Pronounced Destiny
The Destiny Tech 100
Destiny Tech 100 is designed to be an exchange-listed portfolio of the Top 100 High-Growth Tech Companies 🦄✨
The Destiny Tech100 is a closed-end management investment company registered under the 1940 Act. We intend to invest in a portfolio of 100 of the top venture-backed private technology companies, providing everyday investors access to these private market leaders for the first time.
To be eligible for inclusion in the Destiny Tech100, companies must have been vetted by top U.S. institutional investors and meet key health metrics. Moreover, the companies in the portfolio will generally have reached a level of maturity and stability expected of a late stage venture-backed company.
Destiny Tech100 common stock trades on the New York Stock Exchange ("NYSE") under the ticker symbol "DXYZ."
Portfolio Details
Ticker
DXYZ
Listing Venue
NYSE
Annual Management Fee
2.5%
Current Portfolio
22 Companies
Target Portfolio
100 Companies
Current Portfolio
Portfolio construction is in progress and values will change as we add more companies. Data based on holdings as of September 30, 2024.
Current Portfolio
SpaceX¹
36.9%
Revolut
12.2%
Axiom Space
5.9%
OpenAI¹
5.1%
Boom Supersonic
4.1%
Superhuman
4.0%
Epic Games¹
3.7%
Instacart
3.1%
ClassDojo
2.7%
Stripe²
2.7%
Chime
2.6%
Brex¹
2.4%
AtoB
2.2%
Klarna
2.0%
Discord
1.0%
Jeeves
1.0%
Plaid²
0.5%
Public
0.5%
Flexport
0.1%
Cash Equivalents
3.4%
1) These securities have been purchased through SPVs in which the Fund has a direct investment of ownership units. The shares, cost basis and fair value stated are determined based on the underlying securities purchased by the SPV and the Fund’s ownership percentage.
2) Investment held through a single-asset SPV that holds forward contracts. The Company has an ownership interest in the SPV, whose sole assets are forward contracts to acquire shares of the underlying private company. Forward contracts involve the future delivery of shares of the portfolio company upon such securities becoming freely transferable or upon the removal of legends that restrict the transfer of such securities.
APPROACH
The Destiny Tech100 takes a structure-agnostic approach to portfolio construction, participating in primary rounds driven by the company as well as secondary purchases from existing shareholders. We seek best execution for the portfolio — accessing top companies at attractive prices and structures — and we've seen that our flexibility to invest in multiple classes of equity, equity-linked, and equity-related securities enables this effectively.
Execution, however, necessitates opportunity. Our team’s relationships and deep market expertise also serve to provide everyday investors institutional-quality private market access for the first time.
As we continue to build our portfolio of innovative and exciting companies we will continue to publicly communicate our progress with you, and our community, every step of the way.
PROGRESS TO DATE
As of September 30, 2024, the fund stands at approximately 90% of initial capital deployed across primary and secondary investments, including marquee names in Space Exploration (SpaceX), Entertainment (Epic Games, Discord), Fintech (Revolut, Stripe), and AI/ML (OpenAI).
These private companies are shaping our collective future, and we invite you to be part of their journey — and ours.
Eligibility Criteria
To be eligible for inclusion in the Destiny Tech100, companies must generally meet the following key health metrics:
Vetted by U.S. Institutional Investors
The company must have recently raised over $50M from reputable U.S. institutional investors.
Healthy Liquidation Preference Ratio
Company’s outstanding preferred stock liquidation preference must be healthy relative to its current market capitalization.
No burdensome financial structures or heavy debt
Company’s financial structure must not be burdensome (e.g. ratchets with significant penalties, heavy debt loads) in such a way that it would create undue risk of impending financial distress.
No opaque foreign legal structures
Company’s corporate structure and governance must be transparent and within the range of standard corporate structures.
No unusually high turnover, or cultural health red flags
Company’s executive team must not have had unusually high turnover over the past 18 months, or have internal cultural issues that concern us.
