– Powerlaw Corp., a closed-end fund that owns stakes in Elon Musk’s SpaceX and artificial intelligence firm OpenAI, traded well above the value of its underlying investments in its debut on Wednesday, capitalizing on retail investors’ clamor for exposure to the hottest private…
ch companies. Most Read from Bloomberg Shares of Powerlaw opened at $35 on Nasdaq, well above the fund’s stated net asset value per share of $13.97
The shares rose to as high as $40 and were paused twice due to trading volatility. They were at $31 at 12:40 p.m. in New York. About 20% of the company’s 43.24 million outstanding shares were immediately tradable and the rest will be released in three stages over the next six months, according to an earlier filing with the US Securities and Exchange Commission.
Powerlaw’s debut comes as retail appetite for pre-IPO exposure has hit fever pitch, sending the shares of vehicles such as Destiny Tech100 Inc., Robinhood Ventures Fund I and Fundrise Innovation Fund LLC soaring well above the underlying value of their investments. The surge comes in anticipation of SpaceX’s IPO and alongside the rapid increase in private valuations of OpenAI and Anthropic PBC ahead of their expected offerings. Most US households have few direct ways to invest in private tech companies unlike accredited investors, said Powerlaw chief executive officer Mike Dinsdale, whose previous roles include chief financial officer at DocuSign Inc. and DoorDash Inc.