a
“C”
corporation,
for
U.S.
federal
income
tax
purposes,
the
Fund
incurred
tax
expenses
and
was
subject
to
tax
at
regular
corporate
rates.
Deferred
income
taxes
reflect
the
net
tax
effects
of
temporary
differences
between
the
carrying
amounts
of
assets
and
liabilities
for
financial
reporting
purposes
and
the
amounts
used
for
income
tax
purposes.
A
valuation
allowance
is
recognized
if,
based
on
the
weight
of
the
available
evidence,
it
is
more
likely
than
not
that
all
of
the
deferred
income
tax
asset
will
not
be
realized.
The
following
table
presents
the
significant
components
of
the
Fund’s
deferred
tax
assets
and
liabilities
as
of
March
31,
2026
(amounts
in
thousands):
Distributable
earnings
$
8,224‌
Paid
in
capital
(8,224‌)
For
the
Tax
Year
Ended
March
31,
2026
2025
Ordinary
income
$
–‌
$
–‌
Long-term
capital
gain
5,259‌
–‌
Return
of
capital
(1)
–‌
323‌
Total
Distributions
Paid
$
5,259‌
$
323‌
(1)
The
difference
between
tax-basis
distributions
and
book-basis
distributions
is
due
to
the
timing
of
when
distributions
are
considered
paid.
Cost
of
investments
for
tax
purposes
$
385,765‌
Gross
tax
unrealized
appreciation
$
245,480‌
Gross
tax
unrealized
depreciation
(17,059‌)
Net
Tax
Unrealized
Appreciation
$
228,421‌
Deferred
Tax
Assets:
Net
operating
loss
carryforwards
$
227‌
Less
valuation
allowance
–‌
Gross
Deferred
Tax
Assets
$
227‌
Deferred
Tax
Liabilities:
Investment
in
partnerships
$
(41‌)
Unrealized/realized
gain
on
investments
(4,036‌)
Gross
Deferred
Tax
Liabilities
$
(
4
,
07
7‌
)
Total
Deferred
Tax
(Liability)
Asset,
Net
$
(3,850‌)
Fundrise
Innovation
Fund,
LLC
Notes
to
Financial
Statements
(CONTINUED)
March
31,
2026
28
The
following
is
a
reconciliation
of
the
statutory
federal
income
tax
rate
to
the
Fund’s
effective
tax
rate
for
the
year
ended
March
31,
2026
(amounts
in
thousands)
:
Income
tax
and
related
interest
and
penalties
would
be
recognized
by
the
Fund
as
tax
expense
in
the
Statement
of
Operations
if
the
tax
positions
were
deemed
to
not
meet
the
more-likely-than-not
threshold.
As
of
March
31,
2026,
the
Fund
had
no
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
At
March
31,
2026,
the
Fund
had
federal
net
operating
loss
(NOL)
carryforwards
of
approximately
$1,082
(amount
in
thousands)
generated
prior
to
the
RIC
election.
These
pre-RIC
NOL
carryforwards
may
be
used
to
reduce
net
recognized
built-in
gains
during
the
5-year
recognition
period
following
the
effective
date
of
the
RIC
election,
thereby
reducing
the
Fund's
corporate-level
built-in
gains
tax
liability
under
Section
852(c)
of
the
Internal
Revenue
Code.
As
of
March
31,
2026,
the
Fund
did
not
record
any
cumulative
unrecognized
tax
benefits
on
its
trial
balance.
The
Fund
adopted
FASB
Accounting
Standards
Update
2023-09,
Income
Taxes
(Topic
740):
Improvements
to
Income
Tax
Disclosures
(“ASU
2023-09”),
during
the
year
ended
March
31,
2026.
Adoption
of
ASU
2023-09
did
not
have
a
material
impact
on
the
Fund’s
financial
statements
or
related
disclosures.
9.
Segment
Reporting
The
management
committee
of
Fundrise
Advisors,
LLC,
the
Fund’s
Adviser,
acts
as
the
Fund’s
chief
operating
decision
maker
(“CODM”)
assessing
performance
and
making
decisions
about
resource
allocation.
The
CODM
has
determined
that
the
Fund
has
a
single
operating
and
reportable
segment
based
on
the
fact
that
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
that
the
Fund’s
long-term
strategic
asset
allocation
is
pre-determined
in
accordance
with
the
terms
of
its
prospectus,
based
on
a
defined
investment
strategy
which
is
executed
by
the
Fund’s
portfolio
managers
as
a
team.
The
CODM
assesses
segment
performance
using
the
net
increase
(decrease)
in
net
assets
resulting
from
operations,
which
is
reported
in
the
Fund's
Statement
of
Operations.
The
financial
information
provided
to
and
reviewed
by
the
CODM
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
10.
New
Accounting
Pronouncement
In
November
2024,
the
FASB
issued
ASU
2024-03,
Income
Statement-Reporting
Comprehensive
Income-Expense
Disaggregation
Disclosures
(Subtopic
220-40):
Disaggregation
of
Income
Statement
Expenses.
This
guidance
requires
public
business
entities
to
disclose,
in
a
tabular
format,
disaggregated
information
about
certain
expense
categories
presented
on
the
face
of
the
income
statement.
The
guidance
is
effective
for
annual
reporting
periods
beginning
after
December
15,
2026
and
interim
reporting
periods
beginning
after
December
15,
2027,
with
early
adoption
permitted.
The
Fund
is
currently
evaluating
the
implications,
if
any,
of
the
additional
requirements
and
its
impact
on
the
financial
statements.
11.
Subsequent
Events
In
connection
with
the
preparation
of
the
accompanying
financial
statements,
the
Fund
has
evaluated
events
and
transactions
occurring
after
the
date
of
this
report
and
through
the
date
these
financial
statements
were
available
to
be
issued
and
determined
that
no
events
have
occurred
that
require
disclosure.
Rate
Reconciliation:
Amount
Percentage
Pre-tax
increase
in
net
assets
as
a
result
of
operations
$
195,417‌
Provision
for
income
taxes
at
the
U.S.
federal
rate
$
–‌
–‌
%
Permanent
adjustments
–‌
–‌
%
Section
1374
built-in
gains
tax
164‌
0‌%
Adjustment
to
deferred
tax
values
(1,975‌)
(1‌)%
Income
Tax
Expense/(Benefit)
$
(1,811‌)
(1‌)%
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
29
To
the
Shareholders
and
Board
of
Directors
of
Fundrise
Innovation
Fund,
LLC:
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities
of
Fundrise
Innovation
Fund,
LLC
(formerly,
Fundrise
Growth
Tech
Fund,
LLC)
(the
Fund),
including
the
schedule
of
investments,
as
of
March
31,
2026,
the
related
statements
of
operations
and
cash
flows
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
for
each
of
the
years
in
the
two-year
period
then
ended,
and
the
related
notes
(collectively,
the
financial
statements)
and
the
financial
highlights
for
each
of
the
years
in
the
three-year
period
then
ended
and
for
the
period
from
July
25,
2022
(commencement
of
investment
operations)
through
March
31,
2023.
In
our
opinion,
the
financial
statements
and
financial
highlights
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
March
31,
2026,
the
results
of
its
operations
and
its
cash
flows
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
years
in
the
two-year
period
then
ended,
and
the
financial
highlights
for
each
of
the
years
in
the
three-
year
period
then
ended
and
for
the
period
from
July
25,
2022
(commencement
of
investment
operations)
through
March
31,
2023,
in
conformity
with
U.S.
generally
accepted
accounting
principles.
Basis
for
Opinion
These
financial
statements
and
financial
highlights
are
the
responsibility
of
the
Fund's
management.
Our
responsibility
is
to
express
an
opinion
on
these
financial
statements
and
financial
highlights
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
and
financial
highlights
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements
and
financial
highlights,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements
and
financial
highlights.
Such
procedures
also
included
confirmation
of
securities
owned
as
of
March
31,
2026,
by
correspondence
with
the
custodian
or
by
other
appropriate
auditing
procedures.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements
and
financial
highlights.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
We
have
served
as
the
auditor
of
one
or
more
of
Fundrise
investment
companies
since
2019.
Philadelphia,
Pennsylvania
May
30,
2026
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)
March
31,
2026
30
1.
Investment
Objective
and
Policies
Investment
Objective
The
Fund’s
investment
objective
is
to
provide
total
return
primarily
through
long-term
capital
appreciation.
There
can
be
no
assurance
that
the
Fund
will
achieve
its
investment
objective.
The
Fund’s
investment
objective
is
non-fundamental
and
may
be
changed
by
the
Fund’s
Board
of
Directors
(the
“Board”)
without
approval
of
the
Fund’s
shareholders.
Principal
Investment
Strategies
Under
normal
circumstances,
the
Fund
will
invest
at
least
80%
of
its
net
assets
(plus
the
amount
of
any
borrowings
for
investment
purposes)
in
the
securities
of
technology
and
technology-related
companies
(referred
to
herein
as
“technology
companies”)
and
other
investments
(including
derivatives)
that
have
economic
characteristics
similar
to
investments
in
technology
companies.
For
this
purpose,
securities
of
technology
companies
include
equity
and
debt
securities
of
private
and
public
companies
operating
in
the
information
technology
and
telecommunication
services
sectors
as
well
as
technology-related
companies
in
other
sectors
and
industries,
including:
advertising
(AdTech);
sales
and
marketing
technology;
media;
biotechnology
(BioTech);
health
care
equipment
and
supplies;
health
care
technology;
pharmaceuticals;
artificial
intelligence;
data
and
analytics;
design
tech;
education
technology
(EdTech);
financial
services
technology
(FinTech);
real
estate
technology
(PropTech);
gaming;
internet
services;
manufacturing
technology;
entertainment;
mapping;
payments;
privacy
&
security;
science
and
engineering;
energy
and
sustainability
technology;
energy
equipment
and
services;
technology
hardware,
storage
and
peripherals;
software;
electronic
equipment,
instruments
and
components;
communications
equipment;
semiconductors
and
semiconductor
equipment;
agriculture;
transportation;
commercial
services
and
supplies;
chemicals;
synthetic
materials;
aerospace
and
defense;
and
nanotechnology.
The
Fund
seeks
to
achieve
its
investment
objective
by
investing
in
private
and
public
technology
companies
directly
or
indirectly,
with
a
primary
focus
on
the
equity
securities
(e.g.,
common
stock,
preferred
stock
and
convertible
debt)
of
certain
privately
held,
mid-to-late-stage,
growth
companies(“Portfolio
Companies”),
or
other
investments
(including
derivatives,
exchange-traded
funds
and
other
pooled
investment
vehicles)
that
have
economic
characteristics
similar
to
investments
in
technology
companies.
Earlier
mid-stage
growth
companies
are
privately
held
companies
that
typically
have
met
certain
key
development
milestones
(for
example,
first
customer
orders
or
first
revenue
shipments)
and
have
some
product
or
service
revenue,
but
are
still
operating
at
a
loss.
Later
mid-stage
growth
companies
are
privately
held
companies
that
typically
have
product
or
service
revenue
and
have
recently
achieved
breakthrough
measures
of
financial
success,
such
as
operating
profitability
or
break-even
or
positive
cash
flows.
Late-
stage
companies
are
publicly
and
privately
held
companies
that
have
typically
demonstrated
sustainable
business
operations
and
generally
have
a
well-known
product
or
service
with
a
strong
market
presence.
Late-stage
companies
have
generally
reached
a
point
of
meaningful
revenue
generation
from
their
core
business
operations
with
strong
financial
indicators
of
product-market
fit.
Late-
stage
companies
that
are
privately
held
may
also
be
referred
to
as
“pre-IPO
companies”
(i.e.,
companies
that
are
typically
in
their
last
few
financing
rounds
before
an
initial
public
offering
(“IPO”)
or
an
exit
event
such
as
a
sale
or
merger)
and
have
previously
been
funded
primarily
by
private
institutional
investors
through
pooled
investment
vehicles
(commonly
referred
to
as
venture
capital
funds)
and
other
institutional
investment
groups
(“venture-backed
companies”).
The
ability
to
invest
in
privately
held,
mid-to-late-stage
technology
companies
can
offer
the
potential
to
capture
more
upside
potential
than
investments
in
the
securities
of
technology
companies
that
are
already
publicly
traded.
The
Fund’s
portfolio
management
team
seeks
to
capture
this
value
accretion,
or
what
may
be
referred
to
as
a
private-public
valuation
arbitrage,
by
investing
primarily
in
Portfolio
Companies
that
they
believe
have
high
growth
potential.
The
Fund
generally
seeks
to
invest
in
primary
and
secondary
offerings
of
Portfolio
Companies
with
the
goal
of
remaining
invested
until
a
liquidity
event
occurs,
including
but
not
limited
to
a
public
offering
of
the
Portfolio
Company’s
shares,
another
round
of
private
fundraising,
or
a
sale
or
merger
of
the
Portfolio
Company.
Upon
the
occurrence
of
a
liquidity
event
with
respect
to
a
Portfolio
Company,
such
as
an
initial
public
offering
or
a
merger
or
acquisition
transaction,
the
Fund
may
or
may
not
choose
to
sell
its
investment
in
the
Portfolio
Company.
Notwithstanding
the
occurrence
of
such
a
liquidity
event,
the
Fund
may
continue
to
hold
securities
of
Portfolio
Companies
after
those
companies
have
gone
public.
This
investment
strategy
is
generally
referred
to
as
“Buy
and
Hold.”
Notwithstanding
the
foregoing,
investments
in
mid-to-late-stage
companies
involve
a
considerable
amount
of
risk
given
their
shorter
operating
history
relative
to
established
public
companies,
the
businesses’
need
for
additional
capital
to
maintain
growth,
and
the
general
illiquidity
of
their
securities.
The
Portfolio
Companies
in
which
the
Fund
invests
may
have
limited
financial
resources
and
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
31
may
be
unable
to
meet
their
obligations
with
their
existing
working
capital,
which
may
lead
to
equity
financings
that
dilute
the
Fund’s
holdings,
bankruptcy
or
liquidation,
and
consequently
the
reduction
or
loss
of
the
value
of
the
Fund’s
portfolio
investment.
Additionally,
because
Portfolio
Companies
are
privately
owned,
there
is
usually
little
publicly
available
information
about
these
businesses,
and
Fundrise
Advisors,
LLC
(the
“Adviser”)
may
not
be
able
to
obtain
all
of
the
material
information
that
would
be
generally
available
for
public
company
investments.
Private
companies
are
generally
not
subject
to
U.S.
Securities
and
Exchange
Commission
(“SEC”)
reporting
requirements,
are
not
required
to
maintain
their
accounting
records
in
accordance
with
generally
accepted
accounting
principles,
and
are
not
required
to
maintain
effective
internal
controls
over
financial
reporting.
As
a
result,
timely
or
accurate
information
about
the
business,
financial
condition
and
results
of
operations
of
the
private
companies
in
which
the
Fund
invests
may
not
be
available.
Investors
in
the
Fund
need
to
understand
that
such
companies
carry
a
high
degree
of
investment
risk
because
many
of
these
firms
may
fail
or
not
achieve
their
performance
or
financial
objectives.
There
is
no
guarantee
that
the
Fund’s
investments
in
Portfolio
Companies
will
increase
in
value,
and
the
market
value
of
the
Fund’s
investments
may
decline
substantially
before
the
Fund
is
able
to
sell
them,
resulting
in
significant
losses
to
the
Fund
and
its
shareholders.
The
Fund
expects
that
many
of
its
investments
will
be
made
in
U.S.
domestic
Portfolio
Companies,
but
it
is
not
prohibited
from
investing
in
foreign
Portfolio
Companies.
The
Fund
will
make
investments
in
the
securities
of
Portfolio
Companies
the
Fund
reasonably
believes
it
can
readily
fair
value.
The
Fund’s
holdings
of
equity
and
debt
securities
in
Portfolio
Companies
may
require
several
years
to
appreciate
in
value,
and
there
is
no
assurance
that
such
appreciation
will
occur.
Due
to
the
illiquid
nature
of
certain
of
the
Fund’s
equity
investments
and
transfer
restrictions
that
private
equity
securities
are
typically
subject
to,
the
Fund
may
not
be
able
to
sell
these
securities
at
times
when
the
Adviser
deems
it
necessary
to
do
so,
or
at
all.
The
equity
securities
in
Portfolio
Companies
in
which
the
Fund
invests
will
often
be
subject
to
drag-along
rights,
which
permit
a
majority
stockholder
in
the
company
to
force
minority
stockholders
to
join
a
company
sale
(which
may
be
at
a
price
per
share
lower
than
the
Fund’s
cost
basis
in
the
securities).
In
addition,
the
Fund’s
investments
in
Portfolio
Companies
will
often
be
subject
to
lock-up
provisions
that
prohibit
the
Fund
from
selling
its
equity
investments
into
the
public
market
for
specified
periods
of
time
after
IPOs
of
the
Portfolio
Company,
typically
180
days.
As
a
result,
the
market
price
of
securities
held
by
the
Fund
may
decline
substantially
before
the
Fund
is
able
to
sell
the
securities
following
an
IPO.
For
a
complete
discussion
of
the
risks
involved
with
the
Fund’s
investments,
please
read
the
section
entitled
“Risk
Factors.”