Investment Strategy
The Destiny Tech100 will simultaneously weight heavily into two categories of companies:
Large Cap
These companies, valued at $10B+, provide stability to the portfolio while still sitting in the high-growth tech category.
Medium Cap
As newer members of the unicorn ranks, valued between $750M - $10B, these companies tend to be earlier in their growth trajectory.
Governance
The Destiny Tech100 investment committee will make the final determination on the inclusion, pricing, and weighting of companies in the Destiny Tech100, with the determination of fair value overseen by an independent valuation committee.
If a company does not meet the inclusion criteria , it will be excluded from the portfolio by default, and can only be included by an affirmative decision of the board.
Upside Opportunity Metrics
For many companies at the pre-IPO stage, there may be the opportunity for growth and expansion as they scale.
Total Addressable Market Size
A large underserved market is a great place to be as a high-growth tech company. Larger markets create opportunities for larger outcomes.
Market Growth Rate
The size of the market is important, but often even more important is the rate at which the size of the market is growing.
Many of the iconic companies of the last generation achieved their success by dominating a smaller market and maintaining their advantaged position as the market expanded by orders of magnitude.
Company Growth Rate
It will come as no surprise to you that a company’s growth rate is highly correlated with investment performance. Beyond being a clear indication that a company has strong product-market fit and is executing well, growth rates are also highly correlated with future funding rounds, IPOs, and acquisitions.
Asset-Light, Software, and Platform based Business Models
We are big believers in the power of software to create revolutionary new ways of conducting commerce, running businesses, and communicating.
Destiny Tech100 will lean heavily into companies that are powered by software at their core. These kinds of companies tend to grow faster because of the low marginal cost of distribution, and tend to do so while delivering superior financial performance.
Network Effects Models, and Economies of Scale
What do Apple, Google, Microsoft, Facebook and Amazon all have in common? At their core, they all have the property that the larger they grow, the stronger their market position becomes.
These companies have enjoyed the benefit of their market position to grow to incredible sizes – to the point that today, all of them are subject to serious antitrust scrutiny.
While we are believers that competition is important for a functional and fair economy, there is no denying the fact that the best investments end up being ones that can benefit from these kinds of structural advantages.
Cultural Health Metrics
A company’s culture is a critical part of recruiting and retaining a top-tier team.
Health Diversity Metrics
We believe that talent is evenly distributed around the world across all races, genders, sexual orientations, and ages. Companies that best leverage the available talent pool tend to do better than those that do not.
Culture and Employee Reviews
We live in a world where employees have a voice and can share their perspectives on a wide rage of platforms. This feedback tends to be correlated with long-term success as it indicates whether a company has been investing in creating a great culture.
Strength of Vision
Companies with an inspiring mission have an easier time recruiting the best talent. This creates a strong correlation between having a positive impact and long-term financial performance.
Companies that focus on creating a great culture tend to be
long-term focused across the board.
Which aligns their goals with ours.
Financial & Pricing Considerations
We are disciplined in our investing, taking into account transaction structures and market pricing dynamics.
Structure of Transaction & Class of Stock
We take a structure-agnostic approach to investing, giving us the broadest availability of supply in prospective portfolio companies at attractive price. We analyze the structure of a given transaction and class of stock being purchased in the context of its price to evaluate its attractiveness.
Transparency of Financial Disclosures
We evaluate information on prospective companies from a broad range of sources, including directly from the company, secondary marketplaces, private company research firms, industry publications, and third-party commissioned analysis.
Recent & Historical Secondary Market Pricing
Data from secondary markets (Forge, Nasdaq, Zanbato, and others), independent broker-dealers, and investment banks can be incredibly valuable in determining approximations of market pricing.
This pricing may differ from the preferred stock price in recent financing rounds, and provides insight into what may be attractive or undesirable prices for a given transaction.
