What does pre-IPO mean?
Pre-IPO refers to the period before a company goes public. During this phase, investors can acquire shares — often at lower valuations than the expected IPO price.
Why invest pre-IPO?
Pre-IPO investments provide the opportunity to take positions in promising companies before the broader market gains access. If the company then goes public at a higher valuation, the returns can be significant.
What are the risks?
There is no guarantee that an IPO will actually occur. Companies can be delayed, lower their valuation, or choose a different exit strategy.