ARK Venture x Discord

Wednesday, Nov 16th 2022

Investor Update

With the seventh private investment in the ARK Venture Fund, the team at ARK has secured an investment in Discord. 

Founded by Jason Citron and Stanislav Vishnevskiy in 2015, Discord is a communications platform that enables its 231 million monthly active users (MAUs) to communicate via text, audio, and video. 

Discord allows a wide range of customization, which enables the platform to service a wide range of communication needs, from small-group casual socialization to enterprise collaboration. 

Discord is quite popular with younger generations today, particularly amongst the video gaming community. ARK estimates that the global number of digital gamers stands at ~3.2 billion in 2022, and if you assume that every Discord user is a gamer (they’re not), that would equate to only ~7% of gamers engaging with Discord. ARK believes if Discord can win more mindshare from the gamer community, it could lead to significant upside for the business.

The ARK team also believes that Discord’s use cases beyond socialization for video gamers should continue to gain traction with creators, subculture enthusiasts (technology, crypto/web3, etc) and communities across various fields of interest. 

The pandemic may have accelerated the shift in consumers spending more time online, but the ARK team believes this trend will continue to persist well into the future. In other words, it’s still early, and ARK believes Discord is well-positioned to capitalize on this trend.

Tier 1 venture investors like Benchmark, Index Ventures and FirstMark Capital have also invested in Discord in the past, so investors in the ARK Venture Fund are in good company.

You can read ARK’s full Discord thesis on the ARK Venture strategy page, and we’ll continue to provide updates as the ARK team continues to build out the Fund’s private investments.


Disclosures:

Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. You are solely responsible for evaluating the merits and risks associated with the use of any information, materials, content, user content, or third-party content provided before making any decisions based on such content. Past performance data, performance graphs or other historical information are not a guarantee of future performance and should not be construed as indicative of future results. You should consider your individual investment objectives and risk tolerance before investing. The content presented is not intended to provide you or anyone else with investment, legal, tax, insurance or any other kind of professional advice. You should consult with a financial, tax or legal professional for advice regarding your specific financial, tax or legal positions and circumstances. You should read the fund’s prospectus in its entirety before investing. The fund’s prospectus contains the fund’s investment objectives, risks, charges, expenses, and other information, which should be considered carefully before investing. You can access the fund’s prospectus, or if available the fund’s summary prospectus, by visiting the SEC’s website or by visiting here.

The Fund intends to provide liquidity through quarterly offers to repurchase a limited amount of the Fund’s Shares (expected to be 5% per quarter). There is no assurance that distributions paid by the Fund will be maintained or that dividends will be paid at all.
Titan Global Capital Management USA LLC ("Titan") is an SEC registered investment adviser. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is a registered broker-dealer and member of FINRA/SIPC. ARK Venture Fund (“Fund”) is a Registered Investment Company product offered by ARK Investment Management LLC (“ARK Invest”), wherein TGT serves as introducing broker-dealer. The prospectus has been prepared exclusively by the Fund provider, and not by Titan or TGT, and thus Titan and TGT cannot guarantee the accuracy or completeness of the material. When you invest in the ARK Venture Fund, TGT receives transaction-based compensation from the third-party fund. Please visit ark-ventures.com for important additional disclosures.

This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Titan and TGT are not registered. Fund holdings and related information are for illustrative purposes only and are not to be considered investment recommendations. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and clients may lose money, including their original investment and principal. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person.

As of this writing, was a portfolio holding of Titan. This security may cease to be a portfolio holding at some point in the future.
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