Rivian’s Hidden Venture Portfolio
How $1.1B in investments stay off the books (for now)
Rivian holds meaningful stakes in two venture-backed spinoffs, Also, Inc. (~31% (est.) at ~$1B) and Mind Robotics (~40% at $2B), worth a combined ~$1.1B. Due to how each entity is accounted for under GAAP, almost none of this value is visible in Rivian's financials.
Here’s how the accounting works and when that might change.
Also, Inc. (Equity Method)
Current status:
Accounted for under equity method (ASC 323) since formation
Rivian’s initial stake was 49.8%, just below majority, most likely structured to avoid consolidation
Rivian has been diluted through successive rounds from 49.8% to ~31.4% (estimated, assumes $200M in new capital). Scaringe remains chairman of the board, and DoorDash co-founder Stanley Tang has joined as a Board Observer
Appears as a single line item inside “Other non-current assets” on the balance sheet, carried at ~$120-140M (well below the ~$314M implied fair value)
Financial impact of the latest round (DoorDash and Prysm joining Also’s Series C at ~$1B, March 31, 2026):
Multiple outlets reported $200M in new funding, though the primary sources are ambiguous on whether this is additional capital or a reference to the existing Series C size. Exact amount may differ
Small “dilution gain” flows through Other Income, likely immaterial based on precedent
Dilution gains are based on the change in Rivian’s share of Also’s net book assets, not the headline valuation. The premium over book value that investors paid does not flow through to Rivian’s financials
The 10-K disclosed that prior Series C dilution gains were “not material,” and this round is similar in mechanics
Rivian cannot mark its Also stake to fair value because GAAP requires equity method when the investor has significant influence
What happens next:
If Rivian continues getting diluted below ~20% and loses the board seat, the investment reclassifies from equity method to fair value. That triggers a one-time gain to mark up to current value, plus quarterly mark-to-market going forward
An IPO or sale of shares would also allow Rivian to realize gains at market prices
Mind Robotics (Consolidated VIE)
Current status:
Consolidated on Rivian’s balance sheet as a Variable Interest Entity (ASC 810)
Rivian has ~40% economic interest (down from 53.5% at formation) after the $500M Series A (co-led by Accel and a16z, announced March 11, 2026)
Rivian does not have voting control. The 10-K states Rivian has “disproportionately few voting rights” and Mind’s board controls the key activities. Rivian consolidates only because it is the “primary beneficiary,” meaning substantially all of Mind’s activities currently involve Rivian
No separate line item on the balance sheet. Mind's assets and liabilities are blended into Rivian's consolidated statements, with the only visible trace being the Noncontrolling Interest line in equity
Financial impact of the Series A:
No income statement impact. The Series A is an equity transaction under consolidation accounting
Mind’s $600M+ cash shows up on Rivian’s consolidated balance sheet, but Rivian cannot access it. It’s ring-fenced inside a separate legal entity with its own board and outside investors
NCI increases by ~$500M
What happens next:
Deconsolidation is likely when Mind’s operations extend beyond Rivian’s factory, which would trigger a one-time gain through net income (could be $500M+ depending on valuation)
After that, the stake shifts to equity method, where Rivian picks up ~40% of Mind’s operating losses each quarter, gradually eroding the carrying value over time (see Appendix for detailed mechanics)
Both the deconsolidation gain and the ongoing equity method losses would likely be excluded from Rivian’s adjusted metrics
Appendix
10-K Disclosures
Also, Inc. (equity method)
Mind Robotics (VIE consolidation)
Mind Robotics Deconsolidation Mechanics
At deconsolidation, Rivian removes all of Mind’s assets and liabilities from the consolidated balance sheet, remeasures its retained ~40% stake at fair value, and recognizes the difference as a one-time gain through net income. Rough math:
Mind’s net book assets at deconsolidation: ~$550M (mostly cash remaining from seed + Series A, minus burn)
Rivian’s ~40% share of that: ~$220M
Fair value of retained stake (40% x $2B): ~$800M
Estimated gain: ~$580M
After that, the stake shifts to equity method (Scaringe is chairman + ~40% ownership = significant influence). Once on equity method, the investment is carried at the new $800M fair value basis and is no longer marked to market.
Rivian then picks up ~40% of Mind’s operating losses each quarter. If Mind burns $50-75M/quarter, that’s $20-30M/quarter in equity method losses hitting Rivian’s income statement. Over time this erodes the carrying value set at deconsolidation. Equity method is a one-way ratchet: the initial gain sets the high-water mark, and losses only move the carrying value down from there (unless Mind becomes profitable or Rivian exits).
Disclosure: I am long RIVN. This is not investment advice.