New ETFs Offer Retail Access to Top Startups

These new funds are structured as closed-end funds, a key difference from traditional ETFs. Robinhood's RVI will trade on the NYSE, offering daily liquidity, while Ark's ARKVX is an interval fund, which limits redemptions to quarterly windows and doesn't trade on an exchange, reducing liquidity for investors. This structure allows them to hold illiquid assets like private company shares, which was previously the domain of accredited investors and venture capital firms. The fee structures also depart from the traditional "2 and 20" model common in venture capital. Robinhood's RVI charges a 2% annual management fee (reduced to 1% for the first six months) but no performance fee, or "carried interest". Similarly, Fundrise's VCX has a management fee but no carried interest, which they argue passes savings back to investors. ARKVX, however, has a higher net expense ratio of 2.90%. This trend toward retail access is partly a response to companies staying private longer, meaning more value creation occurs before an IPO. The number of publicly traded companies in the U.S. has significantly decreased from around 7,000 in 2000 to about 4,000 in 2024, while the value of private firms has grown substantially. Regulatory changes, notably the 2012 JOBS Act, have gradually paved the way for broader investor participation in private markets. In Turkey's startup ecosystem, 2025 saw a more selective investment climate, with a higher deal count (360 deals) but a lower total volume ($1.4 billion) compared to the previous year, largely due to the absence of mega-deals. Fintech and gaming remained dominant sectors, attracting a combined 68% of total capital, while AI startups accounted for one in every four deals. A Q3 2025 rebound in IPO activity signaled that exit windows for VC-backed companies are reopening. Turkish founders are increasingly building in strategic AI verticals. In defense tech, companies like RobotEye AI, which develops smart surveillance for difficult terrains, and Simularge, focusing on physics-informed AI for defense production, are gaining traction. Healthtech AI is also growing, with startups like Viseur AI supporting radiology diagnostics and Massive Bio using AI to match cancer patients with clinical trials. In fintech, AI-powered platforms like Tekkredi for consumer lending and TeamSec for securitization are emerging. The commercialization of deeptech from Turkish universities is accelerating, exemplified by the development of the country's first 5-qubit quantum computer—a collaboration between defense firm Aselsan and TOBB University of Economics and Technology. This move aims to lessen foreign dependence and build a domestic quantum technology market. This mirrors a global trend where startups are increasingly the vehicle for commercializing disruptive university research, as they have more incentive to pursue breakthrough technologies than established firms. On the macroeconomic front, Turkey's outlook for 2026 includes projected GDP growth of around 4% and a decline in inflation from over 30% in 2025 to a forecasted 23.9%. While high interest rates have posed a challenge, a stabilizing currency and easing financing conditions are expected to bolster the investment climate. For international LPs, a focus on startups generating revenue from global markets early in their lifecycle is becoming a key criterion for investment. For founders navigating this landscape, early-stage hiring remains critical for setting a company's trajectory. The consensus is to prioritize roles that directly impact growth or product delivery first. Founders should dedicate significant time to recruiting, look for candidates comfortable with ambiguity, and consider offering equity to attract top talent when cash is limited.