ClearView AI has emerged as one of the most talked-about artificial intelligence (AI) companies in recent years. Known for its highly sophisticated facial recognition technology, ClearView AI has attracted the attention of investors seeking opportunities in the AI and data security space. However, one of the most frequently asked questions by potential investors is, “Can I invest in ClearView AI through Fidelity?” Below, we explore everything you need to know about ClearView AI, its investment options, and how platforms like Fidelity Investments factor into the equation.
What is ClearView AI?
ClearView AI is a privately-held company that specializes in facial recognition software. The company’s database contains billions of images collected from various public sources, making its technology one of the most powerful and controversial in the industry. ClearView AI’s clients include law enforcement agencies, government organizations, and private entities across the globe, all of which use the platform for security purposes and identity verification.
Despite its rapid growth and technological advancements, ClearView AI has faced criticism for privacy concerns, as its database is built using publicly available images from social media platforms and websites. This has led to regulatory scrutiny, particularly in Europe and parts of the United States.
Is ClearView AI Publicly Traded?
The first thing to understand when considering an investment in ClearView AI is that it is not currently a publicly traded company. As a privately-held company, ClearView AI is owned by its founders, early investors, and venture capital firms. Unlike public companies that can be traded on major stock exchanges like the NASDAQ or New York Stock Exchange (NYSE), private companies like ClearView AI limit who can invest.
Therefore, you cannot invest in ClearView AI directly through a platform like Fidelity Investments or any other major brokerage that facilitates the trading of public stocks. Fidelity primarily focuses on publicly traded securities, which means that private companies like ClearView AI are out of reach for retail investors.
How to Invest in Private Companies Like ClearView AI
Although you cannot directly invest in ClearView AI through Fidelity, there are a few potential avenues for investing in private companies like ClearView AI:
1. Venture Capital Firms and Private Equity Funds
One way to gain exposure to private companies is through venture capital (VC) firms and private equity (PE) funds. These firms pool capital from accredited investors and institutional investors to buy stakes in promising startups and private companies like ClearView AI.
If you have the financial means and meet the requirements for accredited investor status (which often includes high net worth individuals), you could potentially invest in venture capital firms that have exposure to ClearView AI. Keep in mind that investing in venture capital or private equity requires a higher risk tolerance, longer investment horizons, and a significant amount of capital compared to traditional public stock investments.
2. Secondary Market Transactions
Another option is to purchase secondary market shares in ClearView AI. Sometimes, early employees or investors in a private company will sell their shares on a secondary market before the company goes public. This is typically done through platforms like Forge Global or EquityZen, which specialize in facilitating secondary transactions of private company shares.
However, these opportunities are often restricted to accredited investors and require a thorough vetting process to ensure compliance with private securities laws. Furthermore, shares in private companies like ClearView AI on secondary markets can be difficult to acquire and come with liquidity risks, meaning you may not be able to sell the shares quickly if you need to.
3. Pre-IPO Shares
Another potential way to invest in ClearView AI is to wait for a pre-IPO round of fundraising. Some companies allow select investors to buy shares before an initial public offering (IPO). If ClearView AI eventually decides to go public, this could be an opportunity for qualified investors to purchase shares before the stock is listed on a public exchange.
It is important to note that these pre-IPO rounds are typically limited to institutional investors and wealthy individuals. However, investment platforms like SharesPost and EquityZen occasionally offer access to pre-IPO shares for accredited investors.
Can You Invest in ClearView AI Indirectly Through Fidelity?
While you cannot directly invest in ClearView AI through Fidelity, there are indirect ways to gain exposure to companies involved in AI technology, facial recognition, and data security.
1. Investing in AI-Focused ETFs
Exchange-traded funds (ETFs) that focus on artificial intelligence, big data, and technology companies are available on platforms like Fidelity. These ETFs invest in a broad range of companies that are developing cutting-edge AI technologies, from hardware producers to software developers. While ClearView AI is not included in these ETFs, other companies that provide AI-powered solutions may give you similar exposure to this emerging market.
Examples of AI-focused ETFs available through Fidelity include:
- Global X Robotics & Artificial Intelligence ETF (BOTZ)
- iShares Robotics and Artificial Intelligence ETF (IRBO)
- ARK Autonomous Technology & Robotics ETF (ARKQ)
These funds invest in publicly traded companies involved in AI, robotics, and automation, providing investors with diversified exposure to the rapidly growing AI industry.
2. Investing in Companies Partnered with ClearView AI
While ClearView AI remains a private company, you may be able to invest in public companies that have business relationships or partnerships with ClearView AI. For example, technology providers or cloud infrastructure companies that support ClearView AI’s services might offer indirect exposure to the company’s success.
Though such companies do not disclose specific customer partnerships, businesses in the cloud computing, AI, and data security sectors could be involved with ClearView AI’s operations. Investing in major players like Amazon Web Services (AWS), Google Cloud, or Microsoft Azure could provide indirect exposure to ClearView AI’s growth, as these companies provide essential services to AI-driven firms.
3. Investing in Competitors of ClearView AI
Another strategy to gain exposure to the facial recognition market is to invest in publicly traded competitors of ClearView AI. Companies like NEC Corporation, Cognitec, and VeriLook offer facial recognition and AI-driven security solutions to various industries.
While these companies are not as controversial as ClearView AI, they operate in the same space and benefit from the growing demand for facial recognition technology across law enforcement, government agencies, and private sector businesses.
The Future of ClearView AI: IPO Possibility?
Although ClearView AI remains private as of 2024, there is ongoing speculation about whether the company will eventually go public through an initial public offering (IPO). Given the company’s rapid growth, high-profile partnerships, and media attention, an IPO could be on the horizon.
When ClearView AI does go public, it could offer a lucrative investment opportunity for those interested in AI technology and data security. Investors who want to participate in ClearView AI’s future growth should keep a close eye on news about the company’s potential IPO and be prepared to act when the opportunity arises.
Risks Associated with Investing in AI Companies
Investing in AI companies like ClearView AI comes with its own set of risks. As with any investment in emerging technologies, the AI sector is subject to market volatility, regulatory risks, and ethical concerns. Privacy issues surrounding facial recognition technology have led to increased scrutiny and government intervention, which could affect the profitability of companies like ClearView AI.
Furthermore, competition in the AI space is fierce, with numerous startups and established technology companies vying for market share. Investors should also consider the potential for legal challenges and privacy regulations that could limit the use of facial recognition technology in the future.
Conclusion
In summary, while ClearView AI remains a privately-held company that is not directly available for investment through Fidelity, there are alternative ways to gain exposure to the AI and facial recognition sectors. Investors can explore opportunities through venture capital funds, secondary market transactions, and AI-focused ETFs. Additionally, keeping an eye on a potential ClearView AI IPO could present a future opportunity for direct investment.
Fidelity Investments, being one of the leading platforms for retail investors, offers various indirect options to participate in the AI revolution. From ETFs that focus on AI technology to investing in competitors and partners of ClearView AI, Fidelity provides access to the emerging AI market for investors who want exposure to this rapidly evolving space.
For those willing to take on the risks associated with investing in AI companies, the future looks promising, especially as AI technology continues to advance and regulatory frameworks become clearer.
