Fundrise Innovation Fund (VCX) NAV +68% as market debut posts +319% (Mar 31, 2026)

Rhea-AI Filing Summary

The Fundrise Innovation Fund, LLC (listed as VCX) reported a strong year ended March 31, 2026 following its NYSE listing on March 19, 2026. The Fund’s net asset value per share rose to $18.97 and the Fund posted a 68.39% total return on NAV for the year. Market-price performance from the listing date through the fiscal year-end was reported as 319.04%.

The Fund held net assets of $678,918 with 35,797,138 common shares outstanding. The portfolio is concentrated in late-stage private technology companies, with top holdings including Anthropic, Databricks, and OpenAI Group. Technology private equity represented the majority of investments and restricted/Level 3 holdings accounted for a substantial portion of net assets. Leverage included reverse repurchase agreements totaling $15,879. Management emphasized the listing milestone and the Fund’s focus on capturing value from AI-driven companies.

Insights

Portfolio Manager

Fund delivered large NAV gains driven by concentrated late-stage tech exposure, especially AI positions.

The Fund reports a 68.39% total return on NAV for the year ended March 31, 2026, with substantial unrealized appreciation in Level 3 and restricted private holdings. The largest sector weight is artificial intelligence, with the top ten holdings totaling $454,407 and representing 66.9% of net assets.

Key dependencies include ongoing private-company valuations and liquidity events. The portfolio’s concentrated, illiquid nature means reported NAV gains rely on fair-value judgments tied to funding rounds and other unobservable inputs; subsequent realizations will determine realized performance.

Tax & Accounting Analyst

Tax status shift to RIC and deferred built-in gains tax are material to post-listing tax treatment.

The Fund elected RIC treatment for the taxable year ending March 31, 2026 after prior C-corporation status. Management recorded a deferred tax liability of $3,850 tied to built-in gains and recognized income tax expense/(benefit) items in the period.

Investors should note the Fund’s deferred tax mechanics: built-in gains recognized within five years after the RIC election may be taxed at corporate rates; the Fund’s distributable earnings and distribution policy are described with quarterly distributions and a reported annualized distribution rate of 0.14%.

Key Figures

Net Assets: $678,918 NAV per Share: $18.97 Total Return on NAV: 68.39% +4 more

7 metrics

Net Assets <money>$678,918</money> Total Net Assets as of <date>March 31, 2026</date>

NAV per Share $18.97 Net Asset Value Per Share as of <date>March 31, 2026</date>

Total Return on NAV <percent>68.39%</percent> Year ended <date>March 31, 2026</date>

Market Price Return (listing period) <percent>319.04%</percent> From listing on <date>March 19, 2026</date> through <date>March 31, 2026</date>

Common Shares Outstanding 35,797,138 shares As of <date>March 31, 2026</date>

Top Holding — Anthropic <money>$112,418</money> Value as of <date>March 31, 2026</date>

Reverse Repurchase Payable <money>$15,879</money> Total outstanding reverse repurchase agreements as of <date>March 31, 2026</date>

Key Terms

Level 3 fair value, Rule 144A, SPV / CIV, SAFE, +1 more

5 terms

Level 3 fair value financial

"Investments classified as Level 3 within the three-tier fair value hierarchy"

Rule 144A regulatory

"Security is exempt from registration under Rule 144A of the Securities Act of 1933"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

SPV / CIV financial

"held indirectly through one or more co-investment vehicles, special purpose vehicles"

SAFE financial

"This Simple Agreement for Future Equity (“SAFE”) will convert into preferred shares upon an equity financing"

Reverse Repurchase Agreement financial

"Payable for reverse repurchase agreements $15,879"

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Fundrise Innovation Fund, LLC

Investment Company Act file number 811-23708

11 Dupont Circle NW, 9th Floor

Washington, D.C. 20036

(Address of Principal Executive Offices)

(202) 584-0550

(Registrant’s Area Code and telephone number)

Bjorn J. Hall

Rise Companies Corp.

11 Dupont Circle NW, 9th Floor

Washington, D.C. 20036

(Name and Address of Agent for Service)

Copies to:

Elizabeth J. Reza

Ropes & Gray LLP

800 Boylston Street

Boston, Massachusetts 02199

Date of fiscal year end: March 31

Date of reporting period: April 1, 2025 through March 31, 2026

Item 1.  Reports to Stockholders.

(a)

Fundrise

Innovation

Fund,

LLC

Annual

Report

For

the

Year

Ended

March

31,

2026

TABLE

OF

CONTENTS

Management

Discussion

of

Fund

Performance

(Unaudited)

3

Performance

Chart

and

Analysis

(Unaudited)

5

Portfolio

Composition

6

Schedule

of

Investments

7

Statement

of

Assets

and

Liabilities

10

Statement

of

Operations

11

Statements

of

Changes

in

Net

Assets

12

Statement

of

Cash

Flows

13

Financial

Highlights

14

Notes

to

Financial

Statements

16

Report

of

Independent

Registered

Public

Accounting

Firm

29

Shareholder

Update

(Unaudited)

30

Additional

Information

(Unaudited)

46

Fundrise

Innovation

Fund,

LLC

Management

Discussion

of

Fund

Performance

(UNAUDITED)

March

31,

2026

3

Dear

Fellow

Shareholders,

We

are

pleased

to

present

the

annual

report

of

the

Fundrise

Innovation

Fund,

LLC

(the

“Fund”).

After

the

Fund’s

third

full

year

of

operations,

we

continue

to

be

excited

about

the

strength

of

the

portfolio

and

the

outlook

for

the

Fund

moving

forward.

The

first

quarter

of

2026

was

a

memorable

one

with

the

historical

listing

of

the

Fund

(ticker:

VCX)

on

the

New

York

Stock

Exchange.

The

Fund

saw

an

initial

listing

that

exceeded

even

our

most

optimistic

expectations

(more

on

this

below),

with

the

market

price

appreciating

+319.04%

from

the

listing

date

of

March

19,

2026

through

the

year

ended

March

31,

2026.

For

the

year

ended

March

31,

2026,

the

Fund

returned

+68.39%

on

net

asset

value,

driven

by

continued

exceptional

growth

from

our

portfolio

companies.

The

portfolio

as

it

exists

today

is

a

meticulously

curated

and

intentionally

concentrated

collection

of

companies

that

we

continue

to

believe

are

“the”

category

defining

businesses

in

their

respective

industries.

As

of

March

31,

2026,

these

category

leading

companies

account

for

the

majority

of

the

value

in

the

Fund,

with

a

particular

concentration

among

the

top

5-10

companies.

We

expect

the

category

leading

nature

of

these

companies

to

continue

to

drive

attractive

returns

going

forward,

but

with

the

illiquid

nature

of

the

asset

class,

there

may

be

a

lag

between

underlying

company

growth

and

fund

net

asset

value

performance.

The

Fund

returned

+68.39%

during

the

year

ended

March

31,

2026.

The

Cambridge

Associates

LLC

U.S.

Venture

Capital

Index

(the

“Index”)

returned

+5.67%

in

the

third

calendar

quarter

of

2025

and

+4.29%

for

the

second

calendar

quarter

of

2025.

The

Fund

returned

+20.72%

and

+8.30%

in

those

respective

periods.

The

Index

tracks

thousands

of

U.S.-based

venture

capital

funds.

The

private

nature

of

these

funds,

the

lag

in

reporting

and

aggregation

of

their

data

precludes

it

as

a

formal

benchmark,

but

given

our

focus

on

the

private

markets,

we

believe

the

Index

is

the

most

relevant

comparison.

While

we

do

not

have

Index

data

for

the

first

calendar

quarter

of

2026

or

the

fourth

calendar

quarter

of

2025

and

the

third

calendar

quarter

of

2025

data

is

only

preliminary,

we

anticipate

that

our

deliberate

approach

to

deployment

allowed

us

to

outperform

the

Index

by

a

significant

margin.

AI

continues

to

be

a

central

theme

of

the

Fund

as

it

has

been

since

it

was

launched

in

2022.

In

2025

we

saw

the

explosion

of

AI

and

all

things

AI

related,

moving

the

conversation

from

being

one

about

the

hypothetical

potential

of

an

innovative,

yet

unproven

technology,

to

being

focused

on

its

emergence

as

the

central

driver

of

not

only

the

US

but

world

economy.

Whether

it

was

cutting-

edge

product

releases

from

frontier

research

labs,

new

all-time

highs

for

big

tech

stocks,

or

unprecedented

infrastructure

investments

in

data

center

development,

2025

was

the

year

of

AI.

VCX

listing

As

we’ve

shared

previously,

we

believe

the

listing

of

the

Fundrise

Innovation

Fund

(now

VCX)

was

a

historic

moment

not

just

for

shareholders

in

the

Fund,

but

for

the

core

idea

behind

Fundrise

itself

–

that

fundamentally,

individuals

deserve

access

to

the

same

high-quality

investments

that

have

driven

the

returns

of

institutions

and

the

ultra

wealthy

for

years.

Despite

our

strong

convictions,

many

of

you

know

that

we

received

a

great

deal

of

skepticism

around

the

listing,

with

many

critics

confidently

asserting

that

there

would

be

little

interest

from

the

public

market.

Many,

including

some

of

the

proclaimed

experts

in

the

industry,

also

told

us

it

was

a

bad

idea

because

the

Fund

would

inevitably

trade

poorly.

At

this

point,

we

feel

it’s

safe

to

say

that

they

were

wrong.

In

fact,

it

traded

at

a

huge

premium,

even

at

one

point

trading

above

$500

per

share.

This

level

of

volatility

attracted,

and

will

continue

to

bring,

scrutiny

by

the

market

and

regulators,

like

the

SEC,

FINRA,

and

seemingly

everyone

else,

as

they

work

to

understand

it.

We

got

questions

and

requests

related

not

just

to

the

trading

activity,

but

also

to

the

lockup

and

the

holdings.

VCX

is

novel.

We

welcome

the

review

and

believe

that

public

venture

capital

will

eventually

become

widespread

and

normal,

but

it

will

take

time

and

continued

execution.

But,

ultimately,

it

isn’t

the

trading

price

over

any

near

term

period

that

matters.

As

Buffett

would

say,

the

market

is

a

voting

machine

in

the

short

run,

but

a

weighing

machine

in

the

long

run.

Our

job,

as

managers,

is

to

deliver

long-term

performance

by

continuing

to

invest

in

the

best

private

technology

companies.

As

one

investor

put

it,

for

maybe

the

first

time

ever,

the

individual

retail

investor

got

to

be

on

the

right

side

of

the

trade.

What

does

matter

is

that

100,000

individual

investors

in

the

Fund

were

given

the

opportunity

to

participate

in

this

milestone.

And

while

we

hope

that

the

success

of

VCX

ultimately

translates

to

good

outcomes

for

the

broader

Fundrise

platform,

the

real

tangible

benefits

of

the

listing

went

to

individual

investors,

those

of

you

who

helped

create

Fundrise

in

the

first

place

–

not

us

as

the

Fundrise

Innovation

Fund,

LLC

Management

Discussion

of

Fund

Performance

(UNAUDITED)

March

31,

2026

4

management

team,

and

most

importantly

not

a

bunch

of

hedge

funds

and

institutional

investors

seeking

to

flip

shares

and

make

a

quick

buck.

We’ve

also

been

humbled

to

receive

an

outpouring

of

personal

notes

and

letters

from

investors

who’ve

shared

their

remarkable

stories

of

what

the

success

of

the

listing

has

meant

for

them.

Some

shared

that

they

experienced

financial

returns

that

have

been

life

changing

in

nature;

retiring

parents,

getting

rid

of

long-standing

debt,

or

paying

for

their

entire

weddings!

This

is

why

we

started

Fundrise

in

the

first

place,

and

it’s

these

stories

that

drive

our

team

to

do

what

we

do.

Looking

ahead

We

typically

end

all

of

our

investor

letters

looking

ahead

and

sharing

with

investors

our

views

on

where

the

macroeconomy

and

our

own

portfolio

may

be

heading.

It’s

an

exercise

that

always

feels

a

bit

ironic

given

we

tend

to

invest

from

a

position

of

recognizing

that

it’s

dangerous

to

get

overconfident

in

one’s

ability

to

predict

the

future.

After

a

momentous

first

calendar

quarter

of

2026,

it

feels

today

as

if

the

spectrum

of

outcomes

in

front

of

us

is

as

wide

and

varied

as

it’s

been

at

any

point

in

the

history

of

the

company.

We

are

in

the

midst

of

the

first

military

conflict

in

decades

that

arguably

has

the

very

real

potential

to

spill

over

into

a

full

fledged

global

war,

while

also

propelling

the

entire

world

economy

into

recession.

At

the

same

time,

leading

AI

companies

seem

to

be

confident

that

we

are

rapidly

approaching

AGI

–

a

world

where

AI

intelligence

vastly

outperforms

humans,

completely

upending

the

norms

about

everyday

life

that

have

been

in

place

since

the

industrial

revolution.

Massive

downside

risk

with

extreme

upside

potential.

Global

depression

or

a

singularity

driven

explosion

of

living

standards

–

how

does

one

prepare

for

both?

Though

we’re

cognizant

of

the

naïveté

of

the

sentiment,

we

believe

that

it’s

our

responsibility

to

do

the

best

we

can

to

position

the

portfolio

and

our

investors

for

the

potential

of

either

outcome.

Through

VCX

we

are

aiming

to

capture

for

our

investors

a

meaningful

portion

of

the

massive

value

creation

being

driven

by

AI.

Every

few

years,

we

reach

certain

milestones

that

feel

more

significant

in

some

ways

–

marks

of

having

fulfilled

another

major

step

in

what

may

be

an

endless

pursuit

of

the

bigger

vision.

This

past

quarter

has

felt

like

one

of

those

milestones,

and

as

always,

we

are

extremely

appreciative

of

the

support

and

confidence

all

our

investors

have

given

us.

Onward,

Ben

Miller

Chief

Executive

Officer

Fundrise

Advisors,

LLC

Past

performance

does

not

guarantee

future

results.

Current

and

future

holdings

are

subject

to

risk.

As

with

any

stock,

the

price

of

the

fund’s

common

shares

will

fluctuate

with

market

conditions

and

other

factors.

Shares

of

closed-end

management

investment

companies

frequently

trade

at

a

price

that

is

less

than

(a

“discount”)

or

more

than

(a

“premium”)

their

net

asset

value.

If

the

fund’s

shares

trade

at

a

premium

to

net

asset

value,

there

is

no

assurance

that

any

such

premium

will

be

sustained

for

any

period

of

time

and

will

not

decrease,

or

that

the

shares

will

not

trade

at

a

discount

to

net

asset

value

thereafter.

Additionally,

the

fund’s

distribution

rate

may

be

affected

by

numerous

factors,

including

changes

in

realized

and

projected

market

returns,

fund

performance,

and

other

factors.

There

can

be

no

assurance

that

a

change

in

market

conditions

or

other

factors

will

not

result

in

a

change

in

the

fund

distribution

rate

at

a

future

time.

Listed

closed-end

funds,

unlike

open-end

funds,

are

not

continuously

offered.

Shares

are

sold

on

the

open

market

through

a

stock

exchange.

Closed-end

funds

may

be

leveraged

and

carry

various

risks

depending

upon

the

underlying

assets

owned

by

a

fund.

Investment

policies,

management

fees

and

other

matters

of

interest

to

prospective

investors

may

be

found

in

each

closed-end

fund

annual

and

semi-annual

report.

Fundrise

Innovation

Fund,

LLC

PERFORMANCE

CHART

AND

ANALYSIS

(UNAUDITED)

March

31,

2026

5

Performance

Chart

and

Analysis

The

following

reflects

the

change

in

the

value

of

a

hypothetical

$10,000

investment,

including

reinvested

dividends

and

distributions,

in

the

Fundrise

Innovation

Fund,

LLC

compared

with

the

performance

of

the

benchmarks,

NASDAQ

Composite

Index

and

the

BVP

NASDAQ

Emerging

Cloud

Index,

for

the

period

July

25,

2022*

through

March

31,

2026.

\

The

performance

data

quoted

is

historical.

Past

performance

is

no

guarantee

of

future

results.

The

performance

table

and

graph

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

The

investment

return,

market

price,

and

principal

value

of

an

investment

will

fluctuate.

An

investor’s

shares,

when

sold,

may

be

worth

more

or

less

than

the

original

cost.

Total

returns

are

calculated

using

closing

Net

Asset

Value

as

of

March

31,

2026

and

are

calculated

assuming

reinvestment

of

all

dividends

and

distributions.

*The

Fund

commenced

investment

operations

on

July

25,

2022.

The

Fund’s

shares

of

common

stock

commenced

trading

on

the

New

York

Stock

Exchange,

LLC

on

March

19,

2026

at

$31.25

per

share.

Total

Return

on

Market

Price

is

based

on

the

period

from

March

19,

2026

to

March

31,

2026.

The

NASDAQ

Composite

Index

is

an

unmanaged

stock

market

index

which

includes

almost

all

stocks

listed

on

the

NASDAQ

stock

exchange

and

includes

the

reinvestment

of

all

dividends.

Investors

cannot

invest

directly

in

an

index

or

benchmark.

The

BVP

NASDAQ

Emerging

Cloud

Index

is

an

unmanaged

index

that

tracks

the

performance

of

emerging

public

companies

primarily

involved

in

providing

cloud

software

to

their

customers

and

includes

the

reinvestment

of

all

dividends.

Investors

cannot

invest

directly

in

an

index

or

benchmark.

The

Fund’s

most

recent

annualized

distribution

rate

as

of

March

31,

2026,

was

0.14%

(1)

.

All

distributions

made

during

the

year

ended

March

31,

2026

were

from

capital

gain.

Average

Annual

Total

Returns

One

Year

Since

Inception*

Fundrise

Innovation

Fund,

LLC

-

NAV

68.39%

19.45%

Fundrise

Innovation

Fund,

LLC

-

Market

Price

N/A

319.04%

NASDAQ

Composite

Index

24.81%

17.86%

BVP

NASDAQ

Emerging

Cloud

Index

(15.33)%

(1.39)%

(1)

Distribution

rate

is

based

on

an

annualization

of

the

distributions

per

share

for

the

31

days

of

January

2026.

Fundrise

Innovation

Fund,

LLC

PORTFOLIO

COMPOSITION

March

31,

2026

6

TOP

TEN

HOLDINGS

The

following

table

below

shows

the

Fund’s

ten

largest

investments

by

economic

issuer,

excluding

short-term

holdings,

including

each

investment’s

fair

value

and

its

percentage

of

the

Fund’s

total

net

assets.

PORTFOLIO

COMPOSITION

The

following

chart

provides

a

visual

breakdown

of

the

Fund,

by

the

industry

sectors

that

the

underlying

securities

represent,

as

a

percentage

of

total

investments.

Description

Value

as

of

March

31,

2026

%

of

Net

Assets

Anthropic,

PBC

(1)

$

112

,418‌

16.5%

Databricks,

Inc.

(1)

95,736‌

14.1%

OpenAI

Group

PBC

(1)

84,16

3‌

12.4%

Anduril

Industries,

Inc.

(1)

37,581‌

5.5%

Ramp

Business

Corp.

27,741‌

4.1%

Space

Exploration

Technologies

Corp.

(1)

26,856‌

4.0%

Flock

Group,

Inc.

23,41

6‌

3.5%

Epic

Games,

Inc.

19,180‌

2.8%

dbt

Labs,

Inc.

15,000‌

2.2%

SWITCH

Data

Centers

-

SWCH

2025-DATA

E

12,316‌

1.8%

Total

Top

Ten

$

454,407‌

66.9%

(1)

All

or

a

portion

of

the

Fund's

economic

exposure

to

this

portfolio

company

is

held

indirectly

through

one

or

more

co-investment

vehicles,

special

purpose

vehicles,

or

other

investment

vehicles,

as

described

in

the

Shareholder

Update,

Item

2

-

Principal

Risks

of

the

Fund,

General

SPV

Risks

and

General

CIV

Risks

;

the

remainder

is

held

directly.

Fundrise

Innovation

Fund,

LLC

Schedule

of

Investments

March

31,

2026

7

See

accompanying

notes

to

financial

statements.

(Amounts

in

thousands)

Description

Par/Shares

Security

Type

Value

as

of

March

31,

2026

%

of

Net

Assets

Technology

Private

Equity

Portfolio

Companies

Artificial

Intelligence

Anthropic,

PBC

(1)(2)(3)(4)

N/A

Co-Investment

Vehicles

$

112,418‌

16.

5‌

%

OpenAI

Group

PBC

(1)(2)(3)(4)

N/A

Co-Investment

Vehicles

84,163‌

12.4‌%

Databricks,

Inc.

(1)(2)(4)(5)

N/A

SPV

72,480‌

10.7‌%

Anduril

Industries,

Inc.

(1)(2)(3)(4)

N/A

Co-Investment

Vehicle

30,231‌

4.5‌%

Space

Exploration

Technologies

Corp.

(1)(2)(3)(4)

5

SPV

26,856‌

4.0‌%

Databricks,

Inc.

(1)(2)(3)

122

Common

Stock

23,256‌

3.4‌%

Flock

Group,

Inc.

(1)(2)(3)

631

Class

B

-

Preferred

Stock

9,557‌

1.4‌%

Anduril

Industries,

Inc.

(1)(2)(3)

76

Series

Seed

-

Preferred

Stock

7,350‌

1.1‌%

Flock

Group,

Inc.

(1)(2)(3)

440

Class

A

-

Preferred

Stock

6,661‌

1.0‌%

Flock

Group,

Inc.

(1)(2)(3)

373

Class

A

First

SAFE

-

Preferred

Stock

5,639‌

0.8‌%

Visual

Layer,

Inc.

(1)(2)(3)(6)

N/A

Simple

Agreement

for

Future

Equity

5,000‌

0.7‌%

AI-LLM,

LLC

(1)(2)(3)

N/A

Co-Investment

Vehicle

3,105‌

0.5‌%

Handshake

(1)(2)(3)

38

Series

C

-

Preferred

Stock

2,814‌

0.4‌%

Anyscale,

Inc.

(1)(2)(3)

511

Common

Stock

2,494‌

0.4‌%

Intercom,

Inc.

(1)(2)(3)

45

Common

Stock

2,385‌

0.4‌%

Flock

Group,

Inc.

(1)(2)(3)

103

Class

C

-

Preferred

Stock

1,559‌

0.2‌%

Handshake

(1)(2)(3)

8

Series

D

-

Preferred

Stock

601‌

0.1‌%

Intercom,

Inc.

(1)(2)(3)

8

Series

A

-

Preferred

Stock

417‌

0.1‌%

Risotto

(1)(2)(3)(7)

261

Series

Seed

2

-

Preferred

Stock

375‌

0.

0‌

%

Luminos,

Inc.

(1)(2)(3)(7)

170

Series

Seed

2

-

Preferred

Stock

285‌

0.0‌%

Risotto

(1)(2)(3)(7)

87

Series

Seed

1

-

Preferred

Stock

125‌

0.0‌%

Luminos,

Inc.

(1)(2)(3)(7)

47

Series

Seed

1

-

Preferred

Stock

79‌

0.0‌%

Gumloop

(1)(2)(3)(7)

5

Series

A-2

-

Preferred

Stock

22‌

0.0‌%

Total

Artificial

Intelligence

(

Cost

$

190

,

26

3

)

$

397

,

8

72‌

58

.

6‌

%

Financial

Technology

Ramp

Business

Corp.

(1)(2)(3)

149

Series

A-2

-

Preferred

Stock

$

13,365‌

2.0‌%

Ramp

Business

Corp.

(1)(2)(3)

133

Series

C-1

-

Preferred

Stock

12,000‌

1.8‌%

Erebor

Bank,

N.A.

(1)(2)(3)

19

Series

B

-

Preferred

Stock

5,000‌

0.7‌%

Ramp

Business

Corp.

(1)(2)(3)

26

Common

Stock

2,376‌

0.3‌%

Stripe,

Inc.

(1)(2)(3)

10

Common

Stock

618‌

0.1‌%

Total

Financial

Technology

(

Cost

$21,253

)

$

33,359‌

4.9‌%

Data

Infrastructure

dbt

Labs,

Inc.

(1)(2)(3)(8)

441

Series

D

-

Preferred

Stock

$

15,000‌

2.2‌%

Vanta,

Inc.

(1)(2)(3)

555

Series

B-1

-

Preferred

Stock

10,116‌

1.5‌%

Immuta,

Inc.

(1)(2)(3)

80

Common

Stock

1,022‌

0.2‌%

DittoLive,

Inc.

(1)(2)(3)

73

Series

B

-

Preferred

Stock

1,000‌

0.

2‌

%

Omni

Analytics,

Inc.

(1)(2)(3)

58

Series

B-1

-

Preferred

Stock

588‌

0.1‌%

Hightouch

(1)(2)(3)

12

Common

Stock

583‌

0.

1‌

%

Hightouch

(1)(2)(3)(7)

2

Series

C

-

Preferred

Stock

100‌

0.0‌%

Total

Data

Infrastructure

(

Cost

$22,8

90

)

$

28,409‌

4.

3‌

%

Gaming/Entertainment

Epic

Games,

Inc.

(1)(2)(3)

43

Common

Stock

$

19,180‌

2.8‌%

Total

Gaming/Entertainment

(

Cost

$19,180

)

$

19,180‌

2.8‌%

Vertical/Horizontal

Software

Canva,

Inc.

(1)(2)(3)

6

Common

Stock

$

9,599‌

1.4‌%

Total

Vertical/Horizontal

Software

(

Cost

$6,220

)

$

9,599‌

1.4‌%

Biotechnology

Loyal

Animal

Health,

Inc.

(1)(2)(3)

780

Series

C

-

Preferred

Stock

$

9,560‌

1.4‌%

Total

Biotechnology

(

Cost

$9,56

0

)

$

9,560‌

1.4‌%

Fundrise

Innovation

Fund,

LLC

Schedule

of

Investments

(Continued)

March

31,

2026

8

See

accompanying

notes

to

financial

statements.

Description

Par/Shares

Security

Type

Value

as

of

March

31,

2026

%

of

Net

Assets

Property

Technology

Inspectify,

Inc.

(1)(2)(3)(9)

1,295

Series

A-5

-

Preferred

Stock

$

5,000‌

0.7‌%

Rhino

Labs,

Inc.

(1)(2)(3)

10

Series

P

-

Preferred

Stock

1,023‌

0.2‌%

Inspectify,

Inc.

(1)(2)(3)(6)(9)

N/A

Simple

Agreement

for

Future

Equity

1,000‌

0.

2‌

%

Rhino

Labs,

Inc.

(1)(2)(3)(7)

300

Series

D-1A

-

Preferred

Stock

250‌

0.

0‌

%

Rhino

Labs,

Inc.

(1)(2)(3)(7)

170

Series

D-1

-

Preferred

Stock

141‌

0.0‌%

Total

Property

Technology

(

Cost

$7,391

)

$

7,414‌

1.1‌%

Total

Technology

Private

Equity

Portfolio

Companies

(Cost

$276,757)

$

5

05

,

3

93‌

74

.

5‌

%

Technology

Fixed

Income

SWITCH

Data

Centers

-

SWCH

2025-DATA

E,

7.01%(3.34%

+

SOFR),

02/15/27

(10)(11)

$

12,500‌

Commercial

Mortgage-Backed

Security

$

12,316‌

1.8‌%

QTS

Data

Centers

-

BX

2025-VOLT

C,

6.02%(2.35%

+

SOFR),

12/15/27

(10)(11)(12)

10,000‌

Commercial

Mortgage-Backed

Security

9,962‌

1.5‌%

QTS

Data

Centers

-

BX

2025-VLT6

E,

6.86%(3.19%

+

SOFR),

03/15/27

(10)(11)

10,000‌

Commercial

Mortgage-Backed

Security

9,938‌

1.5‌%

Vantage

Data

Centers

-

VDCM

2025-AZ

D,

5.81%,

07/13/30

(10)(13)

9,000‌

Commercial

Mortgage-Backed

Security

9,097‌

1.4‌%

QTS

Data

Centers

-

BX

2025-VLT7

D,

6.92%(3.25%

+

SOFR),

07/15/27

(10)(11)(12)

7,000‌

Commercial

Mortgage-Backed

Security

6,969‌

1.0‌%

QTS

Data

Centers

-

BX

2025-VLT7

E,

7.42%(3.75%

+

SOFR),

07/15/27

(10)(11)(12)

7,000‌

Commercial

Mortgage-Backed

Security

6,954‌

1.0‌%

EdgeCore

Data

Centers

-

ECORE

2025-1A

B,

4.55%,

07/25/30

(10)

6,000‌

Commercial

Mortgage-Backed

Security

5,559‌

0.8‌%

QTS

Data

Centers

-

BX

2025-VLT6

D,

6.26%(2.59%

+

SOFR),

03/15/27

(10)(11)

5,000‌

Commercial

Mortgage-Backed

Security

4,956‌

0.7‌%

Total

Technology

Fixed

Income

(Cost

$66,131)

$

65,751‌

9.7‌%

Promissory

Note

Promissory

Note

-

Theory

Ventures,

10.00%,

04/28/33

(2)(3)(14)

5,000‌

Promissory

Note

$

4,732‌

0.7‌%

Total

Promissory

Note

(Cost

$4,732)

$

4,732‌

0.7‌%

Short-Term

Investment

JP

Morgan

U.S.

Treasury

Plus

Money

Market

Fund,

Capital

Shares,

3.62%

(15)

38,310‌

Money

Market

Fund

$

38,310‌

5.6‌%

Total

Short-Term

Investment

(Cost

$38,310)

$

38,310‌

5.6‌%

Total

investments,

at

value

(Cost

$385,930)

$

6

1

4,

1

86‌

9

0

.

5‌

%

Other

assets

in

excess

of

liabilities

6

4,

73

2‌

9.5‌

%

Total

Net

Assets

$

678,

918‌

100.0‌%

LLC

Limited

Liability

Company

LP

Limited

Partnership

(1)

Non-income

producing

investment.

(2)

Restricted

security.

The

aggregate

value

of

restricted

securities

at

March

31,

2026

is

approximately

$510,125

(

amount

in

thousands)

and

represents

approximately

75.2%

of

net

assets.

See

Note

2,

Summary

of

Significant

Accounting

Policies

for

additional

information.

(3)

Investments

classified

as

Level

3

within

the

three-tier

fair

value

hierarchy.

See

Note

2,

Summary

of

Significant

Accounting

Policies

-

Fair

Value

Measurement

for

an

explanation

of

this

hierarchy,

as

well

as

a

list

of

significant

unobservable

inputs

used

in

the

valuation

of

these

instruments.

(4)

Investment

held

through

one

or

more

co-investment

vehicles,

special

purpose

vehicles,

or

other

investment

vehicles,

of

which

the

named

investment

is

the

sole

underlying

portfolio

investment.

If

applicable,

shares

listed

indicate

shares

of

the

special

purpose

vehicle.

See

Shareholder

Update,

Item

2

-

Principal

Risks

of

the

Fund,

General

SPV

Risks

and

General

CIV

Risks

.

(5)

Investment

valued

using

net

asset

value

per

share

(or

its

equivalent)

as

a

practical

expedient.

See

Note

2,

Summary

of

Significant

Accounting

Policies

-

Fair

Value

Measurement

for

additional

information.

(6)

This

Simple

Agreement

for

Future

Equity

(“SAFE”)

will

convert

into

preferred

shares

upon

an

equity

financing.

The

number

of

shares

issued

upon

conversion

is

determined

by

dividing

the

Fund's

cost

of

investment

by

a

conversion

price,

which

is

based

on

the

applicable

discount

or

SAFE

price.

(7)

Value

is

less

than

0.05%

of

Total

Net

Assets.

(8)

As

of

March

31,

2026,

dbt

Labs,

Inc.

had

announced

a

proposed

merger

with

Fivetran,

Inc.

that

had

not

yet

closed.

(9)

Investment

in

an

affiliate.

See

Note

5,

Investment

Manager

Fees

and

Other

Related

Party

Transactions

for

additional

information.

(10)

Security

is

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

to

qualified

institutional

buyers

in

transactions

exempt

from

registration.

The

aggregate

value

of

these

securities

at

March

31,

2026

is

approximately

$65,751

(

amount

in

thousands)

and

represents

approximately

9.7%

of

net

assets.

(11)

This

investment

has

a

floating

interest

rate.

Coupon

rate,

reference

index

and

spread

shown

at

March

31,

2026.

(12)

All

or

a

portion

of

this

security

has

been

pledged

as

collateral

for

securities

sold

under

agreement

to

repurchase.

See

Note

7,

Reverse

Repurchase

Agreements

for

additional

information.

Fundrise

Innovation

Fund,

LLC

Schedule

of

Investments

(Continued)

March

31,

2026

9

See

accompanying

notes

to

financial

statements.

(13)

This

investment

has

a

variable

interest

rate

which

adjusts

periodically

based

on

changes

in

current

interest

rates.

Coupon

rate

shown

at

March

31,

2026.

(14)

As

of

March

31,

2026,

the

Fund

had

total

unfunded

capital

commitments

of

$599

(amount

in

thousands)

for

the

promissory

note

investment.

(15)

Rate

disclosed

is

representative

of

the

seven-day

effective

yield

as

of

March

31,

2026.

(Amounts

in

thousands)

Reverse

Repurchase

Agreements

Counterparty

Settlement

Date

Maturity

Date

Interest

%(Borrowing

Rate)

Principal

Payable(Including

Accrued

Interest)

Barclays

Bank

PLC

03/02/26

04/02/26

4.77%

$

4,883

$

(4,902)

Barclays

Bank

PLC

03/02/26

04/02/26

4.67%

5,198

(5,218)

Barclays

Bank

PLC

03/02/26

04/02/26

4.62%

5,737

(5,759)

Total

$

15,818

$

(15,879)

Fundrise

Innovation

Fund,

LLC

STATEMENT

OF

ASSETS

AND

LIABILITIES

March

31,

2026

10

See

accompanying

notes

to

financial

statements.