The
Fund
expects
to
invest
in
Portfolio
Companies
by
purchasing
call
options
or
acquiring
warrants
or
rights
(including
those
acquired
in
units
or
attached
to
other
securities)
that
entitle
the
holder
to
buy
equity
securities
at
a
specific
price
for
a
specific
period
of
time
and/or
by
entering
into
equity
forward
contracts,
which
are
customizable
derivative
contracts
between
two
parties
to
buy
or
sell
a
specific
number
of
underlying
equities,
a
basket
of
equities
or
equities
comprising
an
index
at
a
specified
price
on
a
future
date.
The
Fund
also
may
invest
in
other
derivative
instruments,
including
but
not
limited
to
options
contracts
(including
options
on
securities,
bonds,
currencies,
interest
rates,
indices
or
swaps),
futures
contracts,
options
on
futures
contracts,
forward
contracts,
indexed
securities,
credit
linked
notes,
caps,
collars,
floors,
and
swaps
(including
interest
rate,
credit
default,
equity
index
and
total
return
swaps)
for
other
investment,
hedging
and
risk
management
purposes.
The
Fund
may
invest
in
securities
of
any
credit
quality,
maturity
and
duration
to
enhance
its
income
and
capital
appreciation
potential
and
to
provide
liquidity
to
the
overall
portfolio.
This
may
include
securities
that
are
rated
below
investment
grade
by
rating
agencies
or
that
would
be
rated
below
investment
grade
if
they
were
rated.
Below
investment
grade
securities,
which
are
often
referred
to
as
“high
yield”
securities
or
“junk
bonds,”
may
have
speculative
characteristics
with
respect
to
the
issuer’s
capacity
to
pay
interest
and
repay
principal.
The
Fund’s
investments
in
Portfolio
Companies
may
also
be
made
through
special
purpose
vehicles.
The
Fund
invests
in
illiquid
securities,
including
restricted
securities
(i.e.,
securities
not
readily
marketable
without
registration
under
the
Securities
Act
of
1933,
as
amended
(the
“Securities
Act”))
and
other
securities
that
are
not
readily
marketable.
These
may
include
restricted
securities
that
can
be
offered
and
sold
only
to
“qualified
institutional
buyers”
under
Rule
144A
of
the
Securities
Act.
There
is
no
limit
to
the
percentage
of
the
Fund’s
net
assets
that
may
be
invested
in
illiquid
securities.
The
Fund
may
invest
up
to
20%
of
its
net
assets
(plus
the
amount
of
any
borrowings
for
investment
purposes)
in
the
equity
or
debt
securities
of
companies
that
are
not
technology
companies.
During
temporary
defensive
periods,
the
Fund
may
deviate
from
its
investment
objective
and
policies.
During
such
periods,
the
Fund
may
invest
up
to
100%
of
its
net
assets
(plus
the
amount
of
any
borrowings
for
investment
purposes)
in
cash,
cash
equivalents
(highly
liquid
investments
with
original
maturities
of
three
months
or
less),
short-term
investments
and
short-,
intermediate-,
or
long-term
U.S.
Treasury
Bonds.
There
can
be
no
assurance
that
such
strategies
will
be
implemented
timely
(or
at
all)
or,
if
implemented,
will
be
successful.
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
32
Investment
Process
and
Overview
The
Adviser
has
the
authority
to
make
all
the
decisions
regarding
the
Fund’s
investments
consistent
with
the
investment
guidelines
and
borrowing
policies
approved
by
the
investment
committee
established
to
review
the
Fund’s
investments
(the
“Investment
Committee”)
and
subject
to
the
limitations
in
the
LLC
Agreement
and
the
direction
and
oversight
of
the
Investment
Committee.
The
Investment
Committee
must
approve
all
investments
other
than
investments
in
the
securities
of
technology
and
technology-related
companies
that
adhere
to
the
investment
guidelines.
With
respect
to
investments
in
the
securities
of
technology
and
technology-
related
companies,
the
Investment
Committee
has
adopted
investment
guidelines
that
the
Adviser
must
follow
when
acquiring
such
assets
on
the
Fund’s
behalf
without
the
approval
of
the
Investment
Committee.
The
Investment
Committee
will
formally
review
at
a
duly
called
meeting
the
Fund’s
investment
guidelines
on
an
annual
basis
and
the
Fund’s
investment
portfolio
on
a
quarterly
basis
or,
in
each
case,
more
often
as
they
deem
appropriate.
Changes
to
the
Fund’s
investment
guidelines
must
be
approved
by
the
Investment
Committee.
Derivatives
Generally,
derivatives
are
financial
contracts
whose
value
depends
upon,
or
is
derived
from,
the
value
of
an
underlying
asset,
reference
rate
or
index,
and
may
relate
to
individual
debt
or
equity
instruments,
interest
rates,
currencies
or
currency
exchange
rates
and
related
indexes.
Under
normal
circumstances,
the
Fund
will
be
exposed
to
the
effect
of
interest
rate
changes,
price
changes
and
currency
fluctuations
and
may
seek
to
limit
these
risks
by
following
established
risk
management
policies
and
procedures
including
the
use
of
derivatives.
To
mitigate
exposure
to
variability
in
interest
rates,
derivatives
may
be
used
primarily
to
fix
the
rate
on
debt
based
on
floating-rate
indices
and
manage
the
cost
of
borrowing
obligations.
For
purposes
of
the
Fund’s
80%
investment
policy,
the
Fund
may
also
invest
in
Treasury
futures,
Eurodollar
futures,
swaps
(including
total
return
swaps,
equity
swaps,
credit
default
swaps
and
interest
rate
swaps),
swaptions
or
similar
instruments
and
combinations
thereof.
For
purposes
of
the
Fund’s
80%
policy,
derivative
instruments
will
be
valued
at
their
notional
value
consistent
with
the
requirements
of
Rule
18f-4.
The
Fund
will
engage
in
derivative
transactions
only
to
the
extent
such
transactions
are
consistent
with
the
requirements
of
the
Code
for
maintaining
its
qualification
as
a
RIC
for
U.S.
federal
income
tax
purposes.
Additional
Information
Regarding
Investment
Strategies
The
Fund
may,
from
time
to
time,
take
defensive
positions
that
are
inconsistent
with
the
Fund’s
principal
investment
strategy
in
attempting
to
respond
to
adverse
market,
economic,
political
or
other
conditions.
During
such
times,
the
Adviser
may
determine
that
the
Fund
should
invest
up
to
100%
of
its
assets
in
cash
or
cash
equivalents,
including
money
market
instruments,
prime
commercial
paper,
repurchase
agreements,
Treasury
bills
and
other
short-term
obligations
of
the
U.S.
Government,
its
agencies
or
instrumentalities.
In
these
and
in
other
cases,
the
Fund
may
not
achieve
its
investment
objective.
The
Adviser
may
invest
the
Fund’s
cash
balances
in
any
investments
it
deems
appropriate.
The
Adviser
expects
that
such
investments
will
be
made,
without
limitation
and
as
permitted
under
the
1940
Act,
in
money
market
funds,
repurchase
agreements,
U.S.
Treasury
and
U.S.
agency
securities,
municipal
bonds
and
bank
accounts.
Any
income
earned
from
such
investments
is
ordinarily
reinvested
by
the
Fund
in
accordance
with
its
investment
program.
Many
of
the
considerations
made
in
concluding
upon
the
recommendations
and
decisions
of
the
Adviser
and
the
Fund’s
portfolio
managers
are
subjective.
Use
of
Leverage
The
Fund
may
use
leverage
to
provide
additional
funds
to
support
its
investment
activities,
including
through
the
use
of
unsecured
and
secured
credit
facilities
from
certain
financial
institutions
and
other
forms
of
borrowing
(collectively,
“Borrowings”)
and
is
limited
to
33
1/3
%
of
the
Fund’s
total
assets
(less
all
liabilities
and
indebtedness
not
represented
by
1940
Act
leverage)
immediately
after
such
Borrowings
(i.e.,
for
every
dollar
of
indebtedness
from
Borrowings,
the
Fund
is
required
to
have
at
least
three
dollars
of
assets).
In
addition,
the
Fund
may
enter
into
derivatives
or
other
transactions
that
may
provide
leverage
subject
to
the
requirements
of
Rule
18f-4
under
the
1940
Act.
The
Fund
may
not
use
leverage
at
all
times
and
the
amount
of
leverage
may
vary
depending
upon
a
number
of
factors,
including
the
Adviser’s
outlook
for
the
market
and
the
costs
that
the
Fund
would
incur
as
a
result
of
such
leverage.
Any
Borrowings
would
have
seniority
over
the
Shares.
There
is
no
assurance
that
the
Fund’s
leveraging
strategy
will
be
successful.
Any
Borrowings
leverage
your
investment
in
Shares.
Holders
of
Shares
bear
the
costs
associated
with
any
Borrowings.
The
Board
may
authorize
the
use
of
leverage
through
Borrowings
and
Preferred
Shares
without
the
approval
of
the
holders
of
Shares.
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
33
Under
the
1940
Act,
the
Fund
is
not
permitted
to
incur
indebtedness
unless
immediately
thereafter
the
total
asset
value
of
the
Fund’s
portfolio
is
at
least
300%
of
the
aggregate
amount
of
outstanding
indebtedness
(i.e.,
the
aggregate
amount
of
outstanding
debt
may
not
exceed
33
1/3
%
of
the
Fund’s
total
assets
(less
all
liabilities
and
indebtedness
not
represented
by
1940
Act
leverage)).
In
addition,
the
Fund
is
not
permitted
to
declare
any
cash
distribution
on
its
Shares
unless,
at
the
time
of
such
declaration,
the
NAV
of
the
Fund’s
portfolio
(determined
deducting
the
amount
of
such
distribution)
is
at
least
300%
of
the
aggregate
amount
of
such
outstanding
indebtedness.
If
the
Fund
borrows
money,
the
Fund
intends,
to
the
extent
possible,
to
retire
outstanding
debt
from
time
to
time
to
maintain
coverage
of
any
outstanding
indebtedness
of
at
least
300%.
Under
the
1940
Act,
the
Fund
may
only
issue
one
class
of
senior
securities
representing
indebtedness.
The
Fund
may
be
required
to
prepay
outstanding
amounts
or
incur
a
penalty
rate
of
interest
upon
the
occurrence
of
certain
events
of
default.
The
Fund’s
future
credit
facilities
may
contain
customary
covenants
that,
among
other
things,
limit
the
Fund’s
ability
to
pay
distributions
in
certain
circumstances,
incur
additional
debt,
change
its
fundamental
investment
policies
and
engage
in
certain
transactions,
including
mergers
and
consolidations,
and
require
asset
coverage
ratios
in
addition
to
those
required
by
the
1940
Act.
In
connection
with
any
new
credit
facility,
the
Fund
may
be
required
to
pledge
some
or
all
of
its
assets
and
to
maintain
a
portion
of
its
assets
in
cash
or
high-grade
securities
as
a
reserve
against
interest
or
principal
payments
and
expenses.
The
Fund’s
custodian
will
retain
all
assets,
including
those
that
are
pledged,
but
the
lenders
of
such
credit
facility
may
have
the
ability
to
foreclose
on
such
assets
in
the
event
of
a
default
under
the
credit
facility
pursuant
to
a
tri-party
arrangement
among
the
Fund,
its
custodian
and
such
lenders.
The
Fund’s
custodian
is
not
an
affiliate
of
the
Fund,
as
such
term
is
defined
in
the
1940
Act.
The
Fund
expects
that
any
such
credit
facility
would
have
customary
covenant,
negative
covenant
and
default
provisions.
There
can
be
no
assurance
that
the
Fund
will
enter
into
an
agreement
for
any
new
credit
facility
on
terms
and
conditions
representative
of
the
foregoing,
or
that
additional
material
terms
will
not
apply.
In
addition,
if
entered
into,
the
credit
facility
may
in
the
future
be
replaced
or
refinanced
by
one
or
more
credit
facilities
having
substantially
different
terms
or
by
the
issuance
of
debt
securities.
Changes
in
the
value
of
the
Fund’s
portfolio
investments,
including
costs
attributable
to
Borrowings,
are
borne
entirely
by
the
holders
of
the
Shares.
If
there
is
a
net
decrease
(or
increase)
in
the
value
of
the
Fund’s
investment
portfolio,
the
leverage
decreases
(or
increases)
the
NAV
per
share
of
Shares
to
a
greater
extent
than
if
the
Fund
were
not
leveraged.
Utilization
of
leverage
is
a
speculative
investment
technique
and
involves
certain
risks
to
holders
of
Shares.
These
include
the
possibility
of
higher
volatility
of
the
NAV
of
the
Shares.
So
long
as
the
Fund
is
able
to
realize
a
higher
net
return
on
its
investment
portfolio
than
the
then-current
cost
of
any
leverage
together
with
other
related
expenses,
the
effect
of
the
leverage
is
to
cause
holders
of
Shares
to
realize
a
higher
rate
of
return
than
if
the
Fund
were
not
so
leveraged.
On
the
other
hand,
to
the
extent
that
the
then-
current
cost
of
any
leverage,
together
with
other
related
expenses,
approaches
the
net
return
on
the
Fund’s
investment
portfolio,
the
benefit
of
leverage
to
holders
of
Shares
is
reduced,
and
if
the
then-current
cost
of
any
leverage
together
with
related
expenses
were
to
exceed
the
net
return
on
the
Fund’s
portfolio,
the
Fund’s
leveraged
capital
structure
would
result
in
a
lower
rate
of
return
to
holders
of
Shares
than
if
the
Fund
were
not
so
leveraged.
2.
Principal
Risks
of
the
Fund
Investing
in
the
Fund
involves
risks,
including
the
risk
that
a
shareholder
may
receive
little
or
no
return
on
his
or
her
investment
or
that
a
shareholder
may
lose
part
or
all
of
his
or
her
investment.
Below
is
a
summary
of
the
principal
risks
of
investing
in
the
Fund.
You
should
carefully
consider
the
following
principal
risks
before
investing
in
the
Fund.
Risks
of
Investing
in
Portfolio
Companies.
The
Portfolio
Companies
may
have
limited
financial
resources
and
may
be
unable
to
meet
their
obligations
with
their
existing
working
capital,
which
may
lead
to
equity
financings,
possibly
at
discounted
valuations,
in
which
the
Fund’s
holdings
could
be
substantially
diluted
if
the
Fund
does
not
or
cannot
participate,
bankruptcy
or
liquidation
and
consequently
the
reduction
or
loss
of
the
Fund’s
investment.
The
Adviser
expects
that
the
Fund’s
holdings
of
Portfolio
Companies
may
require
several
years
to
appreciate,
and
the
Adviser
can
offer
no
assurance
that
such
appreciation
will
occur.
Portfolio
Companies
typically
have
limited
operating
histories,
less
established
and
comprehensive
product
lines
and
smaller
market
shares
than
larger
businesses,
which
tend
to
render
them
more
vulnerable
to
competitors’
actions,
market
conditions
and
consumer
sentiment
in
respect
of
their
products
or
services,
as
well
as
general
economic
downturns.
Because
Portfolio
Companies
are
privately
owned,
there
is
usually
little
publicly
available
information
about
these
businesses.
Therefore,
the
Adviser
may
not
be
able
to
obtain
all
of
the
material
information
that
would
be
generally
available
for
public
company
investments,
including
financial
information,
current
performance
metrics,
operational
details
and
other
information
regarding
the
Portfolio
Companies
in
which
the
Fund
invests.
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
34
Portfolio
Companies
are
more
likely
to
depend
on
the
management
talents
and
efforts
of
a
small
group
of
persons.
Therefore,
the
death,
disability,
resignation
or
termination
of
one
or
more
of
these
persons
could
have
a
material
adverse
impact
on
a
Portfolio
Company
and,
in
turn,
on
the
Fund.
Portfolio
Companies
generally
have
less
predictable
operating
results,
may
from
time
to
time
be
parties
to
litigation,
may
be
engaged
in
rapidly
changing
businesses
with
products
subject
to
a
substantial
risk
of
obsolescence,
and
may
require
substantial
additional
capital
to
support
their
operations,
finance
expansion
or
maintain
their
competitive
position.
Portfolio
Companies
may
have
substantial
debt
loads.
In
such
cases,
the
Fund
would
typically
be
last
in
line
behind
any
creditors
in
a
bankruptcy
or
liquidation
and
would
likely
experience
a
complete
loss
on
its
investment.
Private
companies
are
generally
not
subject
to
SEC
reporting
requirements,
are
not
required
to
maintain
their
accounting
records
in
accordance
with
generally
accepted
accounting
principles,
and
are
not
required
to
maintain
effective
internal
controls
over
financial
reporting.
As
a
result,
timely
or
accurate
information
about
the
business,
financial
condition
and
results
of
operations
of
the
private
companies
in
which
the
Fund
invests
may
not
be
available.
Private
companies
in
which
the
Fund
may
invest
may
have
limited
financial
resources,
shorter
operating
histories,
more
asset
concentration
risk,
narrower
product
lines
and
smaller
market
shares
than
larger
businesses,
which
tend
to
render
such
private
companies
more
vulnerable
to
competitors’
actions
and
market
circumstances,
as
well
as
general
economic
downturns.
