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Investing Pre-IPO: What Investors Need to Know to Navigate the Market

EquityZen
July 11, 2024
1 min read

In this article

    In this video, Brianne Lynch and Phil Haslett discuss what investors should consider when investing in the pre-IPO market. Here are the key factors:

    • Experience: Opt for platforms with years of operational expertise and a solid transaction history.
    • Fees: Understand both one-time and ongoing fees to ensure fair pricing and your upside potential.
    • Informed Decisions: Leverage robust private market data and tools to reduce market opacity.
    • Company Approvals: Ensure platforms secure necessary approvals for buying shares.
    • Success Likelihood: Check the platform’s due diligence process to understand their high success rates for secondary transactions.
    • Offerings: Look for a variety of investment options and frequent opportunities.
    • Investment Minimums: Compare minimum investment requirements across platforms.

    Disclaimer: Not all pre-IPO companies will go public or be acquired, and not all IPOs or acquisitions are or will become successful investments. There are inherent risks in pre-IPO investments, including the risk of loss of the entire investment, illiquidity, and fluctuations in value and returns. Investors must be able to afford the loss of their entire investment.

     

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