(Amounts

in

thousands,

except

share

and

per

share

data)

Assets

Investments

in

unaffiliated

entities,

at

fair

value

(Cost

$380,930)

$

608,186‌

Investments

in

non-controlled

affiliated

entities,

at

fair

value

(Cost

$5,000)

6,000‌

Cash

75,717‌

Other

assets

10,450‌

Interest

and

dividend

receivable

from

unaffiliated

investments

632‌

Prepaid

expenses

508‌

Total

Assets

$

701,493‌

Liabilities

Payable

for

reverse

repurchase

agreements

$

15,879‌

Deferred

tax

liability,

net

3,850‌

Accounts

payable

and

accrued

expenses

1,529‌

Management

fees

payable

1,099‌

Current

tax

liability

164‌

Distributions

payable

42‌

Redemptions

payable

12‌

Total

Liabilities

$

22,575‌

Commitments

and

Contingencies

(1)

Total

Net

Assets

$

678,918‌

Components

of

Net

Assets

Paid-in

capital

$

456,723‌

Distributable

earnings

222

,

195‌

Total

Net

Assets

$

678,918‌

Net

Asset

Value

Net

Assets

$

678,918‌

Common

shares

outstanding

as

of

March

31,

2026;

unlimited

shares

authorized

35,797,138‌

Net

Asset

Value

Per

Share

$

18.97‌

(1)

See

Note

2,

Summary

of

Significant

Accounting

Policies

for

additional

information.

Fundrise

Innovation

Fund,

LLC

STATEMENT

OF

OPERATIONS

FOR

THE

YEAR

ENDED

MARCH

31,

2026

11

See

accompanying

notes

to

financial

statements.

(Amounts

in

thousands)

Investment

Income

Interest

income

from

unaffiliated

investments

$

3,391‌

Dividend

income

from

unaffiliated

investments

1,390‌

Total

Investment

Income

$

4,781‌

Expenses

Management

fees

$

6,870‌

Marketing

expenses

1,351‌

Miscellaneous

expenses

894‌

Management

fees

recouped

by

the

Adviser

724‌

Professional

fees

622‌

Custody

fees

301‌

Transfer

agent

fees

243‌

Interest

expense

203‌

Directors’

fees

135‌

Total

Expenses

$

11,343‌

Net

Investment

Income

(Loss)

$

(

6,562‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

from

Investments

Net

realized

gain

(loss)

from

unaffiliated

investments

$

5,800‌

Net

change

in

unrealized

appreciation/depreciation

from

unaffiliated

investments

196,179‌

Net

change

in

unrealized

appreciation/depreciation

from

deferred

tax

benefit

(expense)

1,811‌

Total

Net

Realized

and

Unrealized

Gain

(Loss)

from

Investments

$

203,

790‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

19

7

,

22

8‌

Fundrise

Innovation

Fund,

LLC

STATEMENTS

OF

CHANGES

IN

NET

ASSETS

12

See

accompanying

notes

to

financial

statements.

(Amounts

in

thousands)

For

the

Years

Ended

March

31,

2026

2025

Operations:

Net

investment

income

(loss)

$

(6,562‌)

$

(3,748‌)

Net

realized

gain

(loss)

from

investments

5,800‌

222‌

Net

change

in

unrealized

appreciation/depreciation

from

investments

197,

990‌

22,973‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

19

7

,

22

8‌

$

19,447‌

Distributions

to

Common

Shareholders

From:

Distributable

earnings

$

(

5,259‌)

$

–‌

Return

of

capital

–‌

(381‌)

Net

Decrease

in

Net

Assets

from

Distributions

to

Common

Shareholders

$

(5,259‌)

$

(381‌)

Capital

Share

Transactions:

Proceeds

from

sale

of

shares

$

302,187‌

$

76,634‌

Distributions

reinvested

1,660‌

17‌

Repurchase

of

shares

(28,564‌)

(11,753‌)

Net

Increase

(Decrease)

in

Net

Assets

from

Capital

Share

Transactions

$

275,283‌

$

64,898‌

Net

Increase

(Decrease)

in

Net

Assets

$

467

,

25

2‌

$

83,964‌

Net

Assets:

Beginning

of

Year

$

211,666‌

$

127,702‌

End

of

Year

$

678,

918‌

$

211,666‌

Fundrise

Innovation

Fund,

LLC

STATEMENT

OF

CASH

FLOWS

FOR

THE

YEAR

ENDED

MARCH

31,

2026

13

See

accompanying

notes

to

financial

statements.

(Amounts

in

thousands)

Operating

Activities:

Net

increase

in

net

assets

resulting

from

operations

$

197,228‌

Adjustments

to

reconcile

net

increase

(decrease)

in

net

assets

resulting

from

operations

to

net

cash

provided

by

(used

in)

operating

activities:

Investments

in

unaffiliated

entities

(195,759‌)

Investments

in

non-controlled

affiliated

entities

(1,000‌)

Net

change

in

investments

in

short-term

investments

(24,922‌)

Accretion

of

discounts

(43‌)

Net

realized

(gain)

loss

from

unaffiliated

investments

(5,800‌)

Net

change

in

unrealized

appreciation/depreciation

from

unaffiliated

investments

(196,179‌)

Proceeds

from

sale

of

unaffiliated

investments

25,645‌

Changes

in

assets

and

liabilities:

Net

(increase)

decrease

in

other

assets

(10,450‌)

Net

(increase)

decrease

in

interest

and

dividend

receivable

from

unaffiliated

investments

(526‌)

Net

(increase)

decrease

in

due

from

Adviser

204‌

Net

(increase)

decrease

in

prepaid

expenses

(459‌)

Net

(increase)

decrease

in

payable

for

reverse

repurchase

agreements

15,879‌

Net

increase

(decrease)

in

current

tax

liability

164‌

Net

increase

(decrease)

in

deferred

tax

liability,

net

(1,975‌)

Net

increase

(decrease)

in

settling

subscriptions

(551‌)

Net

increase

(decrease)

in

management

fees

payable

1,099‌

Net

increase

(decrease)

in

accounts

payable

and

accrued

expenses

1,195‌

Net

cash

provided

by

(used

in)

operating

activities

$

(196,

250‌

)

Financing

Activities:

Proceeds

from

sale

of

shares

$

302,187‌

Cash

paid

for

shares

repurchased

(28,552‌)

Distributions

paid

(3,665‌)

Net

cash

provided

by

(used

in)

financing

activities

$

269,

970‌

Net

increase

(decrease)

in

cash

$

73,720‌

Cash,

beginning

of

year

1,997‌

Cash,

end

of

year

$

75,717‌

Supplemental

Disclosure

of

Non-Cash

Activity:

Distributions

reinvested

$

1,660‌

Equity

in

promissory

note

received

through

in-kind

transaction

4,627‌

SAFE

in

portfolio

company

converted

to

equity

through

in-kind

transaction

498‌

Fundrise

Innovation

Fund,

LLC

FINANCIAL

HIGHLIGHTS

14

See

accompanying

notes

to

financial

statements.

These

financial

highlights

reflect

selected

data

for

a

share

outstanding

throughout

each

period.

For

the

Years

Ended

March

31,

For

the

Period

July

25,

2022

(1)

Through

2026

2025

2024

March

31,

2023

Net

Asset

Value,

Beginning

of

Period

$

11.40‌

$

10.20‌

$

10.05‌

$

10.00‌

Income

from

Investment

Operations

Net

investment

income

(loss)

(2)

$

(0.27‌)

$

(0.25‌)

$

(0.06‌)

$

0.05‌

Net

realized

and

unrealized

gain

(loss)

on

investments

8

.

0

5‌

1.48‌

0.21‌

0.00‌

(3)

Total

Income

(Loss)

from

Investment

Operations

$

7.

7

8‌

$

1.23‌

$

0.15‌

$

0.05‌

Distributions

to

Common

Shareholders

From:

Capital

gains

$

(0.

21‌

)

$

–‌

$

–‌

$

–‌

Return

of

capital

–‌

(0.03‌)

(0.00‌)

(3)

–‌

Total

Distributions

to

Common

Shareholders

$

(0.

21‌

)

$

(0.03‌)

$

(0.00‌)

$

–‌

Net

Asset

Value,

End

of

Period

$

18.9

7‌

$

11.40‌

$

10.20‌

$

10.05‌

Total

Investment

Return

Based

on

Net

Asset

Value

(4)

68.

39‌

%

12.02‌%

(5)

1.53‌%

(5)

0.50‌%

(5)(6)

Total

Investment

Return

Based

on

Market

Value

319.04‌%

(

6

)

(

7)

N/A‌

N/A‌

N/A‌

Ratios

and

Supplemental

Data

Net

assets

at

end

of

period

(thousands)

$

678,918‌

$

211,666‌

$

127,702‌

$

73,132‌

Including

interest

expense:

Ratio

of

gross

expenses

to

average

net

assets

(8)(9)

2.57‌

%

(1

0

)

8.94‌%

(1

0

)

3.50‌%

(

1

1

)

6.18‌%

(1

2

)

Ratio

of

net

expenses

to

average

net

assets

(9)

2.57‌

%

(1

0

)

6.58‌%

(1

0

)

3.07‌%

(1

3

)

2.74‌%

(1

2

)

Ratio

of

net

investment

income

(loss)

to

average

net

assets

(1.77‌)%

(2.31‌)%

(0.55‌)%

(1

4

)

0.68‌%

(1

2

)

Excluding

interest

expense:

Ratio

of

gross

expenses

to

average

net

assets

(8)(9)

2.51‌

%

(1

0

)

8.94‌%

(1

0

)

3.50‌%

(1

1

)

6.18‌%

(1

2

)

Ratio

of

net

expenses

to

average

net

assets

(9)

2.51‌

%

(1

0

)

6.58‌%

(1

0

)

3.07‌%

(13)

2.74‌%

(1

2

)

Ratio

of

net

investment

income

(loss)

to

average

net

assets

(1.71‌)%

(2.31‌)%

(0.55‌)%

(14)

0.68‌%

(1

2

)

Portfolio

turnover

rate

7‌%

(15)

8‌%

(15)

18‌%

–‌%

(

6

)

(1)

Commencement

of

investment

operations.

(2)

Based

on

average

shares

outstanding

during

each

period.

(3)

Less

than

$0.01

per

share.

(4)

Total

investment

return

based

on

net

asset

value

is

based

upon

the

change

in

net

asset

value

per

share

between

the

opening

and

ending

net

asset

values

per

share

in

the

period

indicated

and

assumes

that

dividends

are

reinvested

in

accordance

with

the

Fund’s

dividend

reinvestment

policy.

Returns

shown

do

not

reflect

the

deduction

of

taxes

that

a

Shareholder

would

pay

on

Fund

distributions

or

the

sale

of

Fund

shares.

(5)

Total

investment

returns

for

the

period

would

have

been

lower

had

certain

expenses

not

been

waived

or

borne

by

the

Adviser

during

the

period.

The

Fund's

Board

of

Directors

terminated

the

Expense

Limitation

Agreement

effective

as

of

the

Fund’s

listing

of

Shares

on

the

NYSE.

See

Note

5,

Investment

Manager

Fees

and

Other

Related

Party

Transactions

for

further

information.

(6)

Not

annualized.

(7)

The

Fund’s

shares

of

common

stock

commenced

trading

on

NYSE

on

March

19,

2026

at

$31.25

per

share.

Total

Return

on

Market

Value

is

based

on

the

period

from

March

19,

2026

to

March

31,

2026.

(8)

Reflects

the

expense

ratio

excluding

any

waivers

and/or

reimbursements.

(9)

Excludes

acquired

fund

fees

and

expenses

of

underlying

investment

companies.

(10)

Ratios

include

(0.49)%

and

3.58%

of

deferred

tax

expense/(benefit)

for

the

years

ended

March

31,

2026

and

March

31,

2025,

respectively.

(11)

The

ratio

of

gross

expenses

to

average

net

assets

includes

income

tax

expense.

The

ratio

excluding

income

tax

expense

was

3.43%

for

the

year

ended

March

31,

2024.

(12)

Annualized,

except

for

non-recurring

items.

(13)

The

ratio

of

net

expenses

to

average

net

assets

includes

income

tax

expense.

The

ratio

excluding

income

tax

expense

was

3.00%

for

the

year

ended

March

31,

2024.

(14)

The

ratio

of

net

investment

income

(loss)

to

average

net

assets

includes

income

tax

expense.

The

ratio

excluding

income

tax

expense

was

(0.48)%

for

the

year

ended

March

31,

2024.

(15)

Excludes

the

impact

of

in-kind

transactions.

Fundrise

Innovation

Fund,

LLC

FINANCIAL

HIGHLIGHTS

(CONTINUED)

15

See

accompanying

notes

to

financial

statements.

Senior

Securities

The

Fund

engaged

in

and

held

senior

securities

as

of

the

periods

as

presented

as

follows:

As

of

the

Years

Ended

March

31,

July

25,

2022

(1)

Through

2026

2025

2024

March

31,

2023

Reverse

Repurchase

Agreements

Total

amount

outstanding

(thousands)

$

15,879‌

$

–‌

$

–‌

$

–‌

Asset

coverage

per

$1,000

44,756‌

–‌

–‌

–‌

Involuntary

liquidation

preference

N/A‌

N/A‌

N/A‌

N/A‌

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

March

31,

2026

16

1.

Formation

and

Organization

Fundrise

Innovation

Fund,

LLC

(the

“Fund”

or

the

“Registrant”)

is

a

Delaware

limited

liability

company.

The

Fund

intends

to

elect

and

intends

to

qualify

to

be

taxed

as

a

regulated

investment

company

(“RIC”)

under

the

Internal

Revenue

Code

of

1986,

as

amended

(the

“Code”),

for

its

taxable

year

ending

March

31,

2026.

During

prior

taxable

years,

the

Fund

was

taxed

as

a

C

corporation

for

U.S.

federal

income

tax

purposes.

The

Fund

is

organized

as

a

non-diversified,

closed-end

management

investment

company

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”).

The

Fund

commenced

investment

operations

on

July

25,

2022.

At

a

meeting

held

on

January

9,

2026,

the

Fund’s

Board

of

Directors

approved

a

legal

name

change

of

the

Fund

from

“Fundrise

Growth

Tech

Fund,

LLC”

to

“Fundrise

Innovation

Fund,

LLC,”

effective

January

20,

2026.

On

January

14,

2026,

the

Fund’s

Board

of

Directors

also

approved

proposals

concerning

the

conversion

of

the

Fund

from

a

closed-end

fund

operating

as

a

tender

offer

fund

under

the

Securities

Act

of

1934,

as

amended,

to

a

listed

closed-end

fund

with

Fund

shares

listed

on

the

New

York

Stock

Exchange,

LLC

(“NYSE”)

and

the

implementation

of

a

six-month

lockup

for

all

Fund

shares

purchased

before

February

20,

2026

to

facilitate

the

listing

of

the

Fund

on

the

NYSE.

Fund

shareholders

approved

these

proposals

at

a

special

meeting

of

shareholders

convened

on

February

19,

2026.

The

Fund’s

shares

began

trading

on

the

NYSE

on

March

19,

2026

under

the

symbol

“VCX”.

In

addition,

in

connection

with

the

conversion

of

the

Fund

to

a

listed

closed-end

fund,

certain

updates

to

the

Fund’s

Limited

Liability

Company

Agreement

(the

“LLC

Agreement”)

were

approved

by

the

Fund’s

Board

of

Directors.

Further,

the

Fund’s

Board

members

have

been

divided

into

three

classes

–

Class

I

Directors,

Class

II

Directors,

and

Class

III

Directors.

The

updates

to

the

LLC

Agreement

and

the

classification

of

the

Fund’s

Board

of

Directors

became

effective

upon

the

Fund’s

listing

on

the

NYSE.

The

Fund

may

offer

and

sell

securities

directly

to

one

or

more

purchasers,

to

or

through

underwriters,

through

dealers

or

agents

that

the

Fund

designates

from

time

to

time,

or

through

a

combination

of

these

methods.

The

Fund’s

investment

objective

is

to

provide

total

return

primarily

through

long-term

capital

appreciation.

The

Fund

seeks

to

achieve

its

investment

objective

by

investing

in

private

and

public

technology

companies,

directly

or

indirectly,

with

a

primary

focus

on

the

equity

securities

(e.g.,

common

stock,

preferred

stock,

and

convertible

debt)

of

certain

privately

held,

mid-to-late

stage,

growth

companies

(“Portfolio

Companies”),

or

other

investments

(including

derivatives,

exchange-traded

funds

and

other

pooled

investment

vehicles)

that

have

economic

characteristics

similar

to

investments

in

technology

companies.

Under

normal

circumstances,

the

Fund’s

investment

strategy

is

to

invest

at

least

80%

of

its

net

assets

(plus

the

amount

of

any

borrowings

for

investment

purposes)

in

the

securities

of

technology

and

technology-related

companies

(referred

to

herein

as

“technology

companies”)

and

other

investments

(including

derivatives)

that

have

economic

characteristics

similar

to

investments

in

technology

companies.

The

investment

adviser

to

the

Fund

is

Fundrise

Advisors,

LLC

(the

“Adviser”),

an

investment

adviser

registered

with

the

U.S.

Securities

and

Exchange

Commission

(“SEC”)

under

the

Investment

Advisers

Act

of

1940,

as

amended.

The

Adviser

is

a

wholly-

owned

subsidiary

of

Rise

Companies

Corp.

(“Rise

Companies”

or

the

“Sponsor”),

the

Fund’s

sponsor.

Subject

to

the

supervision

of

the

Board

of

Directors

of

the

Fund

(the

“Board”),

the

Adviser

is

responsible

for

directing

the

management

of

the

Fund’s

business

and

affairs,

managing

the

Fund’s

day-to-day

affairs,

and

implementing

the

Fund’s

investment

strategy.

2.

Summary

of

Significant

Accounting

Policies

Basis

of

Presentation

The

accompanying

financial

statements

of

the

Fund

are

prepared

in

accordance

with

accounting

principles

generally

accepted

in

the

United

States

(“U.S.

GAAP”).

The

Fund

is

an

investment

company

and

follows

the

accounting

and

reporting

guidance

in

the

Financial

Accounting

Standards

Board

(“FASB”)

Accounting

Standards

Codification

(“ASC”)

Topic

946,

Financial

Services

-

Investment

Companies

(“ASC

946”).

The

Fund

maintains

its

financial

records

in

U.S.

dollars

and

follows

the

accrual

basis

of

accounting.

The

estimates

and

assumptions

underlying

these

financial

statements

are

based

on

information

available

as

of

March

31,

2026,

including

judgments

about

the

financial

market

and

economic

conditions

which

may

change

over

time.

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

17

Estimates

The

preparation

of

financial

statements

in

conformity

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

revenues

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Valuation

Oversight

Pursuant

to

SEC

Rule

2a-5

under

the

1940

Act,

the

Board

has

approved

the

Adviser

as

the

Fund’s

Valuation

Designee

(“Valuation

Designee”),

to

provide

administration

and

oversight

of

the

Fund’s

valuation

policies

and

procedures.

The

Fund

values

its

investments

in

accordance

with

such

procedures.

Generally,

portfolio

securities

and

other

assets

for

which

market

quotations

are

readily

available

are

valued

at

market

value,

which

is

ordinarily

determined

on

the

basis

of

official

closing

prices

or

the

last

reported

sales

prices.

If

market

quotations

are

not

readily

available

or

are

deemed

unreliable,

the

Fund

will

use

the

fair

value

of

the

securities

or

other

assets

as

determined

by

the

Adviser

in

good

faith,

taking

into

consideration

all

available

information

and

other

factors

that

the

Adviser

deems

pertinent,

in

each

case

subject

to

the

overall

supervision

and

responsibility

of

the

Board.

In

calculating

the

Fund’s

net

asset

value

(“NAV”),

the

Adviser,

subject

to

the

oversight

of

the

Board,

uses

various

valuation

methodologies.

To

the

extent

practicable,

the

Adviser

generally

endeavors

to

maximize

the

use

of

observable

inputs

and

minimize

the

use

of

unobservable

inputs

by

requiring

that

the

most

observable

inputs

are

to

be

used

when

available.

The

availability

of

valuation

techniques

and

observable

inputs

can

vary

from

investment

to

investment

and

are

affected

by

a

wide

variety

of

factors.

When

valuation

is

based

on

models

or

inputs

that

are

less

observable

or

unobservable

in

the

market,

the

determination

of

fair

value

requires

more

judgment,

and

may

involve

alternative

methods

to

obtain

fair

values

where

market

prices

or

market-based

valuations

are

not

readily

available.

As

a

result,

the

Adviser

may

exercise

a

higher

degree

of

judgment

in

determining

fair

value

for

certain

securities

or

other

assets.

Fair

Value

Measurement

The

following

is

a

current

summary

of

certain

methods

generally

used

to

value

investments

of

the

Fund

under

the

Fund’s

valuation

procedures:

The

Fund

applies

FASB

ASC

Topic

820,

Fair

Value

Measurement,

as

amended,

which

establishes

a

framework

for

measuring

fair

value

in

accordance

with

U.S.

GAAP

and

required

disclosures

of

fair

value

measurement.

U.S.

GAAP

defines

the

fair

value

as

the

price

that

the

Fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Fund

determines

the

fair

value

of

certain

investments

in

accordance

with

the

fair

value

hierarchy

that

requires

an

entity

to

maximize

the

use

of

observable

inputs.

The

fair

value

hierarchy

includes

the

following

three

levels

based

on

the

objectivity

of

the

inputs,

which

were

used

for

categorizing

the

assets

or

liabilities

for

which

fair

value

is

being

measured

and

reported:

Level

1

–

Quoted

market

prices

in

active

markets

for

identical

assets

or

liabilities.

Level

2

–

Significant

other

observable

inputs

(e.g.,

quoted

prices

for

similar

items

in

active

markets,

quoted

prices

for

identical

or

similar

items

in

markets

that

are

not

active,

inputs

other

than

quoted

prices

that

are

observable

such

as

interest

rate

and

yield

curves,

and

market-corroborated

inputs).

Level

3

–

Valuation

generated

from

model-based

techniques

that

use

inputs

that

are

significant

and

unobservable

in

the

market.

These

unobservable

assumptions

reflect

estimates

of

inputs

that

market

participants

would

use

in

pricing

the

asset

or

liability.

Valuation

techniques

may

include

use

of

discounted

cash

flow

methodologies

or

similar

techniques,

which

incorporate

management’s

own

estimates

of

assumptions

that

market

participants

would

use

in

pricing

the

instrument

or

other

valuation

assumptions

that

require

significant

management

judgment

or

estimation.

Fixed

income

securities

are

valued

by

an

independent

pricing

service

overseen

by

the

Valuation

Designee.

The

pricing

service

employs

a

pricing

model

that

takes

into

account,

among

other

things,

bids,

yield

spreads

and/or

other

market

data

and

specific

security

characteristics.

In

the

event

prices

or

quotations

are

not

readily

available

or

that

the

application

of

these

valuation

methods

results

in

a

price

for

an

investment

that

is

deemed

to

be

not

representative

of

the

fair

value

of

such

investment,

fair

value

will

be

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

18

determined

in

good

faith

by

the

Valuation

Designee,

in

accordance

with

the

valuation

policy

and

procedures

approved

by

the

Board.

These

securities

are

generally

classified

in

Level

2

of

the

fair

value

hierarchy.

Investments

in

registered

investment

companies,

including

money

market

funds,

are

valued

at

the

NAV

as

of

the

close

of

each

business

day.

These

securities

are

generally

classified

in

Level

1

of

the

fair

value

hierarchy.

Based

on

the

short-term

nature

of

the

borrowings

under

the

reverse

repurchase

agreements,

the

carrying

value

of

the

payable

for

reverse

repurchase

agreements

approximated

its

fair

value

as

of

March

31,

2026.

These

reverse

repurchase

agreements

are

generally

classified

in

Level

2

of

the

fair

value

hierarchy.

The

majority

of

the

Fund’s

investments

have

no

readily

available

market

quotations

and,

as

such,

are

valued

at

fair

value

in

good

faith.

There

is

no

single

standard

for

determining

the

fair

value

of

a

security.

Rather,

fair

value

calculations

will

involve

significant

professional

judgment

in

the

application

of

both

observable

and

unobservable

attributes.

For

mid-to-late

stage

growth

Portfolio

Companies,

traditional

valuation

methods

(e.g.,

discounted

cash

flow)

are

often

a

less

reliable

tool

for

valuing

investments

in

accordance

with

ASC

820.

As

such,

until

the

Portfolio

Companies

grow

to

a

point

where

traditional

valuation

methods

apply,

the

Adviser

may

deem

it

more

appropriate

to

utilize

other

valuation

methodologies.

Late-stage

private

companies

or

“pre-IPO

companies”

traditionally

raise

capital

from

investors

in

organized

funding

rounds.

During

such

funding

rounds,

a

pre-IPO

company

will

seek

a

lead

investor

who

will,

to

their

best

effort,

define

a

valuation

of

the

company.

Therefore,

the

valuation

of

the

Fund’s

Portfolio

Companies

may

be

adjusted

when

a

new

valuation

is

set

by

the

lead

investor

in

the

next

funding

round.

As

such,

the

Adviser

may

use

the

market

approach

to

estimate

the

fair

value

of

the

Fund’s

Portfolio

Companies

by

adjusting

the

valuation

of

the

Portfolio

Companies

with

each

new

funding

round.

However,

while

the

valuation

as

of

the

latest

funding

round

is

a

prominent

factor

in

the

Adviser’s

valuation

process,

it

is

not

the

only

factor

that

the

Adviser

considers

when

valuing

its

portfolio

investments.

The

Adviser

may

establish

certain

thresholds

or

triggers

that

intend

to

capture

fundamental

changes

in

the

value

of

the

Portfolio

Company

that

would

affect

the

anticipated

return

on

the

Fund’s

investment.

Examples

of

certain

thresholds

or

triggers

may

include,

an

unexpected

business

or

technology

breakthrough,

faster

than

anticipated

revenue

growth,

a

fundamental

failure

of

the

technology,

the

loss

of

a

key

customer,

or

the

success

of

a

competitor

in

the

same

industry.

Additionally,

the

Adviser

may

consider

several

additional

factors

(if

present),

including

but

not

limited

to

the

implied

valuation

of

the

asset

as

reflected

by

stock

purchase

contracts

reported

in

private

markets,

fundamental

analytical

data

relating

to

the

investment

in

the

security,

the

nature

and

duration

of

any

restriction

on

the

disposition

of

the

security,

the

cost

of

the

security

at

the

date

of

purchase,

or

the

liquidity

of

the

market

for

the

security.

The

Adviser

may

also

consider

periodic

financial

statements

(audited

and

unaudited)

or

other

information

provided

by

the

Portfolio

Companies

to

investors

or

prospective

investors,

to

the

extent

that

it

is

available.

The

Fund

invests

in

Portfolio

Companies

by

purchasing

securities

directly

from

such

Portfolio

Companies,

through

simple

agreements

for

future

equity

(“SAFEs”),

or

through

co-investment

vehicles

(“CIV”)

and

special

purpose

vehicles

(“SPV”).

SAFEs

represent

a

contractual

right

to

future

equity

of

a

company,

in

exchange

for

which

the

holder

of

the

SAFE

contributes

capital

to

the

company.

SAFEs

enable

investors

to

convert

their

investment

to

equity

upon

the

occurrence

of

triggering

events

set

forth

in

the

applicable

SAFE.

For

investments

in

companies

that

are

not

considered

“pre-IPO

companies”,

valuation

methods

utilized

may

include,

but

are

not

limited

to

the

following:

sales

comparison

approach;

discounted

cash

flow

method;

hypothetical

sales

method;

and

appraisals

received

from

one

or

more

pricing

services.

In

addition,

the

Fund

may

utilize:

an

analysis

of

financial

ratios

and

valuation

metrics

of

the

Portfolio

Companies

that

issued

private

equity

securities

to

peer

companies

that

are

public;

an

analysis

of

the

Portfolio

Companies’

most

recent

financial

statements

and

forecasts;

an

analysis

of

the

markets

in

which

the

Portfolio

Company

does

business;

and

other

relevant

factors.

Certain

Portfolio

Companies

are

generally

valued

based

on

the

latest

NAV

reported

by

the

Portfolio

Company's

portfolio

manager

(“Portfolio

Manager”)

as

a

practical

expedient,

where

such

valuation

methodologies

employed

by

certain

Portfolio

Companies

reflect

fair

value

pricing

and

the

effects

of

using

fair

value

pricing.

New

purchases

of

certain

Portfolio

Companies

may

be

valued

at

original

transaction

price

initially

until

a

NAV

is

provided

by

the

Portfolio

Manager.

If

the

Valuation

Committee

concludes

in

good

faith

that

the

latest

NAV

reported

by

a

Portfolio

Manager

does

not

represent

fair

value

(e.g.,

there

is

more

current

information

regarding

a

portfolio

asset

which

significantly

changes

its

fair

value),

the

Valuation

Committee

will

make

a

corresponding

adjustment

to

reflect

the

current

fair

value

of

such

asset

within

such

Portfolio

Company.

Attributes

of

those

investments

include

the

investment

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

19

strategies

of

the

investees

and

may

also

include,

but

are

not

limited

to,

restrictions

on

the

investor’s

ability

to

redeem

its

investments

at

the

measurement

date

and

any

unfunded

commitments.

Because

of

the

inherent

uncertainty

in

valuation,

the

estimated

values

may

differ

from

the

values

that

would

have

been

used

had

a

ready

market

for

the

securities

existed,

and

the

differences

could

be

material.

Due

to

the

inherent

uncertainty

of

determining

the

fair

value

of

investments

that

do

not

have

a

readily

available

market

value,

the

fair

value

of

the

Fund’s

investments

may

differ

significantly

from

the

values

that

would

have

been

used

had

a

readily

available

market

value

existed

for

such

investments,

and

the

differences

could

be

material.

The

following

is

a

summary

of

the

Fund’s

assets

and

liabilities

measured

at

fair

value

on

a

recurring

basis

as

of

March

31,

2026

,

and

indicates

the

fair

value

hierarchy

of

the

inputs

utilized

by

the

Fund

to

determine

such

fair

value

(amounts

in

thousands)

:

The

Fund

utilizes

the

NAV

as

a

practical

expedient

to

value

certain

investments.

The

table

below

sets

forth

those

investments,

including

their

unfunded

commitments

and

other

attributes,

that

were

significant

as

of

March

31,

2026

(1)

.

Assets

Level

1

Level

2

Level

3

Practical

Expedient

(1)

Total

Portfolio

Companies

$

–‌

$

–‌

$

432,913‌

$

72,480‌

$

505,393‌

Promissory

Note

–‌

–‌

4,732‌

–‌

4,732‌

Commercial

Mortgage-Backed

Securities

–‌

65,751‌

–‌

–‌

65,751‌

Short-Term

Investment

38,310‌

–‌

–‌

–‌

38,310‌

Total

Assets

$

38,310‌

$

6

5

,

751‌

$

4

3

7

,

6

45‌

$

7

2

,

480‌

$

6

1

4

,

1

86‌

Liabilities

Level

1

Level

2

Level

3

Practical

Expedient

(1)

Total

Reverse

Repurchase

Agreements

$

–‌

$

(15,879‌)

$

–‌

$

–‌

$

(15,879‌)

Total

Liabilities

$

–‌

$

(15,879‌)

$

–‌

$

–‌

$

(15,879‌)

(1)

As

a

practical

expedient,

certain

investments

that

are

measured

at

fair

value

using

the

NAV

per

share

(or

its

equivalent)

have

not

been

categorized

in

the

fair

value

hierarchy.

The

fair

value

amounts

presented

in

this

table

are

intended

to

permit

reconciliation

of

the

fair

value

hierarchy

to

the

amounts

presented

in

the

Schedule

of

Investments.

Investment

Category

Investment

Strategy

Fair

Value

(amounts

in

thousands)

Unfunded

Commitments

(amounts

in

thousands)

Estimated

Remaining

Life

Redemption

Frequency

Redemption

Notice

Period

(In

Days)

Redemption

Restriction

Terms

Portfolio

Company

To

serve

as

an

investment

vehicle

through

which

the

assets

of

its

partners

may

be

utilized

to

make

investment(s)

in

the

securities

of

Databricks,

Inc.

$

72,480

N/A

Indefinite

None

N/A

N/A

(1)

The

information

summarized

in

the

table

above

represents

the

general

terms

for

the

specified

financing

stage.

Individual

investment

funds

may

have

terms

that

are

more

or

less

restrictive

than

those

terms

indicated

for

the

asset

class

as

a

whole.

In

addition,

most

individual

investment

funds

have

the

flexibility,

as

provided

for

in

their

constituent

documents,

to

modify

and

waive

such

terms.

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

20

The

following

is

a

summary

of

quantitative

information

about

the

significant

unobservable

inputs

of

the

Fund’s

Level

3

investments

as

of

March

31,

2026

(amounts

in

thousands)

.

The

tables

are

not

intended

to

be

all-inclusive

but

instead

capture

the

significant

unobservable

inputs

relevant

to

the

Fund’s

determination

of

fair

value.

The

following

is

a

reconciliation

of

investments

in

which

significant

unobservable

inputs

(Level

3)

were

used

in

determining

fair

value

(amounts

in

thousands)

:

Restricted

Investments

The

Fund

may

purchase

securities

for

which

there

is

a

limited

trading

market

or

which

are

subject

to

restrictions

on

resale

to

the

public.

Restricted

securities

and

securities

for

which

there

is

a

limited

trading

market

may

be

significantly

more

difficult

to

value

due

to

the

unavailability

of

reliable

market

quotations

for

such

securities,

and

investment

in

such

securities

may

have

an

adverse

impact

on

NAV.

In

addition,

the

Fund’s

investments

in

Portfolio

Companies

will

often

be

subject

to

lock-up

provisions

that

prohibit

the

Fund

from

selling

its

equity

investments

into

the

public

market

for

specified

periods

of

time

after

IPOs

of

the

Portfolio

Company,

typically

180

days.

The

Fund

may

purchase

Rule

144A

securities

for

which

there

may

be

a

secondary

market

of

qualified

institutional

buyers

as

contemplated

by

Rule

144A

under

the

Securities

Act.

Rule

144A

provides

an

exemption

from

the

registration

requirements

of

the

Securities

Act

for

the

resale

of

certain

restricted

securities

to

qualified

institutional

buyers.

The

following

are

the

restricted

investments

held

by

the

Fund

as

of

March

31,

2026

(amounts

in

thousands)

:

Investment

Fair

Value

Valuation

Technique

(1)

Unobservable

Input

Range

Impact

to

Valuation

from

an

Increase

in

Input

(2)

Portfolio

Companies

$

327,095‌

Market

Transaction

Transaction

Price

N/A

Increase

Portfolio

Companies

105,818‌

Recent

Transaction

Transaction

Price

N/A

Increase

Promissory

Note

4,732‌

Discounted

Cash

Flow

Discount

Rate

10.9%

Decrease

Collateral

Value

$4,732

Increase

Total

Investments

$

437,645‌

(1)

Market

transaction

represents

investments

valued

using

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

Recent

transaction

represents

investments

held

at

the

original

transaction

price,

either

from

the

Portfolio

Company's

funding

round

or

a

secondary

seller,

and

other

relevant

market

data.