These
companies
generally
have
less
predictable
operating
results,
may
from
time
to
time
be
parties
to
litigation,
may
be
engaged
in
rapidly
changing
businesses
with
products
subject
to
a
substantial
risk
of
obsolescence,
and
may
require
substantial
additional
capital
to
support
their
operations,
finance
expansion
or
maintain
their
competitive
position.
These
companies
may
have
difficulty
accessing
the
capital
markets
to
meet
future
capital
needs,
which
may
limit
their
ability
to
grow
or
to
repay
their
outstanding
indebtedness
upon
maturity.
General
SPV
Risks.
The
Fund
may
invest
in
special
purpose
vehicles
(“SPVs”).
Our
investments
in
SPVs
will
typically
require
us
to
bear
a
pro
rata
share
of
the
vehicles’
expenses,
including
operating
and
offering
related
costs,
which
could
result
in
higher
expenses
than
if
we
invested
in
the
single
underlying
portfolio
company
directly.
Because
SPVs
are
organized
by
managers
unaffiliated
with
us
and
we
will
typically
be
one
of
many
investors
in
the
SPV,
in
purchasing
an
SPV
interest,
we
entrust
all
aspects
of
the
management
of
the
SPV
to
its
manager.
SPVs
are
generally
organized
as
limited
liability
companies,
and
to
the
extent
an
SPV
is
organized
as
a
Delaware
Series
LLC,
we
would
be
subject
to
the
risks
inherent
in
investing
in
a
Delaware
Series
LLC.
Some
SPVs
in
which
we
invest
may
impose
various
limitations,
and
may
place
restrictions
on
when
investors
may
withdraw
their
investment
or
limit
the
amounts
investors
may
withdraw.
To
the
extent
we
seek
to
reduce
or
sell
out
our
investment
at
a
time
or
in
an
amount
that
is
prohibited,
we
may
not
have
the
liquidity
necessary
to
participate
in
other
investment
opportunities
or
may
need
to
sell
other
investments
that
we
may
not
have
otherwise
sold.
Additionally,
SPVs
are
not
publicly
traded
and
therefore
may
not
be
as
liquid
as
other
types
of
investments.
Further,
the
fair
value
of
investments
in
SPVs
may
differ
from
the
value
of
the
underlying
securities
were
we
to
hold
such
securities
directly.
Finally,
as
investors
in
an
SPV,
we
own
interests
in
the
SPV
and
have
no
ownership
rights
to
the
underlying
securities.
These
characteristics
present
additional
risks
for
stockholders.
Individual
SPVs
that
we
invest
in
may
have
different
terms
and
structures,
which
may
present
unique
risks
and
result
in
different
fee
levels.
General
Co-Investment
Vehicle
Risks.
The
Fund
may
invest
in
Co-Investment
Vehicles
("CIVs"),
which
are
investments
in
a
primary
round
of
an
issuer.
CIVs
are
typically
organized
by
a
lead
investor,
such
as
a
venture
capital
fund
or
institutional
investor,
that
negotiates
the
terms
of
the
investment
with
the
issuer.
Because
the
Fund
will
generally
participate
as
a
co-investor
rather
than
as
the
lead
investor,
the
Fund
will
have
limited
or
no
ability
to
negotiate
the
economic
or
governance
terms
of
the
investment,
including
valuation,
liquidation
preferences,
anti-dilution
protections,
board
representation
and
information
rights.
As
with
our
investments
in
SPVs,
CIV
investments
will
typically
require
us
to
bear
a
pro
rata
share
of
the
CIV's
expenses,
including
operating
and
offering
related
costs,
which
could
result
in
higher
expenses
than
if
we
invested
in
the
single
underlying
portfolio
company
directly.
Because
CIVs
are
organized
by
managers
unaffiliated
with
us
and
we
will
typically
be
one
of
many
investors
in
the
CIV,
in
purchasing
an
CIV
interest,
we
entrust
all
aspects
of
the
management
of
the
CIV
to
its
manager.
CIVs
are
generally
organized
as
limited
liability
companies.
Some
CIVs
in
which
we
invest
may
impose
various
limitations,
and
may
place
restrictions
on
when
investors
may
withdraw
their
investment
or
limit
the
amounts
investors
may
withdraw.
To
the
extent
we
seek
to
reduce
or
sell
out
our
investment
at
a
time
or
in
an
amount
that
is
prohibited,
we
may
not
have
the
liquidity
necessary
to
participate
in
other
investment
opportunities
or
may
need
to
sell
other
investments
that
we
may
not
have
otherwise
sold.
Additionally,
CIVs
are
not
publicly
traded
and
therefore
may
not
be
as
liquid
as
other
types
of
investments.
Further,
the
fair
value
of
investments
in
CIV
may
differ
from
the
value
of
the
underlying
securities
were
we
to
hold
such
securities
directly.
Finally,
as
investors
in
a
CIV,
we
own
interests
in
the
CIV
and
have
no
ownership
rights
to
the
underlying
securities.
These
characteristics
present
additional
risks
for
stockholders.
Individual
CIVs
that
we
invest
in
may
have
different
terms
and
structures,
which
may
present
unique
risks
and
result
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
35
in
different
fee
levels.
Litigation
and
Regulatory
Risks.
As
a
fund
listed
on
the
New
York
Stock
Exchange,
we
are
subject
to
extensive
and
evolving
federal
and
state
securities
laws,
rules,
and
regulations,
including
those
administered
by
the
SEC,
FINRA,
and
other
self-regulatory
organizations.
Our
listed
status
exposes
us
to
risks
that
would
not
apply,
or
would
apply
to
a
lesser
degree,
if
the
fund
were
not
publicly
traded.
Our
shares
have
experienced,
and
may
experience
in
the
future,
significant
price
volatility,
including
trading
at
substantial
premiums
or
discounts
to
net
asset
value,
elevated
short
interest,
and
trading
volumes
that
may
vary
from
the
fund's
underlying
fundamentals.
Such
episodes
may
be
driven
by
general
market
conditions,
investor
sentiment,
social
media
attention,
short
selling
activity,
or
the
actions
of
market
participants
whose
interests
may
diverge
from
those
of
the
fund
and
its
shareholders.
Volatile
or
unusual
trading
activity
has,
and
may
in
the
future,
trigger
trading
halts
or
circuit
breakers
and
may
attract
heightened
scrutiny
from
the
SEC,
FINRA,
and
other
regulators,
including
inquiries
under
insider
trading,
market
abuse
and
manipulation
enforcement
programs.
We
may
be
required
to
respond
to
regulatory
examinations,
subpoenas,
or
demands
for
information
in
connection
with
trading
activity
that
is
beyond
our
control,
and
the
costs
and
reputational
consequences
of
such
inquiries
may
be
material
regardless
of
their
outcome.
Our
listed
status
also
increases
our
exposure
to
private
securities
litigation,
including
class
action
lawsuits
and
shareholder
derivative
actions
alleging
material
misstatements
or
omissions
in
our
public
disclosures,
breaches
of
fiduciary
duty,
or
inadequate
risk
disclosure.
Plaintiffs'
counsel
actively
monitor
publicly
traded
funds
for
price
declines,
volatility,
and
NAV
dislocations
as
catalysts
for
claims.
Even
meritless
claims
can
be
costly
and
time-consuming
to
defend,
and
the
announcement
of
a
lawsuit
or
investigation
alone
may
adversely
affect
our
share
price.
We
maintain
insurance
against
certain
of
these
risks,
but
there
can
be
no
assurance
that
coverage
will
be
adequate
or
remain
available
on
acceptable
terms.
There
can
be
no
assurance
that
we
will
not
become
subject
to
regulatory
proceedings,
enforcement
actions,
or
litigation
as
a
result
of
our
listed
status,
or
that
the
outcome
of
any
such
matter
will
not
have
a
material
adverse
effect
on
our
financial
condition,
results
of
operations,
or
the
trading
price
of
our
shares.
The
Adviser
and
Its
Affiliates
Are
Subject
to
Conflicts
of
Interest.
The
Adviser
and
its
affiliates
are
engaged
in
a
broad
range
of
activities
beyond
managing
the
Fund,
including
serving
as
investment
adviser
to
VCX
and
other
funds
and
investment
vehicles
sponsored
by
Rise
Companies,
and
these
activities
give
rise
to
actual,
potential
and
perceived
conflicts
of
interest
with
the
Fund.
Among
other
things,
the
Adviser
and
its
affiliates
face
conflicts
in
allocating
investment
opportunities
and
the
time
and
attention
of
key
personnel
among
the
Fund
and
other
Fundrise
entities,
in
setting
and
receiving
fees
that
are
based
on
the
Fund's
NAV
(which
is
calculated
by
Rise
Companies'
personnel),
in
determining
whether
and
when
to
dispose
of
the
Fund's
assets,
and
in
evaluating
and
effecting
transactions
between
the
Fund
and
affiliated
entities,
including
any
merger,
consolidation,
reorganization
or
sale
of
the
Fund
or
its
assets
involving
another
Fundrise
entity,
none
of
which
are
negotiated
on
an
arm's-length
basis.
The
persons
who
manage
the
Fund
also
owe
duties
to
Rise
Companies
and
other
Fundrise
entities,
and
those
duties
may
conflict
with
the
duties
they
owe
to
the
Fund.
While
the
Fund
has
adopted
policies
and
procedures
intended
to
address
certain
of
these
conflicts,
there
can
be
no
assurance
that
these
policies
will
identify
or
mitigate
all
conflicts
that
arise,
that
they
will
be
effective
in
any
particular
instance,
or
that
conflicts
will
be
resolved
in
a
manner
favorable
to
the
Fund
and
its
Shareholders.
The
Board
may
modify,
suspend
or
rescind
these
policies
at
any
time
without
Shareholder
approval.
Investment
Focus
Risk.
The
Fund
may
focus
its
investments
in
a
limited
number
of
issuers.
Focusing
the
Fund’s
portfolio
in
this
manner
could
subject
the
Fund
to
a
greater
degree
of
risk
with
respect
to
the
failure
of
one
or
a
few
investments
and
the
Fund’s
portfolio
will
be
more
susceptible
to
fluctuations
in
value
resulting
from
poor
performance
of
a
limited
number
of
its
investments.
As
a
result,
the
Fund’s
aggregate
return
may
be
volatile
and
may
be
affected
substantially
by
the
performance
of
only
one
or
a
few
holdings.
Technology
Sector
(Concentration)
Risk.
The
Fund’s
portfolio
will
be
concentrated
in
securities
issued
by
technology
companies
and
other
investments
that
provide
economic
exposure
to
technology
companies
and
as
such,
it
may
be
subject
to
more
risks
than
if
it
were
broadly
diversified
across
additional
sectors
and
industries
of
the
economy.
The
market
prices
of
technology
stocks
historically
have
exhibited
a
greater
degree
of
market
risk
and
price
volatility
than
other
types
of
investments.
These
stocks
may
fall
in
and
out
of
favor
with
investors
rapidly,
which
may
cause
sudden
selling
and
dramatically
lower
market
prices.
These
stocks
also
may
be
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
36
affected
adversely
by
changes
in
technology,
consumer
and
business
purchasing
patterns,
short
product
cycles,
falling
prices
and
profits,
government
regulation,
lack
of
standardization
or
compatibility
with
existing
technologies,
intense
competition,
aggressive
pricing,
dependence
on
copyright
and/or
patent
protection
and/or
obsolete
products
or
services.
Certain
technology
companies
may
face
special
risks
that
their
products
or
services
may
not
prove
to
be
commercially
successful.
Technology
companies
are
also
strongly
affected
by
worldwide
scientific
or
technological
developments,
and
as
a
result,
their
products
may
rapidly
become
obsolete.
In
addition,
because
of
rapid
technological
change,
the
average
selling
prices
of
products
and
some
services
provided
by
technology-related
sectors
have
historically
decreased
over
their
productive
lives.
As
a
result,
the
average
selling
prices
of
products
and
services
offered
by
the
companies
that
operate
in
technology-related
sectors
may
decrease
over
time,
which
could
adversely
affect
their
operating
results.
Technology
companies
are
also
often
subject
to
governmental
regulation
and
may,
therefore,
be
adversely
affected
by
governmental
policies.
In
addition,
a
rising
interest
rate
environment
tends
to
negatively
affect
technology
companies.
In
such
an
environment,
those
companies
with
high
market
valuations
may
appear
less
attractive
to
investors,
which
may
cause
sharp
decreases
in
the
companies’
market
prices.
Further,
technology
companies
seeking
to
finance
their
expansion
would
have
increased
borrowing
costs,
which
may
negatively
impact
their
earnings.
Technology
companies
are
often
smaller
companies
with
less
experienced
management
teams
and
they
may
be
subject
to
greater
risks
than
larger
companies,
such
as
limited
product
lines,
markets
and
financial
and
managerial
resources.
These
risks
may
be
heightened
for
technology
companies
in
foreign
markets.
The
foregoing
factors
may
negatively
impact
the
value
of
any
equity
securities
that
the
Fund
may
hold,
which
could
in
turn
materially
adversely
affect
the
Fund’s
business,
financial
condition
and
results
of
operations.
PropTech
Company
Risk.
Investing
in
PropTech
means
investing
in
companies
that
are
focused
on
optimizing
the
way
people
research,
rent,
buy,
sell
and
manage
real
estate
properties
through
technological
innovations.
PropTech
companies
typically
use
automation,
artificial
intelligence,
or
other
forms
of
technology
developed
for
the
property
industry.
These
companies
may
be
adversely
impacted
by
government
regulations,
economic
conditions
and
deterioration
in
real
estate
markets
generally.
Real
estate
is
highly
illiquid
and
substantial
in
terms
of
capital
required
to
develop,
operate
or
buy.
Real
estate-related
transactions
are
expensive,
and
there
can
be
a
vast
bid-offer
spread
(gap
between
what
buyers
will
offer
and
sellers
will
accept)
associated
with
purchases
and
sales
of
real
estate.
Research
and
due
diligence
costs
are
significant.
Additionally,
the
products
or
solutions
offered
by
PropTech
companies
may
face
technical
limitations
related
to
connectivity,
compatibility,
and
longevity,
with
many
different
technologies
competing
to
become
the
standard.
As
a
result,
PropTech
companies
typically
face
intense
competition
and
potentially
rapid
product
obsolescence.
Furthermore,
the
customers
and/or
suppliers
of
PropTech
companies
may
be
concentrated
in
a
particular
country,
region
or
industry.
Any
adverse
event
affecting
one
of
these
countries,
regions
or
industries
could
have
a
negative
impact
on
PropTech
companies.
PropTech
companies,
especially
smaller
companies,
tend
to
be
more
volatile
than
companies
that
do
not
rely
heavily
on
technology.
PropTech
companies
often
struggle
to
gain
market
share
to
a
degree
that
enables
them
to
be
sustainable.
FinTech
Company
Risk.
Investing
in
FinTech
means
investing
in
companies
that
research,
develop,
produce
and
distribute
technologies
that
are
used
for
advancing
the
Finance
sector.
FinTech
companies
may
be
adversely
impacted
by
government
regulations,
economic
conditions
and
deterioration
in
credit
markets.
These
companies
may
have
significant
exposure
to
consumers
and
businesses
(especially
small
businesses)
in
the
form
of
loans
and
other
financial
products
or
services.
FinTech
companies
typically
face
intense
competition
and
potentially
rapid
product
obsolescence.
Many
FinTech
companies
currently
operate
under
less
regulatory
scrutiny
than
traditional
financial
services
companies
and
banks,
but
there
is
significant
risk
that
regulatory
oversight
could
increase
in
the
future.
Higher
levels
of
regulation
could
increase
costs
and
adversely
impact
the
current
business
models
of
some
FinTech
companies.
FinTech
companies
involved
in
alternative
currencies
may
face
slow
adoption
rates
and
be
subject
to
higher
levels
of
regulatory
scrutiny
in
the
future,
which
could
severely
impact
the
viability
of
these
companies.
FinTech
companies,
especially
smaller
and/or
newer
companies,
tend
to
be
more
volatile
than
companies
that
do
not
rely
heavily
on
technology.
The
customers
and/or
suppliers
of
FinTech
companies
may
be
concentrated
in
a
particular
country,
region
or
industry.
Any
adverse
event
affecting
one
of
these
countries,
regions
or
industries
could
have
a
negative
impact
on
FinTech
companies.
Artificial
Intelligence
Companies
Risk.
The
Fund’s
investments
in
companies
involved
in,
or
exposed
to,
artificial
intelligence-
related
businesses
may
be
negatively
impacted
because
of,
among
other
things,
limited
product
lines,
markets,
financial
resources
and/or
personnel;
intense
competition
and
potentially
rapid
product
obsolescence
these
companies
may
face;
loss
or
impairment
of
intellectual
property
rights;
and
the
inability
to
successfully
develop
products
or
services
even
after
spending
significant
amount
of
resources.
Artificial
intelligence-related
companies
may
also
face
cyberattacks
and
increasing
regulatory
scrutiny.
The
customers
and/or
suppliers
of
artificial
intelligence-related
companies
may
be
concentrated
in
a
particular
country,
region,
or
industry,
and
any
adverse
event
affecting
one
of
these
countries,
regions
or
industries
could
have
a
negative
impact
on
performance.
