Cathie Wood, the founder and CEO of Ark Invest, has shared her hopes for some of the private companies that she would like to see go public in 2023. In an interview with Yahoo Finance, Wood said that she is looking forward to the possible initial public offerings (IPOs) of SpaceX, Anthropic, and Databricks, among others.
SpaceX, the aerospace company founded by Elon Musk, is one of the most valuable private companies in the world, with an estimated valuation of over $100 billion. SpaceX is known for its reusable rockets, Starlink satellite internet service, and ambitious plans to colonize Mars. Wood said that she is impressed by SpaceX’s innovation and leadership in the space industry, and that she believes that the company has a huge potential to generate revenue from both its launch and broadband businesses.
Anthropic, the artificial intelligence (AI) research company co-founded by Demis Hassabis and Shane Legg, is another private company that Wood is interested in. Anthropic is focused on creating general AI, which is the ability of machines to perform any intellectual task that humans can. Wood said that she is fascinated by the vision and mission of Anthropic, and that she thinks that general AI is one of the most disruptive technologies of the future.
Databricks, the data and AI platform company co-founded by Ali Ghodsi and Matei Zaharia, is the third private company that Wood mentioned as a potential IPO candidate. Databricks provides cloud-based software and services that help enterprises manage, analyze, and derive insights from large amounts of data. Wood said that she is impressed by the growth and innovation of Databricks, and that she believes that the company is well-positioned to benefit from the increasing demand for data and AI solutions.
Ark Invest has invested in several private companies through its venture fund
Wood is not only hoping for these private companies to go public, but she has also invested in some of them through her Ark Venture Fund (ARKVX), which was launched in 2022. The fund, which has a mandate that includes investments in both private and public companies, aims to democratize venture capital and offer investors access to the most innovative companies throughout their lifecycles.
According to the fund’s prospectus, as of October 31, 2023, the fund has invested in 47 companies, with a net asset value of $22.9 million. The fund’s top holdings include Twitter or X, a social media platform that allows users to create and share short videos; Sortium AI, a company that develops AI-powered software for e-commerce and online marketing; Discord Inc, a platform that enables online communities and communication; and Axiom Space, a company that provides commercial human spaceflight services.
Among the fund’s holdings, the largest one is SpaceX, which accounts for 8.91% of the fund’s weight. Wood said that she is very excited about SpaceX’s prospects, and that she expects the company to generate more than $270 billion in annual revenue by 2030, based on its Starlink and Starship projects.
Wood is optimistic about the innovation and disruption in 2023 and beyond
Wood, who is known for her bullish views on disruptive technologies and innovative companies, said that she is optimistic about the outlook for 2023 and beyond. She said that she expects to see more breakthroughs and advancements in fields such as biotechnology, genomics, robotics, blockchain, and fintech.
Wood also said that she is confident in her investment strategy, which focuses on identifying and supporting the companies that are leading the transformation of various industries and sectors. She said that she believes that her funds, which include the popular Ark Innovation ETF (ARKK), will continue to outperform the market and deliver superior returns to investors.
Wood’s funds, which have a combined assets under management of over $50 billion, have been among the best-performing funds in the past decade, with annualized returns of over 30%. However, they have also faced some volatility and challenges in 2023, due to factors such as regulatory uncertainties, market corrections, and competition from other funds.
Despite these headwinds, Wood said that she is not deterred by the short-term fluctuations, and that she is focused on the long-term opportunities and potential of the companies that she invests in. She said that she is always looking for the next big thing, and that she is ready to embrace the change and disruption that the future will bring.