(2)

Represents

the

expected

directional

change

in

the

fair

value

of

the

Level

3

investments

that

would

result

from

an

increase

in

the

corresponding

input.

A

decrease

to

the

unobservable

input

would

have

the

opposite

effect.

Significant

changes

in

these

inputs

could

result

in

significantly

higher

or

lower

fair

value

measurements.

Portfolio

Companies

Promissory

Note

Total

Balance

as

of

March

31,

2025

$

119,573‌

$

–‌

$

119,573‌

Purchases

or

conversions

147,004‌

4,732‌

(1)

151,736‌

Realized

gain

(loss)

–‌

–‌

–‌

Net

change

in

unrealized

appreciation/depreciation

166,834‌

–‌

166,834‌

Sales

or

conversions

(498‌)

–‌

(498‌)

Transfers

into

Level

3

–‌

–‌

–‌

Transfers

out

of

Level

3

–‌

–‌

–‌

Balance

as

of

March

31,

2026

$

432,913‌

$

4,732‌

$

437,645‌

Net

change

in

unrealized

appreciation/depreciation

for

the

year

ended

March

31,

2026

related

to

Level

3

investments

held

at

March

31,

2026

$

166,834‌

$

–‌

$

166,834‌

(1)

Represents

the

fair

value

of

a

promissory

note

received

in

exchange

for

the

Fund’s

limited

partnership

interest

in

Theory

Ventures,

L.P.

in

an

in-kind

transaction.

Description

Initial

Acquisition

Date

Shares

Cost

Value

as

of

March

31,

2026

%

of

Net

Assets

Databricks,

Inc.

-

SPV

07/14/23

N/A

$

25,019‌

$

72,480‌

10.7‌%

OpenAI

Group

PBC

-

CIV

09/27/24

N/A

25,890‌

64,614‌

9.5‌%

Anthropic,

PBC

-

CIV

12/06/23

N/A

8,534‌

56,388‌

8.3‌%

Anthropic,

PBC

-

CIV

08/14/25

N/A

21,462‌

36,030‌

5.3‌%

Anduril

Industries,

Inc.

-

CIV

10/27/23

N/A

6,021‌

30,231‌

4.5‌%

Space

Exploration

Technologies

Corp.

-

SPV

07/18/25

5‌

16,404‌

26,856‌

4.0‌%

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

21

Income

Taxes

The

Fund

intends

to

elect

and

intends

to

qualify

as

a

RIC

under

the

Code,

for

its

taxable

year

ending

March

31,

2026.

To

qualify

as

a

RIC,

the

Fund

must

meet

certain

organizational

and

operational

requirements,

including

a

requirement

to

distribute

at

least

90%

of

the

Fund’s

annual

investment

company

taxable

income

to

the

shareholders

of

the

Fund

(“Shareholders”)

(which

is

computed

without

regard

to

the

dividends

paid

deduction

and

generally

equals

the

Fund’s

ordinary

income

plus

the

excess

of

its

net

short-term

capital

gains

over

its

net

long-term

capital

losses,

minus

deductible

expenses).

As

a

RIC,

the

Fund

generally

will

not

be

subject

to

U.S.

federal

income

tax

on

income

or

gains

distributed

in

a

timely

manner

to

its

Shareholders

in

the

form

of

dividends.

Even

if

the

Fund

qualifies

for

taxation

as

a

RIC,

it

may

be

subject

to

certain

state

and

local

taxes

on

its

income

and

property,

and

federal

income

and

excise

taxes

on

its

undistributed

income.

The

tax

period

for

the

taxable

year

ending

March

31,

2023

and

all

tax

periods

following

remain

open

to

examination

by

the

major

taxing

authorities

in

all

jurisdictions

where

the

Fund

is

subject

to

taxation.

For

the

open

tax

periods,

the

Fund

has

no

uncertain

tax

positions

that

would

require

recognition

in

the

financial

statements.

Description

Initial

Acquisition

Date

Shares

Cost

Value

as

of

March

31,

2026

%

of

Net

Assets

Databricks,

Inc.

-

Common

Stock

11/20/23

122‌

$

8,874‌

$

23,256‌

3.4‌%

Anthropic,

PBC

-

CIV

02/10/26

N/A

20,800‌

20,000‌

2.9‌%

OpenAI

Group

PBC

-

CIV

12/29/23

N/A

5,350‌

19,549‌

2.9‌%

Epic

Games,

Inc.

-

Common

Stock

08/27/25

43‌

19,180‌

19,180‌

2.8‌%

dbt

Labs,

Inc.

-

Series

D

-

Preferred

Stock

09/22/23

441‌

15,000‌

15,000‌

2.2‌%

Ramp

Business

Corp.

-

Series

A-2

-

Preferred

Stock

10/08/25

149‌

10,200‌

13,365‌

2.0‌%

Ramp

Business

Corp.

-

Series

C-1

-

Preferred

Stock

01/31/25

133‌

5,005‌

12,000‌

1.8‌%

Vanta,

Inc.

-

Series

B-1

-

Preferred

Stock

09/07/22

555‌

5,000‌

10,116‌

1.5‌%

Canva,

Inc.

-

Common

Stock

09/15/23

6‌

6,220‌

9,599‌

1.4‌%

Loyal

Animal

Health,

Inc.

-

Series

C

-

Preferred

Stock

12/10/25

780‌

9,560‌

9,560‌

1.4‌%

Flock

Group,

Inc.

-

Class

B

-

Preferred

Stock

11/26/25

631‌

13,961‌

9,557‌

1.4‌%

Anduril

Industries,

Inc.

-

Series

Seed

-

Preferred

01/06/26

76‌

7,350‌

7,350‌

1.1‌%

Flock

Group,

Inc.

-

Class

A

-

Preferred

Stock

03/02/26

440‌

6,661‌

6,661‌

1.0‌%

Flock

Group,

Inc.

-

Class

A

First

SAFE

-

Preferred

Stock

03/02/26

373‌

5,639‌

5,639‌

0.8‌%

Visual

Layer,

Inc.

-

SAFE

06/04/24

N/A

5,000‌

5,000‌

0.7‌%

Erebor

Bank,

N.A.

-

Series

B

-

Preferred

Stock

02/20/26

19‌

5,000‌

5,000‌

0.7‌%

Inspectify,

Inc.

-

Series

A-5

-

Preferred

Stock

06/30/23

1,295‌

4,000‌

5,000‌

0.7‌%

Promissory

Note

-

Theory

Ventures

03/01/26

5,

000‌

4,732‌

4,732‌

0.7‌%

AI-LLM,

LLC

-

CIV

08/31/23

N/A

1,597‌

3,105‌

0.5‌%

Handshake

-

Series

C

-

Preferred

Stock

10/23/25

38‌

2,814‌

2,814‌

0.4‌%

Anyscale,

Inc.

-

Common

Stock

10/18/23

511‌

2,494‌

2,494‌

0.4‌%

Intercom,

Inc.

-

Common

Stock

10/17/25

45‌

2,385‌

2,385‌

0.4‌%

Ramp

Business

Corp.

-

Common

Stock

05/20/24

26‌

693‌

2,376‌

0.3‌%

Flock

Group,

Inc.

-

Class

C

-

Preferred

Stock

11/26/25

103‌

2,278‌

1,559‌

0.2‌%

Rhino

Labs,

Inc.

-

Series

P

-

Preferred

Stock

02/05/25

10‌

2,000‌

1,023‌

0.2‌%

Immuta,

Inc.

-

Common

Stock

03/28/23

80‌

1,022‌

1,022‌

0.2‌%

DittoLive,

Inc.

-

Series

B

-

Preferred

Stock

01/17/25

73‌

1,000‌

1,000‌

0.

2‌

%

Inspectify,

Inc.

-

SAFE

11/03/25

N/A

1,000‌

1,000‌

0.

2‌

%

Stripe,

Inc.

-

Common

Stock

06/28/24

10‌

355‌

618‌

0.1‌%

Handshake

-

Series

D

-

Preferred

Stock

10/23/25

8‌

601‌

601‌

0.1‌%

Omni

Analytics,

Inc.

-

Series

B-1

-

Preferred

Stock

08/27/24

58‌

500‌

588‌

0.1‌%

Hightouch

-

Common

Stock

06/06/24

12‌

26

8‌

583‌

0.1‌%

Intercom,

Inc.

-

Series

A

-

Preferred

Stock

10/17/25

8‌

417‌

417‌

0.1‌%

Risotto

-

Series

Seed

2

-

Preferred

Stock

(1)

02/20/25

261‌

300‌

375‌

0.

0‌

%

Luminos,

Inc.

-

Series

Seed

2

-

Preferred

Stock

(1)

11/09/23

170‌

198‌

285‌

0.0‌%

Rhino

Labs,

Inc.

-

Series

D-1A

-

Preferred

Stock

(1)

02/03/25

300‌

250‌

250‌

0.0‌%

Rhino

Labs,

Inc.

-

Series

D-1

-

Preferred

Stock

(1)

02/03/25

170‌

141‌

141‌

0.0‌%

Risotto

-

Series

Seed

1

-

Preferred

Stock

(1)

11/12/25

87‌

125‌

125‌

0.0‌%

Hightouch

-

Series

C

-

Preferred

Stock

(1)

05/09/25

2‌

100‌

100‌

0.0‌%

Luminos,

Inc.

-

Series

Seed

1

-

Preferred

Stock

(1)

11/05/25

47‌

79‌

79‌

0.0‌%

Gumloop

-

Series

A-2

-

Preferred

Stock

(1)

08/16/24

5‌

10‌

22‌

0.0‌%

Total

$

2

81

,

48

9‌

$

5

1

0,

1

25‌

7

5

.

2‌

%

(1)

Value

is

less

than

0.05%

of

Total

Net

Assets.

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

22

Prior

to

the

taxable

year

ending

March

31,

2026,

the

Fund

was

treated

as

a

regular

corporation,

or

a

“C”

corporation,

for

U.S.

federal

income

tax

purposes.

During

the

periods

the

Fund

was

treated

as

a

“C”

corporation,

for

U.S.

federal

income

tax

purposes,

the

Fund

incurred

tax

expenses

and

was

subject

to

tax

at

regular

corporate

rates.

Pursuant

to

rules

applicable

to

RICs

that

were

previously

taxed

as

C

corporations,

because

the

Fund’s

assets

had

an

aggregate

net

unrealized

built-in

gain

at

the

time

it

first

qualified

as

a

RIC,

the

Fund

will

be

subject

to

tax

at

regular

corporate

rates

to

the

extent

the

Fund

recognizes

such

gain

within

five

years

after

so

qualifying,

even

if

the

Fund

distributes

such

gain.

In

accordance

with

U.S.

generally

accepted

accounting

principles,

the

Fund

has

already

accrued

a

deferred

income

tax

liability

balance,

at

the

currently

effective

statutory

U.S.

federal

income

tax

rate

(currently

21%)

plus

an

estimated

state

and

local

income

tax

rate,

for

its

future

tax

liability

associated

with

such

net

unrealized

built-in

gain.

Net

capital

or

ordinary

losses

recognized

during

the

recognition

period

may

be

used

to

offset

built-in

gains.

Such

deferred

tax

liability,

and

any

deferred

tax

assets,

are

accounted

for

in

calculating

the

Fund’s

quarterly

NAV

and

will

be

remeasured

from

time

to

time,

as

the

Adviser

deems

necessary,

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Income

tax

and

related

interest

and

penalties

would

be

recognized

by

the

Fund

as

tax

expense

in

the

Statement

of

Operations

if

the

tax

positions

were

deemed

to

not

meet

the

more-likely-than-not

threshold.

As

of

March

31,

2026,

the

Fund

did

not

record

any

cumulative

unrecognized

tax

benefits

on

the

Statement

of

Assets

and

Liabilities.

The

Fund

accounts

for

income

taxes

under

the

asset

and

liability

method,

which

requires

the

recognition

of

deferred

tax

assets

and

liabilities

for

the

expected

future

tax

consequences

of

events

that

have

been

included

in

the

financial

statements.

Under

this

method,

deferred

tax

assets

and

liabilities

are

recognized

as

temporary

differences

between

the

financial

statement

carrying

amounts

of

existing

assets

and

liabilities

and

their

respective

tax

bases,

as

well

as

net

operating

loss

and

tax

credit

carryforwards.

Deferred

tax

assets

and

liabilities

are

measured

using

enacted

tax

rates

in

effect

for

the

year

in

which

the

differences

are

expected

to

reverse.

The

effect

of

a

change

in

tax

rates

on

deferred

tax

assets

and

liabilities

is

recognized

in

income

in

the

period

that

includes

the

enactment

date.

Distributions

To

Shareholders

The

Fund

intends

to

make

distributions

necessary

to

qualify

to

be

taxed

as

a

RIC

and,

once

qualified,

maintain

its

qualification

for

taxation

as

a

RIC.

The

Fund

expects

to

declare

and

make

distributions

on

a

quarterly

basis,

or

more

or

less

frequently

as

determined

by

the

Board,

in

arrears.

Notwithstanding

the

foregoing,

it

is

likely

that

many

of

the

Portfolio

Companies

in

whose

securities

the

Fund

invests

will

not

pay

any

dividends,

and

this,

together

with

the

Fund’s

expenses,

means

that

there

can

be

no

assurance

the

Fund

will

have

substantial

income

or

pay

dividends.

The

Board

may

authorize

distributions

in

Shares

or

in

excess

of

those

required

for

the

Fund

to

maintain

RIC

tax

status

depending

on

the

Fund’s

financial

condition

and

such

other

factors

as

the

Board

may

deem

relevant.

The

distribution

rate

may

be

modified

by

the

Board

from

time

to

time.

The

Board

reserves

the

right

to

change

or

suspend

the

distribution

policy

from

time

to

time.

Distributions

to

Shareholders

of

the

Fund

are

recorded

on

the

ex-dividend

date.

If

the

Fund

fails

to

qualify

as

a

RIC

in

any

taxable

year,

it

will

be

taxed

as

an

ordinary

corporation

on

its

taxable

income

(even

if

such

income

is

distributed

to

its

Shareholders)

and

all

distributions

out

of

earnings

and

profits

will

generally

be

taxed

to

certain

noncorporate

U.S.

shareholders

(including

individuals)

as

“qualified

dividend

income”

eligible

for

reduced

maximum

tax

rates.

Investment

Income

and

Securities

Transactions

Securities

transactions

are

accounted

for

on

the

date

the

securities

are

purchased

or

sold

(trade

date).

Realized

gains

and

losses

on

sales

of

investments

are

determined

on

a

specific

identification

basis.

Dividend

income

and

distributions

from

investments

are

recorded

on

the

ex-dividend

date.

Interest

income

is

recorded

on

an

accrual

basis

and

includes,

where

applicable,

the

amortization

of

premiums

and

accretion

of

discounts.

Distributions

received

from

investments

generally

are

comprised

of

ordinary

income

and/

or

return

of

capital.

The

Fund

estimates

the

allocation

of

distributions

between

investment

income

and

return

of

capital

based

on

historical

information

or

regulatory

filings.

These

estimates

may

subsequently

be

revised

based

on

actual

allocations

received

from

investments

after

their

tax

reporting

periods

are

concluded,

as

the

actual

character

of

these

distributions

is

not

known

until

after

the

reporting

period

of

the

Fund.

Commitments

and

Contingencies

In

the

normal

course

of

business,

the

Fund

enters

into

contracts

that

contain

a

variety

of

representations

and

warranties,

and

which

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

23

provide

general

indemnifications.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown,

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

However,

based

on

experience,

the

Fund

expects

the

risk

of

loss

to

be

remote.

The

Fund

may

be

required

to

provide

financial

support

in

the

form

of

investment

commitments

to

certain

investees

as

part

of

the

conditions

for

entering

into

the

investments.

As

of

March

31,

2026,

the

Fund

had

total

unfunded

capital

commitments

of

$599

(amount

in

thousands)

for

the

promissory

note

investment.

The

Fund

is

not

currently

subject

to

any

material

legal

proceedings

and,

to

the

Fund’s

knowledge,

no

material

legal

proceedings

are

threatened

against

the

Fund.

From

time

to

time,

the

Fund

may

be

a

party

to

certain

legal

proceedings

in

the

ordinary

course

of

business,

including

proceedings

related

to

the

enforcement

of

the

Fund’s

rights

under

contracts

with

its

Portfolio

Companies.

While

the

outcome

of

any

legal

proceedings

cannot

be

predicted

with

certainty,

to

the

extent

the

Fund

becomes

party

to

such

proceedings,

the

Fund

would

assess

whether

any

such

proceedings

will

have

a

material

adverse

effect

upon

its

financial

condition

or

results

of

operations.

Under

the

Fund’s

organizational

documents,

its

officers

and

directors

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

3.

Share

Transactions

Below

is

a

summary

of

transactions

with

respect

to

the

Fund’s

common

Shares

for

the

year

ended

March

31,

2026

and

for

the

year

ended

March

31,

2025

(all

tabular

amounts

are

in

thousands

except

share

data)

:

As

of

March

31,

2026,

the

Sponsor

held

10,000

common

shares.

For

the

year

ended

March

31,

2026,

total

distributions

declared

to

this

related

party

was

approximately

$2,000.

During

the

year

ended

March

31,

2026

,

the

Fund

sold

shares

to

the

Fundrise

Real

Estate

Interval

Fund,

LLC

(the

“Flagship

Fund”),

an

affiliated

fund

sponsored

by

the

Adviser.

As

of

March

31,

2026

,

the

Flagship

Fund

held

approximately

1,398,936

common

shares,

valued

at

approximately

$183,191

(amount

in

thousands).

For

the

year

ended

March

31,

2026

,

the

Fund

did

not

declare

any

distributions

to

the

Flagship

Fund

.

4.

Tender

Offers

and

Trading

of

Fund

Shares

on

the

New

York

Stock

Exchange,

LLC

In

connection

with

the

conversion

of

the

Fund

from

a

closed-end

fund

operating

as

a

tender

offer

fund

pursuant

to

the

Securities

Exchange

Act

of

1934,

as

amended,

to

a

closed-end

fund

with

its

Shares

listed

on

the

NYSE,

the

Fund’s

Board

of

Directors

approved

the

Fund’s

final

tender

offer

beginning

on

January

30,

2026,

with

an

offer

period

which

closed

on

February

28,

2026

(“Final

Tender

Offer”).

The

Fund

offered

to

repurchase

Fund

Shares

in

an

amount

up

to

5%

of

the

Fund’s

net

assets

pursuant

to

the

Final

Tender

Offer.

With

the

listing

of

the

Fund’s

shares

on

the

NYSE

effective

March

19,

2026,

the

Fund’s

Board

of

Directors

will

no

longer

authorize

tender

offers

for

the

Fund.

Prior

to

the

Final

Tender

Offer,

the

Fund

conducted

quarterly

tender

offers

authorized

by

the

Fund’s

Board

of

Directors

in

the

amount

of

up

to

5%

of

the

Fund’s

net

assets

with

respect

to

any

such

offer.

Repurchases

of

Shares

pursuant

to

such

tender

offers

were

made

to

all

holders

of

Shares,

at

such

times

and

on

such

terms

as

determined

by

the

Fund’s

Board

of

Directors

from

time

to

time

in

its

sole

discretion

in

accordance

with

the

requirements

of

Rule

13e-4

under

the

Securities

Exchange

Act

of

1934,

as

amended.

As

a

listed

closed-end

fund,

Fund

shareholders

have

the

ability

to

sell

their

shares

in

the

secondary

market

on

the

NYSE

at

any

time

during

market

hours.

The

Fund’s

Shares

may

trade

at

a

premium

or

discount

to

the

Fund’s

net

asset

value.

The

repurchase

of

For

the

Year

Ended

March

31,

2026

For

the

Year

Ended

March

31,

2025

Common

Shares

Shares

Amount

Shares

Amount

Proceeds

from

sale

of

shares

19,020,29

2‌

$

302,187‌

7,164,434‌

$

76,634‌

Reinvestment

of

distributions

100,318‌

1,660‌

1,546‌

17‌

Total

gross

proceeds

19,120,61

0‌

$

303,847‌

7,165,980‌

$

76,651‌

Repurchase

of

shares

(

1,895,119‌

)

(

28,564‌

)

(1,116,726‌)

(11,753‌)

Net

Proceeds

from

Common

Shares

17,225,49

1‌

$

275,283‌

6

,

049

,

254‌

$

64,898‌

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

24

closed-end

tender

offer

fund

shares

are

completed

at

net

asset

value

whereas

the

sale

of

listed

closed-end

fund

shares

are

completed

at

market

price.

The

following

table

presents

the

repurchase

offers

that

were

completed

during

the

year

ended

March

31,

2026

(all

tabular

amounts

are

in

thousands

except

share

data)

:

5.

Investment

Manager

Fees

and

Other

Related

Party

Transactions

On

July

18,

2022,

the

Fund

entered

into

an

Investment

Management

Agreement

with

the

Adviser.

Pursuant

to

the

Investment

Management

Agreement,

and

in

consideration

of

the

services

provided

by

the

Adviser

to

the

Fund,

the

Adviser

is

entitled

to

a

management

fee

(the

“Management

Fee”)

of

1.85%

of

the

Fund’s

average

daily

net

assets.

The

Management

Fee

will

be

calculated

and

accrued

daily

and

payable

monthly

in

arrears.

For

the

year

ended

March

31,

2026,

the

Fund

incurred

$6,870

of

Management

Fees

(amount

in

thousands)

.

The

Adviser

and

the

Fund

previously

entered

into

an

Expense

Limitation

agreement

pursuant

to

which

the

Adviser

contractually

agreed

to

waive

its

Management

Fee

and/or

pay

or

reimburse

the

ordinary

annual

operating

expenses

of

the

Fund

(including

organization

and

offering

costs,

but

excluding

interest

payments,

taxes,

brokerage

commissions,

fees

and

expenses

incurred

by

the

Fund’s

use

of

leverage,

acquired

fund

fees

and

expenses

and

extraordinary

or

non-routine

expenses,

including

with

respect

to

reorganizations

or

litigation

affecting

the

Fund)

(the

“Operating

Expenses”)

to

the

extent

necessary

to

limit

the

Fund’s

Operating

Expenses

to

3.00%

of

the

Fund’s

average

daily

net

assets.

The

Adviser

is

entitled

to

seek

recoupment

from

the

Fund

of

fees

waived

or

expenses

paid

or

reimbursed

to

the

Fund

for

a

period

ending

three

years

after

the

date

of

the

waiver,

payment

or

reimbursement,

subject

to

the

limitation

that

the

recoupment

will

not

cause

the

Fund’s

Operating

Expenses

to

exceed

the

lesser

of

(a)

the

expense

limitation

amount

in

effect

at

the

time

such

fees

were

waived

or

expenses

paid

or

recouped,

or

(b)

the

expense

limitation

amount

Repurchase

Offers

Fourth

Quarter

Repurchase

Commencement

Date

February

27,

2025

Repurchase

Request

Deadline

March

31,

2025

Repurchase

Pricing

Date

April

1,

2025

Amount

Repurchased

$

3,862‌

Shares

Repurchased

339,113‌

Repurchase

Offers

First

Quarter

Repurchase

Commencement

Date

May

29,

2025

Repurchase

Request

Deadline

June

30,

2025

Repurchase

Pricing

Date

July

1,

2025

Amount

Repurchased

$

3,510‌

Shares

Repurchased

279,466‌

Repurchase

Offers

Second

Quarter

Repurchase

Commencement

Date

August

22,

2025

Repurchase

Request

Deadline

September

30,

2025

Repurchase

Pricing

Date

October

1,

2025

Amount

Repurchased

$

5,207‌

Shares

Repurchased

349,466‌

Repurchase

Offers

Third

Quarter

Repurchase

Commencement

Date

November

26,

2025

Repurchase

Request

Deadline

December

31,

2025

Repurchase

Pricing

Date

January

2,

2026

Amount

Repurchased

$

6,683‌

Shares

Repurchased

417,679‌

Repurchase

Offers

Final

Repurchase

Commencement

Date

January

30,

2026

Repurchase

Request

Deadline

February

28,

2026

Repurchase

Pricing

Date

March

2,

2026

Amount

Repurchased

$

9,302‌

Shares

Repurchased

509,395‌

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

25

in

effect

at

the

time

of

the

recoupment.

Pursuant

to

approval

by

the

Board,

the

Fund’s

Expense

Limitation

Agreement

terminated

effective

as

of

the

Fund's

listing

of

Shares

on

the

NYSE.

For

the

year

ended

March

31,

2026,

the

Adviser

did

not

waive

management

fees

or

reimburse

expenses

.

As

of

March

31,

2026,

the

Fund

had

remaining

expense

waivers

and/or

reimbursement

subject

to

recoupment

by

the

Adviser

and

respective

dates

of

expiration

as

follows

(amounts

in

thousands)

:

For

the

year

ended

March

31,

2026,

the

Adviser

recouped

$724

(amount

in

thousands)

as

reflected

on

the

accompanying

Statement

of

Operations.

The

Adviser

or

its

affiliates

may

be

entitled

to

certain

fees

as

permitted

by

the

1940

Act

or

as

otherwise

permitted

by

applicable

law

and

regulation,

such

as

fees

and

expenses

associated

with

the

selection,

acquisition,

or

origination

of

investments

(including,

but

not

limited

to,

reimbursement

of

non-ordinary

expenses

and

employee

time

required

to

special

service

a

non-performing

asset)

whether

or

not

the

Fund

ultimately

acquires

or

originates

the

investment,

and

the

sale

of

investments.

No

such

fees

were

incurred

or

paid

by

the

Fund

to

the

Adviser

or

its

affiliates

for

the

year

ended

March

31,

2026

.

The

Adviser

and

Rise

Companies

entered

into

a

Shared

Services

Agreement

where

Rise

Companies

will

provide

the

Adviser

with

the

personnel,

services

and

resources

necessary

for

the

Adviser

to

comply

with

its

obligations

and

responsibilities

under

the

Second

Amended

and

Restated

Operating

Agreement

(“Operating

Agreement”)

and

Investment

Management

Agreement,

which

includes

responsibility

for

operations

of

the

Fund

and

performance

of

such

services

and

activities

relating

to

the

investments

and

operations

of

the

Fund

as

may

be

appropriate,

including

without

limitation

those

services

and

activities

listed

in

the

Operating

Agreement

and

Investment

Management

Agreement.

The

Fund

will

reimburse

the

Adviser

for

out-of-pocket

expenses

paid

to

third

parties

in

connection

with

providing

services

to

the

Fund.

This

does

not

include

the

Adviser’s

overhead,

employee

costs

borne

by

the

Adviser,

or

utilities

costs.

Expense

reimbursements

payable

to

the

Adviser

also

may

include

expenses

incurred

by

the

Sponsor

in

the

performance

of

services

pursuant

to

a

shared

services

agreement

between

the

Adviser

and

the

Sponsor,

including

any

increases

in

insurance

attributable

to

the

management

or

operation

of

the

Fund.

D

uring

the

year

ended

March

31,

2026

,

there

were

approximately

$97

(amount

in

thousands)

of

expenses

reimbursed

to

the

Adviser

pursuant

to

the

shared

services

agreement.

Affiliated

Investments

The

Fund

invests

in

one

or

more

affiliated

entities.

The

securities

of

the

affiliated

investment

vehicles

have

not

been

registered

under

the

Securities

Act

of

1933,

as

amended,

and

thus

investments

in

such

affiliated

investment

vehicles

are

subject

to

restrictions

on

resale.

During

the

year

ended

March

31,

2026,

investments

in

affiliates

were

as

follows

(amounts

in

thousands)

:

Recoupment

Expiration

Expenses

Remaining

Expires

during

the

year

ended

March

31,

2027

$

432‌

Expires

during

the

year

ended

March

31,

2028

3,829‌

Expires

during

the

year

ended

March

31,

2029

–‌

Total

Fee

Waiver/Expense

Reimbursement

Subject

to

Recoupment

$

4,261‌

Non-Controlled

Affiliated

Investment

Balance

as

of

March

31,

2025

Purchases

at

Cost

Proceeds

from

Sales

Net

Realized

Gain

(Loss)

and

Capital

Gain

Distributions

Change

in

Unrealized

Appreciation/

Depreciation

Balance

as

of

March

31,

2026

Total

Dividend

Income

Technology

Private

Equity

Inspectify,

Inc.

$

5,000

$

1,000

(1)

$

–

$

–

$

–

$

6,000

(1)

$

–

Total

$

5,000

$

1,000

$

–

$

–

$

–

$

6,000

$

–

(1)

Amount

includes

a

$1,000

SAFE

in

Inspectify,

Inc.

which

has

not

yet

converted

into

an

equity

investment

as

of

March

31,

2026

(amount

in

thousands)

.

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

26

6.

Investments

The

Fund

invests

in

technology

companies,

with

a

primary

focus

on

the

equity

securities

(e.g.,

common

stock,

preferred

stock

and

convertible

debt)

of

certain

privately

held,

mid-to-late-stage,

growth

companies,

or

other

investments

(including

derivatives)

that

have

economic

characteristics

similar

to

investments

in

technology

companies.

The

cost

of

purchases

and

proceeds

from

the

sale

of

investments,

other

than

short-term

securities

and

in-kind

transactions,

for

the

year

ended

March

31,

2026

amounted

to

$196,759

and

$25,645,

respectively

(amounts

in

thousands)

.

For

the

year

ended

March

31,

2026,

the

cost

of

purchases

and

proceeds

from

sales

of

in-kind

transactions

were

$5,125

(amounts

in

thousands).

7.

Reverse

Repurchase

Agreements

The

Fund

may

use

leverage

to

provide

additional

funds

to

support

its

investment

activities.

The

Fund

may

enter

into

reverse

repurchase

agreements,

under

which

the

Fund

will

effectively

pledge

its

assets

as

collateral

to

secure

a

short-term

loan

from

a

bank

or

dealer

at

a

specified

maturity

date.

Generally,

the

other

party

to

the

agreement

makes

the

loan

in

an

amount

equal

to

a

percentage

of

the

market

value

of

the

pledged

collateral.

At

the

maturity

of

the

reverse

repurchase

agreement,

the

Fund

will

be

required

to

repay

the

loan

and

correspondingly

receive

back

its

collateral.

While

used

as

collateral,

the

assets

continue

to

pay

principal

and

interest

which

are

for

the

benefit

of

the

Fund.

The

gross

amount

of

cash

received

in

exchange

for

assets

sold

plus

accrued

interest

payments

to

be

made

by

the

Fund

to

counterparties

are

reflected

as

a

payable

for

reverse

repurchase

agreements

on

the

Statement

of

Assets

and

Liabilities.

Interest

expense

on

reverse

repurchase

agreements

are

recorded

as

a

component

of

interest

expense

on

the

Statement

of

Operations.

As

part

of

the

reverse

repurchase

agreements

held

as

of

March

31,

2026,

the

Fund

pledged

securities

as

collateral

valued

at

$23,886

(amount

in

thousands)

,

which

have

been

identified

on

the

Schedule

of

Investments.

For

the

year

ended

March

31,

2026,

the

average

borrowings

and

the

weighted

average

interest

rate

were

$4,691

(amount

in

thousands)

and

4.71%,

respectively.

As

of

March

31,

2026,

the

remaining

contractual

maturity

of

the

outstanding

reverse

repurchase

agreements

held

by

the

Fund

were

as

follows

(amount

in

thousands)

:

8.

Tax

Basis

Information

The

timing

and

characterization

of

certain

income,

capital

gains,

and

return

of

capital

distributions

are

determined

annually

in

accordance

with

federal

tax

regulations,

which

may

differ

from

GAAP.

As

a

result,

the

net

investment

income

(loss)

and

net

realized

gain

(loss)

on

investment

transactions

for

a

reporting

period

may

differ

significantly

from

distributions

during

such

period.

These

book/tax

differences

may

be

temporary

or

permanent

in

nature.

To

the

extent

these

differences

are

permanent,

they

are

charged

or

credited

to

paid-in

capital,

accumulated

net

investment

income/loss

or

accumulated

net

realized

gain/loss,

as

appropriate,

in

the

period

in

which

the

differences

arise.

As

of

March

31,

2026,

the

tax

basis

of

distributable

earnings

(accumulated

deficit)

was

as

follows

(amounts

in

thousands)

:

Counterparty

Overnight

and

Continuous

Up

to

30

Days

30

to

90

Days

Greater

than

90

Days

Total

Barclays

Bank

PLC

$

–

$

15,879

$

–

$

–

$

15,879

Undistributed

long-term

gain

$

394‌

Tax

accumulated

earnings

(loss)

$

394‌

Accumulated

capital

and

other

losses

(2,606‌)

Other

book/tax

temporary

differences

(4,014‌)

Net

unrealized

gain

(loss)

on

investments

228,421‌

Total

Distributable

Earnings

$

222,195‌

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

27

On

the

Statement

of

Assets

and

Liabilities,

as

a

result

of

net

operating

loss

and

permanent

tax

adjustments

for

the

pre-RIC

period,

amounts

for

the

year

ended

March

31,

2026

have

been

reclassified

from

what

was

previously

reported.

The

reclassification

has

no

impact

on

the

net

assets

of

the

Fund.

On

the

Statement

of

Assets

and

Liabilities,

as

a

result

of

permanent

book

to

tax

differences,

reclassification

adjustments

were

made

as

follows

(amounts

in

thousands)

:

For

tax

purposes,

the

current

year

ordinary

loss

deferral

is

$2,606

(amount

in

thousands)

(realized

during

the

period

January

1,

2026

through

March

31,

2026).

The

loss

will

be

recognized

on

the

first

business

day

of

the

Fund’s

next

fiscal

year

beginning

April

1,

2026.

During

the

tax

period

presented

below,

the

tax

character

of

distributions

paid

by

the

Fund

was

as

follows

(amounts

in

thousands)

:

As

of

March

31,

2026

,

the

unrealized

appreciation

and

depreciation

of

investments,

based

on

cost

for

federal

income

tax

purposes,

were

as

follows

(amounts

in

thousands)

:

The

Fund

intends

to

elect

and

intends

to

qualify

to

be

taxed

as

a

RIC

under

the

Code,

for

its

taxable

year

ending

March

31,

2026.

Prior

to

the

taxable

year

ending

March

31,

2026,

the

Fund

was

treated

as

a

regular

corporation,

or

a

“C”

corporation,

for

U.S.

federal

income

tax

purposes.

During

the

periods

the

Fund

was

treated

as

a

“C”

corporation,

for

U.S.

federal

income

tax

purposes,

the

Fund

incurred

tax

expenses

and

was

subject

to

tax

at

regular

corporate

rates.

Deferred

income

taxes

reflect

the

net

tax

effects

of

temporary

differences

between

the

carrying

amounts

of

assets

and

liabilities

for

financial

reporting

purposes

and

the

amounts

used

for

income

tax

purposes.