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
37
Data
Infrastructure
Investment
Risk.
Investing
in
data
infrastructure
means
investing
in
companies
that
provide
the
infrastructure
needed
to
process,
store,
transport,
and
distribute
data
that
are
essential
to
the
delivery
of
critical
services
and
required
for
the
functioning
of
many
sectors
of
the
economy
including
financial
systems,
public
utilities,
industrial
supply
chains,
media
channels,
and
telecommunications.
The
Fund’s
investments
will
be
subject
to
the
risks
incidental
to
the
ownership
and
operation
of
data
infrastructure
assets,
including
risks
associated
with
the
general
economic
climate,
geographic
or
market
concentration,
climatic
risks,
government
regulations,
national
and
international
political
circumstances
and
fluctuations
in
interest
rates,
rates
of
inflation
or
commodities’
prices.
Data
infrastructure
assets
may
be
subject
to
numerous
statutes,
rules
and
regulations
related
to
the
governance
of
new
technologies
and
the
intersection
of
environmental
protection
and
resource
extraction.
Cybersecurity
Risks
of
Technology
Companies.
Many
technology
companies
store
sensitive
consumer
information
and
could
be
the
target
of
cybersecurity
attacks
and
other
types
of
theft,
which
could
have
a
negative
impact
on
these
companies.
These
companies
could
be
negatively
impacted
by
disruptions
in
service
caused
by
hardware
or
software
failure,
or
by
interruptions
or
delays
in
service
by
third-party
data
center
hosting
facilities
and
maintenance
providers.
The
use
of
artificial
intelligence
and
machine
learning
by
such
companies
could
exacerbate
these
risks
or
result
in
cybersecurity
incidents
that
implicate
personal
data.
Illiquid
Investment
Risk.
The
Fund’s
investment
in
private
company
securities,
whether
made
directly
or
indirectly
(e.g.,
through
derivatives
or
private
pooled
investment
vehicles)
are
generally
illiquid.
Private
company
securities
are
thinly
traded
and
less
liquid
than
other
investments.
Because
private
company
securities
are
thinly
traded,
such
securities
may
display
especially
volatile
or
erratic
price
movements,
sometimes
in
response
to
relatively
small
changes
in
investor
supply
or
demand
or
other
market
conditions.
In
addition,
the
inability
to
sell
one
or
more
portfolio
positions
can
adversely
affect
the
Fund’s
value
or
prevent
the
Fund
from
being
able
to
take
advantage
of
other
investment
opportunities.
If
the
Fund
is
forced
to
sell
securities
at
an
unfavorable
time
and/or
under
unfavorable
conditions,
such
sales
may
also
adversely
affect
the
Fund’s
NAV.
These
securities
may
also
be
subject
to
“lock-up
agreements”
restricting
their
sale
once
the
security
is
registered
for
public
sale.
As
a
result,
upon
or
subsequent
to
a
liquidation
event
of
a
Portfolio
Company,
the
Fund
may
not
be
able
to
sell
an
investment,
or
a
portion
of
an
investment,
when
the
Adviser
believes
that
doing
so
would
maximize
returns.
There
is
no
regular
market
for
interests
in
many
pooled
investment
vehicles,
which
typically
must
be
sold
in
privately
negotiated
transactions.
Any
such
sales
would
likely
require
the
consent
of
the
manager
of
the
applicable
pooled
investment
vehicle
and
could
occur
at
a
discount
to
the
stated
net
asset
value.
If
the
Adviser
determines
to
cause
the
Fund
to
sell
its
interest
in
a
pooled
investment
vehicle,
the
Fund
may
be
unable
to
sell
such
interest
quickly,
if
at
all,
and
could
therefore
be
obligated
to
continue
to
hold
such
interest
for
an
extended
period
of
time
or
forced
to
sell
such
interest
at
an
unfavorable
time
and/or
under
unfavorable
conditions,
and
such
sale
would
adversely
affect
the
Fund’s
NAV.
Private
Markets
Trading
Risks.
The
Fund
is
dependent
upon
the
relationships
and
contacts
of
the
senior
investment
professionals
of
the
Adviser
and
its
affiliates
to
obtain
information
to
perform
research
and
due
diligence
on
the
Portfolio
Companies
the
Fund
acquires
through
private
markets,
and
to
monitor
the
Fund’s
investments
after
they
are
made.
There
can
be
no
assurance
that
the
Adviser
will
be
able
to
acquire
adequate
information
on
which
to
make
its
investment
decision
with
respect
to
any
private
market
purchases,
or
that
the
information
it
is
able
to
obtain
is
accurate
or
complete.
Any
failure
to
obtain
full
and
complete
information
regarding
the
Portfolio
Companies
in
which
the
Fund
invests
could
cause
it
to
lose
part
or
all
of
its
investment
in
such
companies,
which
would
have
a
material
and
adverse
effect
on
the
Fund’s
NAV
and
results
of
operations.
In
addition,
there
can
be
no
assurance
that
Portfolio
Companies
in
which
the
Fund
invests
through
private
markets
will
have
or
maintain
active
trading
markets,
and
the
prices
of
those
securities
may
be
subject
to
irregular
trading
activity,
wide
bid/ask
spreads
and
extended
trade
settlement
periods.
Wide
swings
in
market
prices,
which
are
typical
of
irregularly
traded
securities,
could
cause
significant
and
unexpected
declines
in
the
value
of
the
Fund’s
portfolio
investments.
Investments
in
private
companies,
including
through
private
markets,
also
entail
additional
legal
and
regulatory
risks
which
expose
participants
to
the
risk
of
liability
due
to
the
imbalance
of
information
among
participants
and
participant
qualification
and
other
transactional
requirements
applicable
to
private
securities
transactions.
Failure
to
comply
with
such
requirements
could
result
in
rescission
rights
and
monetary
and
other
sanctions.
Valuation
Risk.
The
Fund
is
subject
to
valuation
risk,
which
is
the
risk
that
one
or
more
of
the
assets
in
which
the
Fund
invests
are
priced
incorrectly,
due
to
factors
such
as
incomplete
data,
market
instability
or
human
error.
If
the
Fund
ascribes
a
higher
value
to
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
38
assets
and
their
value
subsequently
drops
or
fails
to
rise
because
of
market
factors,
returns
on
the
Fund’s
investment
may
be
lower
than
expected
and
could
experience
losses.
The
Fund’s
portfolio
investments
are
generally
privately
traded
securities
(unless
one
of
the
Portfolio
Companies
goes
public
and
then
only
to
the
extent
the
Fund
has
not
yet
liquidated
its
securities
holdings
therein)
that
are
fair
valued
by
the
Adviser
in
accordance
with
the
Fund’s
valuation
procedures.
Valuations
of
the
Portfolio
Companies
are
inherently
uncertain
and
may
be
based
on
estimates,
and
the
Fund’s
determinations
of
fair
market
value
may
differ
materially
from
the
values
that
would
be
assessed
if
a
readily
available
market
for
these
securities
existed.
This
risk
is
particularly
exaggerated
for
mid-stage
growth
Portfolio
Companies,
given
their
limited
history
and
significant
change
in
cash
flow
generation
over
time.
Additionally,
the
valuation
of
the
Fund’s
investments
in
pooled
investment
vehicles
is
ordinarily
determined
based
upon
valuations
provided
by
the
managers
of
the
pooled
investment
vehicles,
which
may
not
be
audited.
Risk
of
Complex
Capital
Structures.
Private
companies
in
which
the
Fund
invests
frequently
have
much
more
complex
capital
structures
than
traditional
publicly-traded
companies,
and
may
have
multiple
classes
of
equity
securities
with
differing
rights,
including
rights
with
respect
to
voting
and
distributions.
In
addition,
it
is
often
difficult
to
obtain
information
with
respect
to
private
companies’
capital
structures,
and
even
where
the
Adviser
is
able
to
obtain
such
information,
there
can
be
no
assurance
that
it
is
complete
or
accurate.
In
certain
cases,
such
private
companies
may
also
have
preferred
stock
or
senior
debt
outstanding,
which
may
heighten
the
risk
of
investing
in
the
underlying
equity
of
such
private
companies,
particularly
in
circumstances
when
the
Adviser
has
limited
information
with
respect
to
such
capital
structures.
There
can
be
no
assurance
that
the
Fund
will
be
able
to
adequately
evaluate
the
relative
risks
and
benefits
of
investing
in
a
particular
class
of
Portfolio
Companies
equity
securities.
Any
failure
on
the
Adviser’s
part
to
properly
evaluate
the
relative
rights
and
value
of
a
class
of
securities
in
which
the
Fund
invests
could
cause
it
to
lose
part
or
all
of
its
investment,
which
in
turn
could
have
a
material
and
adverse
effect
on
NAV
and
results
of
operations.
Risks
of
Venture-Backed
Companies.
The
venture-backed
companies
in
which
the
Fund
invests
may
involve
a
high
degree
of
business
and
financial
risk
because
many
have
short
operating
histories
and
involve
novel
technology,
products,
or
services.
Many
venture-backed
companies
fail
to
become
profitable
and
the
capital
invested
in
them,
including
the
Fund’s
investments,
is
often
unsecured.
Additionally,
the
return
on
investment
in
venture-backed
companies
depends
on
the
company’s
ability
to
have
a
timely
exit
event,
such
as
an
IPO
or
merger
or
sale.
A
failure
to
obtain
such
an
exit
could
result
in
substantial
losses
to
the
company’s
equity
holders,
including
the
Fund.
Thus,
the
Fund
is
subject
to
the
risk
of
loss
of
all
or
substantially
all
its
investments.
Risks
of
Drag-Along
Rights.
The
private
company
securities
the
Fund
acquires
(or
into
which
they
are
convertible)
may
be
subject
to
drag-along
rights,
a
standard
term
in
a
stock
purchase
agreement
that
permits
a
majority
stockholder
in
the
company
to
force
minority
stockholders
to
join
in
the
sale
of
a
company
on
the
same
price,
terms,
and
conditions
as
any
other
seller
in
the
sale.
Such
drag-along
rights
could
permit
other
stockholders,
under
certain
circumstances,
to
force
the
Fund
to
liquidate
its
position
in
a
Portfolio
Company
at
a
specified
price,
which
could
be,
in
the
Adviser’s
opinion,
inadequate
or
undesirable
or
even
below
the
appropriate
cost
basis.
In
this
event,
the
Fund
could
realize
a
loss
or
fail
to
realize
gain
in
an
amount
that
the
Adviser
deems
appropriate
on
the
investment.
Accordingly,
the
Fund
may
not
be
able
to
realize
gains
from
its
investments,
and
any
gains
that
the
Fund
does
realize
on
the
disposition
of
any
investments
may
not
be
sufficient
to
offset
any
other
losses
it
experiences.
Management
Risk.
The
Fund
is
subject
to
management
risk
because
it
is
an
actively
managed
investment
portfolio.
The
Adviser
and
each
individual
investment
professional
may
not
be
successful
in
selecting
the
best
investments
or
investment
techniques,
and
the
Fund’s
performance
may
lag
behind
that
of
similar
funds.
Prior
to
the
launch
of
the
Fund,
the
Adviser’s
primary
experience
was
in
managing
real
estate
investments.
The
Adviser’s
limited
experience
in
managing
the
Fund’s
investment
strategy
may
hinder
the
Fund’s
ability
to
secure
attractive
investment
opportunities
and,
as
a
result,
may
limit
the
profitability
of
the
Fund
and
detract
from
the
Fund’s
ability
to
achieve
its
investment
objective.
Moreover,
if
the
Adviser
fails
to
retain
its
key
personnel,
the
Fund
may
not
be
able
to
achieve
its
anticipated
level
of
growth
and
its
business
could
suffer.
Rise
Companies,
the
Adviser’s
parent
company,
is
a
development
stage
company
and,
as
a
company
in
the
early
stages
of
development,
Rise
Companies
faces
increased
risks,
uncertainties,
expenses
and
difficulties
that
could
have
an
effect
on
the
Adviser’s
ability
to
manage
the
Fund.
The
Adviser
may
adopt
the
use
of
a
number
of
artificial
intelligence
(“AI”)
tools
to
facilitate
and
enhance
its
operations,
including
its
investment
research
processes,
and
will
continue
to
explore
and
expects
to
deploy
other
tools
in
future.
Use
of
AI,
including
generative
AI,
by
the
Adviser
or
the
Fund’s
other
service
providers
may
give
rise
to
regulatory,
operational,
and
other
risks
which
could
have
a
negative
impact
on
the
Fund’s
operations
and/or
performance.
Market
Discount
from
and
Premium
to
NAV.
Shares
of
closed-end
investment
companies
like
the
Fund
frequently
trade
at
prices
lower
than
their
NAV.
This
characteristic
is
a
risk
separate
and
distinct
from
the
risk
that
the
Fund’s
NAV
could
decrease
as
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
39
a
result
of
investment
activities.
Management
may
have
difficulty
meeting
the
Fund’s
investment
objectives
during
periods
of
market
turmoil
and
as
investors’
perceptions
regarding
closed-end
funds
or
their
underlying
investments
change.
Common
shares
of
the
Fund
recently
commenced
trading
on
the
NYSE
and
have
traded
at
prices
substantially
above
their
NAV.
This
initial
listing
premium
(to
the
Fund’s
NAV)
may
be
attributable
to
factors
related
to
the
initial
listing
period,
including
limited
public
float
due
to
shareholder
lockup
periods,
supply/demand
imbalance
and
other
market
dynamics
unrelated
to
the
value
and
fundamentals
of
the
Fund’s
portfolio
holdings.
Whether
investors
will
realize
gains
or
losses
upon
the
sale
of
their
common
shares
will
depend
not
upon
the
Fund’s
NAV
but
entirely
upon
whether
the
market
price
of
the
common
shares
at
the
time
of
sale
is
above
or
below
the
investor’s
original
purchase
price
for
their
common
shares.
Investors
purchasing
common
shares
while
they
are
trading
at
a
premium
may
incur
significant
losses
even
if
NAV
is
stable
or
increases.
The
Fund
cannot
predict
whether
the
common
shares
will
trade
at,
below
or
above
NAV.
The
common
shares
are
designed
primarily
for
long
term
investors,
and
you
should
not
view
the
Fund
as
a
vehicle
for
short-term
trading.
The
possibility
that
the
Fund’s
Common
Shares
will
trade
at
a
discount
from
NAV
per
share
or
at
premiums
that
are
unsustainable
over
the
long
term
are
separate
and
distinct
from
the
risk
that
the
Fund’s
NAV
per
share
may
decrease.
Competition
Risk.
Identifying,
completing
and
realizing
attractive
portfolio
investments
is
extremely
competitive.
In
acquiring
its
target
assets,
the
Fund
will
compete
with
a
variety
of
other
institutional
investors,
including
public
and
private
funds,
investment
banking
firms,
commercial
banks,
specialty
finance
companies,
online
investment
platforms
and
other
financial
institutions,
many
of
which
have
greater
resources,
lower
costs
of
funding,
and
less
regulatory
restrictions
than
the
Fund.
To
the
extent
that
the
Fund
encounters
competition
for
investments,
returns
to
its
investors
may
vary.
Investment
and
Market
Risk.
An
investment
in
the
Fund
is
subject
to
investment
risk,
including
the
possible
loss
of
the
entire
amount
that
you
invest.
The
value
of
the
Fund’s
investments
may
move
up
or
down
due
to
adverse
market
conditions,
sometimes
rapidly
and
unpredictably.
At
any
point
in
time,
your
Shares
may
be
worth
less
than
your
original
investment,
even
after
taking
into
account
the
reinvestment
of
Fund
dividends
and
distributions.
Market
risk
also
includes
the
risk
that
geopolitical
and
other
events,
such
as
war,
terrorism,
market
manipulation,
government
defaults,
government
shutdowns,
political
changes,
diplomatic
developments
or
the
imposition
of
sanctions
and
other
similar
measures,
public
health
emergencies
(such
as
the
spread
of
infectious
diseases,
pandemics
and
epidemics)
and
natural/environmental
disasters
negatively
impact
the
securities
markets,
which
may
adversely
affect
the
Fund’s
business,
results
of
operations
and
financial
condition
and
cause
the
Fund
to
lose
value.
Common
Stock
Risk.
Common
stock
of
an
issuer
in
the
Fund’s
portfolio
may
be
volatile,
and
prices
may
fluctuate
based
on
changes
in
a
company’s
financial
condition
and
overall
market
and
economic
circumstances.
Although
common
stocks
have
historically
generated
higher
average
total
returns
than
fixed
income
securities
over
the
long-term,
common
stocks
also
have
experienced
significantly
more
volatility
in
those
returns
and,
in
certain
periods,
have
significantly
under-performed
relative
to
fixed
income
securities.
Preferred
Securities
Risk.
Preferred
securities
are
subordinated
to
bonds
and
other
debt
instruments
in
a
company’s
capital
structure
in
terms
of
priority
to
corporate
income
and
liquidation
payments,
and
therefore
will
be
subject
to
greater
credit
risk
than
more
senior
debt
instruments.
Derivatives
Risk.
Derivatives
are
subject
to
a
number
of
risks
described
elsewhere
in
the
Fund’s
Prospectus,
including
interest
rate
risk
and
management
risk.
