Pre IPO Investing Explained | Should You Buy Pre-IPO Stock?

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Pre IPO investing is getting more and more attention from retail investors so I wanted to take the opportunity to explain the upsides and risks to Pre IPO trading. I explain why buying pre IPO stock can lead to incredible gains due to the low cost of early pre IPO shares. However I mainly focus on the downside risks of investing in private company stock. The biggest risk when investing in private stock is that we have no clue about the fundamentals of the underlying business so we cannot accurately value the share price of pre-IPO companies. There are also dilution concerns from future fundraising rounds involving venture capitalists and the very real possibility that the private company you invest in never goes IPO or never gets acquired. There is also the IPO lockup period for insiders that you must take into account because you won't be able to sell your pre IPO stock until 3-6 months after the initial public offering. If you still want to buy pre IPO stock, I give a brief overview about a few options for buying private shares including private marketplaces like Equityzen, Forge Global, Sharespost, and Microventures. The caveat is that you must be an Accredited Investor in order to participate on these platforms. Investing in seed rounds as an angel investor is another option or even investing in a venture capital firm itself.

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Видео Pre IPO Investing Explained | Should You Buy Pre-IPO Stock? канала Brandon Built