A

valuation

allowance

is

recognized

if,

based

on

the

weight

of

the

available

evidence,

it

is

more

likely

than

not

that

all

of

the

deferred

income

tax

asset

will

not

be

realized.

The

following

table

presents

the

significant

components

of

the

Fund’s

deferred

tax

assets

and

liabilities

as

of

March

31,

2026

(amounts

in

thousands):

Distributable

earnings

$

8,224‌

Paid

in

capital

(8,224‌)

For

the

Tax

Year

Ended

March

31,

2026

2025

Ordinary

income

$

–‌

$

–‌

Long-term

capital

gain

5,259‌

–‌

Return

of

capital

(1)

–‌

323‌

Total

Distributions

Paid

$

5,259‌

$

323‌

(1)

The

difference

between

tax-basis

distributions

and

book-basis

distributions

is

due

to

the

timing

of

when

distributions

are

considered

paid.

Cost

of

investments

for

tax

purposes

$

385,765‌

Gross

tax

unrealized

appreciation

$

245,480‌

Gross

tax

unrealized

depreciation

(17,059‌)

Net

Tax

Unrealized

Appreciation

$

228,421‌

Deferred

Tax

Assets:

Net

operating

loss

carryforwards

$

227‌

Less

valuation

allowance

–‌

Gross

Deferred

Tax

Assets

$

227‌

Deferred

Tax

Liabilities:

Investment

in

partnerships

$

(41‌)

Unrealized/realized

gain

on

investments

(4,036‌)

Gross

Deferred

Tax

Liabilities

$

(

4

,

07

7‌

)

Total

Deferred

Tax

(Liability)

Asset,

Net

$

(3,850‌)

Fundrise

Innovation

Fund,

LLC

Notes

to

Financial

Statements

(CONTINUED)

March

31,

2026

28

The

following

is

a

reconciliation

of

the

statutory

federal

income

tax

rate

to

the

Fund’s

effective

tax

rate

for

the

year

ended

March

31,

2026

(amounts

in

thousands)

:

Income

tax

and

related

interest

and

penalties

would

be

recognized

by

the

Fund

as

tax

expense

in

the

Statement

of

Operations

if

the

tax

positions

were

deemed

to

not

meet

the

more-likely-than-not

threshold.

As

of

March

31,

2026,

the

Fund

had

no

uncertain

tax

positions

that

would

require

recognition

in

the

financial

statements.

At

March

31,

2026,

the

Fund

had

federal

net

operating

loss

(NOL)

carryforwards

of

approximately

$1,082

(amount

in

thousands)

generated

prior

to

the

RIC

election.

These

pre-RIC

NOL

carryforwards

may

be

used

to

reduce

net

recognized

built-in

gains

during

the

5-year

recognition

period

following

the

effective

date

of

the

RIC

election,

thereby

reducing

the

Fund's

corporate-level

built-in

gains

tax

liability

under

Section

852(c)

of

the

Internal

Revenue

Code.

As

of

March

31,

2026,

the

Fund

did

not

record

any

cumulative

unrecognized

tax

benefits

on

its

trial

balance.

The

Fund

adopted

FASB

Accounting

Standards

Update

2023-09,

Income

Taxes

(Topic

740):

Improvements

to

Income

Tax

Disclosures

(“ASU

2023-09”),

during

the

year

ended

March

31,

2026.

Adoption

of

ASU

2023-09

did

not

have

a

material

impact

on

the

Fund’s

financial

statements

or

related

disclosures.

9.

Segment

Reporting

The

management

committee

of

Fundrise

Advisors,

LLC,

the

Fund’s

Adviser,

acts

as

the

Fund’s

chief

operating

decision

maker

(“CODM”)

assessing

performance

and

making

decisions

about

resource

allocation.

The

CODM

has

determined

that

the

Fund

has

a

single

operating

and

reportable

segment

based

on

the

fact

that

the

CODM

monitors

the

operating

results

of

the

Fund

as

a

whole

and

that

the

Fund’s

long-term

strategic

asset

allocation

is

pre-determined

in

accordance

with

the

terms

of

its

prospectus,

based

on

a

defined

investment

strategy

which

is

executed

by

the

Fund’s

portfolio

managers

as

a

team.

The

CODM

assesses

segment

performance

using

the

net

increase

(decrease)

in

net

assets

resulting

from

operations,

which

is

reported

in

the

Fund's

Statement

of

Operations.

The

financial

information

provided

to

and

reviewed

by

the

CODM

is

consistent

with

that

presented

within

the

Fund’s

financial

statements.

10.

New

Accounting

Pronouncement

In

November

2024,

the

FASB

issued

ASU

2024-03,

Income

Statement-Reporting

Comprehensive

Income-Expense

Disaggregation

Disclosures

(Subtopic

220-40):

Disaggregation

of

Income

Statement

Expenses.

This

guidance

requires

public

business

entities

to

disclose,

in

a

tabular

format,

disaggregated

information

about

certain

expense

categories

presented

on

the

face

of

the

income

statement.

The

guidance

is

effective

for

annual

reporting

periods

beginning

after

December

15,

2026

and

interim

reporting

periods

beginning

after

December

15,

2027,

with

early

adoption

permitted.

The

Fund

is

currently

evaluating

the

implications,

if

any,

of

the

additional

requirements

and

its

impact

on

the

financial

statements.

11.

Subsequent

Events

In

connection

with

the

preparation

of

the

accompanying

financial

statements,

the

Fund

has

evaluated

events

and

transactions

occurring

after

the

date

of

this

report

and

through

the

date

these

financial

statements

were

available

to

be

issued

and

determined

that

no

events

have

occurred

that

require

disclosure.

Rate

Reconciliation:

Amount

Percentage

Pre-tax

increase

in

net

assets

as

a

result

of

operations

$

195,417‌

Provision

for

income

taxes

at

the

U.S.

federal

rate

$

–‌

–‌

%

Permanent

adjustments

–‌

–‌

%

Section

1374

built-in

gains

tax

164‌

0‌%

Adjustment

to

deferred

tax

values

(1,975‌)

(1‌)%

Income

Tax

Expense/(Benefit)

$

(1,811‌)

(1‌)%

REPORT

OF

INDEPENDENT

REGISTERED

PUBLIC

ACCOUNTING

FIRM

29

To

the

Shareholders

and

Board

of

Directors

of

Fundrise

Innovation

Fund,

LLC:

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities

of

Fundrise

Innovation

Fund,

LLC

(formerly,

Fundrise

Growth

Tech

Fund,

LLC)

(the

Fund),

including

the

schedule

of

investments,

as

of

March

31,

2026,

the

related

statements

of

operations

and

cash

flows

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

years

in

the

two-year

period

then

ended,

and

the

related

notes

(collectively,

the

financial

statements)

and

the

financial

highlights

for

each

of

the

years

in

the

three-year

period

then

ended

and

for

the

period

from

July

25,

2022

(commencement

of

investment

operations)

through

March

31,

2023.

In

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

March

31,

2026,

the

results

of

its

operations

and

its

cash

flows

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

years

in

the

two-year

period

then

ended,

and

the

financial

highlights

for

each

of

the

years

in

the

three-

year

period

then

ended

and

for

the

period

from

July

25,

2022

(commencement

of

investment

operations)

through

March

31,

2023,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

Basis

for

Opinion

These

financial

statements

and

financial

highlights

are

the

responsibility

of

the

Fund's

management.

Our

responsibility

is

to

express

an

opinion

on

these

financial

statements

and

financial

highlights

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

and

financial

highlights

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements

and

financial

highlights,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements

and

financial

highlights.

Such

procedures

also

included

confirmation

of

securities

owned

as

of

March

31,

2026,

by

correspondence

with

the

custodian

or

by

other

appropriate

auditing

procedures.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements

and

financial

highlights.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

of

Fundrise

investment

companies

since

2019.

Philadelphia,

Pennsylvania

May

30,

2026

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)

March

31,

2026

30

1.

Investment

Objective

and

Policies

Investment

Objective

The

Fund’s

investment

objective

is

to

provide

total

return

primarily

through

long-term

capital

appreciation.

There

can

be

no

assurance

that

the

Fund

will

achieve

its

investment

objective.

The

Fund’s

investment

objective

is

non-fundamental

and

may

be

changed

by

the

Fund’s

Board

of

Directors

(the

“Board”)

without

approval

of

the

Fund’s

shareholders.

Principal

Investment

Strategies

Under

normal

circumstances,

the

Fund

will

invest

at

least

80%

of

its

net

assets

(plus

the

amount

of

any

borrowings

for

investment

purposes)

in

the

securities

of

technology

and

technology-related

companies

(referred

to

herein

as

“technology

companies”)

and

other

investments

(including

derivatives)

that

have

economic

characteristics

similar

to

investments

in

technology

companies.

For

this

purpose,

securities

of

technology

companies

include

equity

and

debt

securities

of

private

and

public

companies

operating

in

the

information

technology

and

telecommunication

services

sectors

as

well

as

technology-related

companies

in

other

sectors

and

industries,

including:

advertising

(AdTech);

sales

and

marketing

technology;

media;

biotechnology

(BioTech);

health

care

equipment

and

supplies;

health

care

technology;

pharmaceuticals;

artificial

intelligence;

data

and

analytics;

design

tech;

education

technology

(EdTech);

financial

services

technology

(FinTech);

real

estate

technology

(PropTech);

gaming;

internet

services;

manufacturing

technology;

entertainment;

mapping;

payments;

privacy

&

security;

science

and

engineering;

energy

and

sustainability

technology;

energy

equipment

and

services;

technology

hardware,

storage

and

peripherals;

software;

electronic

equipment,

instruments

and

components;

communications

equipment;

semiconductors

and

semiconductor

equipment;

agriculture;

transportation;

commercial

services

and

supplies;

chemicals;

synthetic

materials;

aerospace

and

defense;

and

nanotechnology.

The

Fund

seeks

to

achieve

its

investment

objective

by

investing

in

private

and

public

technology

companies

directly

or

indirectly,

with

a

primary

focus

on

the

equity

securities

(e.g.,

common

stock,

preferred

stock

and

convertible

debt)

of

certain

privately

held,

mid-to-late-stage,

growth

companies(“Portfolio

Companies”),

or

other

investments

(including

derivatives,

exchange-traded

funds

and

other

pooled

investment

vehicles)

that

have

economic

characteristics

similar

to

investments

in

technology

companies.

Earlier

mid-stage

growth

companies

are

privately

held

companies

that

typically

have

met

certain

key

development

milestones

(for

example,

first

customer

orders

or

first

revenue

shipments)

and

have

some

product

or

service

revenue,

but

are

still

operating

at

a

loss.

Later

mid-stage

growth

companies

are

privately

held

companies

that

typically

have

product

or

service

revenue

and

have

recently

achieved

breakthrough

measures

of

financial

success,

such

as

operating

profitability

or

break-even

or

positive

cash

flows.

Late-

stage

companies

are

publicly

and

privately

held

companies

that

have

typically

demonstrated

sustainable

business

operations

and

generally

have

a

well-known

product

or

service

with

a

strong

market

presence.

Late-stage

companies

have

generally

reached

a

point

of

meaningful

revenue

generation

from

their

core

business

operations

with

strong

financial

indicators

of

product-market

fit.

Late-

stage

companies

that

are

privately

held

may

also

be

referred

to

as

“pre-IPO

companies”

(i.e.,

companies

that

are

typically

in

their

last

few

financing

rounds

before

an

initial

public

offering

(“IPO”)

or

an

exit

event

such

as

a

sale

or

merger)

and

have

previously

been

funded

primarily

by

private

institutional

investors

through

pooled

investment

vehicles

(commonly

referred

to

as

venture

capital

funds)

and

other

institutional

investment

groups

(“venture-backed

companies”).

The

ability

to

invest

in

privately

held,

mid-to-late-stage

technology

companies

can

offer

the

potential

to

capture

more

upside

potential

than

investments

in

the

securities

of

technology

companies

that

are

already

publicly

traded.

The

Fund’s

portfolio

management

team

seeks

to

capture

this

value

accretion,

or

what

may

be

referred

to

as

a

private-public

valuation

arbitrage,

by

investing

primarily

in

Portfolio

Companies

that

they

believe

have

high

growth

potential.

The

Fund

generally

seeks

to

invest

in

primary

and

secondary

offerings

of

Portfolio

Companies

with

the

goal

of

remaining

invested

until

a

liquidity

event

occurs,

including

but

not

limited

to

a

public

offering

of

the

Portfolio

Company’s

shares,

another

round

of

private

fundraising,

or

a

sale

or

merger

of

the

Portfolio

Company.

Upon

the

occurrence

of

a

liquidity

event

with

respect

to

a

Portfolio

Company,

such

as

an

initial

public

offering

or

a

merger

or

acquisition

transaction,

the

Fund

may

or

may

not

choose

to

sell

its

investment

in

the

Portfolio

Company.

Notwithstanding

the

occurrence

of

such

a

liquidity

event,

the

Fund

may

continue

to

hold

securities

of

Portfolio

Companies

after

those

companies

have

gone

public.

This

investment

strategy

is

generally

referred

to

as

“Buy

and

Hold.”

Notwithstanding

the

foregoing,

investments

in

mid-to-late-stage

companies

involve

a

considerable

amount

of

risk

given

their

shorter

operating

history

relative

to

established

public

companies,

the

businesses’

need

for

additional

capital

to

maintain

growth,

and

the

general

illiquidity

of

their

securities.

The

Portfolio

Companies

in

which

the

Fund

invests

may

have

limited

financial

resources

and

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

31

may

be

unable

to

meet

their

obligations

with

their

existing

working

capital,

which

may

lead

to

equity

financings

that

dilute

the

Fund’s

holdings,

bankruptcy

or

liquidation,

and

consequently

the

reduction

or

loss

of

the

value

of

the

Fund’s

portfolio

investment.

Additionally,

because

Portfolio

Companies

are

privately

owned,

there

is

usually

little

publicly

available

information

about

these

businesses,

and

Fundrise

Advisors,

LLC

(the

“Adviser”)

may

not

be

able

to

obtain

all

of

the

material

information

that

would

be

generally

available

for

public

company

investments.

Private

companies

are

generally

not

subject

to

U.S.

Securities

and

Exchange

Commission

(“SEC”)

reporting

requirements,

are

not

required

to

maintain

their

accounting

records

in

accordance

with

generally

accepted

accounting

principles,

and

are

not

required

to

maintain

effective

internal

controls

over

financial

reporting.

As

a

result,

timely

or

accurate

information

about

the

business,

financial

condition

and

results

of

operations

of

the

private

companies

in

which

the

Fund

invests

may

not

be

available.

Investors

in

the

Fund

need

to

understand

that

such

companies

carry

a

high

degree

of

investment

risk

because

many

of

these

firms

may

fail

or

not

achieve

their

performance

or

financial

objectives.

There

is

no

guarantee

that

the

Fund’s

investments

in

Portfolio

Companies

will

increase

in

value,

and

the

market

value

of

the

Fund’s

investments

may

decline

substantially

before

the

Fund

is

able

to

sell

them,

resulting

in

significant

losses

to

the

Fund

and

its

shareholders.

The

Fund

expects

that

many

of

its

investments

will

be

made

in

U.S.

domestic

Portfolio

Companies,

but

it

is

not

prohibited

from

investing

in

foreign

Portfolio

Companies.

The

Fund

will

make

investments

in

the

securities

of

Portfolio

Companies

the

Fund

reasonably

believes

it

can

readily

fair

value.

The

Fund’s

holdings

of

equity

and

debt

securities

in

Portfolio

Companies

may

require

several

years

to

appreciate

in

value,

and

there

is

no

assurance

that

such

appreciation

will

occur.

Due

to

the

illiquid

nature

of

certain

of

the

Fund’s

equity

investments

and

transfer

restrictions

that

private

equity

securities

are

typically

subject

to,

the

Fund

may

not

be

able

to

sell

these

securities

at

times

when

the

Adviser

deems

it

necessary

to

do

so,

or

at

all.

The

equity

securities

in

Portfolio

Companies

in

which

the

Fund

invests

will

often

be

subject

to

drag-along

rights,

which

permit

a

majority

stockholder

in

the

company

to

force

minority

stockholders

to

join

a

company

sale

(which

may

be

at

a

price

per

share

lower

than

the

Fund’s

cost

basis

in

the

securities).

In

addition,

the

Fund’s

investments

in

Portfolio

Companies

will

often

be

subject

to

lock-up

provisions

that

prohibit

the

Fund

from

selling

its

equity

investments

into

the

public

market

for

specified

periods

of

time

after

IPOs

of

the

Portfolio

Company,

typically

180

days.

As

a

result,

the

market

price

of

securities

held

by

the

Fund

may

decline

substantially

before

the

Fund

is

able

to

sell

the

securities

following

an

IPO.

For

a

complete

discussion

of

the

risks

involved

with

the

Fund’s

investments,

please

read

the

section

entitled

“Risk

Factors.”

The

Fund

expects

to

invest

in

Portfolio

Companies

by

purchasing

call

options

or

acquiring

warrants

or

rights

(including

those

acquired

in

units

or

attached

to

other

securities)

that

entitle

the

holder

to

buy

equity

securities

at

a

specific

price

for

a

specific

period

of

time

and/or

by

entering

into

equity

forward

contracts,

which

are

customizable

derivative

contracts

between

two

parties

to

buy

or

sell

a

specific

number

of

underlying

equities,

a

basket

of

equities

or

equities

comprising

an

index

at

a

specified

price

on

a

future

date.

The

Fund

also

may

invest

in

other

derivative

instruments,

including

but

not

limited

to

options

contracts

(including

options

on

securities,

bonds,

currencies,

interest

rates,

indices

or

swaps),

futures

contracts,

options

on

futures

contracts,

forward

contracts,

indexed

securities,

credit

linked

notes,

caps,

collars,

floors,

and

swaps

(including

interest

rate,

credit

default,

equity

index

and

total

return

swaps)

for

other

investment,

hedging

and

risk

management

purposes.

The

Fund

may

invest

in

securities

of

any

credit

quality,

maturity

and

duration

to

enhance

its

income

and

capital

appreciation

potential

and

to

provide

liquidity

to

the

overall

portfolio.

This

may

include

securities

that

are

rated

below

investment

grade

by

rating

agencies

or

that

would

be

rated

below

investment

grade

if

they

were

rated.

Below

investment

grade

securities,

which

are

often

referred

to

as

“high

yield”

securities

or

“junk

bonds,”

may

have

speculative

characteristics

with

respect

to

the

issuer’s

capacity

to

pay

interest

and

repay

principal.

The

Fund’s

investments

in

Portfolio

Companies

may

also

be

made

through

special

purpose

vehicles.

The

Fund

invests

in

illiquid

securities,

including

restricted

securities

(i.e.,

securities

not

readily

marketable

without

registration

under

the

Securities

Act

of

1933,

as

amended

(the

“Securities

Act”))

and

other

securities

that

are

not

readily

marketable.

These

may

include

restricted

securities

that

can

be

offered

and

sold

only

to

“qualified

institutional

buyers”

under

Rule

144A

of

the

Securities

Act.

There

is

no

limit

to

the

percentage

of

the

Fund’s

net

assets

that

may

be

invested

in

illiquid

securities.

The

Fund

may

invest

up

to

20%

of

its

net

assets

(plus

the

amount

of

any

borrowings

for

investment

purposes)

in

the

equity

or

debt

securities

of

companies

that

are

not

technology

companies.

During

temporary

defensive

periods,

the

Fund

may

deviate

from

its

investment

objective

and

policies.

During

such

periods,

the

Fund

may

invest

up

to

100%

of

its

net

assets

(plus

the

amount

of

any

borrowings

for

investment

purposes)

in

cash,

cash

equivalents

(highly

liquid

investments

with

original

maturities

of

three

months

or

less),

short-term

investments

and

short-,

intermediate-,

or

long-term

U.S.

Treasury

Bonds.

There

can

be

no

assurance

that

such

strategies

will

be

implemented

timely

(or

at

all)

or,

if

implemented,

will

be

successful.

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

32

Investment

Process

and

Overview

The

Adviser

has

the

authority

to

make

all

the

decisions

regarding

the

Fund’s

investments

consistent

with

the

investment

guidelines

and

borrowing

policies

approved

by

the

investment

committee

established

to

review

the

Fund’s

investments

(the

“Investment

Committee”)

and

subject

to

the

limitations

in

the

LLC

Agreement

and

the

direction

and

oversight

of

the

Investment

Committee.

The

Investment

Committee

must

approve

all

investments

other

than

investments

in

the

securities

of

technology

and

technology-related

companies

that

adhere

to

the

investment

guidelines.

With

respect

to

investments

in

the

securities

of

technology

and

technology-

related

companies,

the

Investment

Committee

has

adopted

investment

guidelines

that

the

Adviser

must

follow

when

acquiring

such

assets

on

the

Fund’s

behalf

without

the

approval

of

the

Investment

Committee.

The

Investment

Committee

will

formally

review

at

a

duly

called

meeting

the

Fund’s

investment

guidelines

on

an

annual

basis

and

the

Fund’s

investment

portfolio

on

a

quarterly

basis

or,

in

each

case,

more

often

as

they

deem

appropriate.

Changes

to

the

Fund’s

investment

guidelines

must

be

approved

by

the

Investment

Committee.

Derivatives

Generally,

derivatives

are

financial

contracts

whose

value

depends

upon,

or

is

derived

from,

the

value

of

an

underlying

asset,

reference

rate

or

index,

and

may

relate

to

individual

debt

or

equity

instruments,

interest

rates,

currencies

or

currency

exchange

rates

and

related

indexes.

Under

normal

circumstances,

the

Fund

will

be

exposed

to

the

effect

of

interest

rate

changes,

price

changes

and

currency

fluctuations

and

may

seek

to

limit

these

risks

by

following

established

risk

management

policies

and

procedures

including

the

use

of

derivatives.

To

mitigate

exposure

to

variability

in

interest

rates,

derivatives

may

be

used

primarily

to

fix

the

rate

on

debt

based

on

floating-rate

indices

and

manage

the

cost

of

borrowing

obligations.

For

purposes

of

the

Fund’s

80%

investment

policy,

the

Fund

may

also

invest

in

Treasury

futures,

Eurodollar

futures,

swaps

(including

total

return

swaps,

equity

swaps,

credit

default

swaps

and

interest

rate

swaps),

swaptions

or

similar

instruments

and

combinations

thereof.

For

purposes

of

the

Fund’s

80%

policy,

derivative

instruments

will

be

valued

at

their

notional

value

consistent

with

the

requirements

of

Rule

18f-4.

The

Fund

will

engage

in

derivative

transactions

only

to

the

extent

such

transactions

are

consistent

with

the

requirements

of

the

Code

for

maintaining

its

qualification

as

a

RIC

for

U.S.

federal

income

tax

purposes.

Additional

Information

Regarding

Investment

Strategies

The

Fund

may,

from

time

to

time,

take

defensive

positions

that

are

inconsistent

with

the

Fund’s

principal

investment

strategy

in

attempting

to

respond

to

adverse

market,

economic,

political

or

other

conditions.

During

such

times,

the

Adviser

may

determine

that

the

Fund

should

invest

up

to

100%

of

its

assets

in

cash

or

cash

equivalents,

including

money

market

instruments,

prime

commercial

paper,

repurchase

agreements,

Treasury

bills

and

other

short-term

obligations

of

the

U.S.

Government,

its

agencies

or

instrumentalities.

In

these

and

in

other

cases,

the

Fund

may

not

achieve

its

investment

objective.

The

Adviser

may

invest

the

Fund’s

cash

balances

in

any

investments

it

deems

appropriate.

The

Adviser

expects

that

such

investments

will

be

made,

without

limitation

and

as

permitted

under

the

1940

Act,

in

money

market

funds,

repurchase

agreements,

U.S.

Treasury

and

U.S.

agency

securities,

municipal

bonds

and

bank

accounts.

Any

income

earned

from

such

investments

is

ordinarily

reinvested

by

the

Fund

in

accordance

with

its

investment

program.

Many

of

the

considerations

made

in

concluding

upon

the

recommendations

and

decisions

of

the

Adviser

and

the

Fund’s

portfolio

managers

are

subjective.

Use

of

Leverage

The

Fund

may

use

leverage

to

provide

additional

funds

to

support

its

investment

activities,

including

through

the

use

of

unsecured

and

secured

credit

facilities

from

certain

financial

institutions

and

other

forms

of

borrowing

(collectively,

“Borrowings”)

and

is

limited

to

33

1/3

%

of

the

Fund’s

total

assets

(less

all

liabilities

and

indebtedness

not

represented

by

1940

Act

leverage)

immediately

after

such

Borrowings

(i.e.,

for

every

dollar

of

indebtedness

from

Borrowings,

the

Fund

is

required

to

have

at

least

three

dollars

of

assets).

In

addition,

the

Fund

may

enter

into

derivatives

or

other

transactions

that

may

provide

leverage

subject

to

the

requirements

of

Rule

18f-4

under

the

1940

Act.

The

Fund

may

not

use

leverage

at

all

times

and

the

amount

of

leverage

may

vary

depending

upon

a

number

of

factors,

including

the

Adviser’s

outlook

for

the

market

and

the

costs

that

the

Fund

would

incur

as

a

result

of

such

leverage.

Any

Borrowings

would

have

seniority

over

the

Shares.

There

is

no

assurance

that

the

Fund’s

leveraging

strategy

will

be

successful.

Any

Borrowings

leverage

your

investment

in

Shares.

Holders

of

Shares

bear

the

costs

associated

with

any

Borrowings.

The

Board

may

authorize

the

use

of

leverage

through

Borrowings

and

Preferred

Shares

without

the

approval

of

the

holders

of

Shares.

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

33

Under

the

1940

Act,

the

Fund

is

not

permitted

to

incur

indebtedness

unless

immediately

thereafter

the

total

asset

value

of

the

Fund’s

portfolio

is

at

least

300%

of

the

aggregate

amount

of

outstanding

indebtedness

(i.e.,

the

aggregate

amount

of

outstanding

debt

may

not

exceed

33

1/3

%

of

the

Fund’s

total

assets

(less

all

liabilities

and

indebtedness

not

represented

by

1940

Act

leverage)).

In

addition,

the

Fund

is

not

permitted

to

declare

any

cash

distribution

on

its

Shares

unless,

at

the

time

of

such

declaration,

the

NAV

of

the

Fund’s

portfolio

(determined

deducting

the

amount

of

such

distribution)

is

at

least

300%

of

the

aggregate

amount

of

such

outstanding

indebtedness.

If

the

Fund

borrows

money,

the

Fund

intends,

to

the

extent

possible,

to

retire

outstanding

debt

from

time

to

time

to

maintain

coverage

of

any

outstanding

indebtedness

of

at

least

300%.

Under

the

1940

Act,

the

Fund

may

only

issue

one

class

of

senior

securities

representing

indebtedness.

The

Fund

may

be

required

to

prepay

outstanding

amounts

or

incur

a

penalty

rate

of

interest

upon

the

occurrence

of

certain

events

of

default.

The

Fund’s

future

credit

facilities

may

contain

customary

covenants

that,

among

other

things,

limit

the

Fund’s

ability

to

pay

distributions

in

certain

circumstances,

incur

additional

debt,

change

its

fundamental

investment

policies

and

engage

in

certain

transactions,

including

mergers

and

consolidations,

and

require

asset

coverage

ratios

in

addition

to

those

required

by

the

1940

Act.

In

connection

with

any

new

credit

facility,

the

Fund

may

be

required

to

pledge

some

or

all

of

its

assets

and

to

maintain

a

portion

of

its

assets

in

cash

or

high-grade

securities

as

a

reserve

against

interest

or

principal

payments

and

expenses.

The

Fund’s

custodian

will

retain

all

assets,

including

those

that

are

pledged,

but

the

lenders

of

such

credit

facility

may

have

the

ability

to

foreclose

on

such

assets

in

the

event

of

a

default

under

the

credit

facility

pursuant

to

a

tri-party

arrangement

among

the

Fund,

its

custodian

and

such

lenders.

The

Fund’s

custodian

is

not

an

affiliate

of

the

Fund,

as

such

term

is

defined

in

the

1940

Act.

The

Fund

expects

that

any

such

credit

facility

would

have

customary

covenant,

negative

covenant

and

default

provisions.

There

can

be

no

assurance

that

the

Fund

will

enter

into

an

agreement

for

any

new

credit

facility

on

terms

and

conditions

representative

of

the

foregoing,

or

that

additional

material

terms

will

not

apply.

In

addition,

if

entered

into,

the

credit

facility

may

in

the

future

be

replaced

or

refinanced

by

one

or

more

credit

facilities

having

substantially

different

terms

or

by

the

issuance

of

debt

securities.

Changes

in

the

value

of

the

Fund’s

portfolio

investments,

including

costs

attributable

to

Borrowings,

are

borne

entirely

by

the

holders

of

the

Shares.

If

there

is

a

net

decrease

(or

increase)

in

the

value

of

the

Fund’s

investment

portfolio,

the

leverage

decreases

(or

increases)

the

NAV

per

share

of

Shares

to

a

greater

extent

than

if

the

Fund

were

not

leveraged.

Utilization

of

leverage

is

a

speculative

investment

technique

and

involves

certain

risks

to

holders

of

Shares.

These

include

the

possibility

of

higher

volatility

of

the

NAV

of

the

Shares.

So

long

as

the

Fund

is

able

to

realize

a

higher

net

return

on

its

investment

portfolio

than

the

then-current

cost

of

any

leverage

together

with

other

related

expenses,

the

effect

of

the

leverage

is

to

cause

holders

of

Shares

to

realize

a

higher

rate

of

return

than

if

the

Fund

were

not

so

leveraged.

On

the

other

hand,

to

the

extent

that

the

then-

current

cost

of

any

leverage,

together

with

other

related

expenses,

approaches

the

net

return

on

the

Fund’s

investment

portfolio,

the

benefit

of

leverage

to

holders

of

Shares

is

reduced,

and

if

the

then-current

cost

of

any

leverage

together

with

related

expenses

were

to

exceed

the

net

return

on

the

Fund’s

portfolio,

the

Fund’s

leveraged

capital

structure

would

result

in

a

lower

rate

of

return

to

holders

of

Shares

than

if

the

Fund

were

not

so

leveraged.

2.

Principal

Risks

of

the

Fund

Investing

in

the

Fund

involves

risks,

including

the

risk

that

a

shareholder

may

receive

little

or

no

return

on

his

or

her

investment

or

that

a

shareholder

may

lose

part

or

all

of

his

or

her

investment.

Below

is

a

summary

of

the

principal

risks

of

investing

in

the

Fund.

You

should

carefully

consider

the

following

principal

risks

before

investing

in

the

Fund.

Risks

of

Investing

in

Portfolio

Companies.

The

Portfolio

Companies

may

have

limited

financial

resources

and

may

be

unable

to

meet

their

obligations

with

their

existing

working

capital,

which

may

lead

to

equity

financings,

possibly

at

discounted

valuations,

in

which

the

Fund’s

holdings

could

be

substantially

diluted

if

the

Fund

does

not

or

cannot

participate,

bankruptcy

or

liquidation

and

consequently

the

reduction

or

loss

of

the

Fund’s

investment.

The

Adviser

expects

that

the

Fund’s

holdings

of

Portfolio

Companies

may

require

several

years

to

appreciate,

and

the

Adviser

can

offer

no

assurance

that

such

appreciation

will

occur.

Portfolio

Companies

typically

have

limited

operating

histories,

less

established

and

comprehensive

product

lines

and

smaller

market

shares

than

larger

businesses,

which

tend

to

render

them

more

vulnerable

to

competitors’

actions,

market

conditions

and

consumer

sentiment

in

respect

of

their

products

or

services,

as

well

as

general

economic

downturns.

Because

Portfolio

Companies

are

privately

owned,

there

is

usually

little

publicly

available

information

about

these

businesses.

Therefore,

the

Adviser

may

not

be

able

to

obtain

all

of

the

material

information

that

would

be

generally

available

for

public

company

investments,

including

financial

information,

current

performance

metrics,

operational

details

and

other

information

regarding

the

Portfolio

Companies

in

which

the

Fund

invests.

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

34

Portfolio

Companies

are

more

likely

to

depend

on

the

management

talents

and

efforts

of

a

small

group

of

persons.

Therefore,

the

death,

disability,

resignation

or

termination

of

one

or

more

of

these

persons

could

have

a

material

adverse

impact

on

a

Portfolio

Company

and,

in

turn,

on

the

Fund.

Portfolio

Companies

generally

have

less

predictable

operating

results,

may

from

time

to

time

be

parties

to

litigation,

may

be

engaged

in

rapidly

changing

businesses

with

products

subject

to

a

substantial

risk

of

obsolescence,

and

may

require

substantial

additional

capital

to

support

their

operations,

finance

expansion

or

maintain

their

competitive

position.

Portfolio

Companies

may

have

substantial

debt

loads.

In

such

cases,

the

Fund

would

typically

be

last

in

line

behind

any

creditors

in

a

bankruptcy

or

liquidation

and

would

likely

experience

a

complete

loss

on

its

investment.

Private

companies

are

generally

not

subject

to

SEC

reporting

requirements,

are

not

required

to

maintain

their

accounting

records

in

accordance

with

generally

accepted

accounting

principles,

and

are

not

required

to

maintain

effective

internal

controls

over

financial

reporting.

As

a

result,

timely

or

accurate

information

about

the

business,

financial

condition

and

results

of

operations

of

the

private

companies

in

which

the

Fund

invests

may

not

be

available.

Private

companies

in

which

the

Fund

may

invest

may

have

limited

financial

resources,

shorter

operating

histories,

more

asset

concentration

risk,

narrower

product

lines

and

smaller

market

shares

than

larger

businesses,

which

tend

to

render

such

private

companies

more

vulnerable

to

competitors’

actions

and

market

circumstances,

as

well

as

general

economic

downturns.

These

companies

generally

have

less

predictable

operating

results,

may

from

time

to

time

be

parties

to

litigation,

may

be

engaged

in

rapidly

changing

businesses

with

products

subject

to

a

substantial

risk

of

obsolescence,

and

may

require

substantial

additional

capital

to

support

their

operations,

finance

expansion

or

maintain

their

competitive

position.

These

companies

may

have

difficulty

accessing

the

capital

markets

to

meet

future

capital

needs,

which

may

limit

their

ability

to

grow

or

to

repay

their

outstanding

indebtedness

upon

maturity.

General

SPV

Risks.

The

Fund

may

invest

in

special

purpose

vehicles

(“SPVs”).