The
performance
of
derivatives
depends
largely
on
the
performance
of
the
underlying
reference
instruments
to
which
the
derivatives
relate.
Derivatives
are
also
subject
to
counterparty
risk,
which
is
the
risk
that
the
other
party
in
the
transaction
will
not
fulfill
its
contractual
obligation.
Derivative
instruments
can
be
volatile
and
illiquid.
They
may
disproportionately
increase
losses,
and
may
have
a
potentially
large
impact
on
Fund
performance.
Derivatives
also
involve
the
risk
of
mispricing
or
improper
valuation
and
the
risk
that
changes
in
the
value
of
a
derivative
may
not
correlate
perfectly
with
the
underlying
asset,
interest
rate
or
index
to
which
the
derivative
relates.
Suitable
derivative
transactions
may
not
be
available
in
all
circumstances
and
there
can
be
no
assurance
that
the
Fund
will
engage
in
these
transactions
generally
or
in
any
particular
kind
of
derivative,
if
the
Adviser
elects
not
to
do
so
due
to
availability,
cost
or
other
factors.
Warrants
and
Rights
Risk.
Warrants
and
rights
are
subject
to
the
same
market
risks
as
common
stocks,
but
are
more
volatile
in
price.
Warrants
and
rights
do
not
carry
the
right
to
dividends
or
voting
rights
with
respect
to
their
underlying
securities,
and
they
do
not
represent
any
rights
in
the
assets
of
the
issuer.
An
investment
in
warrants
or
rights
may
be
considered
speculative.
In
addition,
the
value
of
a
warrant
or
right
does
not
necessarily
change
with
the
value
of
the
underlying
security
and
a
warrant
or
right
ceases
to
have
value
if
it
is
not
exercised
prior
to
its
expiration
date.
The
purchase
of
warrants
or
rights
involves
the
risk
that
the
Fund
could
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
40
lose
the
purchase
value
of
a
warrant
or
right
if
the
right
to
subscribe
for
additional
shares
is
not
exercised
prior
to
the
warrants’
or
rights’
expiration.
Also,
the
purchase
of
warrants
and
rights
involves
the
risk
that
the
effective
price
paid
for
the
warrant
or
right
added
to
the
subscription
price
of
the
related
security
may
exceed
the
value
of
the
subscribed
security’s
market
price
such
as
when
there
is
no
movement
in
the
price
of
the
underlying
security.
Options
Risk.
The
Fund’s
options
investments
involve
certain
risks,
including
general
risks
related
to
derivative
instruments.
When
purchasing
options,
the
Fund
risks
losing
the
amount
of
the
premium
it
has
paid
should
it
decide
to
let
the
option
expire
unexercised,
plus
any
related
transaction
costs.
When
trading
options
in
the
over-the-counter
(“OTC”)
market,
many
of
the
protections
afforded
to
exchange
participants
will
not
be
available.
If
a
counterparty
fails
to
make
delivery
of
the
security
underlying
an
OTC
option
it
has
entered
into
with
the
Fund
or
fails
to
make
a
cash
settlement
payment
due
in
accordance
with
the
terms
of
that
option,
the
Fund
will
lose
any
premium
it
paid
for
the
option
as
well
as
any
anticipated
benefit
of
the
transaction.
Additionally,
there
can
be
no
assurance
that
a
liquid
secondary
market
on
an
exchange
will
exist
for
any
particular
option,
or
at
any
particular
time,
and
the
Fund
may
have
difficulty
effecting
closing
transactions
in
particular
options.
Therefore,
the
Fund
would
have
to
exercise
the
options
it
purchased
in
order
to
realize
any
profit,
thus
taking
or
making
delivery
of
the
underlying
reference
instrument
when
not
desired.
The
Fund
could
then
incur
transaction
costs
upon
the
sale
of
the
underlying
reference
instruments.
Forward
Contracts
Risk.
A
forward
contract
is
an
over-the-counter
derivative
transaction
between
two
parties
to
buy
or
sell
a
specified
amount
of
an
underlying
reference
asset
at
a
specified
price
(or
rate)
on
a
specified
date
in
the
future.
Forward
contracts
are
negotiated
on
an
individual
basis
and
are
not
standardized
or
traded
on
exchanges.
The
market
for
forward
contracts
is
substantially
unregulated
and
can
experience
lengthy
periods
of
illiquidity,
unusually
high
trading
volume
and
other
negative
impacts,
such
as
political
intervention,
which
may
result
in
volatility
or
disruptions
in
such
markets.
Forward
contracts
can
increase
the
Fund’s
risk
exposure
to
underlying
references
and
their
attendant
risks,
such
as
credit
risk,
market
risk,
foreign
currency
risk
and
interest
rate
risk,
while
also
exposing
the
Fund
to
the
risks
associated
with
derivatives
generally,
including
correlation
risk,
counterparty
risk,
leverage
risk,
liquidity
risk,
pricing
risk
and
volatility
risk.
The
Fund
anticipates
that
the
equity
forward
contracts
it
will
enter
into
will
be
prepaid
forwards,
which
entail
an
upfront
payment
of
the
purchase
price
by
the
purchasing
party
(in
this
case,
the
Fund).
Where
the
Fund
enters
into
prepaid
forwards,
it
is
subject
to
the
risk
of
losing
its
entire
purchase
price
in
the
event
of
counterparty
default.
Issuer-Specific
Risk.
A
security
issued
by
a
particular
issuer
may
be
impacted
by
factors
that
are
unique
to
that
issuer
and
thus
may
cause
that
security’s
return
to
differ
from
that
of
the
market.
As
a
result,
investments
impacted
by
such
factors
may
result
in
underperformance.
This
risk
will
be
greater
if
an
account
concentrates
its
investments.
Smaller
Company
Risk.
Stocks
of
smaller
companies
may
trade
less
frequently,
may
trade
in
smaller
volumes
and
may
fluctuate
more
sharply
in
price
than
stocks
of
larger
companies
and
the
purchase
or
sale
of
more
than
a
limited
number
of
shares
of
smaller
companies
may
affect
their
stock
prices.
Smaller
companies
may
not
be
widely
followed
by
the
investment
community,
which
can
lower
the
demand
for
their
stocks.
In
addition,
smaller
companies
tend
to
have
fewer
key
suppliers
and
customers,
limited
product
lines,
markets,
distribution
channels
or
financial
resources,
and
management
of
such
companies
may
be
dependent
upon
one
or
a
few
key
people.
Changes
in
suppliers,
customers,
business
lines
or
personnel,
therefore,
may
have
a
greater
impact
on
a
smaller
company’s
stock
price
than
on
a
larger
company.
The
market
movements
of
equity
securities
issued
by
companies
with
smaller
capitalizations
may
be
more
abrupt
or
erratic
than
the
market
movements
of
equity
securities
of
larger,
more
established
companies
or
the
stock
market
in
general.
New
Issues
Risk.
“New
Issues”
are
initial
public
offerings
of
U.S.
equity
securities.
There
is
no
assurance
that
the
Fund
will
have
access
to
profitable
IPOs.
The
investment
performance
of
the
Fund
during
periods
when
it
is
unable
to
invest
significantly
or
at
all
in
IPOs
may
be
lower
than
during
periods
when
the
Fund
is
able
to
do
so.
Securities
issued
in
IPOs
are
subject
to
many
of
the
same
risks
as
investing
in
companies
with
smaller
market
capitalizations.
Securities
issued
in
IPOs
have
no
trading
history,
and
information
about
the
companies
may
be
available
for
very
limited
periods.
In
addition,
the
prices
of
securities
sold
in
IPOs
may
be
highly
volatile
or
may
decline
shortly
after
the
initial
public
offering.
When
an
initial
public
offering
is
brought
to
the
market,
availability
may
be
limited
and
the
Fund
may
not
be
able
to
buy
any
shares
at
the
offering
price,
or,
if
it
is
able
to
buy
shares,
it
may
not
be
able
to
buy
as
many
shares
at
the
offering
price
as
it
would
like.
Restricted
and
Illiquid
Securities
Risk.
Illiquid
securities
are
securities
that
are
not
readily
marketable.
These
securities
may
include
restricted
securities,
which
cannot
be
resold
to
the
public
without
an
effective
registration
statement
under
the
Securities
Act,
or,
if
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
41
they
are
unregistered,
may
be
sold
only
in
a
privately
negotiated
transaction
or
pursuant
to
an
exemption
from
registration.
Many
private
company
securities
may
be
restricted
securities
and/or
considered
illiquid.
The
Fund
may
not
be
able
to
readily
dispose
of
such
securities
at
prices
that
approximate
those
at
which
the
Fund
could
sell
such
securities
if
they
were
more
widely
traded
and,
as
a
result
of
such
illiquidity,
the
Fund
may
have
to
sell
other
investments
or
engage
in
borrowing
transactions
if
necessary
to
raise
cash
to
meet
its
obligations.
Limited
liquidity
can
also
affect
the
market
price
of
securities,
thereby
adversely
affecting
the
Fund’s
net
asset
value
and
ability
to
make
dividend
distributions.
The
financial
markets
in
general
have
in
recent
years
experienced
periods
of
extreme
secondary
market
supply
and
demand
imbalance,
resulting
in
a
loss
of
liquidity
during
which
market
prices
were
suddenly
and
substantially
below
traditional
measures
of
intrinsic
value.
During
such
periods,
some
securities
could
be
sold
only
at
arbitrary
prices
and
with
substantial
losses.
Periods
of
such
market
dislocation
may
occur
again
at
any
time.
Privately
issued
debt
securities
are
often
of
below
investment
grade
quality,
frequently
are
unrated
and
present
many
of
the
same
risks
as
investing
in
below
investment
grade
public
debt
securities.
Rule
144A
Securities
Risk.
The
Fund
may
purchase
Rule
144A
securities
for
which
there
is
a
secondary
market
of
qualified
institutional
buyers,
as
defined
in
Rule
144A
promulgated
under
the
Securities
Act.
Rule
144A
provides
an
exemption
from
the
registration
requirements
of
the
Securities
Act
for
the
resale
of
certain
restricted
securities
to
qualified
institutional
buyers.
To
the
extent
that
liquid
Rule
144A
securities
that
the
Fund
holds
become
illiquid,
due
to
the
lack
of
sufficient
qualified
institutional
buyers
or
market
or
other
conditions,
the
percentage
of
the
Fund’s
assets
invested
in
illiquid
assets
would
increase.
Non-Diversification
Risk.
As
a
“non-diversified”
fund
under
the
1940
Act,
the
Fund
may
invest
more
than
5%
of
its
total
assets
in
the
securities
of
a
single
issuer.
Therefore,
the
Fund
may
be
more
susceptible
than
a
diversified
fund
to
being
adversely
affected
by
events
impacting
a
single
borrower,
geographic
location,
security
or
investment
type.
Interest
Rate
Risk.
Changes
in
interest
rates,
including
changes
in
expected
interest
rates
or
“yield
curves,”
may
affect
the
Fund’s
business
in
a
number
of
ways.
Changes
in
the
general
level
of
interest
rates
can
affect
the
Fund’s
net
interest
income,
which
is
the
difference
between
the
interest
income
earned
on
the
Fund’s
interest-earning
assets
and
the
interest
expense
incurred
in
connection
with
its
interest-bearing
borrowings
and
hedges.
In
addition,
changes
in
monetary
policy
may
exacerbate
the
risks
associated
with
changing
interest
rates.
It
is
difficult
to
predict
the
magnitude,
timing
or
direction
of
interest
rate
changes
and
the
impact
these
changes
will
have
on
markets
in
which
the
Fund
invests.
Below
Investment
Grade
(High
Yield
or
Junk)
Securities
Risk.
The
Fund
may
have
exposure
to
investments
that
are
rated
below
investment
grade
or
that
are
unrated
but
are
judged
by
the
Adviser
to
be
of
credit
quality
comparable
to
securities
rated
below
investment
grade
by
a
nationally
recognized
statistical
rating
organization.
Lower
grade
securities
may
be
particularly
susceptible
to
economic
downturns
and
are
inherently
speculative.
Because
of
the
substantial
risks
associated
with
investments
in
lower
grade
securities,
you
could
lose
money
on
your
investment
in
Shares,
both
in
the
short-term
and
the
long-term.
Foreign
Companies
Risk.
Investing
in
foreign
companies,
and
particularly
those
in
emerging
markets,
may
expose
the
Fund
to
additional
risks
not
typically
associated
with
investing
in
U.S.
issuers.
These
risks
include
changes
in
exchange
control
regulations,
political
and
social
instability,
expropriation,
nationalization
of
companies
by
foreign
governments,
imposition
of
foreign
taxes
(including
withholding
taxes)
at
potentially
confiscatory
levels,
less
liquid
markets
and
less
available
information
than
is
generally
the
case
in
the
United
States,
higher
transaction
costs,
less
government
supervision
of
exchanges,
brokers
and
issuers,
less
developed
bankruptcy
laws,
difficulty
in
enforcing
contractual
obligations,
lack
of
uniform
accounting
and
auditing
standards
and
greater
price
volatility.
Further,
the
Fund
may
have
difficulty
enforcing
its
rights
as
an
equity
holder
in
foreign
jurisdictions.
In
addition,
to
the
extent
the
Fund
invests
in
non-U.S.
companies,
it
may
face
greater
exposure
to
foreign
economic
developments.
Leverage
Risk.
The
Fund
may
use
leverage
for
both
investment
and
hedging
purposes.
Leverage
may
result
in
greater
volatility
of
the
NAV
of,
and
distributions
on,
the
Shares
because
changes
in
the
value
of
the
Fund’s
portfolio
investments,
including
investments
purchased
with
the
proceeds
from
borrowings
are
borne
entirely
by
holders
of
Shares.
Corporate
Debt
Securities
Risk.
The
Fund
may
invest
in
corporate
debt
securities
generally,
including
corporate
bonds
of
technology-
related
companies.
Corporate
bonds
include
a
wide
variety
of
debt
obligations
of
varying
maturities
issued
by
U.S.
and
foreign
corporations
(including
banks)
and
other
business
entities.
Bonds
are
fixed
or
variable
rate
debt
obligations,
including
bills,
notes,
debentures
and
similar
instruments
and
securities.
The
Fund
may
invest
in
corporate
bonds
denominated
in
U.S.
dollars
or
foreign
currencies.
The
value
of
corporate
bonds
may
be
affected
by
factors
directly
relating
to
their
issuers,
including
but
not
limited
to
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
42
investor
and
market
perceptions,
creditworthiness,
financial
performance,
capital
structure,
management
of
the
issuer
and
demand
for
the
issuer’s
goods
or
services.
The
Fund
has
the
flexibility
to
invest
in
corporate
bonds
that
are
below
investment
grade
quality.
Corporate
bonds
may
also
be
subject
to
interest
rate,
liquidity
and
valuation
risks.
Convertible
Securities
and
Synthetic
Convertible
Securities
Risk.
The
Fund
may
invest
in
convertible
securities.
A
convertible
security
is
a
bond,
debenture,
note,
preferred
stock
or
other
security
that
may
be
converted
into
or
exchanged
for
a
prescribed
amount
of
common
stock
or
other
equity
security
of
the
same
or
a
different
issuer
within
a
particular
period
of
time
at
a
specified
price
or
formula.
The
credit
standing
of
the
issuer
and
other
factors
also
may
have
an
effect
on
the
convertible
security’s
investment
value.
Convertible
securities
rank
senior
to
common
stock
in
a
corporation’s
capital
structure
but
are
usually
subordinated
to
comparable
nonconvertible
securities.
Synthetic
convertible
securities
differ
from
convertible
securities
in
certain
respects.
Unlike
a
true
convertible
security,
which
is
a
single
security
having
a
unitary
market
value,
a
synthetic
convertible
comprises
two
or
more
separate
securities,
each
with
its
own
market
value.
Therefore,
the
“market
value”
of
a
synthetic
convertible
security
is
the
sum
of
the
values
of
its
debt
component
and
its
convertibility
component.
For
this
reason,
the
values
of
a
synthetic
convertible
and
a
true
convertible
security
may
respond
differently
to
market
fluctuations.
Pooled
Investment
Vehicles
Risk.
To
the
extent
the
Fund
invests
in
other
pooled
investment
vehicles
(including
investment
companies,
exchange-traded
funds,
and
money
market
funds),
the
Fund
will
be
affected
by
the
investment
policies,
practices
and
performance
of
such
entities
in
direct
proportion
to
the
amount
of
assets
the
Fund
invests
therein.
Further,
shareholders
will
incur
a
proportionate
share
of
the
expenses
of
the
other
pooled
investment
vehicles
held
by
the
Fund
(including
applicable
organizational
and
operating
costs
and
investment
management
fees)
in
addition
to
the
expenses
of
the
Fund.
Limited
Operating
History
Risk.
The
Fund
is
a
closed-end
management
investment
company
with
limited
operating
history.
As
a
result,
the
Fund’s
performance
may
not
reflect
how
the
Fund
may
be
expected
to
perform
over
the
long
term.
In
addition,
prospective
investors
have
a
limited
track
record
and
history
on
which
to
base
their
investment
decision.
Distributions
Risk.
