Pre IPOs (Startups)
How To Invest in Pre-IPO Start-Ups? Did you know that many billionaire and millionaires make their fortune by investing in companies before they are available in the general stock market? Sounds unfair right? Well, today, there are ways to invest in start-ups before their initial public offering (IPO). Here, we will show you what start-up investing is and how you can get started getting your own pre-IPO investments.
What is Start-Up Investing?
Start-up investing generally refers to investing in companies before they sell their shares to the general public. Usually start-up investing is extremely risky because these companies may not have a marketable product or service. In a number of cases start-up investors are simply investing in the idea of the founders rather than solid fundamentals.
Why Invest Pre-IPO?
One of the most compelling reasons to invest in a company pre-IPO is the incredible returns one can make. Imagine being able to invest in Apple or Tesla before they were available in the general stock market? While investing pre-IPOis risky, the chance for life changing returns may be worth it.
Three Platforms that Offer Pre-IPO Investing
The good news is that there are a number of ways that you can invest in companies pre-IPO. Here’s a look at three platforms which currently offer pre-IPO investing opportunities.
Raison is a popular pre-IPO trading app platform which allows you to get started with as little as 1 Euro. The platform makes it easy to vet companies by their sector, stage of development, current valuation, country and founding date. You will find a number of familiar names on the platform including Patreon, Neuralink, Kraken and more.
2). Our Crowd
Our Crowd is another start-up investment app that allows you to invest in vetted companies as well as venture funds. The one big advantage that Our Crowd offers iis that the platform carefully selects the most promising start-ups and funds for investors. Investment opportunities on the platform include start-ups such as Platish, BetterSeeds, and Anodot.
3). Equity Zen
Equity Zen allows you to buy and sell shares in private companies. You will find lots of familiar names on the platform including AirBnb, Rivian, Chime, and SpaceX. The company does a good job of vetting the companies to ensure that you have good private companies to choose from.
What You Should Know About Pre-IPO Investing
While pre-IPO investing can offer you lots of amazing opportunities, it is important to know that these types of investments carry some major risks. As private companies, you will not have access to quarterly reports and the usual transparency that comes with investing in a publicly traded stock. Therefore, you should only use speculative funds for this type of investment.
Getting In Before the IPO
Investing in a company for its IPO can give you an amazing edge. Be sure to explore each of the platforms listed above and carefully consider your risk tolerance before you invest. With a good pre-IPO investment or two, you may experience some incredible returns.