Our

investments

in

SPVs

will

typically

require

us

to

bear

a

pro

rata

share

of

the

vehicles’

expenses,

including

operating

and

offering

related

costs,

which

could

result

in

higher

expenses

than

if

we

invested

in

the

single

underlying

portfolio

company

directly.

Because

SPVs

are

organized

by

managers

unaffiliated

with

us

and

we

will

typically

be

one

of

many

investors

in

the

SPV,

in

purchasing

an

SPV

interest,

we

entrust

all

aspects

of

the

management

of

the

SPV

to

its

manager.

SPVs

are

generally

organized

as

limited

liability

companies,

and

to

the

extent

an

SPV

is

organized

as

a

Delaware

Series

LLC,

we

would

be

subject

to

the

risks

inherent

in

investing

in

a

Delaware

Series

LLC.

Some

SPVs

in

which

we

invest

may

impose

various

limitations,

and

may

place

restrictions

on

when

investors

may

withdraw

their

investment

or

limit

the

amounts

investors

may

withdraw.

To

the

extent

we

seek

to

reduce

or

sell

out

our

investment

at

a

time

or

in

an

amount

that

is

prohibited,

we

may

not

have

the

liquidity

necessary

to

participate

in

other

investment

opportunities

or

may

need

to

sell

other

investments

that

we

may

not

have

otherwise

sold.

Additionally,

SPVs

are

not

publicly

traded

and

therefore

may

not

be

as

liquid

as

other

types

of

investments.

Further,

the

fair

value

of

investments

in

SPVs

may

differ

from

the

value

of

the

underlying

securities

were

we

to

hold

such

securities

directly.

Finally,

as

investors

in

an

SPV,

we

own

interests

in

the

SPV

and

have

no

ownership

rights

to

the

underlying

securities.

These

characteristics

present

additional

risks

for

stockholders.

Individual

SPVs

that

we

invest

in

may

have

different

terms

and

structures,

which

may

present

unique

risks

and

result

in

different

fee

levels.

General

Co-Investment

Vehicle

Risks.

The

Fund

may

invest

in

Co-Investment

Vehicles

("CIVs"),

which

are

investments

in

a

primary

round

of

an

issuer.

CIVs

are

typically

organized

by

a

lead

investor,

such

as

a

venture

capital

fund

or

institutional

investor,

that

negotiates

the

terms

of

the

investment

with

the

issuer.

Because

the

Fund

will

generally

participate

as

a

co-investor

rather

than

as

the

lead

investor,

the

Fund

will

have

limited

or

no

ability

to

negotiate

the

economic

or

governance

terms

of

the

investment,

including

valuation,

liquidation

preferences,

anti-dilution

protections,

board

representation

and

information

rights.

As

with

our

investments

in

SPVs,

CIV

investments

will

typically

require

us

to

bear

a

pro

rata

share

of

the

CIV's

expenses,

including

operating

and

offering

related

costs,

which

could

result

in

higher

expenses

than

if

we

invested

in

the

single

underlying

portfolio

company

directly.

Because

CIVs

are

organized

by

managers

unaffiliated

with

us

and

we

will

typically

be

one

of

many

investors

in

the

CIV,

in

purchasing

an

CIV

interest,

we

entrust

all

aspects

of

the

management

of

the

CIV

to

its

manager.

CIVs

are

generally

organized

as

limited

liability

companies.

Some

CIVs

in

which

we

invest

may

impose

various

limitations,

and

may

place

restrictions

on

when

investors

may

withdraw

their

investment

or

limit

the

amounts

investors

may

withdraw.

To

the

extent

we

seek

to

reduce

or

sell

out

our

investment

at

a

time

or

in

an

amount

that

is

prohibited,

we

may

not

have

the

liquidity

necessary

to

participate

in

other

investment

opportunities

or

may

need

to

sell

other

investments

that

we

may

not

have

otherwise

sold.

Additionally,

CIVs

are

not

publicly

traded

and

therefore

may

not

be

as

liquid

as

other

types

of

investments.

Further,

the

fair

value

of

investments

in

CIV

may

differ

from

the

value

of

the

underlying

securities

were

we

to

hold

such

securities

directly.

Finally,

as

investors

in

a

CIV,

we

own

interests

in

the

CIV

and

have

no

ownership

rights

to

the

underlying

securities.

These

characteristics

present

additional

risks

for

stockholders.

Individual

CIVs

that

we

invest

in

may

have

different

terms

and

structures,

which

may

present

unique

risks

and

result

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

35

in

different

fee

levels.

Litigation

and

Regulatory

Risks.

As

a

fund

listed

on

the

New

York

Stock

Exchange,

we

are

subject

to

extensive

and

evolving

federal

and

state

securities

laws,

rules,

and

regulations,

including

those

administered

by

the

SEC,

FINRA,

and

other

self-regulatory

organizations.

Our

listed

status

exposes

us

to

risks

that

would

not

apply,

or

would

apply

to

a

lesser

degree,

if

the

fund

were

not

publicly

traded.

Our

shares

have

experienced,

and

may

experience

in

the

future,

significant

price

volatility,

including

trading

at

substantial

premiums

or

discounts

to

net

asset

value,

elevated

short

interest,

and

trading

volumes

that

may

vary

from

the

fund's

underlying

fundamentals.

Such

episodes

may

be

driven

by

general

market

conditions,

investor

sentiment,

social

media

attention,

short

selling

activity,

or

the

actions

of

market

participants

whose

interests

may

diverge

from

those

of

the

fund

and

its

shareholders.

Volatile

or

unusual

trading

activity

has,

and

may

in

the

future,

trigger

trading

halts

or

circuit

breakers

and

may

attract

heightened

scrutiny

from

the

SEC,

FINRA,

and

other

regulators,

including

inquiries

under

insider

trading,

market

abuse

and

manipulation

enforcement

programs.

We

may

be

required

to

respond

to

regulatory

examinations,

subpoenas,

or

demands

for

information

in

connection

with

trading

activity

that

is

beyond

our

control,

and

the

costs

and

reputational

consequences

of

such

inquiries

may

be

material

regardless

of

their

outcome.

Our

listed

status

also

increases

our

exposure

to

private

securities

litigation,

including

class

action

lawsuits

and

shareholder

derivative

actions

alleging

material

misstatements

or

omissions

in

our

public

disclosures,

breaches

of

fiduciary

duty,

or

inadequate

risk

disclosure.

Plaintiffs'

counsel

actively

monitor

publicly

traded

funds

for

price

declines,

volatility,

and

NAV

dislocations

as

catalysts

for

claims.

Even

meritless

claims

can

be

costly

and

time-consuming

to

defend,

and

the

announcement

of

a

lawsuit

or

investigation

alone

may

adversely

affect

our

share

price.

We

maintain

insurance

against

certain

of

these

risks,

but

there

can

be

no

assurance

that

coverage

will

be

adequate

or

remain

available

on

acceptable

terms.

There

can

be

no

assurance

that

we

will

not

become

subject

to

regulatory

proceedings,

enforcement

actions,

or

litigation

as

a

result

of

our

listed

status,

or

that

the

outcome

of

any

such

matter

will

not

have

a

material

adverse

effect

on

our

financial

condition,

results

of

operations,

or

the

trading

price

of

our

shares.

The

Adviser

and

Its

Affiliates

Are

Subject

to

Conflicts

of

Interest.

The

Adviser

and

its

affiliates

are

engaged

in

a

broad

range

of

activities

beyond

managing

the

Fund,

including

serving

as

investment

adviser

to

VCX

and

other

funds

and

investment

vehicles

sponsored

by

Rise

Companies,

and

these

activities

give

rise

to

actual,

potential

and

perceived

conflicts

of

interest

with

the

Fund.

Among

other

things,

the

Adviser

and

its

affiliates

face

conflicts

in

allocating

investment

opportunities

and

the

time

and

attention

of

key

personnel

among

the

Fund

and

other

Fundrise

entities,

in

setting

and

receiving

fees

that

are

based

on

the

Fund's

NAV

(which

is

calculated

by

Rise

Companies'

personnel),

in

determining

whether

and

when

to

dispose

of

the

Fund's

assets,

and

in

evaluating

and

effecting

transactions

between

the

Fund

and

affiliated

entities,

including

any

merger,

consolidation,

reorganization

or

sale

of

the

Fund

or

its

assets

involving

another

Fundrise

entity,

none

of

which

are

negotiated

on

an

arm's-length

basis.

The

persons

who

manage

the

Fund

also

owe

duties

to

Rise

Companies

and

other

Fundrise

entities,

and

those

duties

may

conflict

with

the

duties

they

owe

to

the

Fund.

While

the

Fund

has

adopted

policies

and

procedures

intended

to

address

certain

of

these

conflicts,

there

can

be

no

assurance

that

these

policies

will

identify

or

mitigate

all

conflicts

that

arise,

that

they

will

be

effective

in

any

particular

instance,

or

that

conflicts

will

be

resolved

in

a

manner

favorable

to

the

Fund

and

its

Shareholders.

The

Board

may

modify,

suspend

or

rescind

these

policies

at

any

time

without

Shareholder

approval.

Investment

Focus

Risk.

The

Fund

may

focus

its

investments

in

a

limited

number

of

issuers.

Focusing

the

Fund’s

portfolio

in

this

manner

could

subject

the

Fund

to

a

greater

degree

of

risk

with

respect

to

the

failure

of

one

or

a

few

investments

and

the

Fund’s

portfolio

will

be

more

susceptible

to

fluctuations

in

value

resulting

from

poor

performance

of

a

limited

number

of

its

investments.

As

a

result,

the

Fund’s

aggregate

return

may

be

volatile

and

may

be

affected

substantially

by

the

performance

of

only

one

or

a

few

holdings.

Technology

Sector

(Concentration)

Risk.

The

Fund’s

portfolio

will

be

concentrated

in

securities

issued

by

technology

companies

and

other

investments

that

provide

economic

exposure

to

technology

companies

and

as

such,

it

may

be

subject

to

more

risks

than

if

it

were

broadly

diversified

across

additional

sectors

and

industries

of

the

economy.

The

market

prices

of

technology

stocks

historically

have

exhibited

a

greater

degree

of

market

risk

and

price

volatility

than

other

types

of

investments.

These

stocks

may

fall

in

and

out

of

favor

with

investors

rapidly,

which

may

cause

sudden

selling

and

dramatically

lower

market

prices.

These

stocks

also

may

be

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

36

affected

adversely

by

changes

in

technology,

consumer

and

business

purchasing

patterns,

short

product

cycles,

falling

prices

and

profits,

government

regulation,

lack

of

standardization

or

compatibility

with

existing

technologies,

intense

competition,

aggressive

pricing,

dependence

on

copyright

and/or

patent

protection

and/or

obsolete

products

or

services.

Certain

technology

companies

may

face

special

risks

that

their

products

or

services

may

not

prove

to

be

commercially

successful.

Technology

companies

are

also

strongly

affected

by

worldwide

scientific

or

technological

developments,

and

as

a

result,

their

products

may

rapidly

become

obsolete.

In

addition,

because

of

rapid

technological

change,

the

average

selling

prices

of

products

and

some

services

provided

by

technology-related

sectors

have

historically

decreased

over

their

productive

lives.

As

a

result,

the

average

selling

prices

of

products

and

services

offered

by

the

companies

that

operate

in

technology-related

sectors

may

decrease

over

time,

which

could

adversely

affect

their

operating

results.

Technology

companies

are

also

often

subject

to

governmental

regulation

and

may,

therefore,

be

adversely

affected

by

governmental

policies.

In

addition,

a

rising

interest

rate

environment

tends

to

negatively

affect

technology

companies.

In

such

an

environment,

those

companies

with

high

market

valuations

may

appear

less

attractive

to

investors,

which

may

cause

sharp

decreases

in

the

companies’

market

prices.

Further,

technology

companies

seeking

to

finance

their

expansion

would

have

increased

borrowing

costs,

which

may

negatively

impact

their

earnings.

Technology

companies

are

often

smaller

companies

with

less

experienced

management

teams

and

they

may

be

subject

to

greater

risks

than

larger

companies,

such

as

limited

product

lines,

markets

and

financial

and

managerial

resources.

These

risks

may

be

heightened

for

technology

companies

in

foreign

markets.

The

foregoing

factors

may

negatively

impact

the

value

of

any

equity

securities

that

the

Fund

may

hold,

which

could

in

turn

materially

adversely

affect

the

Fund’s

business,

financial

condition

and

results

of

operations.

PropTech

Company

Risk.

Investing

in

PropTech

means

investing

in

companies

that

are

focused

on

optimizing

the

way

people

research,

rent,

buy,

sell

and

manage

real

estate

properties

through

technological

innovations.

PropTech

companies

typically

use

automation,

artificial

intelligence,

or

other

forms

of

technology

developed

for

the

property

industry.

These

companies

may

be

adversely

impacted

by

government

regulations,

economic

conditions

and

deterioration

in

real

estate

markets

generally.

Real

estate

is

highly

illiquid

and

substantial

in

terms

of

capital

required

to

develop,

operate

or

buy.

Real

estate-related

transactions

are

expensive,

and

there

can

be

a

vast

bid-offer

spread

(gap

between

what

buyers

will

offer

and

sellers

will

accept)

associated

with

purchases

and

sales

of

real

estate.

Research

and

due

diligence

costs

are

significant.

Additionally,

the

products

or

solutions

offered

by

PropTech

companies

may

face

technical

limitations

related

to

connectivity,

compatibility,

and

longevity,

with

many

different

technologies

competing

to

become

the

standard.

As

a

result,

PropTech

companies

typically

face

intense

competition

and

potentially

rapid

product

obsolescence.

Furthermore,

the

customers

and/or

suppliers

of

PropTech

companies

may

be

concentrated

in

a

particular

country,

region

or

industry.

Any

adverse

event

affecting

one

of

these

countries,

regions

or

industries

could

have

a

negative

impact

on

PropTech

companies.

PropTech

companies,

especially

smaller

companies,

tend

to

be

more

volatile

than

companies

that

do

not

rely

heavily

on

technology.

PropTech

companies

often

struggle

to

gain

market

share

to

a

degree

that

enables

them

to

be

sustainable.

FinTech

Company

Risk.

Investing

in

FinTech

means

investing

in

companies

that

research,

develop,

produce

and

distribute

technologies

that

are

used

for

advancing

the

Finance

sector.

FinTech

companies

may

be

adversely

impacted

by

government

regulations,

economic

conditions

and

deterioration

in

credit

markets.

These

companies

may

have

significant

exposure

to

consumers

and

businesses

(especially

small

businesses)

in

the

form

of

loans

and

other

financial

products

or

services.

FinTech

companies

typically

face

intense

competition

and

potentially

rapid

product

obsolescence.

Many

FinTech

companies

currently

operate

under

less

regulatory

scrutiny

than

traditional

financial

services

companies

and

banks,

but

there

is

significant

risk

that

regulatory

oversight

could

increase

in

the

future.

Higher

levels

of

regulation

could

increase

costs

and

adversely

impact

the

current

business

models

of

some

FinTech

companies.

FinTech

companies

involved

in

alternative

currencies

may

face

slow

adoption

rates

and

be

subject

to

higher

levels

of

regulatory

scrutiny

in

the

future,

which

could

severely

impact

the

viability

of

these

companies.

FinTech

companies,

especially

smaller

and/or

newer

companies,

tend

to

be

more

volatile

than

companies

that

do

not

rely

heavily

on

technology.

The

customers

and/or

suppliers

of

FinTech

companies

may

be

concentrated

in

a

particular

country,

region

or

industry.

Any

adverse

event

affecting

one

of

these

countries,

regions

or

industries

could

have

a

negative

impact

on

FinTech

companies.

Artificial

Intelligence

Companies

Risk.

The

Fund’s

investments

in

companies

involved

in,

or

exposed

to,

artificial

intelligence-

related

businesses

may

be

negatively

impacted

because

of,

among

other

things,

limited

product

lines,

markets,

financial

resources

and/or

personnel;

intense

competition

and

potentially

rapid

product

obsolescence

these

companies

may

face;

loss

or

impairment

of

intellectual

property

rights;

and

the

inability

to

successfully

develop

products

or

services

even

after

spending

significant

amount

of

resources.

Artificial

intelligence-related

companies

may

also

face

cyberattacks

and

increasing

regulatory

scrutiny.

The

customers

and/or

suppliers

of

artificial

intelligence-related

companies

may

be

concentrated

in

a

particular

country,

region,

or

industry,

and

any

adverse

event

affecting

one

of

these

countries,

regions

or

industries

could

have

a

negative

impact

on

performance.

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

37

Data

Infrastructure

Investment

Risk.

Investing

in

data

infrastructure

means

investing

in

companies

that

provide

the

infrastructure

needed

to

process,

store,

transport,

and

distribute

data

that

are

essential

to

the

delivery

of

critical

services

and

required

for

the

functioning

of

many

sectors

of

the

economy

including

financial

systems,

public

utilities,

industrial

supply

chains,

media

channels,

and

telecommunications.

The

Fund’s

investments

will

be

subject

to

the

risks

incidental

to

the

ownership

and

operation

of

data

infrastructure

assets,

including

risks

associated

with

the

general

economic

climate,

geographic

or

market

concentration,

climatic

risks,

government

regulations,

national

and

international

political

circumstances

and

fluctuations

in

interest

rates,

rates

of

inflation

or

commodities’

prices.

Data

infrastructure

assets

may

be

subject

to

numerous

statutes,

rules

and

regulations

related

to

the

governance

of

new

technologies

and

the

intersection

of

environmental

protection

and

resource

extraction.

Cybersecurity

Risks

of

Technology

Companies.

Many

technology

companies

store

sensitive

consumer

information

and

could

be

the

target

of

cybersecurity

attacks

and

other

types

of

theft,

which

could

have

a

negative

impact

on

these

companies.

These

companies

could

be

negatively

impacted

by

disruptions

in

service

caused

by

hardware

or

software

failure,

or

by

interruptions

or

delays

in

service

by

third-party

data

center

hosting

facilities

and

maintenance

providers.

The

use

of

artificial

intelligence

and

machine

learning

by

such

companies

could

exacerbate

these

risks

or

result

in

cybersecurity

incidents

that

implicate

personal

data.

Illiquid

Investment

Risk.

The

Fund’s

investment

in

private

company

securities,

whether

made

directly

or

indirectly

(e.g.,

through

derivatives

or

private

pooled

investment

vehicles)

are

generally

illiquid.

Private

company

securities

are

thinly

traded

and

less

liquid

than

other

investments.

Because

private

company

securities

are

thinly

traded,

such

securities

may

display

especially

volatile

or

erratic

price

movements,

sometimes

in

response

to

relatively

small

changes

in

investor

supply

or

demand

or

other

market

conditions.

In

addition,

the

inability

to

sell

one

or

more

portfolio

positions

can

adversely

affect

the

Fund’s

value

or

prevent

the

Fund

from

being

able

to

take

advantage

of

other

investment

opportunities.

If

the

Fund

is

forced

to

sell

securities

at

an

unfavorable

time

and/or

under

unfavorable

conditions,

such

sales

may

also

adversely

affect

the

Fund’s

NAV.

These

securities

may

also

be

subject

to

“lock-up

agreements”

restricting

their

sale

once

the

security

is

registered

for

public

sale.

As

a

result,

upon

or

subsequent

to

a

liquidation

event

of

a

Portfolio

Company,

the

Fund

may

not

be

able

to

sell

an

investment,

or

a

portion

of

an

investment,

when

the

Adviser

believes

that

doing

so

would

maximize

returns.

There

is

no

regular

market

for

interests

in

many

pooled

investment

vehicles,

which

typically

must

be

sold

in

privately

negotiated

transactions.

Any

such

sales

would

likely

require

the

consent

of

the

manager

of

the

applicable

pooled

investment

vehicle

and

could

occur

at

a

discount

to

the

stated

net

asset

value.

If

the

Adviser

determines

to

cause

the

Fund

to

sell

its

interest

in

a

pooled

investment

vehicle,

the

Fund

may

be

unable

to

sell

such

interest

quickly,

if

at

all,

and

could

therefore

be

obligated

to

continue

to

hold

such

interest

for

an

extended

period

of

time

or

forced

to

sell

such

interest

at

an

unfavorable

time

and/or

under

unfavorable

conditions,

and

such

sale

would

adversely

affect

the

Fund’s

NAV.

Private

Markets

Trading

Risks.

The

Fund

is

dependent

upon

the

relationships

and

contacts

of

the

senior

investment

professionals

of

the

Adviser

and

its

affiliates

to

obtain

information

to

perform

research

and

due

diligence

on

the

Portfolio

Companies

the

Fund

acquires

through

private

markets,

and

to

monitor

the

Fund’s

investments

after

they

are

made.

There

can

be

no

assurance

that

the

Adviser

will

be

able

to

acquire

adequate

information

on

which

to

make

its

investment

decision

with

respect

to

any

private

market

purchases,

or

that

the

information

it

is

able

to

obtain

is

accurate

or

complete.

Any

failure

to

obtain

full

and

complete

information

regarding

the

Portfolio

Companies

in

which

the

Fund

invests

could

cause

it

to

lose

part

or

all

of

its

investment

in

such

companies,

which

would

have

a

material

and

adverse

effect

on

the

Fund’s

NAV

and

results

of

operations.

In

addition,

there

can

be

no

assurance

that

Portfolio

Companies

in

which

the

Fund

invests

through

private

markets

will

have

or

maintain

active

trading

markets,

and

the

prices

of

those

securities

may

be

subject

to

irregular

trading

activity,

wide

bid/ask

spreads

and

extended

trade

settlement

periods.

Wide

swings

in

market

prices,

which

are

typical

of

irregularly

traded

securities,

could

cause

significant

and

unexpected

declines

in

the

value

of

the

Fund’s

portfolio

investments.

Investments

in

private

companies,

including

through

private

markets,

also

entail

additional

legal

and

regulatory

risks

which

expose

participants

to

the

risk

of

liability

due

to

the

imbalance

of

information

among

participants

and

participant

qualification

and

other

transactional

requirements

applicable

to

private

securities

transactions.

Failure

to

comply

with

such

requirements

could

result

in

rescission

rights

and

monetary

and

other

sanctions.

Valuation

Risk.

The

Fund

is

subject

to

valuation

risk,

which

is

the

risk

that

one

or

more

of

the

assets

in

which

the

Fund

invests

are

priced

incorrectly,

due

to

factors

such

as

incomplete

data,

market

instability

or

human

error.

If

the

Fund

ascribes

a

higher

value

to

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

38

assets

and

their

value

subsequently

drops

or

fails

to

rise

because

of

market

factors,

returns

on

the

Fund’s

investment

may

be

lower

than

expected

and

could

experience

losses.

The

Fund’s

portfolio

investments

are

generally

privately

traded

securities

(unless

one

of

the

Portfolio

Companies

goes

public

and

then

only

to

the

extent

the

Fund

has

not

yet

liquidated

its

securities

holdings

therein)

that

are

fair

valued

by

the

Adviser

in

accordance

with

the

Fund’s

valuation

procedures.

Valuations

of

the

Portfolio

Companies

are

inherently

uncertain

and

may

be

based

on

estimates,

and

the

Fund’s

determinations

of

fair

market

value

may

differ

materially

from

the

values

that

would

be

assessed

if

a

readily

available

market

for

these

securities

existed.

This

risk

is

particularly

exaggerated

for

mid-stage

growth

Portfolio

Companies,

given

their

limited

history

and

significant

change

in

cash

flow

generation

over

time.

Additionally,

the

valuation

of

the

Fund’s

investments

in

pooled

investment

vehicles

is

ordinarily

determined

based

upon

valuations

provided

by

the

managers

of

the

pooled

investment

vehicles,

which

may

not

be

audited.

Risk

of

Complex

Capital

Structures.

Private

companies

in

which

the

Fund

invests

frequently

have

much

more

complex

capital

structures

than

traditional

publicly-traded

companies,

and

may

have

multiple

classes

of

equity

securities

with

differing

rights,

including

rights

with

respect

to

voting

and

distributions.

In

addition,

it

is

often

difficult

to

obtain

information

with

respect

to

private

companies’

capital

structures,

and

even

where

the

Adviser

is

able

to

obtain

such

information,

there

can

be

no

assurance

that

it

is

complete

or

accurate.

In

certain

cases,

such

private

companies

may

also

have

preferred

stock

or

senior

debt

outstanding,

which

may

heighten

the

risk

of

investing

in

the

underlying

equity

of

such

private

companies,

particularly

in

circumstances

when

the

Adviser

has

limited

information

with

respect

to

such

capital

structures.

There

can

be

no

assurance

that

the

Fund

will

be

able

to

adequately

evaluate

the

relative

risks

and

benefits

of

investing

in

a

particular

class

of

Portfolio

Companies

equity

securities.

Any

failure

on

the

Adviser’s

part

to

properly

evaluate

the

relative

rights

and

value

of

a

class

of

securities

in

which

the

Fund

invests

could

cause

it

to

lose

part

or

all

of

its

investment,

which

in

turn

could

have

a

material

and

adverse

effect

on

NAV

and

results

of

operations.

Risks

of

Venture-Backed

Companies.

The

venture-backed

companies

in

which

the

Fund

invests

may

involve

a

high

degree

of

business

and

financial

risk

because

many

have

short

operating

histories

and

involve

novel

technology,

products,

or

services.

Many

venture-backed

companies

fail

to

become

profitable

and

the

capital

invested

in

them,

including

the

Fund’s

investments,

is

often

unsecured.

Additionally,

the

return

on

investment

in

venture-backed

companies

depends

on

the

company’s

ability

to

have

a

timely

exit

event,

such

as

an

IPO

or

merger

or

sale.

A

failure

to

obtain

such

an

exit

could

result

in

substantial

losses

to

the

company’s

equity

holders,

including

the

Fund.

Thus,

the

Fund

is

subject

to

the

risk

of

loss

of

all

or

substantially

all

its

investments.

Risks

of

Drag-Along

Rights.

The

private

company

securities

the

Fund

acquires

(or

into

which

they

are

convertible)

may

be

subject

to

drag-along

rights,

a

standard

term

in

a

stock

purchase

agreement

that

permits

a

majority

stockholder

in

the

company

to

force

minority

stockholders

to

join

in

the

sale

of

a

company

on

the

same

price,

terms,

and

conditions

as

any

other

seller

in

the

sale.

Such

drag-along

rights

could

permit

other

stockholders,

under

certain

circumstances,

to

force

the

Fund

to

liquidate

its

position

in

a

Portfolio

Company

at

a

specified

price,

which

could

be,

in

the

Adviser’s

opinion,

inadequate

or

undesirable

or

even

below

the

appropriate

cost

basis.

In

this

event,

the

Fund

could

realize

a

loss

or

fail

to

realize

gain

in

an

amount

that

the

Adviser

deems

appropriate

on

the

investment.

Accordingly,

the

Fund

may

not

be

able

to

realize

gains

from

its

investments,

and

any

gains

that

the

Fund

does

realize

on

the

disposition

of

any

investments

may

not

be

sufficient

to

offset

any

other

losses

it

experiences.

Management

Risk.

The

Fund

is

subject

to

management

risk

because

it

is

an

actively

managed

investment

portfolio.

The

Adviser

and

each

individual

investment

professional

may

not

be

successful

in

selecting

the

best

investments

or

investment

techniques,

and

the

Fund’s

performance

may

lag

behind

that

of

similar

funds.

Prior

to

the

launch

of

the

Fund,

the

Adviser’s

primary

experience

was

in

managing

real

estate

investments.

The

Adviser’s

limited

experience

in

managing

the

Fund’s

investment

strategy

may

hinder

the

Fund’s

ability

to

secure

attractive

investment

opportunities

and,

as

a

result,

may

limit

the

profitability

of

the

Fund

and

detract

from

the

Fund’s

ability

to

achieve

its

investment

objective.

Moreover,

if

the

Adviser

fails

to

retain

its

key

personnel,

the

Fund

may

not

be

able

to

achieve

its

anticipated

level

of

growth

and

its

business

could

suffer.

Rise

Companies,

the

Adviser’s

parent

company,

is

a

development

stage

company

and,

as

a

company

in

the

early

stages

of

development,

Rise

Companies

faces

increased

risks,

uncertainties,

expenses

and

difficulties

that

could

have

an

effect

on

the

Adviser’s

ability

to

manage

the

Fund.

The

Adviser

may

adopt

the

use

of

a

number

of

artificial

intelligence

(“AI”)

tools

to

facilitate

and

enhance

its

operations,

including

its

investment

research

processes,

and

will

continue

to

explore

and

expects

to

deploy

other

tools

in

future.

Use

of

AI,

including

generative

AI,

by

the

Adviser

or

the

Fund’s

other

service

providers

may

give

rise

to

regulatory,

operational,

and

other

risks

which

could

have

a

negative

impact

on

the

Fund’s

operations

and/or

performance.

Market

Discount

from

and

Premium

to

NAV.

Shares

of

closed-end

investment

companies

like

the

Fund

frequently

trade

at

prices

lower

than

their

NAV.

This

characteristic

is

a

risk

separate

and

distinct

from

the

risk

that

the

Fund’s

NAV

could

decrease

as

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

39

a

result

of

investment

activities.

Management

may

have

difficulty

meeting

the

Fund’s

investment

objectives

during

periods

of

market

turmoil

and

as

investors’

perceptions

regarding

closed-end

funds

or

their

underlying

investments

change.

Common

shares

of

the

Fund

recently

commenced

trading

on

the

NYSE

and

have

traded

at

prices

substantially

above

their

NAV.

This

initial

listing

premium

(to

the

Fund’s

NAV)

may

be

attributable

to

factors

related

to

the

initial

listing

period,

including

limited

public

float

due

to

shareholder

lockup

periods,

supply/demand

imbalance

and

other

market

dynamics

unrelated

to

the

value

and

fundamentals

of

the

Fund’s

portfolio

holdings.

Whether

investors

will

realize

gains

or

losses

upon

the

sale

of

their

common

shares

will

depend

not

upon

the

Fund’s

NAV

but

entirely

upon

whether

the

market

price

of

the

common

shares

at

the

time

of

sale

is

above

or

below

the

investor’s

original

purchase

price

for

their

common

shares.

Investors

purchasing

common

shares

while

they

are

trading

at

a

premium

may

incur

significant

losses

even

if

NAV

is

stable

or

increases.

The

Fund

cannot

predict

whether

the

common

shares

will

trade

at,

below

or

above

NAV.

The

common

shares

are

designed

primarily

for

long

term

investors,

and

you

should

not

view

the

Fund

as

a

vehicle

for

short-term

trading.

The

possibility

that

the

Fund’s

Common

Shares

will

trade

at

a

discount

from

NAV

per

share

or

at

premiums

that

are

unsustainable

over

the

long

term

are

separate

and

distinct

from

the

risk

that

the

Fund’s

NAV

per

share

may

decrease.

Competition

Risk.

Identifying,

completing

and

realizing

attractive

portfolio

investments

is

extremely

competitive.

In

acquiring

its

target

assets,

the

Fund

will

compete

with

a

variety

of

other

institutional

investors,

including

public

and

private

funds,

investment

banking

firms,

commercial

banks,

specialty

finance

companies,

online

investment

platforms

and

other

financial

institutions,

many

of

which

have

greater

resources,

lower

costs

of

funding,

and

less

regulatory

restrictions

than

the

Fund.

To

the

extent

that

the

Fund

encounters

competition

for

investments,

returns

to

its

investors

may

vary.

Investment

and

Market

Risk.

An

investment

in

the

Fund

is

subject

to

investment

risk,

including

the

possible

loss

of

the

entire

amount

that

you

invest.

The

value

of

the

Fund’s

investments

may

move

up

or

down

due

to

adverse

market

conditions,

sometimes

rapidly

and

unpredictably.

At

any

point

in

time,

your

Shares

may

be

worth

less

than

your

original

investment,

even

after

taking

into

account

the

reinvestment

of

Fund

dividends

and

distributions.

Market

risk

also

includes

the

risk

that

geopolitical

and

other

events,

such

as

war,

terrorism,

market

manipulation,

government

defaults,

government

shutdowns,

political

changes,

diplomatic

developments

or

the

imposition

of

sanctions

and

other

similar

measures,

public

health

emergencies

(such

as

the

spread

of

infectious

diseases,

pandemics

and

epidemics)

and

natural/environmental

disasters

negatively

impact

the

securities

markets,

which

may

adversely

affect

the

Fund’s

business,

results

of

operations

and

financial

condition

and

cause

the

Fund

to

lose

value.

Common

Stock

Risk.

Common

stock

of

an

issuer

in

the

Fund’s

portfolio

may

be

volatile,

and

prices

may

fluctuate

based

on

changes

in

a

company’s

financial

condition

and

overall

market

and

economic

circumstances.

Although

common

stocks

have

historically

generated

higher

average

total

returns

than

fixed

income

securities

over

the

long-term,

common

stocks

also

have

experienced

significantly

more

volatility

in

those

returns

and,

in

certain

periods,

have

significantly

under-performed

relative

to

fixed

income

securities.

Preferred

Securities

Risk.

Preferred

securities

are

subordinated

to

bonds

and

other

debt

instruments

in

a

company’s

capital

structure

in

terms

of

priority

to

corporate

income

and

liquidation

payments,

and

therefore

will

be

subject

to

greater

credit

risk

than

more

senior

debt

instruments.

Derivatives

Risk.

Derivatives

are

subject

to

a

number

of

risks

described

elsewhere

in

the

Fund’s

Prospectus,

including

interest

rate

risk

and

management

risk.

The

performance

of

derivatives

depends

largely

on

the

performance

of

the

underlying

reference

instruments

to

which

the

derivatives

relate.

Derivatives

are

also

subject

to

counterparty

risk,

which

is

the

risk

that

the

other

party

in

the

transaction

will

not

fulfill

its

contractual

obligation.

Derivative

instruments

can

be

volatile

and

illiquid.

They

may

disproportionately

increase

losses,

and

may

have

a

potentially

large

impact

on

Fund

performance.

Derivatives

also

involve

the

risk

of

mispricing

or

improper

valuation

and

the

risk

that

changes

in

the

value

of

a

derivative

may

not

correlate

perfectly

with

the

underlying

asset,

interest

rate

or

index

to

which

the

derivative

relates.

Suitable

derivative

transactions

may

not

be

available

in

all

circumstances

and

there

can

be

no

assurance

that

the

Fund

will

engage

in

these

transactions

generally

or

in

any

particular

kind

of

derivative,

if

the

Adviser

elects

not

to

do

so

due

to

availability,

cost

or

other

factors.

Warrants

and

Rights

Risk.

Warrants

and

rights

are

subject

to

the

same

market

risks

as

common

stocks,

but

are

more

volatile

in

price.

