- Miller said short sellers are spreading negative narratives to pressure the stock.
- He reiterated that Fundrise is focused on opening private market opportunities traditionally reserved for the wealthy.
- On Thursday, Citron raised regulatory concerns tied to past SEC charges.
Fundrise Innovation Fund (VCX) co-founder and CEO Ben Miller on Friday pushed back against short-seller criticism, defending both his firm’s strategy and its broader mission to expand access to venture capital investing.
His remarks come after Citron Research on Thursday said it is short the public venture fund. The short seller said Fundrise Advisors LLC faced SEC charges in 2023 over paid solicitation practices and urged regulators to examine whether the firm is currently compensating influencers or publishers to promote VCX.
CEO Defends Strategy Against Short Seller Claims
On CNBC, Miller addressed concerns about the stock and the fund, stating that critics are overlooking the fund's long-term vision of opening private markets to everyday investors.
“Some companies short stock and then do pr smear campaign to drive the stock down. Making up nonsense, throwing mud against the wall. That is totally relevant. But trying to talk down the stock, that hurt our investors.”
-Ben Miller, Co-founder and CEO, Fundrise Innovation Fund
He added that many of the most valuable technology companies are remaining private for longer periods, limiting wealth creation opportunities for typical investors. By offering exposure earlier in a company’s lifecycle, Fundrise aims to shift that dynamic.
Fundrise Innovation Fund stock traded over 24% lower in Friday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels.
In a post on X, Citron rejected CEO Ben Miller’s claims of a “PR smear campaign,” adding that its criticism is grounded in simple financial logic.
Building A New Investment Model
According to Miller, Fundrise began working with regulators in 2021 to establish a structure that would allow retail investors to participate in venture capital opportunities. The effort culminated in the launch of a venture fund in 2022, with a notably low entry threshold. Since then, the platform has attracted a large base of U.S. investors.
Looking ahead, Miller expressed confidence that venture capital could become a standard component of diversified portfolios, similar to real estate. He pointed to rapid advancements in AI as a key driver, warning that if breakthroughs such as artificial general intelligence occur before leading firms go public, much of the resulting value could remain concentrated among a small group of private investors.
VCX stock has gained 634% year to date.
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