There
can
be
no
assurance
that
the
Fund
will
achieve
investment
results
that
will
allow
the
Fund
to
make
a
specified
level
of
cash
distributions
or
maintain
certain
levels
of
cash
distributions.
Additionally,
a
portion
of
the
Fund’s
distributions
may
be
treated
as
a
return
of
capital
for
U.S.
federal
income
tax
purposes,
which
could
reduce
the
basis
of
a
Shareholder’s
investment
in
the
Fund’s
Shares
and
may
trigger
taxable
gain.
Cybersecurity
Risk.
Cybersecurity
failures
or
breaches
may
result
in
financial
losses
to
the
Fund
and
its
shareholders.
These
failures
or
breaches
may
also
result
in
disruptions
to
business
operations,
potentially
resulting
in
financial
losses;
interference
with
a
Fund’s
ability
to
calculate
its
NAV,
process
shareholder
transactions
or
otherwise
transact
business
with
shareholders;
impediments
to
trading;
violations
of
applicable
privacy
and
other
laws;
regulatory
fines;
penalties;
reputational
damage;
reimbursement
or
other
compensation
costs;
additional
compliance
and
cybersecurity
risk
management
costs
and
other
adverse
consequences.
In
addition,
substantial
costs
may
be
incurred
in
order
to
prevent
any
cyber
incidents
in
the
future.
Because
technology
is
frequently
changing,
new
ways
to
carry
out
cyberattacks
continue
to
develop.
Therefore,
there
is
a
chance
that
certain
risks
have
not
been
identified
or
prepared
for,
or
that
an
attack
may
not
be
detected,
which
puts
limitations
on
the
ability
of
the
Fund
and
its
service
providers
to
plan
for
or
respond
to
a
cyberattack.
Furthermore,
geopolitical
tensions
could
increase
the
scale
and
sophistication
of
deliberate
cybersecurity
attacks,
particularly
those
from
nation-states
or
from
entities
with
nation-state
backing.
Tax
Risk.
The
Fund
intends
to
elect
and
intends
to
qualify
as
a
RIC
under
the
Code,
for
its
taxable
year
ending
March
31,
2026.
To
qualify
as
a
RIC,
the
Fund
must
meet
certain
organizational
and
operational
requirements,
including
a
requirement
to
distribute
at
least
90%
of
the
Fund’s
annual
investment
company
taxable
income
to
the
shareholders
of
the
Fund
(which
is
computed
without
regard
to
the
dividends
paid
deduction
and
generally
equals
the
Fund’s
ordinary
income
plus
the
excess
of
its
net
short-term
capital
gains
over
its
net
long-term
capital
losses,
minus
deductible
expenses).
As
a
RIC,
the
Fund
generally
will
not
be
subject
to
U.S.
federal
income
tax
on
income
or
gains
distributed
in
a
timely
manner
to
its
shareholders
in
the
form
of
dividends.
Even
if
the
Fund
qualifies
for
taxation
as
a
RIC,
it
may
be
subject
to
certain
foreign,
state
and
local
taxes
on
its
income
and
property,
and
federal
income
and
excise
taxes
on
its
undistributed
income.
The
tax
period
for
the
taxable
year
ending
March
31,
2023,
and
all
tax
periods
following
remain
open
to
examination
by
the
major
taxing
authorities
in
all
jurisdictions
where
the
Fund
is
subject
to
taxation.
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
43
Prior
to
the
taxable
year
ending
March
31,
2026,
the
Fund
was
treated
as
a
regular
corporation,
or
a
“C”
corporation,
for
U.S.
federal
income
tax
purposes.
During
the
periods
the
Fund
was
treated
as
a
“C”
corporation,
for
U.S.
federal
income
tax
purposes,
the
Fund
incurred
tax
expenses
and
was
subject
to
tax
at
regular
corporate
rates.
Pursuant
to
rules
applicable
to
RICs
that
were
previously
taxed
as
C
corporations,
because
the
Fund’s
assets
had
an
aggregate
net
unrealized
built-in
gain
at
the
time
it
first
qualified
as
a
RIC,
the
Fund
generally
will
be
subject
to
tax
at
regular
corporate
rates
to
the
extent
the
Fund
recognizes
such
gain
within
five
years
after
so
qualifying,
even
if
the
Fund
distributes
such
gain.
In
accordance
with
generally
accepted
accounting
principles,
the
Fund
has
already
accrued
a
deferred
income
tax
liability
balance,
at
the
currently
effective
statutory
U.S.
federal
income
tax
rate
(21%)
plus
an
estimated
state
and
local
income
tax
rate,
for
its
future
tax
liability
associated
with
such
net
unrealized
built-in
gain.
Net
capital
or
ordinary
losses
recognized
during
the
recognition
period
may
be
used
to
offset
built-in
gains.
Such
deferred
tax
liability,
and
any
deferred
tax
assets,
are
accounted
for
in
calculating
the
Fund’s
NAV
and
will
be
remeasured
from
time
to
time
as
the
Adviser
deems
necessary,
in
accordance
with
U.S.
generally
accepted
accounting
principles.
3.
Changes
Occurring
During
the
Fiscal
Year
The
following
information
in
this
annual
report
is
a
summary
of
certain
changes
occurring
during
the
most
recent
fiscal
year.
This
information
may
not
reflect
all
of
the
changes
that
have
occurred
since
you
purchased
shares
of
the
Fund.
During
the
most
recent
fiscal
year,
there
have
been
no
changes
required
to
be
reported
in
connection
with:
(i)
the
Fund’s
investment
objective
and
principal
investment
policies
that
have
not
been
approved
by
shareholders,
(ii)
the
principal
risks
of
the
Fund,
(iii)
the
portfolio
managers
of
the
Fund,
or
(iv)
the
Fund’s
Limited
Liability
Company
Agreement
that
would
delay
or
prevent
a
change
of
control
of
the
Fund
that
have
not
been
approved
by
shareholders,
except
as
provided
below.
I.
The
Fund’s
shares
began
trading
on
the
New
York
Stock
Exchange
(“NYSE”)
on
March
19,
2026,
under
the
symbol
“VCX.”
In
connection
with
the
listing
of
the
Fund’s
shares
on
the
NYSE,
the
following
risk
was
added
as
a
principal
risk
of
the
Fund:
Market
Discount
from
and
Premium
to
NAV.
Shares
of
closed-end
investment
companies
like
the
Fund
frequently
trade
at
prices
lower
than
their
NAV.
This
characteristic
is
a
risk
separate
and
distinct
from
the
risk
that
the
Fund’s
NAV
could
decrease
as
a
result
of
investment
activities.
Management
may
have
difficulty
meeting
the
Fund’s
investment
objectives
during
periods
of
market
turmoil
and
as
investors’
perceptions
regarding
closed-end
funds
or
their
underlying
investments
change.
Common
shares
of
the
Fund
recently
commenced
trading
on
the
NYSE
and
have
traded
at
prices
substantially
above
their
NAV.
This
initial
listing
premium
(to
the
Fund’s
NAV)
may
be
attributable
to
factors
related
to
the
initial
listing
period,
including
limited
public
float
due
to
shareholder
lockup
periods,
supply/demand
imbalance
and
other
market
dynamics
unrelated
to
the
value
and
fundamentals
of
the
Fund’s
portfolio
holdings.
Whether
investors
will
realize
gains
or
losses
upon
the
sale
of
their
common
shares
will
depend
not
upon
the
Fund’s
NAV
but
entirely
upon
whether
the
market
price
of
the
common
shares
at
the
time
of
sale
is
above
or
below
the
investor’s
original
purchase
price
for
their
common
shares.
Investors
purchasing
common
shares
while
they
are
trading
at
a
premium
may
incur
significant
losses
even
if
NAV
is
stable
or
increases.
The
Fund
cannot
predict
whether
the
common
shares
will
trade
at,
below
or
above
NAV.
The
common
shares
are
designed
primarily
for
long
term
investors,
and
you
should
not
view
the
Fund
as
a
vehicle
for
short-term
trading.
The
possibility
that
the
Fund’s
Common
Shares
will
trade
at
a
discount
from
NAV
per
share
or
at
premiums
that
are
unsustainable
over
the
long
term
are
separate
and
distinct
from
the
risk
that
the
Fund’s
NAV
per
share
may
decrease.
II.
In
connection
with
the
listing
of
the
Fund’s
shares
on
the
NYSE,
the
following
risks
were
removed
as
principal
risks
of
the
Fund:
Non-Listed
Closed-End
Fund;
Liquidity
Risk.
The
Fund
is
a
non-diversified,
closed-end
management
investment
company
designed
primarily
for
long-term
investors.
Closed-end
funds
differ
from
open-end
management
investment
companies
(commonly
known
as
mutual
funds)
because
investors
in
a
closed-end
fund
do
not
have
the
right
to
redeem
their
shares
on
a
daily
basis.
Unlike
most
closed-end
funds,
which
typically
list
their
shares
on
a
securities
exchange,
the
Fund
does
not
currently
intend
to
list
the
Shares
for
trading
on
any
securities
exchange,
and
the
Fund
does
not
expect
any
secondary
market
to
develop
for
the
Shares
in
the
foreseeable
future.
Therefore,
an
investment
in
the
Fund
is
not
a
liquid
investment.
The
Fund
is
not
intended
to
be
a
typical
traded
investment.
Shareholders
are
also
subject
to
transfer
restrictions
and
there
is
no
guarantee
that
they
will
be
able
to
sell
their
Shares.
If
a
secondary
market
were
to
develop
for
the
Shares
in
the
future,
and
a
Shareholder
is
able
to
sell
his
or
her
Shares,
the
Shareholder
will
likely
receive
less
than
the
purchase
price
and
the
then-current
NAV
per
Share.
The
Fund
from
time
to
time
may
offer
to
repurchase
Shares
pursuant
to
written
tenders
by
the
Shareholders.
The
Fund
intends,
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
44
but
is
not
obligated,
to
conduct
quarterly
repurchase
offers
in
the
sole
discretion
of
the
Board;
provided,
that
it
is
not
expected
that
such
repurchase
offers
will
be
for
Shares
in
the
amount
of
more
than
5%
of
the
Fund’s
net
assets.
Any
repurchases
of
Shares
will
be
made
to
all
holders
of
Shares,
at
such
times
and
on
such
terms
as
may
be
determined
by
the
Board
from
time
to
time
in
its
sole
discretion.
The
Adviser
will
not
recommend
to
the
Board
that
the
Fund
conduct
a
repurchase
offer
during
any
period
of
time
when
the
Adviser
believes
that
conducting
such
a
repurchase
offer
would
not
be
in
the
best
interests
of
the
Fund
and
its
shareholders,
and
there
may
be
extended
periods
of
time
when
the
Fund
does
not
conduct
a
repurchase
offer.
No
Shareholder
will
have
the
right
to
require
the
Fund
to
repurchase
its
Shares.
In
connection
with
any
repurchase
offer,
the
number
of
Shares
tendered
for
repurchase
may
exceed
the
number
of
Shares
the
Fund
has
offered
to
repurchase,
in
which
case
not
all
of
your
Shares
tendered
in
that
offer
will
be
repurchased.
Hence,
you
may
not
be
able
to
sell
your
Shares
when
or
in
the
amount
that
you
desire.
Notwithstanding
the
foregoing,
no
assurance
can
be
given
that
these
repurchases
will
occur
as
contemplated
or
at
all.
Repurchase
Offers
Risk.
The
repurchase
of
Shares
by
the
Fund
decreases
the
assets
of
the
Fund
and,
therefore,
may
have
the
effect
of
increasing
the
Fund’s
expense
ratio.
Repurchase
offers
and
the
need
to
fund
repurchase
obligations
may
also
affect
the
ability
of
the
Fund
to
be
fully
invested
or
force
the
Fund
to
maintain
a
higher
percentage
of
its
assets
in
liquid
investments,
which
may
harm
the
Fund’s
investment
performance.
Moreover,
diminution
in
the
size
of
the
Fund
through
repurchases
may
result
in
untimely
sales
of
portfolio
securities
and
may
limit
the
ability
of
the
Fund
to
participate
in
new
investment
opportunities
or
to
achieve
its
investment
objective.
If
the
Fund
uses
leverage,
repurchases
of
Shares
may
compound
the
adverse
effects
of
leverage
in
a
declining
market.
In
addition,
if
the
Fund
borrows
money
to
finance
repurchases,
interest
on
that
borrowing
will
negatively
affect
Shareholders
who
do
not
tender
their
Shares
by
increasing
Fund
expenses
and
reducing
any
net
investment
income.
If
a
repurchase
offer
is
oversubscribed
and
the
Fund
determines
not
to
repurchase
additional
Shares
beyond
the
repurchase
offer
amount,
or
if
Shareholders
tender
an
amount
of
Shares
greater
than
that
which
the
Fund
is
entitled
to
purchase,
the
Fund
will
repurchase
the
Shares
tendered
on
a
pro
rata
basis,
and
Shareholders
may
have
to
wait
until
the
next
repurchase
offer
to
make
another
repurchase
request.
Shareholders
will
be
subject
to
the
risk
of
NAV
fluctuations
during
that
period.
Thus,
there
is
also
a
risk
that
some
Shareholders,
in
anticipation
of
proration,
may
tender
more
Shares
than
they
wish
to
have
repurchased
in
a
particular
quarter,
thereby
increasing
the
likelihood
that
proration
will
occur.
The
NAV
of
Shares
tendered
in
a
repurchase
offer
may
fluctuate
between
the
date
a
Shareholder
submits
a
repurchase
request
and
the
expiration
of
the
repurchase
offer
(the
“Expiration
Date”),
and
to
the
extent
there
is
any
delay
between
the
Expiration
Date
and
the
Valuation
Date
(defined
below).
The
NAV
on
the
Expiration
Date
or
the
Valuation
Date
may
be
higher
or
lower
than
on
the
date
a
Shareholder
submits
a
repurchase
request.
III.
To
facilitate
the
conversion
of
the
Fund
from
a
closed-end
tender
offer
fund
to
a
listed
closed-end
fund
with
shares
traded
on
the
NYSE,
the
Board
approved
changes
to
the
LLC
Agreement
that
took
effect
concurrently
with
the
listing.
The
most
material
changes
are
summarized
below.
First,
provisions
governing
annual
shareholder
meetings,
Director
nominations,
shareholder
proposals,
and
proxy
voting
were
added.
The
prior
tender
offer
framework
was
removed,
as
shareholders
now
have
the
ability
to
sell
their
shares
on
the
NYSE
on
any
trading
day.
Second,
Director
election
procedures
were
updated.
In
uncontested
elections,
Directors
continue
to
be
elected
by
a
plurality
of
shares
voted.
In
contested
elections
(where
more
than
one
candidate
is
nominated
for
a
Director
position)
a
candidate
must
receive
the
vote
of
a
majority
of
the
outstanding
shares
to
be
elected.
Third,
provisions
were
added
to
protect
long-term
shareholders.
These
include
qualifications
for
Directors,
additional
authority
for
continuing
Directors
over
certain
governance
matters
(including
amendments
to
the
LLC
Agreement,
changes
to
Fund
committees,
and
dissolution,
merger,
consolidation,
or
conversion
of
the
Fund),
and
updated
standards
for
Director
liability.
In
addition,
a
provision
was
added
precluding
shareholders
from
bringing
direct
claims
against
the
Fund,
its
Directors,
or
officers.
Fourth,
the
LLC
Agreement's
arbitration
provision
was
replaced
with
a
provision
providing
for
Delaware
court
jurisdiction.
Fifth,
the
LLC
Agreement
was
amended
to
include
control
share
acquisition
provisions
modeled
on
Subchapter
III
of
the
Delaware
Statutory
Trust
Act.
Under
these
provisions,
an
acquirer
who
crosses
specified
voting
power
thresholds
(ranging
from
10%
to
a
majority
of
all
voting
power)
will
have
no
voting
rights
with
respect
to
shares
acquired
in
excess
of
the
applicable
threshold
Fundrise
Innovation
Fund,
LLC
Shareholder
Update
(UNAUDITED)(continued)
March
31,
2026
45
unless
approved
by
the
affirmative
vote
of
two-thirds
of
all
votes
entitled
to
be
cast
(excluding
shares
held
by
the
acquirer
and
its
associates
and
certain
Fund
insiders)
or
exempted
by
the
Board.
These
provisions
do
not
retroactively
apply
to
shares
acquired
before
the
listing,
although
such
shares
are
aggregated
with
any
shares
acquired
thereafter
for
purposes
of
determining
whether
a
threshold
is
exceeded.
The
Control
Share
Provisions
have
the
potential
to
limit
the
ability
of
activist
investors
to
use
their
ownership
to
attempt
to
disrupt
the
Fund's
long-term
strategy,
but
may
also
make
the
Board
less
responsive
to
shareholder
proposals.
Shareholders
are
encouraged
to
review
the
Fund’s
Operating
Agreement
in
its
entirety,
which
is
available
at
the
Definitive
Information
Statement
filed
with
the
Securities
and
Exchange
Commission
on
February
3,
2026.
4.
Dividend
Reinvestment
Prior
to
the
listing
of
the
Fund’s
Shares
on
the
NYSE,
the
Fund
operated
under
a
dividend
reinvestment
policy
administered
by
the
Adviser.