Warrants

and

rights

do

not

carry

the

right

to

dividends

or

voting

rights

with

respect

to

their

underlying

securities,

and

they

do

not

represent

any

rights

in

the

assets

of

the

issuer.

An

investment

in

warrants

or

rights

may

be

considered

speculative.

In

addition,

the

value

of

a

warrant

or

right

does

not

necessarily

change

with

the

value

of

the

underlying

security

and

a

warrant

or

right

ceases

to

have

value

if

it

is

not

exercised

prior

to

its

expiration

date.

The

purchase

of

warrants

or

rights

involves

the

risk

that

the

Fund

could

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

40

lose

the

purchase

value

of

a

warrant

or

right

if

the

right

to

subscribe

for

additional

shares

is

not

exercised

prior

to

the

warrants’

or

rights’

expiration.

Also,

the

purchase

of

warrants

and

rights

involves

the

risk

that

the

effective

price

paid

for

the

warrant

or

right

added

to

the

subscription

price

of

the

related

security

may

exceed

the

value

of

the

subscribed

security’s

market

price

such

as

when

there

is

no

movement

in

the

price

of

the

underlying

security.

Options

Risk.

The

Fund’s

options

investments

involve

certain

risks,

including

general

risks

related

to

derivative

instruments.

When

purchasing

options,

the

Fund

risks

losing

the

amount

of

the

premium

it

has

paid

should

it

decide

to

let

the

option

expire

unexercised,

plus

any

related

transaction

costs.

When

trading

options

in

the

over-the-counter

(“OTC”)

market,

many

of

the

protections

afforded

to

exchange

participants

will

not

be

available.

If

a

counterparty

fails

to

make

delivery

of

the

security

underlying

an

OTC

option

it

has

entered

into

with

the

Fund

or

fails

to

make

a

cash

settlement

payment

due

in

accordance

with

the

terms

of

that

option,

the

Fund

will

lose

any

premium

it

paid

for

the

option

as

well

as

any

anticipated

benefit

of

the

transaction.

Additionally,

there

can

be

no

assurance

that

a

liquid

secondary

market

on

an

exchange

will

exist

for

any

particular

option,

or

at

any

particular

time,

and

the

Fund

may

have

difficulty

effecting

closing

transactions

in

particular

options.

Therefore,

the

Fund

would

have

to

exercise

the

options

it

purchased

in

order

to

realize

any

profit,

thus

taking

or

making

delivery

of

the

underlying

reference

instrument

when

not

desired.

The

Fund

could

then

incur

transaction

costs

upon

the

sale

of

the

underlying

reference

instruments.

Forward

Contracts

Risk.

A

forward

contract

is

an

over-the-counter

derivative

transaction

between

two

parties

to

buy

or

sell

a

specified

amount

of

an

underlying

reference

asset

at

a

specified

price

(or

rate)

on

a

specified

date

in

the

future.

Forward

contracts

are

negotiated

on

an

individual

basis

and

are

not

standardized

or

traded

on

exchanges.

The

market

for

forward

contracts

is

substantially

unregulated

and

can

experience

lengthy

periods

of

illiquidity,

unusually

high

trading

volume

and

other

negative

impacts,

such

as

political

intervention,

which

may

result

in

volatility

or

disruptions

in

such

markets.

Forward

contracts

can

increase

the

Fund’s

risk

exposure

to

underlying

references

and

their

attendant

risks,

such

as

credit

risk,

market

risk,

foreign

currency

risk

and

interest

rate

risk,

while

also

exposing

the

Fund

to

the

risks

associated

with

derivatives

generally,

including

correlation

risk,

counterparty

risk,

leverage

risk,

liquidity

risk,

pricing

risk

and

volatility

risk.

The

Fund

anticipates

that

the

equity

forward

contracts

it

will

enter

into

will

be

prepaid

forwards,

which

entail

an

upfront

payment

of

the

purchase

price

by

the

purchasing

party

(in

this

case,

the

Fund).

Where

the

Fund

enters

into

prepaid

forwards,

it

is

subject

to

the

risk

of

losing

its

entire

purchase

price

in

the

event

of

counterparty

default.

Issuer-Specific

Risk.

A

security

issued

by

a

particular

issuer

may

be

impacted

by

factors

that

are

unique

to

that

issuer

and

thus

may

cause

that

security’s

return

to

differ

from

that

of

the

market.

As

a

result,

investments

impacted

by

such

factors

may

result

in

underperformance.

This

risk

will

be

greater

if

an

account

concentrates

its

investments.

Smaller

Company

Risk.

Stocks

of

smaller

companies

may

trade

less

frequently,

may

trade

in

smaller

volumes

and

may

fluctuate

more

sharply

in

price

than

stocks

of

larger

companies

and

the

purchase

or

sale

of

more

than

a

limited

number

of

shares

of

smaller

companies

may

affect

their

stock

prices.

Smaller

companies

may

not

be

widely

followed

by

the

investment

community,

which

can

lower

the

demand

for

their

stocks.

In

addition,

smaller

companies

tend

to

have

fewer

key

suppliers

and

customers,

limited

product

lines,

markets,

distribution

channels

or

financial

resources,

and

management

of

such

companies

may

be

dependent

upon

one

or

a

few

key

people.

Changes

in

suppliers,

customers,

business

lines

or

personnel,

therefore,

may

have

a

greater

impact

on

a

smaller

company’s

stock

price

than

on

a

larger

company.

The

market

movements

of

equity

securities

issued

by

companies

with

smaller

capitalizations

may

be

more

abrupt

or

erratic

than

the

market

movements

of

equity

securities

of

larger,

more

established

companies

or

the

stock

market

in

general.

New

Issues

Risk.

“New

Issues”

are

initial

public

offerings

of

U.S.

equity

securities.

There

is

no

assurance

that

the

Fund

will

have

access

to

profitable

IPOs.

The

investment

performance

of

the

Fund

during

periods

when

it

is

unable

to

invest

significantly

or

at

all

in

IPOs

may

be

lower

than

during

periods

when

the

Fund

is

able

to

do

so.

Securities

issued

in

IPOs

are

subject

to

many

of

the

same

risks

as

investing

in

companies

with

smaller

market

capitalizations.

Securities

issued

in

IPOs

have

no

trading

history,

and

information

about

the

companies

may

be

available

for

very

limited

periods.

In

addition,

the

prices

of

securities

sold

in

IPOs

may

be

highly

volatile

or

may

decline

shortly

after

the

initial

public

offering.

When

an

initial

public

offering

is

brought

to

the

market,

availability

may

be

limited

and

the

Fund

may

not

be

able

to

buy

any

shares

at

the

offering

price,

or,

if

it

is

able

to

buy

shares,

it

may

not

be

able

to

buy

as

many

shares

at

the

offering

price

as

it

would

like.

Restricted

and

Illiquid

Securities

Risk.

Illiquid

securities

are

securities

that

are

not

readily

marketable.

These

securities

may

include

restricted

securities,

which

cannot

be

resold

to

the

public

without

an

effective

registration

statement

under

the

Securities

Act,

or,

if

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

41

they

are

unregistered,

may

be

sold

only

in

a

privately

negotiated

transaction

or

pursuant

to

an

exemption

from

registration.

Many

private

company

securities

may

be

restricted

securities

and/or

considered

illiquid.

The

Fund

may

not

be

able

to

readily

dispose

of

such

securities

at

prices

that

approximate

those

at

which

the

Fund

could

sell

such

securities

if

they

were

more

widely

traded

and,

as

a

result

of

such

illiquidity,

the

Fund

may

have

to

sell

other

investments

or

engage

in

borrowing

transactions

if

necessary

to

raise

cash

to

meet

its

obligations.

Limited

liquidity

can

also

affect

the

market

price

of

securities,

thereby

adversely

affecting

the

Fund’s

net

asset

value

and

ability

to

make

dividend

distributions.

The

financial

markets

in

general

have

in

recent

years

experienced

periods

of

extreme

secondary

market

supply

and

demand

imbalance,

resulting

in

a

loss

of

liquidity

during

which

market

prices

were

suddenly

and

substantially

below

traditional

measures

of

intrinsic

value.

During

such

periods,

some

securities

could

be

sold

only

at

arbitrary

prices

and

with

substantial

losses.

Periods

of

such

market

dislocation

may

occur

again

at

any

time.

Privately

issued

debt

securities

are

often

of

below

investment

grade

quality,

frequently

are

unrated

and

present

many

of

the

same

risks

as

investing

in

below

investment

grade

public

debt

securities.

Rule

144A

Securities

Risk.

The

Fund

may

purchase

Rule

144A

securities

for

which

there

is

a

secondary

market

of

qualified

institutional

buyers,

as

defined

in

Rule

144A

promulgated

under

the

Securities

Act.

Rule

144A

provides

an

exemption

from

the

registration

requirements

of

the

Securities

Act

for

the

resale

of

certain

restricted

securities

to

qualified

institutional

buyers.

To

the

extent

that

liquid

Rule

144A

securities

that

the

Fund

holds

become

illiquid,

due

to

the

lack

of

sufficient

qualified

institutional

buyers

or

market

or

other

conditions,

the

percentage

of

the

Fund’s

assets

invested

in

illiquid

assets

would

increase.

Non-Diversification

Risk.

As

a

“non-diversified”

fund

under

the

1940

Act,

the

Fund

may

invest

more

than

5%

of

its

total

assets

in

the

securities

of

a

single

issuer.

Therefore,

the

Fund

may

be

more

susceptible

than

a

diversified

fund

to

being

adversely

affected

by

events

impacting

a

single

borrower,

geographic

location,

security

or

investment

type.

Interest

Rate

Risk.

Changes

in

interest

rates,

including

changes

in

expected

interest

rates

or

“yield

curves,”

may

affect

the

Fund’s

business

in

a

number

of

ways.

Changes

in

the

general

level

of

interest

rates

can

affect

the

Fund’s

net

interest

income,

which

is

the

difference

between

the

interest

income

earned

on

the

Fund’s

interest-earning

assets

and

the

interest

expense

incurred

in

connection

with

its

interest-bearing

borrowings

and

hedges.

In

addition,

changes

in

monetary

policy

may

exacerbate

the

risks

associated

with

changing

interest

rates.

It

is

difficult

to

predict

the

magnitude,

timing

or

direction

of

interest

rate

changes

and

the

impact

these

changes

will

have

on

markets

in

which

the

Fund

invests.

Below

Investment

Grade

(High

Yield

or

Junk)

Securities

Risk.

The

Fund

may

have

exposure

to

investments

that

are

rated

below

investment

grade

or

that

are

unrated

but

are

judged

by

the

Adviser

to

be

of

credit

quality

comparable

to

securities

rated

below

investment

grade

by

a

nationally

recognized

statistical

rating

organization.

Lower

grade

securities

may

be

particularly

susceptible

to

economic

downturns

and

are

inherently

speculative.

Because

of

the

substantial

risks

associated

with

investments

in

lower

grade

securities,

you

could

lose

money

on

your

investment

in

Shares,

both

in

the

short-term

and

the

long-term.

Foreign

Companies

Risk.

Investing

in

foreign

companies,

and

particularly

those

in

emerging

markets,

may

expose

the

Fund

to

additional

risks

not

typically

associated

with

investing

in

U.S.

issuers.

These

risks

include

changes

in

exchange

control

regulations,

political

and

social

instability,

expropriation,

nationalization

of

companies

by

foreign

governments,

imposition

of

foreign

taxes

(including

withholding

taxes)

at

potentially

confiscatory

levels,

less

liquid

markets

and

less

available

information

than

is

generally

the

case

in

the

United

States,

higher

transaction

costs,

less

government

supervision

of

exchanges,

brokers

and

issuers,

less

developed

bankruptcy

laws,

difficulty

in

enforcing

contractual

obligations,

lack

of

uniform

accounting

and

auditing

standards

and

greater

price

volatility.

Further,

the

Fund

may

have

difficulty

enforcing

its

rights

as

an

equity

holder

in

foreign

jurisdictions.

In

addition,

to

the

extent

the

Fund

invests

in

non-U.S.

companies,

it

may

face

greater

exposure

to

foreign

economic

developments.

Leverage

Risk.

The

Fund

may

use

leverage

for

both

investment

and

hedging

purposes.

Leverage

may

result

in

greater

volatility

of

the

NAV

of,

and

distributions

on,

the

Shares

because

changes

in

the

value

of

the

Fund’s

portfolio

investments,

including

investments

purchased

with

the

proceeds

from

borrowings

are

borne

entirely

by

holders

of

Shares.

Corporate

Debt

Securities

Risk.

The

Fund

may

invest

in

corporate

debt

securities

generally,

including

corporate

bonds

of

technology-

related

companies.

Corporate

bonds

include

a

wide

variety

of

debt

obligations

of

varying

maturities

issued

by

U.S.

and

foreign

corporations

(including

banks)

and

other

business

entities.

Bonds

are

fixed

or

variable

rate

debt

obligations,

including

bills,

notes,

debentures

and

similar

instruments

and

securities.

The

Fund

may

invest

in

corporate

bonds

denominated

in

U.S.

dollars

or

foreign

currencies.

The

value

of

corporate

bonds

may

be

affected

by

factors

directly

relating

to

their

issuers,

including

but

not

limited

to

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

42

investor

and

market

perceptions,

creditworthiness,

financial

performance,

capital

structure,

management

of

the

issuer

and

demand

for

the

issuer’s

goods

or

services.

The

Fund

has

the

flexibility

to

invest

in

corporate

bonds

that

are

below

investment

grade

quality.

Corporate

bonds

may

also

be

subject

to

interest

rate,

liquidity

and

valuation

risks.

Convertible

Securities

and

Synthetic

Convertible

Securities

Risk.

The

Fund

may

invest

in

convertible

securities.

A

convertible

security

is

a

bond,

debenture,

note,

preferred

stock

or

other

security

that

may

be

converted

into

or

exchanged

for

a

prescribed

amount

of

common

stock

or

other

equity

security

of

the

same

or

a

different

issuer

within

a

particular

period

of

time

at

a

specified

price

or

formula.

The

credit

standing

of

the

issuer

and

other

factors

also

may

have

an

effect

on

the

convertible

security’s

investment

value.

Convertible

securities

rank

senior

to

common

stock

in

a

corporation’s

capital

structure

but

are

usually

subordinated

to

comparable

nonconvertible

securities.

Synthetic

convertible

securities

differ

from

convertible

securities

in

certain

respects.

Unlike

a

true

convertible

security,

which

is

a

single

security

having

a

unitary

market

value,

a

synthetic

convertible

comprises

two

or

more

separate

securities,

each

with

its

own

market

value.

Therefore,

the

“market

value”

of

a

synthetic

convertible

security

is

the

sum

of

the

values

of

its

debt

component

and

its

convertibility

component.

For

this

reason,

the

values

of

a

synthetic

convertible

and

a

true

convertible

security

may

respond

differently

to

market

fluctuations.

Pooled

Investment

Vehicles

Risk.

To

the

extent

the

Fund

invests

in

other

pooled

investment

vehicles

(including

investment

companies,

exchange-traded

funds,

and

money

market

funds),

the

Fund

will

be

affected

by

the

investment

policies,

practices

and

performance

of

such

entities

in

direct

proportion

to

the

amount

of

assets

the

Fund

invests

therein.

Further,

shareholders

will

incur

a

proportionate

share

of

the

expenses

of

the

other

pooled

investment

vehicles

held

by

the

Fund

(including

applicable

organizational

and

operating

costs

and

investment

management

fees)

in

addition

to

the

expenses

of

the

Fund.

Limited

Operating

History

Risk.

The

Fund

is

a

closed-end

management

investment

company

with

limited

operating

history.

As

a

result,

the

Fund’s

performance

may

not

reflect

how

the

Fund

may

be

expected

to

perform

over

the

long

term.

In

addition,

prospective

investors

have

a

limited

track

record

and

history

on

which

to

base

their

investment

decision.

Distributions

Risk.

There

can

be

no

assurance

that

the

Fund

will

achieve

investment

results

that

will

allow

the

Fund

to

make

a

specified

level

of

cash

distributions

or

maintain

certain

levels

of

cash

distributions.

Additionally,

a

portion

of

the

Fund’s

distributions

may

be

treated

as

a

return

of

capital

for

U.S.

federal

income

tax

purposes,

which

could

reduce

the

basis

of

a

Shareholder’s

investment

in

the

Fund’s

Shares

and

may

trigger

taxable

gain.

Cybersecurity

Risk.

Cybersecurity

failures

or

breaches

may

result

in

financial

losses

to

the

Fund

and

its

shareholders.

These

failures

or

breaches

may

also

result

in

disruptions

to

business

operations,

potentially

resulting

in

financial

losses;

interference

with

a

Fund’s

ability

to

calculate

its

NAV,

process

shareholder

transactions

or

otherwise

transact

business

with

shareholders;

impediments

to

trading;

violations

of

applicable

privacy

and

other

laws;

regulatory

fines;

penalties;

reputational

damage;

reimbursement

or

other

compensation

costs;

additional

compliance

and

cybersecurity

risk

management

costs

and

other

adverse

consequences.

In

addition,

substantial

costs

may

be

incurred

in

order

to

prevent

any

cyber

incidents

in

the

future.

Because

technology

is

frequently

changing,

new

ways

to

carry

out

cyberattacks

continue

to

develop.

Therefore,

there

is

a

chance

that

certain

risks

have

not

been

identified

or

prepared

for,

or

that

an

attack

may

not

be

detected,

which

puts

limitations

on

the

ability

of

the

Fund

and

its

service

providers

to

plan

for

or

respond

to

a

cyberattack.

Furthermore,

geopolitical

tensions

could

increase

the

scale

and

sophistication

of

deliberate

cybersecurity

attacks,

particularly

those

from

nation-states

or

from

entities

with

nation-state

backing.

Tax

Risk.

The

Fund

intends

to

elect

and

intends

to

qualify

as

a

RIC

under

the

Code,

for

its

taxable

year

ending

March

31,

2026.

To

qualify

as

a

RIC,

the

Fund

must

meet

certain

organizational

and

operational

requirements,

including

a

requirement

to

distribute

at

least

90%

of

the

Fund’s

annual

investment

company

taxable

income

to

the

shareholders

of

the

Fund

(which

is

computed

without

regard

to

the

dividends

paid

deduction

and

generally

equals

the

Fund’s

ordinary

income

plus

the

excess

of

its

net

short-term

capital

gains

over

its

net

long-term

capital

losses,

minus

deductible

expenses).

As

a

RIC,

the

Fund

generally

will

not

be

subject

to

U.S.

federal

income

tax

on

income

or

gains

distributed

in

a

timely

manner

to

its

shareholders

in

the

form

of

dividends.

Even

if

the

Fund

qualifies

for

taxation

as

a

RIC,

it

may

be

subject

to

certain

foreign,

state

and

local

taxes

on

its

income

and

property,

and

federal

income

and

excise

taxes

on

its

undistributed

income.

The

tax

period

for

the

taxable

year

ending

March

31,

2023,

and

all

tax

periods

following

remain

open

to

examination

by

the

major

taxing

authorities

in

all

jurisdictions

where

the

Fund

is

subject

to

taxation.

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

43

Prior

to

the

taxable

year

ending

March

31,

2026,

the

Fund

was

treated

as

a

regular

corporation,

or

a

“C”

corporation,

for

U.S.

federal

income

tax

purposes.

During

the

periods

the

Fund

was

treated

as

a

“C”

corporation,

for

U.S.

federal

income

tax

purposes,

the

Fund

incurred

tax

expenses

and

was

subject

to

tax

at

regular

corporate

rates.

Pursuant

to

rules

applicable

to

RICs

that

were

previously

taxed

as

C

corporations,

because

the

Fund’s

assets

had

an

aggregate

net

unrealized

built-in

gain

at

the

time

it

first

qualified

as

a

RIC,

the

Fund

generally

will

be

subject

to

tax

at

regular

corporate

rates

to

the

extent

the

Fund

recognizes

such

gain

within

five

years

after

so

qualifying,

even

if

the

Fund

distributes

such

gain.

In

accordance

with

generally

accepted

accounting

principles,

the

Fund

has

already

accrued

a

deferred

income

tax

liability

balance,

at

the

currently

effective

statutory

U.S.

federal

income

tax

rate

(21%)

plus

an

estimated

state

and

local

income

tax

rate,

for

its

future

tax

liability

associated

with

such

net

unrealized

built-in

gain.

Net

capital

or

ordinary

losses

recognized

during

the

recognition

period

may

be

used

to

offset

built-in

gains.

Such

deferred

tax

liability,

and

any

deferred

tax

assets,

are

accounted

for

in

calculating

the

Fund’s

NAV

and

will

be

remeasured

from

time

to

time

as

the

Adviser

deems

necessary,

in

accordance

with

U.S.

generally

accepted

accounting

principles.

3.

Changes

Occurring

During

the

Fiscal

Year

The

following

information

in

this

annual

report

is

a

summary

of

certain

changes

occurring

during

the

most

recent

fiscal

year.

This

information

may

not

reflect

all

of

the

changes

that

have

occurred

since

you

purchased

shares

of

the

Fund.

During

the

most

recent

fiscal

year,

there

have

been

no

changes

required

to

be

reported

in

connection

with:

(i)

the

Fund’s

investment

objective

and

principal

investment

policies

that

have

not

been

approved

by

shareholders,

(ii)

the

principal

risks

of

the

Fund,

(iii)

the

portfolio

managers

of

the

Fund,

or

(iv)

the

Fund’s

Limited

Liability

Company

Agreement

that

would

delay

or

prevent

a

change

of

control

of

the

Fund

that

have

not

been

approved

by

shareholders,

except

as

provided

below.

I.

The

Fund’s

shares

began

trading

on

the

New

York

Stock

Exchange

(“NYSE”)

on

March

19,

2026,

under

the

symbol

“VCX.”

In

connection

with

the

listing

of

the

Fund’s

shares

on

the

NYSE,

the

following

risk

was

added

as

a

principal

risk

of

the

Fund:

Market

Discount

from

and

Premium

to

NAV.

Shares

of

closed-end

investment

companies

like

the

Fund

frequently

trade

at

prices

lower

than

their

NAV.

This

characteristic

is

a

risk

separate

and

distinct

from

the

risk

that

the

Fund’s

NAV

could

decrease

as

a

result

of

investment

activities.

Management

may

have

difficulty

meeting

the

Fund’s

investment

objectives

during

periods

of

market

turmoil

and

as

investors’

perceptions

regarding

closed-end

funds

or

their

underlying

investments

change.

Common

shares

of

the

Fund

recently

commenced

trading

on

the

NYSE

and

have

traded

at

prices

substantially

above

their

NAV.

This

initial

listing

premium

(to

the

Fund’s

NAV)

may

be

attributable

to

factors

related

to

the

initial

listing

period,

including

limited

public

float

due

to

shareholder

lockup

periods,

supply/demand

imbalance

and

other

market

dynamics

unrelated

to

the

value

and

fundamentals

of

the

Fund’s

portfolio

holdings.

Whether

investors

will

realize

gains

or

losses

upon

the

sale

of

their

common

shares

will

depend

not

upon

the

Fund’s

NAV

but

entirely

upon

whether

the

market

price

of

the

common

shares

at

the

time

of

sale

is

above

or

below

the

investor’s

original

purchase

price

for

their

common

shares.

Investors

purchasing

common

shares

while

they

are

trading

at

a

premium

may

incur

significant

losses

even

if

NAV

is

stable

or

increases.

The

Fund

cannot

predict

whether

the

common

shares

will

trade

at,

below

or

above

NAV.

The

common

shares

are

designed

primarily

for

long

term

investors,

and

you

should

not

view

the

Fund

as

a

vehicle

for

short-term

trading.

The

possibility

that

the

Fund’s

Common

Shares

will

trade

at

a

discount

from

NAV

per

share

or

at

premiums

that

are

unsustainable

over

the

long

term

are

separate

and

distinct

from

the

risk

that

the

Fund’s

NAV

per

share

may

decrease.

II.

In

connection

with

the

listing

of

the

Fund’s

shares

on

the

NYSE,

the

following

risks

were

removed

as

principal

risks

of

the

Fund:

Non-Listed

Closed-End

Fund;

Liquidity

Risk.

The

Fund

is

a

non-diversified,

closed-end

management

investment

company

designed

primarily

for

long-term

investors.

Closed-end

funds

differ

from

open-end

management

investment

companies

(commonly

known

as

mutual

funds)

because

investors

in

a

closed-end

fund

do

not

have

the

right

to

redeem

their

shares

on

a

daily

basis.

Unlike

most

closed-end

funds,

which

typically

list

their

shares

on

a

securities

exchange,

the

Fund

does

not

currently

intend

to

list

the

Shares

for

trading

on

any

securities

exchange,

and

the

Fund

does

not

expect

any

secondary

market

to

develop

for

the

Shares

in

the

foreseeable

future.

Therefore,

an

investment

in

the

Fund

is

not

a

liquid

investment.

The

Fund

is

not

intended

to

be

a

typical

traded

investment.

Shareholders

are

also

subject

to

transfer

restrictions

and

there

is

no

guarantee

that

they

will

be

able

to

sell

their

Shares.

If

a

secondary

market

were

to

develop

for

the

Shares

in

the

future,

and

a

Shareholder

is

able

to

sell

his

or

her

Shares,

the

Shareholder

will

likely

receive

less

than

the

purchase

price

and

the

then-current

NAV

per

Share.

The

Fund

from

time

to

time

may

offer

to

repurchase

Shares

pursuant

to

written

tenders

by

the

Shareholders.

The

Fund

intends,

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

44

but

is

not

obligated,

to

conduct

quarterly

repurchase

offers

in

the

sole

discretion

of

the

Board;

provided,

that

it

is

not

expected

that

such

repurchase

offers

will

be

for

Shares

in

the

amount

of

more

than

5%

of

the

Fund’s

net

assets.

Any

repurchases

of

Shares

will

be

made

to

all

holders

of

Shares,

at

such

times

and

on

such

terms

as

may

be

determined

by

the

Board

from

time

to

time

in

its

sole

discretion.

The

Adviser

will

not

recommend

to

the

Board

that

the

Fund

conduct

a

repurchase

offer

during

any

period

of

time

when

the

Adviser

believes

that

conducting

such

a

repurchase

offer

would

not

be

in

the

best

interests

of

the

Fund

and

its

shareholders,

and

there

may

be

extended

periods

of

time

when

the

Fund

does

not

conduct

a

repurchase

offer.

No

Shareholder

will

have

the

right

to

require

the

Fund

to

repurchase

its

Shares.

In

connection

with

any

repurchase

offer,

the

number

of

Shares

tendered

for

repurchase

may

exceed

the

number

of

Shares

the

Fund

has

offered

to

repurchase,

in

which

case

not

all

of

your

Shares

tendered

in

that

offer

will

be

repurchased.

Hence,

you

may

not

be

able

to

sell

your

Shares

when

or

in

the

amount

that

you

desire.

Notwithstanding

the

foregoing,

no

assurance

can

be

given

that

these

repurchases

will

occur

as

contemplated

or

at

all.

Repurchase

Offers

Risk.

The

repurchase

of

Shares

by

the

Fund

decreases

the

assets

of

the

Fund

and,

therefore,

may

have

the

effect

of

increasing

the

Fund’s

expense

ratio.

Repurchase

offers

and

the

need

to

fund

repurchase

obligations

may

also

affect

the

ability

of

the

Fund

to

be

fully

invested

or

force

the

Fund

to

maintain

a

higher

percentage

of

its

assets

in

liquid

investments,

which

may

harm

the

Fund’s

investment

performance.

Moreover,

diminution

in

the

size

of

the

Fund

through

repurchases

may

result

in

untimely

sales

of

portfolio

securities

and

may

limit

the

ability

of

the

Fund

to

participate

in

new

investment

opportunities

or

to

achieve

its

investment

objective.

If

the

Fund

uses

leverage,

repurchases

of

Shares

may

compound

the

adverse

effects

of

leverage

in

a

declining

market.

In

addition,

if

the

Fund

borrows

money

to

finance

repurchases,

interest

on

that

borrowing

will

negatively

affect

Shareholders

who

do

not

tender

their

Shares

by

increasing

Fund

expenses

and

reducing

any

net

investment

income.

If

a

repurchase

offer

is

oversubscribed

and

the

Fund

determines

not

to

repurchase

additional

Shares

beyond

the

repurchase

offer

amount,

or

if

Shareholders

tender

an

amount

of

Shares

greater

than

that

which

the

Fund

is

entitled

to

purchase,

the

Fund

will

repurchase

the

Shares

tendered

on

a

pro

rata

basis,

and

Shareholders

may

have

to

wait

until

the

next

repurchase

offer

to

make

another

repurchase

request.

Shareholders

will

be

subject

to

the

risk

of

NAV

fluctuations

during

that

period.

Thus,

there

is

also

a

risk

that

some

Shareholders,

in

anticipation

of

proration,

may

tender

more

Shares

than

they

wish

to

have

repurchased

in

a

particular

quarter,

thereby

increasing

the

likelihood

that

proration

will

occur.

The

NAV

of

Shares

tendered

in

a

repurchase

offer

may

fluctuate

between

the

date

a

Shareholder

submits

a

repurchase

request

and

the

expiration

of

the

repurchase

offer

(the

“Expiration

Date”),

and

to

the

extent

there

is

any

delay

between

the

Expiration

Date

and

the

Valuation

Date

(defined

below).

The

NAV

on

the

Expiration

Date

or

the

Valuation

Date

may

be

higher

or

lower

than

on

the

date

a

Shareholder

submits

a

repurchase

request.

III.

To

facilitate

the

conversion

of

the

Fund

from

a

closed-end

tender

offer

fund

to

a

listed

closed-end

fund

with

shares

traded

on

the

NYSE,

the

Board

approved

changes

to

the

LLC

Agreement

that

took

effect

concurrently

with

the

listing.

The

most

material

changes

are

summarized

below.

First,

provisions

governing

annual

shareholder

meetings,

Director

nominations,

shareholder

proposals,

and

proxy

voting

were

added.

The

prior

tender

offer

framework

was

removed,

as

shareholders

now

have

the

ability

to

sell

their

shares

on

the

NYSE

on

any

trading

day.

Second,

Director

election

procedures

were

updated.

In

uncontested

elections,

Directors

continue

to

be

elected

by

a

plurality

of

shares

voted.

In

contested

elections

(where

more

than

one

candidate

is

nominated

for

a

Director

position)

a

candidate

must

receive

the

vote

of

a

majority

of

the

outstanding

shares

to

be

elected.

Third,

provisions

were

added

to

protect

long-term

shareholders.

These

include

qualifications

for

Directors,

additional

authority

for

continuing

Directors

over

certain

governance

matters

(including

amendments

to

the

LLC

Agreement,

changes

to

Fund

committees,

and

dissolution,

merger,

consolidation,

or

conversion

of

the

Fund),

and

updated

standards

for

Director

liability.

In

addition,

a

provision

was

added

precluding

shareholders

from

bringing

direct

claims

against

the

Fund,

its

Directors,

or

officers.

Fourth,

the

LLC

Agreement's

arbitration

provision

was

replaced

with

a

provision

providing

for

Delaware

court

jurisdiction.

Fifth,

the

LLC

Agreement

was

amended

to

include

control

share

acquisition

provisions

modeled

on

Subchapter

III

of

the

Delaware

Statutory

Trust

Act.

Under

these

provisions,

an

acquirer

who

crosses

specified

voting

power

thresholds

(ranging

from

10%

to

a

majority

of

all

voting

power)

will

have

no

voting

rights

with

respect

to

shares

acquired

in

excess

of

the

applicable

threshold

Fundrise

Innovation

Fund,

LLC

Shareholder

Update

(UNAUDITED)(continued)

March

31,

2026

45

unless

approved

by

the

affirmative

vote

of

two-thirds

of

all

votes

entitled

to

be

cast

(excluding

shares

held

by

the

acquirer

and

its

associates

and

certain

Fund

insiders)

or

exempted

by

the

Board.

These

provisions

do

not

retroactively

apply

to

shares

acquired

before

the

listing,

although

such

shares

are

aggregated

with

any

shares

acquired

thereafter

for

purposes

of

determining

whether

a

threshold

is

exceeded.

The

Control

Share

Provisions

have

the

potential

to

limit

the

ability

of

activist

investors

to

use

their

ownership

to

attempt

to

disrupt

the

Fund's

long-term

strategy,

but

may

also

make

the

Board

less

responsive

to

shareholder

proposals.

Shareholders

are

encouraged

to

review

the

Fund’s

Operating

Agreement

in

its

entirety,

which

is

available

at

the

Definitive

Information

Statement

filed

with

the

Securities

and

Exchange

Commission

on

February

3,

2026.

4.

Dividend

Reinvestment

Prior

to

the

listing

of

the

Fund’s

Shares

on

the

NYSE,

the

Fund

operated

under

a

dividend

reinvestment

policy

administered

by

the

Adviser.

Effective

with

the

Fund’s

listing

on

the

NYSE

on

March

19,

2026,

the

Fund

no

longer

operates

its

dividend

reinvestment

policy.

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)

March

31,

2026

46

1.

Approval

of

Investment

Management

Agreements

Continuation

of

the

Fund’s

Existing

Investment

Advisory

Agreement

Section

15(c)

of

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

requires

that

each

registered

fund’s

board

of

directors,

including

a

majority

of

those

directors

who

are

not

“interested

persons”

of

the

fund,

as

defined

in

the

1940

Act

(the

“Independent

Directors”),

initially

approve,

and

annually

review

and

consider

the

continuation

of,

the

fund’s

investment

advisory

agreement.

At

its

meeting

held

on

November

6,

2025

(the

“Meeting”),

the

Fund’s

Board

of

Directors

(the

“Board”),

including

each

of

the

Independent

Directors,

unanimously

voted

to

approve

the

continuation

of

the

existing

investment

management

agreement

dated

July

18,

2022

(the

“Agreement”)

between

Fundrise

Advisors,

LLC

(the

“Adviser”)

and

the

Fund

for

an

additional

one-year

period.

In

connection

with

its

annual

consideration

of

the

Agreement

for

the

Fund,

the

Board,

through

its

independent

legal

counsel,

requested

and

received

extensive

materials

and

information

prepared

specifically

for

its

review

of

such

Agreement

by

the

Adviser

and

by

ISS

Market

Intelligence

(“ISS”),

an

independent

provider

of

investment

company

data.

The

report

from

ISS

compared

certain

fee

information

for

the

Fund

to

that

of

an

independently

selected

peer

group

of

similar

funds

(“Peer

Group”)

and

provided

performance

information

for

funds

in

the

Peer

Group

(the

“ISS

Report”).

The

Adviser

included

a

report

in

the

Meeting

materials

comparing

the

Fund’s

performance

to

the

performance

of

other

advisory

accounts

managed

by

the

Adviser.

