Invest in Pre-IPO Shares and Stocks

Typically, startup companies make some private sale of shares available for purchase before conducting an Initial Public Offering (IPO). This is known as the Pre-Initial Public Offering (IPO) placement. Pre-IPO placement is done by startup companies as a way to raise their capital in order to meet the demands of the public market. They usually sell large blocks of stock at a discounted price while they are still held privately. Pre-IPO investing gives opportunity for the investors to invest and buy pre-IPO shares in private businesses that will soon be traded publicly. Most of the investors are private-equity firms, hedge funds, or large investment banks.

Of course, just like any other investments, investing in pre-IPO could be risky yet can be very worthwhile. Just a spike can quickly turn even a small private company into an enormous one, and it will be very rewarding for the investors once it goes publicly as they will profit from their shares.