The allure of investing in pre-IPO stocks lies in their potential for outsized returns. It’s not uncommon for private equity investments to multiply 10x, 20x, or even 100x before a company goes public. For example, Blackbird’s initial $3 million investment in Canva is now valued at over $1 billion—a staggering 337x return.
While pre-IPO investments can be risky, a single successful deal—like Canva—can offset losses across an entire portfolio. For individual investors, the right pre-IPO opportunity could be life-changing.
In the past, access to pre-IPO shares was restricted to well-connected investors with millions to spare. However, in 2025, buying pre-IPO stock has never been easier. Below, we explore five proven methods to invest in pre-IPO companies today.
What Are Pre-IPO Stocks?
Pre-IPO stocks represent shares in private companies that haven’t yet undergone an initial public offering (IPO). These shares are typically held by:
- Founders & employees
- Venture capital (VC) & private equity (PE) firms
- Angel investors
Thanks to an influx of VC and PE funding, companies now stay private longer, reaching higher valuations before going public.
👉 Explore top-performing private marketplaces
The 5 Best Ways to Invest in Pre-IPO Shares
1. Buy Shares on a Secondary Marketplace
Secondary marketplaces allow accredited investors to purchase shares from employees and early investors. Popular platforms include:
- Hiive – Invest in SpaceX, Stripe, and Discord.
- EquityZen – Access late-stage startups before IPO.
- Forge Global – Trade private shares securely.
Note: Most platforms require accreditation.
2. Become an Angel Investor
Angel investors provide capital to startups in exchange for equity. To succeed:
- Have industry expertise and strong connections.
- Expect minimum investments of $200K–$400K per deal.
- Use crowdfunding platforms like AngelList or FundersClub.
3. Invest in Pre-IPO & Venture Capital Funds
For passive exposure:
- Fundrise Innovation Fund – Invests in OpenAI, Databricks, and Canva (minimum $10).
- ARK Venture Fund – Holds SpaceX and Anthropic ($500 minimum).
- Private Equity ETFs – Like Invesco’s PSP or ProShares’ PEX.
4. Make Indirect Investments
Buy shares of public companies invested in pre-IPO startups:
- Microsoft (MSFT) – Owns 49% of OpenAI.
- Salesforce (CRM) – Invested in Databricks.
Limitation: Pre-IPO holdings often represent a tiny fraction of public companies’ valuations.
5. Buy Shares on IPO Day
Some brokers (TradeStation, Webull) offer pre-IPO shares hours before trading begins.
FAQs
🤔 Can Anyone Invest in Pre-IPO Stocks?
Yes, but direct investments (secondary markets, angel investing) require accredited investor status. Indirect exposure (VC funds, public stocks) is open to all.
📊 How to Evaluate a Pre-IPO Investment?
Ask:
- Why is this team the best?
- How strong is customer demand?
- What’s the business model?
- Why is now the right time?
⚖️ Pros & Cons of Pre-IPO Investing
| Pros | Cons |
|----------|----------|
| High return potential | High risk |
| Diversification | Limited financial transparency |
| Early access to unicorns | Illiquidity (hard to sell) |
👉 Discover private market opportunities
Final Thoughts
Pre-IPO investing offers high-risk, high-reward opportunities. While recent SEC changes have democratized access, thorough due diligence is crucial. Always assess risks and consult financial advisors before committing capital.
Disclaimer: Past performance doesn’t guarantee future results. Investing involves risk, including total loss of principal.
### **Key SEO Elements**
- **Primary Keywords:** Pre-IPO stocks, private equity, venture capital, secondary marketplaces, accredited investor
- **Secondary Keywords:** IPO, angel investing, VC funds, indirect investments, startup investing