The

Adviser

also

compared

the

Fund’s

management

fee

to

the

management

fee

paid

by

other

funds

for

which

it

provides

advisory

services.

Preceding

the

Meeting,

the

Board

also

reviewed

written

responses

from

the

Adviser

to

questions

posed

to

the

Adviser

by

counsel

on

behalf

of

the

Independent

Directors

and

supporting

materials

relating

to

those

questions

and

responses.

In

addition,

the

Board

considered

such

additional

information

as

it

deemed

reasonably

necessary

to

evaluate

the

Agreement,

such

as

the

materials

and

presentations

by

Fund

officers

and

representatives

of

the

Adviser

received

at

the

Meeting

concerning

the

Agreement,

the

operation

of

the

Fund

and

the

Adviser.

The

Board

also

considered

information

received

at

prior

meetings

of

the

Board

and

its

committees

throughout

the

year,

to

the

extent

such

information

was

relevant

to

its

evaluation

of

the

Agreement.

In

determining

whether

to

approve

the

renewal

of

the

Agreement,

the

members

of

the

Board

reviewed

and

evaluated

information

and

factors

they

believed

to

be

relevant

and

appropriate

in

the

exercise

of

their

reasonable

business

judgment.

While

individual

members

of

the

Board

may

have

weighed

certain

factors

differently,

the

Board’s

determination

to

approve

renewal

of

the

Agreement

was

based

on

a

comprehensive

consideration

of

all

information

provided

to

the

Board

with

respect

to

the

approval

of

the

renewal

of

the

Agreement.

The

Board

was

also

furnished

with

an

analysis

of

its

fiduciary

obligations

in

connection

with

its

evaluation

of

the

Agreement

and,

throughout

the

evaluation

process,

the

Board

was

assisted

by

counsel

for

the

Independent

Directors.

In

connection

with

their

deliberations,

the

Independent

Directors

met

separately

in

executive

session,

without

the

presence

of

representatives

of

the

Adviser,

to

consider

the

relevant

materials.

A

more

detailed

summary

of

the

important,

but

not

necessarily

all,

factors

the

Board

considered

with

respect

to

its

approval

of

the

renewal

of

the

Agreement

is

provided

below.

Nature,

Extent

and

Quality

of

Services

The

Board

considered

information

regarding

the

nature,

extent

and

quality

of

services

provided

to

the

Fund

by

the

Adviser.

The

Board

considered,

among

other

things,

the

terms

of

the

Agreement

and

the

range

of

services

provided

by

the

Adviser.

The

Board

considered

the

Adviser’s

organizational

structure

and

resources,

financial

statements

of

the

Adviser’s

parent

company

and

the

Adviser’s

ability

to

carry

out

its

obligations

under

the

Agreement.

The

Board

considered

that

the

Adviser

is

responsible

for

directing

the

Fund’s

business

and

affairs,

managing

the

Fund’s

day-to-day

affairs,

and

implementing

the

Fund’s

investment

strategy.

The

Board

also

considered

the

Adviser’s

experience

managing

other

similar

pooled

investment

vehicles

that

employ

different

investment

strategies

from

those

of

the

Fund.

The

Board

considered

the

Adviser’s

professional

personnel

who

provide

services

to

the

Fund

throughout

the

year,

including

the

Adviser’s

ability

and

experience

in

attracting

and

retaining

qualified

personnel

to

service

the

Fund.

The

Board

also

considered

the

compliance

program

and

compliance

record

of

the

Adviser

and

the

Fund.

The

Board

considered

the

Adviser’s

support

of

the

Fund’s

compliance

control

structure,

including

the

resources

that

continue

to

be

devoted

by

the

Adviser

in

support

of

the

Fund’s

obligations

pursuant

to

Rule

38a-1

under

the

1940

Act

and

the

efforts

of

the

Adviser

and

its

affiliates

in

supporting

the

Fund

and

managing

various

risks,

including,

but

not

limited

to,

cybersecurity

and

operational

risks.

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)(continued)

March

31,

2026

47

The

Board

considered

the

day-to-day

portfolio

management

services

that

the

Adviser

provides

to

the

Fund.

In

this

regard,

the

Board

considered,

among

other

things,

the

Adviser’s

investment

program

for

the

Fund,

its

investment

research

capabilities

and

resources,

its

performance

record,

its

experience,

its

trading

operations

and

its

approach

to

managing

risk,

including

most

particularly

with

respect

to

investments

in

the

technology

sector.

The

Board

further

considered

the

range

of

services

the

Adviser

provided

including,

but

not

limited

to,

overseeing

the

Fund’s

overall

investment

strategies;

determining

which

securities

and

other

investments

shall

be

purchased

or

sold

by

the

Fund;

identifying,

evaluating

and

negotiating

the

structure

of

the

Fund’s

investments,

including

overseeing

due

diligence

processes

related

to

prospective

investments,

and

monitoring

and

evaluating

the

Fund’s

performance.

The

Board

considered

the

experience

of

the

Fund’s

portfolio

managers

and

the

Adviser’s

method

for

compensating

the

portfolio

managers.

Additionally,

the

Board

observed

that

the

Adviser

provides

certain

administrative

services

to

the

Fund.

Apex

Fund

Services

(“Apex”),

the

Fund’s

administrator

and

fund

accountant,

provides

certain

incremental

administrative

services

pursuant

to

an

agreement

with

Apex.

In

addition,

the

Board

considered

the

assumption

of

business,

entrepreneurial,

overall

managerial

and

other

risks

by

the

Adviser

in

connection

with

managing

the

Fund.

The

Board

is

aware

that

the

Fund

is

a

closed-end

tender

offer

fund

that

operates

in

accordance

with

the

framework

set

forth

in

Rule

13e-4

under

the

Securities

Exchange

Act

of

1934,

as

amended,

and

considered

the

special

attributes

of

the

Fund

relative

to

traditional

mutual

funds

and

the

benefits

that

are

realized

from

an

investment

in

the

Fund,

rather

than

a

traditional

mutual

fund.

The

Board

also

considered

the

resources

devoted

by

the

Adviser

and

its

affiliates

in

maintaining

an

infrastructure

necessary

to

support

the

on-going

operations

of

the

Fund,

including

its

periodic

tender

offer

structure.

After

consideration

of

the

foregoing

factors,

among

others,

the

Board

concluded

that

the

nature,

extent

and

quality

of

services

provided

by

the

Adviser,

taken

as

a

whole,

are

appropriate

and

consistent

with

the

terms

of

the

Agreement.

Fund

Performance

The

Board

reviewed

information

provided

by

the

Adviser

regarding

the

Fund’s

investment

performance,

performance

of

comparable

funds

in

the

Fund’s

Peer

Group

as

well

as

information

from

the

Adviser

regarding

the

performance

of

the

Fund

relative

to

appropriate

benchmark

indices

and

assessed

the

Fund’s

performance

on

the

basis

of

total

return.

The

Board

considered,

among

other

things,

the

Adviser’s

efforts

to

generate

competitive

performance

returns

over

time.

The

Board

considered

the

Fund’s

performance

compared

to

the

Cambridge

Associates

LLC

U.S.

Venture

Capital

Index

(the

“Index”),

which

tracks

the

performance

of

U.S.-based

venture

capital

funds,

for

the

year-to-date

period

ended

June

30,

2025.

The

Board

noted

that

while

the

Index’s

performance

for

the

second

quarter

of

2025

is

preliminary

and

the

Index’s

performance

for

the

third

quarter

of

2025

is

not

yet

available,

the

Adviser

represented

that

the

Adviser’s

deliberate

approach

to

investment

deployment

allowed

the

Fund

to

outperform

the

Index

for

this

period.

The

Board

also

compared

the

Fund’s

performance

against

the

performance

of

funds

in

its

Peer

Group

and

to

the

performance

of

other

advisory

accounts

managed

by

the

Adviser,

noting

the

Adviser’s

representation

that

it

does

not

view

any

other

accounts

managed

by

the

Adviser

as

having

a

similar

investment

objective

as

the

Fund.

The

Board

observed

that

the

Fund

outperformed

the

median

performance

of

the

funds

in

its

Peer

Group

for

the

year-to-date,

one-year

and

three-

year

periods

ended

September

30,

2025.

The

Board

considered

the

factors

which

affected

the

Fund’s

performance

in

the

last

year.

Based

on

these

considerations,

the

Board

concluded

that

it

was

satisfied

that

the

Adviser

has

the

capability

of

providing

satisfactory

investment

performance

for

the

Fund.

Management

Fees

and

Expenses

The

Board

reviewed

and

considered

the

management

fee

rate

paid

by

the

Fund

to

the

Adviser

under

the

Agreement

and

the

Fund’s

total

expense

ratio.

The

Board

received

and

reviewed

a

report

prepared

by

ISS

comparing

the

Fund’s

management

fee

rate

and

total

expense

ratio

to

the

Fund’s

Peer

Group.

The

Board

also

compared

the

Fund’s

management

fee

to

the

management

fee

charged

to

other

funds

advised

by

the

Adviser.

In

considering

the

Fund’s

management

fee

and

total

expense

ratio,

the

Board

observed

that,

according

to

the

information

provided

by

ISS,

the

Fund’s

management

fee

was

slightly

below

the

median

of

the

Fund’s

Peer

Group

and

the

Fund’s

total

expense

ratio

(including

the

effect

of

certain

marketing

related

expenses

paid

by

the

Fund)

was

above

the

median

of

the

Fund’s

Peer

Group.

The

Board

then

compared

the

Fund’s

management

fee

to

the

management

fee

charged

to

other

funds

advised

by

the

Adviser.

The

Board

observed

that

the

management

fee

charged

to

the

Fund

of

1.85%

of

Fund

assets

annually

is

greater

than

the

management

fee

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)(continued)

March

31,

2026

48

charged

to

each

of

the

other

registered

investment

companies

managed

by

the

Adviser,

the

Fundrise

Income

Real

Estate

Fund

(the

“Income

Fund”)

and

the

Fundrise

Real

Estate

Interval

Fund

(the

“Flagship

Fund”),

and

other

private

funds

managed

by

the

Adviser

(which

are

offered

only

to

accredited

investors

and

which

also

pay

an

incentive

allocation

fee

to

the

Adviser).

The

Board

was

made

aware

that

the

Flagship

Fund

and

the

Income

Fund

each

pay

a

management

fee

of

0.85%

of

Fund

assets

annually

to

the

Adviser

for

its

services.

The

Board

considered

the

Adviser’s

representation

that

the

management

fees

applicable

to

other

registered

Fundrise-

advised

funds

do

not

provide

a

useful

basis

for

comparison

of

the

Fund’s

management

fee,

given

that

the

strategies

and

assets

of

the

other

Fundrise-advised

funds

are

completely

different

than

that

of

the

Fund.

The

Board

further

considered

that

the

other

Fundrise-

advised

funds

target

real

estate

investments

while

the

Fund’s

investment

in

technology

companies

is

a

fundamentally

different

activity,

noting

that

the

difference

in

strategy,

and

therefore

the

types

of

investments

the

Adviser

is

sourcing

and

managing

on

behalf

of

the

Fund,

is

the

main

difference

in

terms

of

the

services

the

Adviser

provides

the

Fund

as

compared

to

services

it

provides

to

other

Fundrise-advised

funds.

Based

on

its

consideration

of

the

factors

and

information

it

deemed

relevant,

the

Board

concluded

that

the

compensation

payable

to

the

Adviser

under

the

Agreement

was

reasonable,

and

within

the

range

of

fees

that

would

have

been

negotiated

at

arms-length,

considering

all

of

the

surrounding

circumstances.

Profitability

The

Board

considered

information

from

the

Adviser

regarding

the

level

of

profits

realized

by

the

Adviser

and

relevant

affiliates

thereof

in

providing

investment

advisory,

administrative

and

other

services

to

the

Fund

and

to

other

investment

vehicles.

The

Board

also

considered

the

methodology

employed

by

the

Adviser

in

recognizing

expenses

and

revenues

on

an

aggregate

basis

with

respect

to

the

investment

management

services

overall,

based

on

publicly

available

information

in

Rise

Companies

Corp.’s

Form

10-Q

for

the

period

ended

June

30,

2025.

The

Board

observed

that

the

Adviser

consolidated

its

financial

statements

with

its

parent

company,

Rise

Companies

Corp.,

in

the

Form

10-Q.

In

evaluating

the

profitability

to

the

Adviser

from

providing

services

to

the

Fund,

the

Board

considered

that

the

Adviser

waived

its

management

fee

during

the

fiscal

year

ended

March

31,

2025

in

an

effort

to

keep

the

Fund

expenses

at

levels

believed

by

the

Adviser

to

be

attractive

to

investors.

However,

the

Board

observed

that

the

Adviser

did

not

waive

management

fees

or

reimburse

expenses

during

the

six-month

period

ended

September

30,

2025,

and

during

this

period

the

Adviser

recouped

certain

fees

waived

in

prior

years

pursuant

to

the

terms

of

the

expense

limitation

agreement

with

the

Fund.

The

Board

concluded

that,

in

light

of

the

foregoing

factors

and

the

nature,

extent

and

quality

of

the

services

rendered,

the

Adviser

and

its

affiliates

do

not

realize

excessive

profits

from

the

Fund.

Economies

of

Scale

The

Board

considered

the

extent

to

which

economies

of

scale

may

be

realized

as

the

Fund’s

assets

continue

to

grow

and

whether

the

Fund’s

fee

structure

reflects

these

economies

of

scale

for

the

benefit

of

shareholders

of

the

Fund.

In

this

regard,

the

Board

considered

the

Fund’s

fee

structure,

asset

size,

and

net

expense

ratio,

recognizing

that

an

analysis

of

economies

of

scale

is

most

relevant

when

a

fund

has

achieved

a

substantial

size

and

has

growing

assets

over

an

extended

period

of

time.

However,

the

Board

considered

the

Adviser’s

representation

that

the

Adviser

has

achieved

certain

economies

of

scale

by

leveraging

relationships

with

third

party

service

providers

developed

over

time,

development

of

the

Fundrise

Platform

through

which

Fund

shares

are

offered,

and

employees’

knowledge

and

competence

with

respect

to

the

regulatory

and

compliance

regime

under

which

the

Fund

operates.

The

Board

considered

the

Adviser’s

representation

that

the

Adviser

has

a

different

fee

structure

for

the

Fund

from

the

fee

structure

in

place

for

the

other

Fundrise-advised

funds

as

the

Fund

at

inception

was

a

new

strategy

for

the

Adviser

and

new

processes,

procedures

and

personnel

had

to

be

employed

to

make

appropriate

investments

on

the

Fund’s

behalf.

As

the

Fund’s

investment

strategy

is

being

further

built

out,

the

Adviser

represented

that

the

Fund

will

likely

achieve

further

economies

of

scale

over

time

through

asset

growth

resulting

in

fixed

costs

being

spread

over

a

larger

asset

pool

and

a

larger

number

of

shareholders.

The

Board

further

considered

that

the

Adviser

was

not

proposing

breakpoints

in

the

Fund’s

management

fee

at

this

time.

The

Board

concluded

that

the

fee

schedule

for

the

Fund

reflects

an

appropriate

level

of

sharing

of

any

economies

of

scale.

The

Board

is

aware

that

it

will

have

the

opportunity

to

periodically

reexamine

whether

the

Fund

has

achieved

any

economies

of

scale

and

the

appropriateness

of

any

potential

future

management

fee

breakpoints

as

part

of

its

future

review

of

the

Agreement.

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)(continued)

March

31,

2026

49

“Fall-Out”

Benefits

The

Board

received

and

considered

information

regarding

potential

“fall-out”

or

ancillary

benefits

that

the

Adviser

and

its

affiliates

receive

as

a

result

of

their

relationships

with

the

Fund.

The

Board

observed

that

ancillary

benefits

include

benefits

directly

attributable

to

other

relationships

with

the

Fund

and

benefits

potentially

derived

from

an

increase

in

the

Adviser’s

and

its

affiliates’

business

as

a

result

of

their

relationships

with

the

Fund

which

may

include

marketing

other

financial

products

and

services.

The

Board

considered

that

the

Fund

has

paid

for

direct

marketing

campaigns,

making

it

possible

for

the

Adviser

and

other

funds

managed

by

the

Adviser

to

receive

benefits

including

increased

assets

under

management

and

potentially

decreased

marketing

expenses

by

the

Adviser.

Based

on

its

consideration

of

the

factors

and

information

it

deemed

relevant,

the

Board

did

not

deem

any

“fall

out”

or

ancillary

benefits

that

may

be

received

by

the

Adviser

and

its

affiliates

to

be

unreasonable.

Conclusion

The

Board

did

not

identify

any

single

factor

discussed

previously

as

all-important

or

controlling.

The

Board,

including

the

Independent

Directors,

concluded

that

the

terms

of

the

Agreement

were

reasonable

and

that

the

fees

payable

to

the

Adviser

under

the

Agreement

were

reasonable

in

light

of

the

services

provided

to

the

Fund.

Accordingly,

based

on

its

deliberations

and

its

evaluation

of

the

factors

described

above

and

other

information

it

believed

relevant,

the

Fund’s

Board

of

Directors

determined

that

the

continuation

of

the

Agreement

for

an

additional

one-year

period

was

in

the

best

interests

of

the

Fund

and

its

shareholders.

Approval

of

Amended

Investment

Advisory

Agreement

At

a

special

meeting

of

the

Board

held

on

January

9,

2026,

as

reconvened

on

January

14,

2026

(the

“Meeting”),

the

Board,

including

each

of

the

Independent

Directors,

unanimously

voted

to

approve

for

an

initial

two-year

period,

a

proposed

amended

and

restated

investment

management

agreement

(the

“Amended

Advisory

Agreement”)

between

the

Adviser

and

the

Fund,

subject

to

approval

by

the

Fund’s

shareholders

as

required

by

Section

15(a)

of

the

1940

Act.

At

the

Meeting,

the

Board

considered

the

Adviser's

proposal

to

increase

the

contractual

management

fee

payable

to

the

Adviser

by

the

Fund

pursuant

to

the

Amended

Advisory

Agreement

to

2.50%

of

the

Fund's

average

daily

net

assets.

In

connection

with

its

consideration

of

the

Amended

Advisory

Agreement

for

the

Fund,

the

Board

received

from

the

Adviser

extensive

materials

and

reports

including

information

prepared

specifically

for

its

review

of

such

Amended

Advisory

Agreement.

The

Adviser’s

report

included

a

discussion

of

the

nature,

extent

and

quality

of

the

advisory

services

to

be

provided

to

the

Fund

considering

the

Fund's

conversion

from

a

closed-end

fund

operating

as

a

tender

offer

fund

under

the

Securities

Act

of

1934,

as

amended,

to

a

listed

closed-end

fund

with

Fund

shares

listed

on

the

New

York

Stock

Exchange,

LLC

("NYSE"),

the

Fund's

performance,

comparative

information

concerning

the

management

fee

to

be

paid

to

the

Adviser

and

Fund

expenses,

the

Adviser's

profitability

in

managing

the

Fund

considering

the

additional

resources

to

be

provided

by

the

Adviser

in

managing

a

NYSE-listed

fund,

the

existence

of

any

economies

of

scale,

and

certain

"fall-out"

or

ancillary

benefits

to

the

Adviser.

Further,

the

Directors

carefully

considered

(a)

continuing

to

operate

the

Fund

as

a

tender

offer

fund;

and

(b)

listing

the

Fund

on

an

exchange

to

provide

secondary

market

liquidity

to

shareholders.

In

connection

with

their

evaluation,

the

Directors

carefully

analyzed

each

potential

option

including,

but

not

limited

to,

the

following

factors

(as

relevant):

(a)

the

probability

of

completion,

(b)

timing

and

costs,

(c)

ability

to

maximize

value

for

shareholders

both

in

the

near

term

and

long

term,

(d)

challenges

and

limitations

and

(e)

likelihood

of

success

in

accomplishing

the

goal

of

providing

increased

value

and

tradability

for

shareholders.

Specific

to

the

conversion

of

the

Fund

to

a

listed

closed-end

fund,

the

Board

considered

a

variety

of

factors,

including

but

not

limited

to:

that

shareholders

would

be

able

to

trade

shares

of

the

Fund

on

a

daily

basis

while

upside

potential

would

be

preserved

for

long-

term

shareholders;

and

the

Adviser’s

expectation

that

the

conversion

will

provide

the

Fund

with

flexibility

to

make

new

investments

and

take

advantage

of

compelling

investment

opportunities,

thus

creating

a

potential

for

increased

Fund

performance.

The

Board’s

determination

was

based

primarily

on

structural

considerations,

including

enhanced

liquidity

optionality

for

shareholders,

elimination

of

periodic

repurchase

constraints,

reduced

risk

of

the

potential

of

forced

asset

sales

to

meet

investor

demand

for

tender

offers

as

the

result

of

any

future

downturn,

and

improved

alignment

between

the

Fund’s

long-term

investment

horizon,

private

company

asset

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)(continued)

March

31,

2026

50

base,

and

capital

structure.

In

addition,

the

Board

believed

that

removing

the

liquidity

burden

associated

with

conducting

quarterly

tender

offers

of

minimum

5%

has

the

potential

to

increase

performance.

The

Board

weighed

these

anticipated

benefits

against

potential

disadvantages

of

a

conversion,

including

that

shareholders

will

not

have

the

ability

to

sell

their

shares

before

conversion

(other

than

the

tender

offer

at

the

end

of

February

2026),

the

possibility

that

shares

will

sell

at

a

discount

after

the

conversion,

and

the

potential

for

activist

shareholders

to

engage

with

the

Fund,

noting

that

certain

of

the

changes

made

to

the

LLC

Agreement

are

intended

to

mitigate

the

risk

of

activists

to

long-term

shareholder

interests.

Based

on

the

foregoing

and

the

totality

of

the

information

provided,

the

Board

concluded

that

discontinuing

tender

offer

fund

operations

and

listing

on

the

Exchange

would

be

the

optimal

approach

to

providing

increased

liquidity

to

shareholders

and

would

be

in

the

best

interests

of

the

Fund

and

its

shareholders.

The

Board

did

not

identify

any

single

factor

discussed

previously

as

all-important

or

controlling

in

its

consideration

of

the

Amended

Advisory

Agreement.

The

Board,

including

the

Independent

Directors,

concluded

that

the

terms

of

the

Amended

Advisory

Agreement

were

reasonable

and

that

the

fees

payable

to

the

Adviser

under

the

Agreement

were

reasonable

in

light

of

the

services

provided

to

the

Fund.

Accordingly,

based

on

its

deliberations

and

its

evaluation

of

the

factors

described

above

and

other

information

it

believed

relevant,

the

Fund’s

Board

of

Directors

determined

that

the

approval

of

the

Amended

Advisory

Agreement

was

in

the

best

interests

of

the

Fund

and

its

shareholders.

However,

the

Amended

Advisory

Agreement

did

not

receive

requisite

affirmative

votes

at

the

Special

Meeting

of

Shareholders

held

on

February

19,

2026

to

approve

this

agreement

pursuant

to

the

1940

Act,

and

accordingly,

the

Amended

Advisory

Agreement

was

not

adopted

by

the

Fund.

2.

Results

of

the

Proposals

at

the

Special

Meeting

of

Shareholders

The

following

votes

were

cast

at

the

Special

Meeting

of

Shareholders

held

on

February

19,

2026:

3.

Disclosure

of

Portfolio

Holdings

The

Fund

files

its

complete

schedule

of

portfolio

holdings

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT

reports

will

be

available

without

charge,

upon

request,

by

calling

(202)

584-0550

or

on

the

SEC’s

website

at

http://www.sec.gov

.

4.

Proxy

Voting

Policies

and

Procedures

A

description

of

the

policies

and

procedures

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and,

once

available,

information

regarding

how

the

Fund

voted

those

proxies

(if

any)

during

the

year

ended

June

30,

2025,

is

available

(1)

without

charge,

upon

request,

by

calling

(202)

584-0550,

(2)

on

the

Fund’s

website

at

www.fundrise.com/innovation

and

(3)

on

the

SEC’s

website

at

http://www.sec.gov

.

During

the

year

ended

June

30,

2025,

the

Fund

did

not

have

any

investments

that

required

the

Fund

to

vote

proxies,

and

therefore

did

not

vote

any

proxies

during

such

period.

Proposal

For

Against

Abstain

To

approve

the

proposed

listing

of

the

Fund

on

the

New

York

Stock

Exchange

and

the

related

conversion

of

the

Fund

to

a

listed

closed-end

fund

16,538,512

4,199,693

375,653

To

approve

a

new

Investment

Advisory

Agreement

which

will

include

an

increase

in

the

management

fee

to

2.5%

of

the

Fund’s

average

daily

net

assets

12,716,173

7,803,446

594,239

To

approve

a

six-month

lockup

period

upon

the

Fund’s

listing

for

shares

purchased

prior

to

February

20,

2026

15,121,434

5,343,539

648,885

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)(continued)

March

31,

2026

51

5.

Compensation

of

Directors

The

Fund’s

Statement

of

Additional

Information

includes

additional

information

about

the

Directors

and

is

available

(1)

without

charge,

upon

request,

by

calling

(202)

584-0550,

(2)

on

the

Fund’s

website

at

www.fundrise.com/innovation

and

(3)

on

the

SEC’s

website

at

http://www.sec.gov

.

The

following

table

sets

forth

information

regarding

the

total

compensation

paid

to

the

Independent

Directors

for

their

services

as

Independent

Directors

for

the

Fund’s

fiscal

year

ending

March

31,

2026.

Effective

in

April

2026,

each

Independent

Director

is

paid

an

annual

retainer

of

between

$62,500

and

$65,000

for

service

on

the

Board

of

Directors

of

the

Fund.

As

an

Interested

Director,

Mr.

Miller

receives

no

compensation

from

the

Fund

for

his

service

as

a

Director.

No

other

compensation

or

retirement

benefits

are

received

by

any

Director

or

officer

from

the

Fund.

6.

Directors

and

Officers

The

Fund

is

governed

by

a

Board

of

Directors.

The

following

tables

present

certain

information

regarding

the

Directors

and

Officers

of

the

Fund

as

of

March

31,

2026.

The

address

of

all

persons

is

c/o

Fundrise

Advisors,

LLC,

11

Dupont

Circle

NW,

9th

Floor,

Washington,

D.C.

20036.

For

more

information

regarding

the

Directors

and

Officers,

please

refer

to

the

Fund’s

Statement

of

Additional

Information,

which

is

available,

without

charge,

upon

request

by

calling

(202)

584-0550.

Name

Aggregate

Compensation

from

the

Fund

Aggregate

Compensation

from

the

Fund

and

Fund

Complex

(1)

Paid

to

Directors

Jennifer

Blatnik

$

45,000

$

45,000

Jeffrey

R.

Deitrich

45,000

130,000

Glenn

R.

Osaka

45,000

130,000

(1)

The

“Fund

Complex”

consists

of

the

Fund,

Fundrise

Income

Real

Estate

Fund,

LLC,

Fundrise

Real

Estate

Interval

Fund,

LLC

and

Fundrise

Real

Estate

Interval

Fund

II,

LLC.

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)(continued)

March

31,

2026

52

Name

and

Year

of

Birth

Position

Held

Term

of

Office

and

Length

of

Term

Served

(1)

Principal

Occupation(s)

During

Past

5

Years

or

Longer

Number

of

Portfolios

in

Fund

Complex

(2)

Overseen

by

Director

Other

Directorships

Held

During

Past

5

Years

Independent

Directors

Jennifer

Blatnik

1974

Director

05/2022

to

Present/Class

I

2027

Director,

Menlo

Church

(non-profit),

Chairperson

2022-2024

and

Vice

Chairperson

and

Compensation

Committee

member,

2020-2022;

formerly,

Chief

Operating

Officer,

Volta

Networks

(networking

software

firm)

(2019-2021)

and

Vice

President,

Product

Management,

Product

Marketing

and

Marketing,

Juniper

Networks

(networking,

cloud

and

security

products

firm)

(2014-2017).

1

None

Jeffrey

R.

Deitrich

1982

Director

and

Audit

Committee

Chairperson

05/2022

to

Present/Class

II

2028

Senior

Vice

President,

Silverstein

Properties,

Inc.

(real

estate

investment

and

development

firm)

(2007-2016,

2022-current);

Principal,

Better

Building

Solutions

(technology

integration

and

managed

services

firm)

(2016-current);

Formerly,

Principal,

Frenchtown

Enterprises

(real

estate

investment

firm)

(2019-2022).

Asset

Manager,

Prudential

Real

Estate

Investors

(private

equity)

(2004-2007).

4

Fundrise

Real

Es-

tate

Interval

Fund,

LLC;

Fundrise

Real

Estate

Interval

Fund

II,

LLC;

Fundrise

Income

Real

Estate

Fund,

LLC

Glenn

R.

Osaka

1955

Lead

Independent

Director

05/2022

to

Present/Class

III

2029

Consultant

and

Private

Investor

(early

stage

technology

companies)

(since

2013).

Formerly,

Senior

Vice

President,

Services,

Juniper

Networks,

Inc.

(2009-

2013);

Vice

President,

Strategy

and

Operations,

Cisco

Systems,

Inc.

(2007-

2009);

President

and

Chief

Executive

Officer,

Reactivity

Inc.

(technology

start-up

company)

(2001-2006);

Managing

Director,

Redleaf

Group

(venture

capital

firm)

(1999-2000);

Vice

President

and

General

Manager,

Enterprise

Computing,

Hewlett-Packard

(1979-1998).

4

Fundrise

Real

Es-

tate

Interval

Fund,

LLC;

Fundrise

Real

Estate

Interval

Fund

II,

LLC;

Fundrise

Income

Real

Estate

Fund,

LLC

Interested

Director

and

Officer

Benjamin

S.

Miller

(3)

1977

Director

and

Officer,

Chairperson,

President

and

Chief

Executive

Officer

05/2022

to

Present/Class

III

2029

Chief

Executive

Officer,

Fundrise

Advisors,

LLC

(since

2012);

Co-

Founder,

Chief

Executive

Officer

and

Director,

Rise

Companies

Corp.

(since

2012).

4

Fundrise

Real

Es-

tate

Interval

Fund,

LLC;

Fundrise

Real

Estate

Interval

Fund

II,

LLC;

Fundrise

Income

Real

Estate

Fund,

LLC

(1)

Each

Director

will

serve

until

the

later

of

the

date

of

the

Fund’s

annual

meeting

as

designated

above,

or

until

his

or

her

successor

is

elected

and

qualifies,

or

until

his

or

her

earlier

death,

resignation,

retirement

or

removal.

(2)

The

“Fund

Complex”

consists

of

the

Fund,

Fundrise

Income

Real

Estate

Fund,

LLC,

Fundrise

Real

Estate

Interval

Fund,

LLC

and

Fundrise

Real

Estate

Interval

Fund

II,

LLC.

(3)

Mr.

Miller

is

considered

to

be

an

“interested

person”

of

the

Fund

(as

that

term

is

defined

by

Section

2(a)(19)

in

the

1940

Act)

because

of

his

affiliation

with

the

Adviser

and/or

its

affiliates.

Fundrise

Innovation

Fund,

LLC

Additional

Information

(UNAUDITED)(continued)

March

31,

2026

53

Name

and

Year

of

Birth

Position

Held

Term

of

Office

and

Length

of

Time

Served

(1)

Principal

Occupation(s)

During

Past

5

Years

Officers

Bjorn

J.

Hall

1980

Secretary

and

Chief

Compliance

Officer

09/2024

to

present

Chief

Compliance

Officer

and

General

Counsel

Fundrise

Advisors,

LLC

and

Rise

Companies

(since

2014)

and

officer

of

certain

funds

in

the

Fund

Complex

(since

2024).

Alison

A.

Staloch

1980

Treasurer

and

Principal

Financial

Officer

05/2022

to

present

Chief

Financial

Officer,

Fundrise

Advisors,

LLC

and

Rise

Companies

Corp.

and

officer

of

certain

funds

in

the

Fund

Complex

(since

2021);

Formerly,

Chief

Accountant

(2017-

2021),

Assistant

Chief

Accountant

(2015-

2017),

Division

of

Investment

Management,

U.S.

Securities

and

Exchange

Commission;

Senior

Manager,

KPMG

LLP

(2005-2015).

(1)

The

term

of

office

for

each

officer

will

continue

indefinitely.

(b) Not applicable.

Item 2. Code of Ethics

(a) As of the end of the period covered by this report, the Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer and principal financial officer.

(b) Not applicable.

(c) During the period covered by the report, with respect to the Registrant’s code of ethics that applies to its principal executive officer and principal financial officer, there have been no amendments to a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

(d) During the period covered by the report, with respect to the Registrant’s code of ethics that applies to its principal executive officer and principal financial officer, the Registrant did not grant a waiver, including an implicit waiver, from a provision of the code of ethics that relates to one or more of the items set forth in paragraph (b) of this Item 2.

(e) Not applicable.

(f) The Registrant’s code of ethics that applies to its principal executive officer and principal financial officer is filed herewith as Exhibit 19(a)(1).

Item 3. Audit Committee Financial Expert

The Board of Directors has designated Jeffrey R. Deitrich, who serves on the Board’s Audit Committee, as an audit committee financial expert. Mr. Deitrich is considered by the Board of Directors to be an independent director.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees: Audit fees billed to the Registrant for the year ended March 31, 2026 were $140,000, which is exclusive of audit fees totaling $35,000 in connection with the annual audit that had not yet been billed to the Registrant as of March 31, 2026. The audit fees billed for the year ended March 31, 2025 were $150,000. These amounts represent aggregate fees billed by the Registrant’s independent registered public accounting firm, (the “Accountant”) in connection with the annual audit of the Registrant’s financial statements and for services normally provided by the Accountant in connection with the Registrant’s statutory and regulatory filings for that fiscal year, including N-2 Consent fees.

(b) Audit-related fees billed to the Registrant were $80,000 for the year ended March 31, 2026, which is exclusive of audit-related fees totaling $30,000 that had not yet been billed to the Registrant as of March 31, 2026. These amounts represent assurance and related services by the Accountant that were reasonably related to the performance of the audit of the Registrant’s financial statements that were not reported under paragraph (a) of this Item, including comfort letters. Audit-related fees billed to the Registrant for the year ended March 31, 2025 were $0.

(c) Tax Fees: There were no tax fees billed to the Registrant for the year ended March 31, 2026, or the year ended March 31, 2025, for professional services rendered by the Accountant for tax compliance, tax advice, or tax planning.

(d) All Other Fees: The aggregate fees billed for products and services provided by the Accountant, other than the services reported in paragraphs (a) through (c) of this Item were $1,800 and $1,800 for the year ended March 31, 2026, and the year ended March 31, 2025, respectively. The fees primarily relate to an Accounting Research Online subscription.

