Pre-IPO refers to the period before a company officially offers its shares to the public. During this phase, companies may raise funds from private investors, venture capitalists, or institutional investors. Pre-IPO investments often happen at a lower valuation, offering higher return potential.
These investments are considered high-risk but high-reward, as they’re based on projected company performance. Pre-IPO shares are not available to the general public and are typically reserved for accredited investors.
Why Invest in Pre-IPO?
Early access to high-growth companies
Opportunity for substantial returns
Portfolio diversification
However, pre-IPO investments come with risks like lack of liquidity and limited public information.