Effective
with
the
Fund’s
listing
on
the
NYSE
on
March
19,
2026,
the
Fund
no
longer
operates
its
dividend
reinvestment
policy.
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)
March
31,
2026
46
1.
Approval
of
Investment
Management
Agreements
Continuation
of
the
Fund’s
Existing
Investment
Advisory
Agreement
Section
15(c)
of
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
requires
that
each
registered
fund’s
board
of
directors,
including
a
majority
of
those
directors
who
are
not
“interested
persons”
of
the
fund,
as
defined
in
the
1940
Act
(the
“Independent
Directors”),
initially
approve,
and
annually
review
and
consider
the
continuation
of,
the
fund’s
investment
advisory
agreement.
At
its
meeting
held
on
November
6,
2025
(the
“Meeting”),
the
Fund’s
Board
of
Directors
(the
“Board”),
including
each
of
the
Independent
Directors,
unanimously
voted
to
approve
the
continuation
of
the
existing
investment
management
agreement
dated
July
18,
2022
(the
“Agreement”)
between
Fundrise
Advisors,
LLC
(the
“Adviser”)
and
the
Fund
for
an
additional
one-year
period.
In
connection
with
its
annual
consideration
of
the
Agreement
for
the
Fund,
the
Board,
through
its
independent
legal
counsel,
requested
and
received
extensive
materials
and
information
prepared
specifically
for
its
review
of
such
Agreement
by
the
Adviser
and
by
ISS
Market
Intelligence
(“ISS”),
an
independent
provider
of
investment
company
data.
The
report
from
ISS
compared
certain
fee
information
for
the
Fund
to
that
of
an
independently
selected
peer
group
of
similar
funds
(“Peer
Group”)
and
provided
performance
information
for
funds
in
the
Peer
Group
(the
“ISS
Report”).
The
Adviser
included
a
report
in
the
Meeting
materials
comparing
the
Fund’s
performance
to
the
performance
of
other
advisory
accounts
managed
by
the
Adviser.
The
Adviser
also
compared
the
Fund’s
management
fee
to
the
management
fee
paid
by
other
funds
for
which
it
provides
advisory
services.
Preceding
the
Meeting,
the
Board
also
reviewed
written
responses
from
the
Adviser
to
questions
posed
to
the
Adviser
by
counsel
on
behalf
of
the
Independent
Directors
and
supporting
materials
relating
to
those
questions
and
responses.
In
addition,
the
Board
considered
such
additional
information
as
it
deemed
reasonably
necessary
to
evaluate
the
Agreement,
such
as
the
materials
and
presentations
by
Fund
officers
and
representatives
of
the
Adviser
received
at
the
Meeting
concerning
the
Agreement,
the
operation
of
the
Fund
and
the
Adviser.
The
Board
also
considered
information
received
at
prior
meetings
of
the
Board
and
its
committees
throughout
the
year,
to
the
extent
such
information
was
relevant
to
its
evaluation
of
the
Agreement.
In
determining
whether
to
approve
the
renewal
of
the
Agreement,
the
members
of
the
Board
reviewed
and
evaluated
information
and
factors
they
believed
to
be
relevant
and
appropriate
in
the
exercise
of
their
reasonable
business
judgment.
While
individual
members
of
the
Board
may
have
weighed
certain
factors
differently,
the
Board’s
determination
to
approve
renewal
of
the
Agreement
was
based
on
a
comprehensive
consideration
of
all
information
provided
to
the
Board
with
respect
to
the
approval
of
the
renewal
of
the
Agreement.
The
Board
was
also
furnished
with
an
analysis
of
its
fiduciary
obligations
in
connection
with
its
evaluation
of
the
Agreement
and,
throughout
the
evaluation
process,
the
Board
was
assisted
by
counsel
for
the
Independent
Directors.
In
connection
with
their
deliberations,
the
Independent
Directors
met
separately
in
executive
session,
without
the
presence
of
representatives
of
the
Adviser,
to
consider
the
relevant
materials.
A
more
detailed
summary
of
the
important,
but
not
necessarily
all,
factors
the
Board
considered
with
respect
to
its
approval
of
the
renewal
of
the
Agreement
is
provided
below.
Nature,
Extent
and
Quality
of
Services
The
Board
considered
information
regarding
the
nature,
extent
and
quality
of
services
provided
to
the
Fund
by
the
Adviser.
The
Board
considered,
among
other
things,
the
terms
of
the
Agreement
and
the
range
of
services
provided
by
the
Adviser.
The
Board
considered
the
Adviser’s
organizational
structure
and
resources,
financial
statements
of
the
Adviser’s
parent
company
and
the
Adviser’s
ability
to
carry
out
its
obligations
under
the
Agreement.
The
Board
considered
that
the
Adviser
is
responsible
for
directing
the
Fund’s
business
and
affairs,
managing
the
Fund’s
day-to-day
affairs,
and
implementing
the
Fund’s
investment
strategy.
The
Board
also
considered
the
Adviser’s
experience
managing
other
similar
pooled
investment
vehicles
that
employ
different
investment
strategies
from
those
of
the
Fund.
The
Board
considered
the
Adviser’s
professional
personnel
who
provide
services
to
the
Fund
throughout
the
year,
including
the
Adviser’s
ability
and
experience
in
attracting
and
retaining
qualified
personnel
to
service
the
Fund.
The
Board
also
considered
the
compliance
program
and
compliance
record
of
the
Adviser
and
the
Fund.
The
Board
considered
the
Adviser’s
support
of
the
Fund’s
compliance
control
structure,
including
the
resources
that
continue
to
be
devoted
by
the
Adviser
in
support
of
the
Fund’s
obligations
pursuant
to
Rule
38a-1
under
the
1940
Act
and
the
efforts
of
the
Adviser
and
its
affiliates
in
supporting
the
Fund
and
managing
various
risks,
including,
but
not
limited
to,
cybersecurity
and
operational
risks.
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)(continued)
March
31,
2026
47
The
Board
considered
the
day-to-day
portfolio
management
services
that
the
Adviser
provides
to
the
Fund.
In
this
regard,
the
Board
considered,
among
other
things,
the
Adviser’s
investment
program
for
the
Fund,
its
investment
research
capabilities
and
resources,
its
performance
record,
its
experience,
its
trading
operations
and
its
approach
to
managing
risk,
including
most
particularly
with
respect
to
investments
in
the
technology
sector.
The
Board
further
considered
the
range
of
services
the
Adviser
provided
including,
but
not
limited
to,
overseeing
the
Fund’s
overall
investment
strategies;
determining
which
securities
and
other
investments
shall
be
purchased
or
sold
by
the
Fund;
identifying,
evaluating
and
negotiating
the
structure
of
the
Fund’s
investments,
including
overseeing
due
diligence
processes
related
to
prospective
investments,
and
monitoring
and
evaluating
the
Fund’s
performance.
The
Board
considered
the
experience
of
the
Fund’s
portfolio
managers
and
the
Adviser’s
method
for
compensating
the
portfolio
managers.
Additionally,
the
Board
observed
that
the
Adviser
provides
certain
administrative
services
to
the
Fund.
Apex
Fund
Services
(“Apex”),
the
Fund’s
administrator
and
fund
accountant,
provides
certain
incremental
administrative
services
pursuant
to
an
agreement
with
Apex.
In
addition,
the
Board
considered
the
assumption
of
business,
entrepreneurial,
overall
managerial
and
other
risks
by
the
Adviser
in
connection
with
managing
the
Fund.
The
Board
is
aware
that
the
Fund
is
a
closed-end
tender
offer
fund
that
operates
in
accordance
with
the
framework
set
forth
in
Rule
13e-4
under
the
Securities
Exchange
Act
of
1934,
as
amended,
and
considered
the
special
attributes
of
the
Fund
relative
to
traditional
mutual
funds
and
the
benefits
that
are
realized
from
an
investment
in
the
Fund,
rather
than
a
traditional
mutual
fund.
The
Board
also
considered
the
resources
devoted
by
the
Adviser
and
its
affiliates
in
maintaining
an
infrastructure
necessary
to
support
the
on-going
operations
of
the
Fund,
including
its
periodic
tender
offer
structure.
After
consideration
of
the
foregoing
factors,
among
others,
the
Board
concluded
that
the
nature,
extent
and
quality
of
services
provided
by
the
Adviser,
taken
as
a
whole,
are
appropriate
and
consistent
with
the
terms
of
the
Agreement.
Fund
Performance
The
Board
reviewed
information
provided
by
the
Adviser
regarding
the
Fund’s
investment
performance,
performance
of
comparable
funds
in
the
Fund’s
Peer
Group
as
well
as
information
from
the
Adviser
regarding
the
performance
of
the
Fund
relative
to
appropriate
benchmark
indices
and
assessed
the
Fund’s
performance
on
the
basis
of
total
return.
The
Board
considered,
among
other
things,
the
Adviser’s
efforts
to
generate
competitive
performance
returns
over
time.
The
Board
considered
the
Fund’s
performance
compared
to
the
Cambridge
Associates
LLC
U.S.
Venture
Capital
Index
(the
“Index”),
which
tracks
the
performance
of
U.S.-based
venture
capital
funds,
for
the
year-to-date
period
ended
June
30,
2025.
The
Board
noted
that
while
the
Index’s
performance
for
the
second
quarter
of
2025
is
preliminary
and
the
Index’s
performance
for
the
third
quarter
of
2025
is
not
yet
available,
the
Adviser
represented
that
the
Adviser’s
deliberate
approach
to
investment
deployment
allowed
the
Fund
to
outperform
the
Index
for
this
period.
The
Board
also
compared
the
Fund’s
performance
against
the
performance
of
funds
in
its
Peer
Group
and
to
the
performance
of
other
advisory
accounts
managed
by
the
Adviser,
noting
the
Adviser’s
representation
that
it
does
not
view
any
other
accounts
managed
by
the
Adviser
as
having
a
similar
investment
objective
as
the
Fund.
The
Board
observed
that
the
Fund
outperformed
the
median
performance
of
the
funds
in
its
Peer
Group
for
the
year-to-date,
one-year
and
three-
year
periods
ended
September
30,
2025.
The
Board
considered
the
factors
which
affected
the
Fund’s
performance
in
the
last
year.
Based
on
these
considerations,
the
Board
concluded
that
it
was
satisfied
that
the
Adviser
has
the
capability
of
providing
satisfactory
investment
performance
for
the
Fund.
Management
Fees
and
Expenses
The
Board
reviewed
and
considered
the
management
fee
rate
paid
by
the
Fund
to
the
Adviser
under
the
Agreement
and
the
Fund’s
total
expense
ratio.
The
Board
received
and
reviewed
a
report
prepared
by
ISS
comparing
the
Fund’s
management
fee
rate
and
total
expense
ratio
to
the
Fund’s
Peer
Group.
The
Board
also
compared
the
Fund’s
management
fee
to
the
management
fee
charged
to
other
funds
advised
by
the
Adviser.
In
considering
the
Fund’s
management
fee
and
total
expense
ratio,
the
Board
observed
that,
according
to
the
information
provided
by
ISS,
the
Fund’s
management
fee
was
slightly
below
the
median
of
the
Fund’s
Peer
Group
and
the
Fund’s
total
expense
ratio
(including
the
effect
of
certain
marketing
related
expenses
paid
by
the
Fund)
was
above
the
median
of
the
Fund’s
Peer
Group.
The
Board
then
compared
the
Fund’s
management
fee
to
the
management
fee
charged
to
other
funds
advised
by
the
Adviser.
The
Board
observed
that
the
management
fee
charged
to
the
Fund
of
1.85%
of
Fund
assets
annually
is
greater
than
the
management
fee
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)(continued)
March
31,
2026
48
charged
to
each
of
the
other
registered
investment
companies
managed
by
the
Adviser,
the
Fundrise
Income
Real
Estate
Fund
(the
“Income
Fund”)
and
the
Fundrise
Real
Estate
Interval
Fund
(the
“Flagship
Fund”),
and
other
private
funds
managed
by
the
Adviser
(which
are
offered
only
to
accredited
investors
and
which
also
pay
an
incentive
allocation
fee
to
the
Adviser).
The
Board
was
made
aware
that
the
Flagship
Fund
and
the
Income
Fund
each
pay
a
management
fee
of
0.85%
of
Fund
assets
annually
to
the
Adviser
for
its
services.
The
Board
considered
the
Adviser’s
representation
that
the
management
fees
applicable
to
other
registered
Fundrise-
advised
funds
do
not
provide
a
useful
basis
for
comparison
of
the
Fund’s
management
fee,
given
that
the
strategies
and
assets
of
the
other
Fundrise-advised
funds
are
completely
different
than
that
of
the
Fund.
The
Board
further
considered
that
the
other
Fundrise-
advised
funds
target
real
estate
investments
while
the
Fund’s
investment
in
technology
companies
is
a
fundamentally
different
activity,
noting
that
the
difference
in
strategy,
and
therefore
the
types
of
investments
the
Adviser
is
sourcing
and
managing
on
behalf
of
the
Fund,
is
the
main
difference
in
terms
of
the
services
the
Adviser
provides
the
Fund
as
compared
to
services
it
provides
to
other
Fundrise-advised
funds.
Based
on
its
consideration
of
the
factors
and
information
it
deemed
relevant,
the
Board
concluded
that
the
compensation
payable
to
the
Adviser
under
the
Agreement
was
reasonable,
and
within
the
range
of
fees
that
would
have
been
negotiated
at
arms-length,
considering
all
of
the
surrounding
circumstances.
Profitability
The
Board
considered
information
from
the
Adviser
regarding
the
level
of
profits
realized
by
the
Adviser
and
relevant
affiliates
thereof
in
providing
investment
advisory,
administrative
and
other
services
to
the
Fund
and
to
other
investment
vehicles.
The
Board
also
considered
the
methodology
employed
by
the
Adviser
in
recognizing
expenses
and
revenues
on
an
aggregate
basis
with
respect
to
the
investment
management
services
overall,
based
on
publicly
available
information
in
Rise
Companies
Corp.’s
Form
10-Q
for
the
period
ended
June
30,
2025.
The
Board
observed
that
the
Adviser
consolidated
its
financial
statements
with
its
parent
company,
Rise
Companies
Corp.,
in
the
Form
10-Q.
In
evaluating
the
profitability
to
the
Adviser
from
providing
services
to
the
Fund,
the
Board
considered
that
the
Adviser
waived
its
management
fee
during
the
fiscal
year
ended
March
31,
2025
in
an
effort
to
keep
the
Fund
expenses
at
levels
believed
by
the
Adviser
to
be
attractive
to
investors.
However,
the
Board
observed
that
the
Adviser
did
not
waive
management
fees
or
reimburse
expenses
during
the
six-month
period
ended
September
30,
2025,
and
during
this
period
the
Adviser
recouped
certain
fees
waived
in
prior
years
pursuant
to
the
terms
of
the
expense
limitation
agreement
with
the
Fund.
The
Board
concluded
that,
in
light
of
the
foregoing
factors
and
the
nature,
extent
and
quality
of
the
services
rendered,
the
Adviser
and
its
affiliates
do
not
realize
excessive
profits
from
the
Fund.
Economies
of
Scale
The
Board
considered
the
extent
to
which
economies
of
scale
may
be
realized
as
the
Fund’s
assets
continue
to
grow
and
whether
the
Fund’s
fee
structure
reflects
these
economies
of
scale
for
the
benefit
of
shareholders
of
the
Fund.
In
this
regard,
the
Board
considered
the
Fund’s
fee
structure,
asset
size,
and
net
expense
ratio,
recognizing
that
an
analysis
of
economies
of
scale
is
most
relevant
when
a
fund
has
achieved
a
substantial
size
and
has
growing
assets
over
an
extended
period
of
time.
However,
the
Board
considered
the
Adviser’s
representation
that
the
Adviser
has
achieved
certain
economies
of
scale
by
leveraging
relationships
with
third
party
service
providers
developed
over
time,
development
of
the
Fundrise
Platform
through
which
Fund
shares
are
offered,
and
employees’
knowledge
and
competence
with
respect
to
the
regulatory
and
compliance
regime
under
which
the
Fund
operates.
The
Board
considered
the
Adviser’s
representation
that
the
Adviser
has
a
different
fee
structure
for
the
Fund
from
the
fee
structure
in
place
for
the
other
Fundrise-advised
funds
as
the
Fund
at
inception
was
a
new
strategy
for
the
Adviser
and
new
processes,
procedures
and
personnel
had
to
be
employed
to
make
appropriate
investments
on
the
Fund’s
behalf.
As
the
Fund’s
investment
strategy
is
being
further
built
out,
the
Adviser
represented
that
the
Fund
will
likely
achieve
further
economies
of
scale
over
time
through
asset
growth
resulting
in
fixed
costs
being
spread
over
a
larger
asset
pool
and
a
larger
number
of
shareholders.
The
Board
further
considered
that
the
Adviser
was
not
proposing
breakpoints
in
the
Fund’s
management
fee
at
this
time.
The
Board
concluded
that
the
fee
schedule
for
the
Fund
reflects
an
appropriate
level
of
sharing
of
any
economies
of
scale.
The
Board
is
aware
that
it
will
have
the
opportunity
to
periodically
reexamine
whether
the
Fund
has
achieved
any
economies
of
scale
and
the
appropriateness
of
any
potential
future
management
fee
breakpoints
as
part
of
its
future
review
of
the
Agreement.
