How to Invest in Companies Before They Go Public
Companies used to do an initial public offering (IPO) when they were much younger, giving investors a much better chance of higher returns. Today, that’s where pre-IPO investing comes in.
First Arm, then Instacart and Klaviyo. More companies are starting to list publicly this fall, ending a historically quiet IPO market. Yet, by the time many of these companies go public at 10 or 15 years old, it’s worth asking how much growth is left for public market investors to capture. With venture-backed technology companies staying private longer than ever, how do investors go about accessing growth equity investments? The answer is pre-IPO investing.