(e)(1) The Audit Committee has adopted, and the Board has approved, a Policy on Pre-Approval of Audit and Non-Audit Services (the “Policy”), which is intended to comply with Rule 2-01 of Regulation S-X and sets forth guidelines and procedures to be followed by the Registrant when retaining an auditor to perform audit, audit-related, tax and other services for the Registrant. The Policy permits such services to be pre-approved by the Audit Committee pursuant to either a general pre-approval or specific pre-approval. Unless a type of service provided by the auditor has received general pre-approval, it requires specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels require specific pre-approval by the Audit Committee.

(e)(2) With respect to the services provided to the Registrant described in paragraphs (b) through (d) of this Item 4, no amount was approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Not applicable.

(h) Not applicable, all non-audit services that were rendered to the Registrant's investment adviser were pre-approved as required.

(i) Not applicable.

(j) Not applicable.

Item 5. Audit Committee of Listed Registrants

(a)

The Fund has a separately-designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act of 1934. The members of the Fund’s Audit Committee are Jennifer Blatnik, Jeffrey R. Deitrich and Glenn R. Osaka.

(b) Not applicable.

Item 6. Investments

(a) The schedule of investments is included as part of the report to Shareholders filed under Item 1(a) of this form.

(b) There were no divestments of securities (as defined by Section 13(c) of the 1940 Act) for this annual reporting period.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies

Not applicable.

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies

Not applicable.

Item 9. Proxy Disclosures for Open-End Management Investment Companies

Not applicable.

Item 10. Remuneration Paid to Directors, Officers and Others of Open-End Management Investment Companies.

Not applicable.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

The Registrant’s statement regarding the basis for approval of its investment advisory contract is included as part of the report to shareholders filed under Item 1(a) of this form.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

The Registrant’s Board of Directors (the “Board”) has adopted this Proxy Voting Policy (the “Proxy Voting Policy”) on behalf of the Registrant which delegates the responsibility for decisions regarding proxies for securities held or proposed to be held by the Registrant to Fundrise Advisors, LLC (the “Adviser”), subject to the Board’s continuing oversight. The Registrant’s Chief Compliance Officer shall ensure that the Adviser has adopted a Proxy Voting Policy and Procedures (the “Adviser’s Proxy Voting Policy”), which it will use to vote proxies for securities held by the Registrant in a manner that is consistent with this Proxy Voting Policy, as may be amended from time to time. The Board, including a majority of the Directors who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended) of the Registrant, must approve the Adviser’s Proxy Voting Policy as it relates to the Registrant. Due to the nature of the securities and other assets in which the Registrant intends to invest, proxy voting decisions for the Registrant may be limited.

The Registrant believes that the voting of proxies is an important part of portfolio management as it represents an opportunity for shareholders to make their voices heard and to influence the direction of a company. The Registrant is committed to voting proxies received in a manner consistent with the best interests of the Registrant’s shareholders. The Registrant believes that the Adviser is in the best position to make individual decisions for the Registrant consistent with this Proxy Voting Policy. Therefore, subject to the oversight of the Board, the Registrant has delegated the following duties to the Adviser pursuant to the Registrant’s Proxy Voting Policy:

-	to make the proxy voting decisions for the Registrant, in accordance with the Adviser’s Proxy Voting Policy;
-	to assist the Registrant in disclosing its proxy voting record as required by Rule 30b1-4 under the 1940 Act, including providing the following information for each matter with respect to which the Registrant is entitled to vote: (a) information identifying the matter voted on; (b) whether the matter was proposed by the issuer or by a security holder; (c) whether and how the Registrant cast its vote; and (d) whether the Registrant cast its vote for or against management; and
-	to provide to the Board, at least annually, a record of each proxy voted by the Adviser on behalf of the Registrant, including a report on the resolution of all proxies identified by the Adviser as involving a conflict of interest.

In cases where a matter with respect to which the Registrant was entitled to vote presents a conflict between the interest of the Registrant’s shareholders, on the one hand, and those of the Adviser or its affiliate, on the other hand, the Registrant shall always vote in the best interest of the Registrant’s shareholders. For purposes of this Proxy Voting Policy, a vote shall be considered in the best interest of a Registrant’s shareholders when a vote is cast consistent with the proxy voting policy as set forth in the Adviser’s Proxy Voting Policy, provided such guidelines were approved by the Board. The Adviser shall review with the Board any proposed material changes or amendments to the Adviser’s Proxy Voting Policy prior to implementation.

The Registrant will file a Form N-PX with the Registrant’s complete proxy voting record for the 12 months ended June 30, no later than August 31 of each year.

The copy of the Adviser’s Proxy Voting Policy is set forth below.

Adviser Proxy Voting Policies and Procedures

Fundrise Advisors, LLC (the “Adviser”), as a matter of policy and as a fiduciary to the Fundrise Innovation Fund, LLC (the “Fund”), has the responsibility for voting proxies for securities consistent with the best interests of the Fund. The Adviser maintains written procedures as to the handling, voting and reporting of proxy voting and makes appropriate disclosures about the Adviser’s proxy procedures and the availability of the Adviser’s proxy voting record. In general, the Adviser does not receive proxies to be voted due to the nature of its investments on behalf of the Fund; the procedures maintained by the Adviser are intended to comply with Rule 206(4)-6 under the Investment Advisers Act of 1940 (the “Advisers Act”) in the infrequent instance that the Adviser receives a proxy, or other action requiring a vote, from a security held or proposed to be held by the Fund.

1. Background and Description

In general, proxy voting is an important right of shareholders and reasonable care and diligence must be undertaken to ensure that such rights are properly and timely exercised. Investment advisers registered with the U.S. Securities and Exchange Commission, and which exercise voting authority with respect to client securities, are required by Rule 206(4)-6 under the Advisers Act to (a) adopt and implement written policies and procedures that are reasonably designed to ensure that client securities are voted in the best interests of clients, which must include how an adviser addresses material conflicts that may arise between an adviser’s interests and those of its clients; (b) disclose to clients how they may obtain information from the adviser with respect to the voting of proxies for their securities; (c) describe to clients a summary of its proxy voting policies and procedures and, upon request, furnish a copy to its clients; and (d) maintain certain records relating to the adviser’s proxy voting activities when the adviser does have proxy voting authority.

The purpose of these procedures (the “Procedures”) is to set forth the principles, guidelines and procedures by which the Adviser may vote the securities held by the Fund for which the Adviser may exercise voting authority and discretion. These Procedures have been designed to ensure that proxies are voted in the best interests of the Fund in accordance with fiduciary duties and Rule 206(4)-6 under the Advisers Act.

2. Responsibility

The Adviser’s Chief Compliance Officer (together with any designees, the “CCO”) has responsibility for the implementation and monitoring of the Procedures, including associated practices, disclosures and recordkeeping.

3. Procedures

The Adviser has adopted the procedures below to implement its proxy voting policy and to monitor and ensure that the policy is observed and amended or updated, as appropriate.

Voting Procedures

In the event the Adviser’s personnel receive proxy materials on behalf of the Fund, the personnel will forward such materials to the appropriate members of the Adviser’s Investment Committee (or any committee delegated responsibility and authority by the Investment Committee) to vote the proxy. The Adviser’s Investment Committee will analyze the proxy materials and determine how the Adviser should vote the proxy in accordance with applicable voting guidelines below. The CCO is responsible for coordinating this process in a timely and appropriate manner and delivering the proxy prior to the voting deadline.

The Adviser may engage a third-party proxy research and voting service to assist it in researching, recordkeeping and voting of proxies, subject to appropriate oversight.

Proxy Voting Guidelines

The following guidelines (the “Guidelines”) will inform the Adviser’s proxy voting decisions:

-	The guiding principle by which the Adviser votes on all matters submitted to security holders is the maximization of the ultimate economic value of the Fund’s holdings. The Adviser does not permit voting decisions to be influenced in any manner that is contrary to, or dilutive of, the guiding principle set forth above.
-	The Adviser will seek to avoid situations where there is any material conflicts of interest affecting its voting decisions. Any material conflicts of interest, regardless of whether actual or perceived, will be addressed in accordance with the conflict resolution procedures (see below).
-	The Adviser generally will vote on all matters presented to security holders in any proxy. However, Adviser reserves the right to abstain on any particular vote or otherwise withhold its vote on any matter if, in the judgment of Adviser, the costs associated with voting such proxy outweigh the benefits to the Fund or if the circumstances make such an abstention or withholding otherwise advisable and in the best interest of the Fund, in the judgment of Adviser.
-	Notwithstanding the foregoing guideline, as part of an investment decision the Adviser may waive or delegate voting rights (either with respect to a particular proxy or with respect to an investment or proposed investment more generally) when in the best interest of the Fund in accordance with the Adviser’s fiduciary duties.
-	Proxies will be voted in accordance with the Fund’s proxy voting policies and procedures, any applicable investment policies or restrictions of the Fund and, to the extent applicable, any resolutions or other instructions approved by the Fund’s Board of Directors.
-	Absent any legal or regulatory requirement to the contrary, the Adviser generally will seek to maintain the confidentiality of the particular votes that it casts on behalf of the Fund; however, the Adviser recognizes that the Fund must disclose the votes cast on its behalf in accordance with all legal and regulatory requirements.

While these Guidelines are intended to provide a benchmark for voting standards, each vote is ultimately cast on a case-by-case basis, taking into consideration the Adviser’s contractual obligations to the Fund and all other relevant facts and circumstances at the time of the vote (such that these Guidelines may be overridden to the extent Adviser believes appropriate).

Conflicts of Interest

In certain instances, a potential or actual material conflict of interest may arise when the Adviser votes a proxy. As a fiduciary to the Fund, the Adviser takes these conflicts very seriously. While the Adviser’s primary goal in addressing any such conflict is to ensure that proxy votes are cast in the Fund’s best interest and are not affected by the Adviser’s potential or actual material conflict, there are a number of courses that the Adviser may take. The final decision about which course to follow shall be made by the Adviser’s Investment Committee. The Investment Committee may cause any of the following actions, among others, to be taken in that regard:

-	vote the relevant proxy in accordance with the vote indicated by the Guidelines;
-	vote the relevant proxy as an exception to Guidelines, provided that the reasons behind the voting decision are in the best interest of the Fund, are reasonably documented and are approved by the Adviser’s CCO;
-	engage an unaffiliated third-party proxy advisor to provide a voting recommendation or direct the proxy advisor to vote the relevant proxy in accordance with its independent assessment of the matter; or
-	“echo vote” or “mirror vote” the relevant proxy in the same proportion as the votes of other proxy holders.

Disclosure

The Adviser will provide conspicuously displayed information in the Fund’s registration statement summarizing these Procedures, including a statement that Shareholders may request information regarding how the Adviser voted the Fund’s proxies, and may request a copy of these Procedures.

Requests for Information

All requests for information regarding proxy votes, or these Procedures, received by any Adviser personnel should be forwarded to the Adviser’s CCO. In response to any request from a Fund shareholder, the CCO will prepare a written response with such information as the CCO determines, in its sole discretion, should be shared with the Fund shareholder.

Recordkeeping

The Adviser’s CCO shall retain the following records:

-	These Procedures and any amendments;
-	Each proxy statement that the Adviser receives;
-	A record of each vote that the Adviser casts;
-	Any document the Adviser created that was material to deciding how to vote a proxy, or that memorializes that decision; and
-	A copy of each written request for information on how the Adviser voted proxies, and a copy of any written response.

Item 13. Portfolio Managers of Closed-End Management Investment Companies

(a)(1) As of the date of this filing, Benjamin S. Miller, Brandon T. Jenkins, and Chris Brauckmuller are the Registrant’s portfolio managers and are primarily responsible for day-to-day management of the Registrant’s investment portfolio.

Benjamin S. Miller – Mr. Miller currently serves as Chief Executive Officer of the Adviser and has served as Chief Executive Officer and a Director of Rise Companies since its inception on March 14, 2012.

Mr. Miller has 25 years of experience in real estate and finance. Mr. Miller has been responsible for acquiring more than $8 billion of real estate assets, including +37,000 residential units and 5 million square feet of industrial and commercial space. Prior to founding Fundrise, Mr. Miller was a Managing Partner of the real estate development company WestMill Capital Partners and before that, was President of Western Development Corporation, one of the largest mixed- use real estate development companies in the Washington, D.C. metro area. Mr. Miller worked as an analyst for private equity real estate fund, Luber-Adler, and was part of the founding staff of Democracy Alliance, a progressive investment collaborative. Mr. Miller has a Bachelor of Arts from the University of Pennsylvania.

Brandon T. Jenkins – Mr. Jenkins currently serves as Chief Operating Officer of the Adviser and has served in such capacities with the sponsor since February of 2014, prior to which time he served as Head of Product Development and Director of Real Estate which he continues to do currently. Additionally, Mr. Jenkins has served as Director of Real Estate for WestMill Capital Partners since March of 2011. Previously, Mr. Jenkins spent two and a half years as an investment advisor and sales broker at Marcus & Millichap, the largest real estate investment sales brokerage in the country. Prior to his time in brokerage, Mr. Jenkins also worked for Westfield Corporation, a leading shopping center owner. Mr. Jenkins earned his Bachelor of Arts in Public Policy and Economics from Duke University.

Chris Brauckmuller –

Mr. Brauckmuller serves as Chief Strategy Officer of the Adviser and has served in such capacity since January 2022. Mr. Brauckmuller served as our Chief Product Officer from September 2018 to January 2022 and Director of Design and Creative of the Adviser from December 2012 to September 2018. From March 2010 to December 2012, Mr. Brauckmuller ran his own independent interactive design studio. Previously, Mr. Brauckmuller was employed as an interactive designer at 352 Media Group (now 352 Inc.), based in Gainesville, Florida, where he led creative efforts on accounts ranging from startups to Fortune 500 technology companies, including Microsoft and BAE Systems. Mr. Brauckmuller received a Bachelor of Arts degree from the University of Florida.

(a)(2) The portfolio managers primarily responsible for the day-to-day management of the Registrant’s portfolio also manage other pooled investment vehicles, as indicated below. The following table identifies, as of March 31, 2026: (i) the number of other registered investment companies, other pooled investment vehicles and other accounts managed by each portfolio manager; (ii) the total assets of such companies, vehicles and accounts; and (iii) the number and total assets of such companies, vehicles and accounts that are subject to an advisory fee based on performance, unless otherwise noted:

Name		Number of Other Accounts Managed			Total Assets of Other Accounts Managed (Millions)				Number of Other Accounts Managed Paying Performance Fees			Total Assets of Other Accounts Managed Paying Performance Fees (Millions)
Benjamin S. Miller
Registered Investment Companies		2			$	1,980.71			0			$	0.00
Other Pooled Investment Vehicles		12			$	941.44			3			$	192.64
Other Accounts		0			$	0.00			0			$	0.00
Brandon T. Jenkins
Registered Investment Companies		2			$	1,980.71			0			$	0.00
Other Pooled Investment Vehicles		12			$	941.44			3			$	192.64
Other Accounts		0			$	0.00			0			$	0.00
Chris Brauckmuller
Registered Investment Companies		0			$	0.00			0			$	0.00
Other Pooled Investment Vehicles		0			$	0.00			0			$	0.00
Other Accounts		0			$	0.00			0			$	0.00

Conflicts of Interest

Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one investment account. Portfolio managers who manage other investment accounts in addition to a Registrant may be presented with the potential conflicts summarized below. The Adviser has adopted various policies and procedures designed to address potential conflicts of interest and intended to provide for fair and equitable management, also summarized below.

General. The officers and directors of the Adviser and the key investment professionals of Rise Companies who perform services for the Registrant on behalf of the Adviser are also officers, directors, managers, and/or key professionals of Rise Companies and other Fundrise entities (such as the eREITs

®

). These persons have legal obligations with respect to those entities that are similar to their obligations to the Registrant. In the future, these persons and other affiliates of Rise Companies may organize other programs and acquire for their own account investments that may be suitable for the Registrant. In addition, Rise Companies may grant equity interests in the Adviser to certain management personnel performing services for the Adviser.

Payment of Certain Fees and Expenses of the Adviser. The Management Fee paid to Adviser will be based on the Registrant’s NAV, which will be calculated by Rise Companies’ internal accountants and asset management team. The Adviser may benefit by the Registrant retaining ownership of its assets at times when Shareholders may be better served by the sale or disposition of the Registrant’s assets in order to avoid a reduction in the Registrant’s NAV.

Allocation of Investment Opportunities. The Registrant relies on the Adviser’s executive officers and Rise Companies’ key investment professionals who act on behalf of the Adviser to identify suitable investments. Rise Companies and other Fundrise entities also rely on these same key investment professionals. Rise Companies has in the past, and expects to continue in the future, to offer other Fundrise Platform investment opportunities, primarily through the Fundrise Platform, including offerings that acquire or invest in technology and

technology related companies

.

Other programs may have investment criteria that compete with the Registrant. 

If an investment opportunity would be suitable for more than one program, Rise Companies will allocate it using its business judgment. Any allocation of this type may involve the consideration of a number of factors that Rise Companies determines to be relevant. The factors that Rise Companies’ investment professionals could consider when determining the entity for which an investment opportunity would be the most suitable include the following:

- the investment objectives and criteria of Rise Companies and the other Fundrise entities;

- the cash requirements of Rise Companies and the other Fundrise entities;

- the effect of the investment on the diversification of Rise Companies’ or the other Fundrise entities’ portfolio by type of investment, and risk of investment;

- the policy of Rise Companies or the other Fundrise entities relating to leverage;

- the anticipated cash flow of the asset to be acquired;

- the income tax effects of the purchase on Rise Companies or the other Fundrise entities;

- the size of the investment; and

- the amount of funds available to Rise Companies or the Fundrise entities.

If a subsequent event or development causes any investment, in the opinion of Rise Companies’ investment professionals, to be more appropriate for another Fundrise entity, they may offer the investment to such entity.

In addition, any decisions by the Adviser to renew, extend, modify or terminate an agreement or arrangement, or enter into similar agreements or arrangements in the future, may benefit one program more than another program or limit or impair the ability of any program to pursue business opportunities. In addition, third parties may require as a condition to their arrangements or agreements with or related to any one particular program that such arrangements or agreements include or not include another program, as the case may be. Any of these decisions may benefit one program more than another program.

The Adviser may determine it appropriate for the Registrant and one or more Fundrise entities (such as the eREITs® and any additional funds registered under the 1940 Act and sponsored by the Sponsor) to participate in an investment opportunity. To the extent the Fund is able to make co-investments with other Fundrise entities, these co-investment opportunities may give rise to conflicts of interest or perceived conflicts of interest among the Registrant and the other participating Fundrise entities. To mitigate these conflicts, the Adviser will seek to execute such transactions for all of the participating entities, including the Registrant, on a fair and equitable basis, taking into account such factors as available capital, portfolio concentrations, suitability and any other factors deemed appropriate. However, there can be no assurance the risks posed by these conflicts of interest will be mitigated.

In order to avoid any actual or perceived conflicts of interest among the Fundrise Platform investment opportunities and with the Adviser’s directors, officers and affiliates, the Registrant has adopted a conflicts of interest policy to specifically address some of the conflicts relating to the Registrant’s activities. There is no assurance that these policies will be adequate to address all of the conflicts that may arise or will address such conflicts in a manner that is favorable to the Fund. The Adviser may modify, suspend or rescind the policies set forth in the conflicts policy, including any resolution implementing the provisions of the conflicts policy, in each case, without a vote of the Fund’s Shareholders.

Allocation of the Registrant Affiliates’ Time. The Registrant relies on Rise Companies’ key investment professionals who act on behalf of the Adviser, including Mr. Benjamin S. Miller, for the day-to-day operation of the Registrant’s business. Mr. Benjamin S. Miller is also the Chief Executive Officer of Rise Companies and other Fundrise entities. As a result of his interests in other Fundrise entities, his obligations to other investors and the fact that he engages in and he will continue to engage in other business activities on behalf of himself and others, Mr. Benjamin S. Miller faces conflicts of interest in allocating his time among the Registrant, the Adviser and other Fundrise entities and other business activities in which he is involved. However, the Registrant believes that the Adviser and its affiliates have sufficient investment professionals to fully discharge their responsibilities to the Fundrise entities for which they work.

Receipt of Fees and Other Compensation by the Adviser and its Affiliates. The Adviser and its affiliates receive fees from the Registrant. These fees could influence the Adviser’s advice to the Registrant as well as the judgment of affiliates of the Adviser, some of whom also serve as the Adviser’s officers and directors and the key investment professionals of Rise Companies. Among other matters, these compensation arrangements could affect their judgment with respect to:

-	the continuation, renewal or enforcement of provisions in the LLC Agreement involving the Adviser and its affiliates or the Investment Management Agreement;
-	the offering of shares by the Registrant, which entitles the Adviser to a Management Fee and other fees;
-	acquisitions of investments and originations of equity or loans at higher purchase prices, which entitle the Adviser to higher acquisition fees and origination fees regardless of the quality or performance of the investment or loan;
-	borrowings up to the Registrant’s stated borrowing policy to acquire investments and to originate loans, which borrowings will increase the Management Fee payable by the Registrant to the Adviser;
-	whether the Registrant seeks necessary approvals to internalize the Registrant’s management, which may entail acquiring assets (such as office space, furnishings and technology costs) and the key investment professionals of Fundrise Companies who are performing services for the Registrant on behalf of the Adviser for consideration that would be negotiated at that time and may result in these investment professionals receiving more compensation from the Registrant than they currently receive from Rise Companies; and
-	whether and when the Registrant merges or consolidates its assets with other funds, including funds affiliated with the Adviser.

Duties Owed by Some of the Registrant’s Affiliates to the Adviser and the Adviser’s Affiliates. The Adviser’s officers and directors and the key investment professionals of Rise Companies performing services on behalf of the Adviser are also officers, directors, managers and/or key professionals of:

-	Rise Companies;
-	the Adviser;
-	Fundrise, LLC;
-	other investment programs sponsored by Rise Companies; and
-	other Fundrise entities.

As a result, they owe duties to each of these entities, their shareholders, members and limited partners. These duties may from time to time conflict with the duties that they owe to the Registrant.

(a)(3) Each of the Registrant’s portfolio managers receives compensation for his services, including services performed for the Registrant on behalf of the Adviser, from Rise Companies. In an effort to retain key personnel, Rise Companies has structured its compensation plans for portfolio managers (and other key personnel) in a manner that it believes is competitive with other similar investment management firms. The portfolio managers are compensated with a fixed base salary and discretionary bonus based on, among other factors, the overall performance of Rise Companies. The bonus structure is formula driven and is not tied to the investment returns generated by, or the value of assets held in, the Registrant or any of the other accounts managed.

(a)(4) The following table discloses the dollar range of equity securities beneficially owned by the portfolio managers of the Registrant as of March 31, 2026.

Name of Portfolio Manager			Dollar Range of Equity Securities in the Fund
Benjamin S. Miller			$	10,001-50,000
Brandon T. Jenkins			$	1-10,000
Chris Brauckmuller			$	10,001-50,000

(b) Not applicable.

Item 14. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

During the period covered by this report, neither the Fund nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Securities Exchange Act of 1934) purchased any shares or other units of any class of the Fund’s equity securities.

Item 15. Submission of Matters to a Vote of Security Holders

NOMINATIONS AND PROPOSALS BY MEMBERS

Nominations of persons for election as a Director and the proposal of other business to be considered by the Members may be made at an annual meeting of Members (i) pursuant to the Fund’s notice of meeting (or any supplement thereto), (ii) by or at the direction of the Directors or any committee thereof or (iii) by any Member who was a Member of record at the time the notice provided for in Section 12.9 of the Amended and Restated Limited Liability Company Agreement dated as of February 2, 2026 (the “LLC Agreement”) is delivered to the Fund secretary and at the time of the annual meeting, who held Shares continuously for such period, who is entitled to vote at the meeting, and who complied with the notice procedures set forth in Section 12.9 of the LLC Agreement. A “Share” means a share of the Fund issued by the Fund that evidences a Member’s rights, powers and duties with respect to the Fund pursuant to the LLC Agreement and the Delaware Limited Liability Company Act (6 Del. C. Section 18-101, et seq., as amended, supplemented, or restated from time to time, and any successor to such statute.) Shares may be Common Shares or Preferred Shares and may be issued in different Classes or series (as such capitalized terms are defined in the LLC Agreement).

For nominations for election as a Director or other business to be properly brought before an annual meeting by a Member pursuant to Section 12.9(a) of the LLC Agreement, the Member must have given timely notice thereof in writing to the secretary of the Fund and any such proposed business (other than nominations of persons for election as a Director) must otherwise be a proper matter for action by Members. Without limiting the generality of the foregoing, no proposal may be made with respect to any matter that the Members do not have the right to vote on under the LLC Agreement. To be timely, a Member’s notice must be delivered to the Fund secretary at the Fund’s principal executive office by not later than the close of business on the 90th day prior to the first anniversary of the date of mailing of the notice for the preceding year’s annual meeting nor earlier than the close of business on the 120th day prior to the first anniversary of the date of the mailing of the notice for the preceding year’s annual meeting; provided, however, that in the event that the date of the mailing of the notice for the annual meeting is advanced or delayed by more than thirty days from the anniversary date of the mailing of the notice for the preceding year’s annual meeting, notice by the Member to be timely must be so delivered not earlier than the close of business on the 120th day prior to the date of mailing of the notice for such annual meeting and not later than the close of business on the later of the 90th day prior to the date of mailing of the notice for such annual meeting or the 10th day following the day on which public announcement of the date of mailing of the notice for such meeting is first made by the Fund. In no event shall the public announcement of a postponement of the mailing of the notice for such annual meeting or of an adjournment or postponement of an annual meeting to a later date or time commence a new time period for the giving of a Member’s notice as described above. A Member’s notice to be proper must set forth: (a) as to the Member giving the notice and the beneficial owners, if any, on whose behalf the nomination or proposal is made (i) the name and address of such Member, as they appear in the Fund’s books, and of such beneficial owner, (ii) the Class or series, if any, and number of all Shares of the Company owned beneficially and of record by Member at the time the recommendation is submitted and the dates on which such Shares were acquired, specifying the number of Shares owned beneficially, (iii) a description of all arrangements, agreements, or understandings between the Member and any other person or persons (including their names) pursuant to which the Member’s recommendation is being made (including, in the case of a nomination, the candidate), and if none, so specify, (iv) a representation, which is complied with, that the Member is a Member of record of the Fund entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to propose such business or nomination, (v) a representation, which is complied with, that the Member or the beneficial owner, if any, intends or is part of a group which intends to deliver a proxy statement and/or form of proxy to Members entitled to cast the requisite number of votes to approve or adopt the proposal or elect the nominee, and (vi) any other information relating to such Member and beneficial owner, if any, that must be disclosed in solicitation of proxies for election of Directors in an election contest (even if an election contest is not involved), or otherwise would be required, in each case pursuant to the Exchange Act of 1934 (the “Exchange Act”) and the rules and regulations promulgated thereunder; (b) as to each person whom the Member proposes to nominate for election as a Director (i) a full listing of the proposed candidate’s education, experience (including knowledge of the investment company industry, experience as a Director or director or senior officer of public or private companies, and directorships on other boards of other registered investment companies), current employment, date of birth, business and residence address, and the names and addresses of at least three professional references, (ii) information as to whether the candidate is, has been or may be an “interested person” (as defined in the Investment Company Act of 1940, as amended) of the Fund or any affiliate of the Fund, and, if believed not to be or have been an “interested person” information regarding the candidate that will be sufficient for the Directors to make such determination, (iii) the written and signed consent of the candidate to be named as a nominee and to serve as a Director of the Fund, if elected, (iv) the Class or series, if any, and number of all Shares of the Fund or any other Fund owned of record or beneficially by the candidate, as reported by the candidate, and (v) such other information that would be helpful to the Directors in evaluating the candidate; and (c) as to any other business that the Member proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration), the reasons for conducting such business at the meeting and any material interest in such business of such Member and the beneficial owner, if any, on whose behalf the proposal is made.

A Member providing notice of any nomination or any other business proposed to be made at a meeting shall further update and supplement such notice so that: (a) the information provided in such notice pursuant to Section 12.9 shall be complete and correct as of the record date for determining the Members entitled to receive notice of the meeting, and such update and supplement shall be delivered to, or be mailed and received by, the secretary at the Fund’s principal executive office not later than five (5) business days after the record date for determining the Members entitled to receive notice of such meeting and (b) with respect to nominations of persons for election as a Director, any additional information reasonably requested by the Board of Directors to determine that each person whom the Member proposes to nominate for election as a Director is qualified to act as a Director, including information reasonably requested by the Board to determine that such proposed candidate has met the Director qualifications as set out in Section 5.9 of the LLC Agreement, is provided, and such update and supplement shall be delivered to, or be mailed and received by, the secretary at the Fund’s principal executive office not later than five (5) business days after the request by the Board for additional information regarding Director qualifications has been delivered to, or mailed and received by, such Member providing notice of any nomination.

 Only such business shall be conducted at a special meeting of Members as shall have been brought before the meeting pursuant to the Fund’s notice of meeting. Nominations of persons for election to the Directors may be made at a special meeting of Members at which Directors are to be elected (i) pursuant to the Fund’s notice of meeting (or any supplement thereto), (ii) by or at the direction of the Directors or any committee thereof or (iii) provided that the Directors have determined that Directors shall be elected at such special meeting, by any Member of the Fund who is a Member of record both at the time the notice provided for in Section 12.9(b) of the LLC Agreement is delivered to the secretary and at the time of the special meeting, who is entitled to vote at the meeting and who complied with the notice procedures set forth in Section 12.9(b) of the LLC Agreement. In the event the Fund calls a special meeting of Members for the purpose of electing one or more Directors, any such Member may nominate a person or persons (as the case may be) for election to such position as specified in the Fund’s notice of meeting, if the Member’s notice containing the information required by Section 12.9(a) of the LLC Agreement shall have been delivered to the Fund secretary at the Fund’s principal offices not earlier than the close of business on the 120th day prior to such special meeting and not later than the close of business on the later of the 90th day prior to such special meeting or the 10th day following the day on which public announcement is first made of the date of the special meeting and the nominees proposed by the Directors to be elected at such meeting. In no event shall the public announcement of a postponement or adjournment of a special meeting to a later date or time commence a new time period for the giving of a Member’s notice as described above.

 Only such persons who are nominated in accordance with the procedures and requirements set forth in this Section 12.9 shall be eligible to serve as Director, and only such business shall be conducted at a meeting of Members as shall have been brought before the meeting in accordance with the procedures and requirements set forth in this Section 12.9. The chairperson of the meeting shall have the power and duty to determine whether a nomination or any other business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures and requirements set forth in this Section 12.9 and, if any proposed nomination or other business is not in compliance with this Section 12.9, to declare that such nomination or proposal shall be disregarded. Without limiting the generality of the foregoing or any other requirements herein, (i) a Member shall be disqualified from bringing any business proposed to be brought before a meeting if any of the information in such Member’s notice, or provided in connection therewith, is not correct and complete or if such Member does not comply fully with the representations in such notice and (ii) if the Member (or a qualified representative of such Member) does not appear at the annual or special meeting of Members of the Company to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Fund. For purposes of Section 12.9 of the LLC Agreement, to be considered a qualified representative of a Member, a person must be a duly authorized officer, manager or partner of such Member or must be authorized by a writing executed by such Member or an electronic transmission delivered by such Member to act for such Member as proxy at the meeting of Members and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of Members.

The “date of mailing of the notice” shall mean the date of the proxy statement for the solicitation of proxies for election of Directors and (b) “public announcement” shall mean disclosure (i) in a press release either transmitted to the principal securities exchange on which Shares of the Fund are traded or reported by a recognized news service or (ii) in a document publicly filed by the Fund with the U.S. Securities and Exchange Commission.

 Notwithstanding the foregoing, a Member shall also comply with all applicable requirements of state law and of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in Section 12.9 of the LLC Agreement. Nothing in Section 12.9 of the LLC Agreement shall be deemed to affect any right of a Member to request inclusion of a proposal in, nor the right of the Company to omit a proposal from, the Fund’s proxy statement pursuant to Rule 14a-8 (or any successor provision) under the Exchange Act.

The Board of Directors may from time to time require any individual nominated to serve as a Director to agree in writing with regard to matters of business ethics and confidentiality while such nominee serves as a Director, such agreement to be on the terms and in a form determined satisfactory by the Board, as amended and supplemented from time to time in the discretion of the Board.

Item 16. Controls and Procedures

(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective as of a date within 90 days of the filing date of this Report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not applicable.

Item 18. Recovery of Erroneously Awarded Compensation

Not applicable.

Item 19. Exhibits

(a)(1) Registrant’s Code of Ethics is filed herewith.

(a)(2) Not applicable.

(a)(3) A separate certification for each of the Registrant’s Principal Executive Officer and Principal Financial Officer as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 is filed herewith.

(a)(4) Not applicable.

(a)(5) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fundrise Innovation Fund, LLC

By	/s/ Benjamin S. Miller
	Name: Benjamin S. Miller
	Title: President
Date	May 30, 2026

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By	/s/ Benjamin S. Miller
	Name: Benjamin S. Miller
	Title: Principal Executive Officer
Date	May 30, 2026

By	/s/ Alison A. Staloch
	Name: Alison A. Staloch
	Title: Treasurer and Principal Financial Officer
Date	May 30, 2026

FAQ

What total return did VCX report for the year ended March 31, 2026?

The Fund reported a 68.39% total return on net asset value for the year ended March 31, 2026. This return reflects net realized gains and substantial unrealized appreciation in private, Level 3 holdings as disclosed in the financial statements.

How did VCX shares perform in market trading after the NYSE listing?

From the listing on March 19, 2026 through March 31, 2026, the Fund reported a 319.04% market-price return. That market-price metric covers the short period between listing and the fiscal year-end per the filing.

What were VCX’s net assets and NAV per share at March 31, 2026?

As of March 31, 2026 the Fund reported net assets of $678,918 and a NAV per share of $18.97, with 35,797,138 common shares outstanding, as shown on the Statement of Assets and Liabilities.

Which holdings made up the largest portions of VCX’s portfolio?

The top holdings by value included Anthropic ($112,418), Databricks ($95,736), and OpenAI Group ($84,163), which together contributed materially to the Fund’s concentrated exposure in AI and technology private equity.

Does VCX use leverage or senior financing?

Yes; the Fund reported reverse repurchase agreements with a payable balance of $15,879 as of March 31, 2026, and disclosed average borrowings and a weighted average interest rate of 4.71% for the year.