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)(continued)
March
31,
2026
49
“Fall-Out”
Benefits
The
Board
received
and
considered
information
regarding
potential
“fall-out”
or
ancillary
benefits
that
the
Adviser
and
its
affiliates
receive
as
a
result
of
their
relationships
with
the
Fund.
The
Board
observed
that
ancillary
benefits
include
benefits
directly
attributable
to
other
relationships
with
the
Fund
and
benefits
potentially
derived
from
an
increase
in
the
Adviser’s
and
its
affiliates’
business
as
a
result
of
their
relationships
with
the
Fund
which
may
include
marketing
other
financial
products
and
services.
The
Board
considered
that
the
Fund
has
paid
for
direct
marketing
campaigns,
making
it
possible
for
the
Adviser
and
other
funds
managed
by
the
Adviser
to
receive
benefits
including
increased
assets
under
management
and
potentially
decreased
marketing
expenses
by
the
Adviser.
Based
on
its
consideration
of
the
factors
and
information
it
deemed
relevant,
the
Board
did
not
deem
any
“fall
out”
or
ancillary
benefits
that
may
be
received
by
the
Adviser
and
its
affiliates
to
be
unreasonable.
Conclusion
The
Board
did
not
identify
any
single
factor
discussed
previously
as
all-important
or
controlling.
The
Board,
including
the
Independent
Directors,
concluded
that
the
terms
of
the
Agreement
were
reasonable
and
that
the
fees
payable
to
the
Adviser
under
the
Agreement
were
reasonable
in
light
of
the
services
provided
to
the
Fund.
Accordingly,
based
on
its
deliberations
and
its
evaluation
of
the
factors
described
above
and
other
information
it
believed
relevant,
the
Fund’s
Board
of
Directors
determined
that
the
continuation
of
the
Agreement
for
an
additional
one-year
period
was
in
the
best
interests
of
the
Fund
and
its
shareholders.
Approval
of
Amended
Investment
Advisory
Agreement
At
a
special
meeting
of
the
Board
held
on
January
9,
2026,
as
reconvened
on
January
14,
2026
(the
“Meeting”),
the
Board,
including
each
of
the
Independent
Directors,
unanimously
voted
to
approve
for
an
initial
two-year
period,
a
proposed
amended
and
restated
investment
management
agreement
(the
“Amended
Advisory
Agreement”)
between
the
Adviser
and
the
Fund,
subject
to
approval
by
the
Fund’s
shareholders
as
required
by
Section
15(a)
of
the
1940
Act.
At
the
Meeting,
the
Board
considered
the
Adviser's
proposal
to
increase
the
contractual
management
fee
payable
to
the
Adviser
by
the
Fund
pursuant
to
the
Amended
Advisory
Agreement
to
2.50%
of
the
Fund's
average
daily
net
assets.
In
connection
with
its
consideration
of
the
Amended
Advisory
Agreement
for
the
Fund,
the
Board
received
from
the
Adviser
extensive
materials
and
reports
including
information
prepared
specifically
for
its
review
of
such
Amended
Advisory
Agreement.
The
Adviser’s
report
included
a
discussion
of
the
nature,
extent
and
quality
of
the
advisory
services
to
be
provided
to
the
Fund
considering
the
Fund's
conversion
from
a
closed-end
fund
operating
as
a
tender
offer
fund
under
the
Securities
Act
of
1934,
as
amended,
to
a
listed
closed-end
fund
with
Fund
shares
listed
on
the
New
York
Stock
Exchange,
LLC
("NYSE"),
the
Fund's
performance,
comparative
information
concerning
the
management
fee
to
be
paid
to
the
Adviser
and
Fund
expenses,
the
Adviser's
profitability
in
managing
the
Fund
considering
the
additional
resources
to
be
provided
by
the
Adviser
in
managing
a
NYSE-listed
fund,
the
existence
of
any
economies
of
scale,
and
certain
"fall-out"
or
ancillary
benefits
to
the
Adviser.
Further,
the
Directors
carefully
considered
(a)
continuing
to
operate
the
Fund
as
a
tender
offer
fund;
and
(b)
listing
the
Fund
on
an
exchange
to
provide
secondary
market
liquidity
to
shareholders.
In
connection
with
their
evaluation,
the
Directors
carefully
analyzed
each
potential
option
including,
but
not
limited
to,
the
following
factors
(as
relevant):
(a)
the
probability
of
completion,
(b)
timing
and
costs,
(c)
ability
to
maximize
value
for
shareholders
both
in
the
near
term
and
long
term,
(d)
challenges
and
limitations
and
(e)
likelihood
of
success
in
accomplishing
the
goal
of
providing
increased
value
and
tradability
for
shareholders.
Specific
to
the
conversion
of
the
Fund
to
a
listed
closed-end
fund,
the
Board
considered
a
variety
of
factors,
including
but
not
limited
to:
that
shareholders
would
be
able
to
trade
shares
of
the
Fund
on
a
daily
basis
while
upside
potential
would
be
preserved
for
long-
term
shareholders;
and
the
Adviser’s
expectation
that
the
conversion
will
provide
the
Fund
with
flexibility
to
make
new
investments
and
take
advantage
of
compelling
investment
opportunities,
thus
creating
a
potential
for
increased
Fund
performance.
The
Board’s
determination
was
based
primarily
on
structural
considerations,
including
enhanced
liquidity
optionality
for
shareholders,
elimination
of
periodic
repurchase
constraints,
reduced
risk
of
the
potential
of
forced
asset
sales
to
meet
investor
demand
for
tender
offers
as
the
result
of
any
future
downturn,
and
improved
alignment
between
the
Fund’s
long-term
investment
horizon,
private
company
asset
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)(continued)
March
31,
2026
50
base,
and
capital
structure.
In
addition,
the
Board
believed
that
removing
the
liquidity
burden
associated
with
conducting
quarterly
tender
offers
of
minimum
5%
has
the
potential
to
increase
performance.
The
Board
weighed
these
anticipated
benefits
against
potential
disadvantages
of
a
conversion,
including
that
shareholders
will
not
have
the
ability
to
sell
their
shares
before
conversion
(other
than
the
tender
offer
at
the
end
of
February
2026),
the
possibility
that
shares
will
sell
at
a
discount
after
the
conversion,
and
the
potential
for
activist
shareholders
to
engage
with
the
Fund,
noting
that
certain
of
the
changes
made
to
the
LLC
Agreement
are
intended
to
mitigate
the
risk
of
activists
to
long-term
shareholder
interests.
Based
on
the
foregoing
and
the
totality
of
the
information
provided,
the
Board
concluded
that
discontinuing
tender
offer
fund
operations
and
listing
on
the
Exchange
would
be
the
optimal
approach
to
providing
increased
liquidity
to
shareholders
and
would
be
in
the
best
interests
of
the
Fund
and
its
shareholders.
The
Board
did
not
identify
any
single
factor
discussed
previously
as
all-important
or
controlling
in
its
consideration
of
the
Amended
Advisory
Agreement.
The
Board,
including
the
Independent
Directors,
concluded
that
the
terms
of
the
Amended
Advisory
Agreement
were
reasonable
and
that
the
fees
payable
to
the
Adviser
under
the
Agreement
were
reasonable
in
light
of
the
services
provided
to
the
Fund.
Accordingly,
based
on
its
deliberations
and
its
evaluation
of
the
factors
described
above
and
other
information
it
believed
relevant,
the
Fund’s
Board
of
Directors
determined
that
the
approval
of
the
Amended
Advisory
Agreement
was
in
the
best
interests
of
the
Fund
and
its
shareholders.
However,
the
Amended
Advisory
Agreement
did
not
receive
requisite
affirmative
votes
at
the
Special
Meeting
of
Shareholders
held
on
February
19,
2026
to
approve
this
agreement
pursuant
to
the
1940
Act,
and
accordingly,
the
Amended
Advisory
Agreement
was
not
adopted
by
the
Fund.
2.
Results
of
the
Proposals
at
the
Special
Meeting
of
Shareholders
The
following
votes
were
cast
at
the
Special
Meeting
of
Shareholders
held
on
February
19,
2026:
3.
Disclosure
of
Portfolio
Holdings
The
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
its
reports
on
Form
N-PORT.
The
Fund’s
Form
N-PORT
reports
will
be
available
without
charge,
upon
request,
by
calling
(202)
584-0550
or
on
the
SEC’s
website
at
http://www.sec.gov
.
4.
Proxy
Voting
Policies
and
Procedures
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and,
once
available,
information
regarding
how
the
Fund
voted
those
proxies
(if
any)
during
the
year
ended
June
30,
2025,
is
available
(1)
without
charge,
upon
request,
by
calling
(202)
584-0550,
(2)
on
the
Fund’s
website
at
www.fundrise.com/innovation
and
(3)
on
the
SEC’s
website
at
http://www.sec.gov
.
During
the
year
ended
June
30,
2025,
the
Fund
did
not
have
any
investments
that
required
the
Fund
to
vote
proxies,
and
therefore
did
not
vote
any
proxies
during
such
period.
Proposal
For
Against
Abstain
To
approve
the
proposed
listing
of
the
Fund
on
the
New
York
Stock
Exchange
and
the
related
conversion
of
the
Fund
to
a
listed
closed-end
fund
16,538,512
4,199,693
375,653
To
approve
a
new
Investment
Advisory
Agreement
which
will
include
an
increase
in
the
management
fee
to
2.5%
of
the
Fund’s
average
daily
net
assets
12,716,173
7,803,446
594,239
To
approve
a
six-month
lockup
period
upon
the
Fund’s
listing
for
shares
purchased
prior
to
February
20,
2026
15,121,434
5,343,539
648,885
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)(continued)
March
31,
2026
51
5.
Compensation
of
Directors
The
Fund’s
Statement
of
Additional
Information
includes
additional
information
about
the
Directors
and
is
available
(1)
without
charge,
upon
request,
by
calling
(202)
584-0550,
(2)
on
the
Fund’s
website
at
www.fundrise.com/innovation
and
(3)
on
the
SEC’s
website
at
http://www.sec.gov
.
The
following
table
sets
forth
information
regarding
the
total
compensation
paid
to
the
Independent
Directors
for
their
services
as
Independent
Directors
for
the
Fund’s
fiscal
year
ending
March
31,
2026.
Effective
in
April
2026,
each
Independent
Director
is
paid
an
annual
retainer
of
between
$62,500
and
$65,000
for
service
on
the
Board
of
Directors
of
the
Fund.
As
an
Interested
Director,
Mr.
Miller
receives
no
compensation
from
the
Fund
for
his
service
as
a
Director.
No
other
compensation
or
retirement
benefits
are
received
by
any
Director
or
officer
from
the
Fund.
6.
Directors
and
Officers
The
Fund
is
governed
by
a
Board
of
Directors.
The
following
tables
present
certain
information
regarding
the
Directors
and
Officers
of
the
Fund
as
of
March
31,
2026.
The
address
of
all
persons
is
c/o
Fundrise
Advisors,
LLC,
11
Dupont
Circle
NW,
9th
Floor,
Washington,
D.C.
20036.
For
more
information
regarding
the
Directors
and
Officers,
please
refer
to
the
Fund’s
Statement
of
Additional
Information,
which
is
available,
without
charge,
upon
request
by
calling
(202)
584-0550.
Name
Aggregate
Compensation
from
the
Fund
Aggregate
Compensation
from
the
Fund
and
Fund
Complex
(1)
Paid
to
Directors
Jennifer
Blatnik
$
45,000
$
45,000
Jeffrey
R.
Deitrich
45,000
130,000
Glenn
R.
Osaka
45,000
130,000
(1)
The
“Fund
Complex”
consists
of
the
Fund,
Fundrise
Income
Real
Estate
Fund,
LLC,
Fundrise
Real
Estate
Interval
Fund,
LLC
and
Fundrise
Real
Estate
Interval
Fund
II,
LLC.
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)(continued)
March
31,
2026
52
Name
and
Year
of
Birth
Position
Held
Term
of
Office
and
Length
of
Term
Served
(1)
Principal
Occupation(s)
During
Past
5
Years
or
Longer
Number
of
Portfolios
in
Fund
Complex
(2)
Overseen
by
Director
Other
Directorships
Held
During
Past
5
Years
Independent
Directors
Jennifer
Blatnik
1974
Director
05/2022
to
Present/Class
I
2027
Director,
Menlo
Church
(non-profit),
Chairperson
2022-2024
and
Vice
Chairperson
and
Compensation
Committee
member,
2020-2022;
formerly,
Chief
Operating
Officer,
Volta
Networks
(networking
software
firm)
(2019-2021)
and
Vice
President,
Product
Management,
Product
Marketing
and
Marketing,
Juniper
Networks
(networking,
cloud
and
security
products
firm)
(2014-2017).
1
None
Jeffrey
R.
Deitrich
1982
Director
and
Audit
Committee
Chairperson
05/2022
to
Present/Class
II
2028
Senior
Vice
President,
Silverstein
Properties,
Inc.
(real
estate
investment
and
development
firm)
(2007-2016,
2022-current);
Principal,
Better
Building
Solutions
(technology
integration
and
managed
services
firm)
(2016-current);
Formerly,
Principal,
Frenchtown
Enterprises
(real
estate
investment
firm)
(2019-2022).
Asset
Manager,
Prudential
Real
Estate
Investors
(private
equity)
(2004-2007).
4
Fundrise
Real
Es-
tate
Interval
Fund,
LLC;
Fundrise
Real
Estate
Interval
Fund
II,
LLC;
Fundrise
Income
Real
Estate
Fund,
LLC
Glenn
R.
Osaka
1955
Lead
Independent
Director
05/2022
to
Present/Class
III
2029
Consultant
and
Private
Investor
(early
stage
technology
companies)
(since
2013).
Formerly,
Senior
Vice
President,
Services,
Juniper
Networks,
Inc.
(2009-
2013);
Vice
President,
Strategy
and
Operations,
Cisco
Systems,
Inc.
(2007-
2009);
President
and
Chief
Executive
Officer,
Reactivity
Inc.
(technology
start-up
company)
(2001-2006);
Managing
Director,
Redleaf
Group
(venture
capital
firm)
(1999-2000);
Vice
President
and
General
Manager,
Enterprise
Computing,
Hewlett-Packard
(1979-1998).
4
Fundrise
Real
Es-
tate
Interval
Fund,
LLC;
Fundrise
Real
Estate
Interval
Fund
II,
LLC;
Fundrise
Income
Real
Estate
Fund,
LLC
Interested
Director
and
Officer
Benjamin
S.
Miller
(3)
1977
Director
and
Officer,
Chairperson,
President
and
Chief
Executive
Officer
05/2022
to
Present/Class
III
2029
Chief
Executive
Officer,
Fundrise
Advisors,
LLC
(since
2012);
Co-
Founder,
Chief
Executive
Officer
and
Director,
Rise
Companies
Corp.
(since
2012).
4
Fundrise
Real
Es-
tate
Interval
Fund,
LLC;
Fundrise
Real
Estate
Interval
Fund
II,
LLC;
Fundrise
Income
Real
Estate
Fund,
LLC
(1)
Each
Director
will
serve
until
the
later
of
the
date
of
the
Fund’s
annual
meeting
as
designated
above,
or
until
his
or
her
successor
is
elected
and
qualifies,
or
until
his
or
her
earlier
death,
resignation,
retirement
or
removal.
(2)
The
“Fund
Complex”
consists
of
the
Fund,
Fundrise
Income
Real
Estate
Fund,
LLC,
Fundrise
Real
Estate
Interval
Fund,
LLC
and
Fundrise
Real
Estate
Interval
Fund
II,
LLC.
(3)
Mr.
Miller
is
considered
to
be
an
“interested
person”
of
the
Fund
(as
that
term
is
defined
by
Section
2(a)(19)
in
the
1940
Act)
because
of
his
affiliation
with
the
Adviser
and/or
its
affiliates.
Fundrise
Innovation
Fund,
LLC
Additional
Information
(UNAUDITED)(continued)
March
31,
2026
53
Name
and
Year
of
Birth
Position
Held
Term
of
Office
and
Length
of
Time
Served
(1)
Principal
Occupation(s)
During
Past
5
Years
Officers
Bjorn
J.
Hall
1980
Secretary
and
Chief
Compliance
Officer
09/2024
to
present
Chief
Compliance
Officer
and
General
Counsel
Fundrise
Advisors,
LLC
and
Rise
Companies
(since
2014)
and
officer
of
certain
funds
in
the
Fund
Complex
(since
2024).
Alison
A.
Staloch
1980
Treasurer
and
Principal
Financial
Officer
05/2022
to
present
Chief
Financial
Officer,
Fundrise
Advisors,
LLC
and
Rise
Companies
Corp.
and
officer
of
certain
funds
in
the
Fund
Complex
(since
2021);
Formerly,
Chief
Accountant
(2017-
2021),
Assistant
Chief
Accountant
(2015-
2017),
Division
of
Investment
Management,
U.S.
Securities
and
Exchange
Commission;
Senior
Manager,
KPMG
LLP
(2005-2015).
(1)
The
term
of
office
for
each
officer
will
continue
indefinitely.