Pre-IPO investing has long been an exclusive opportunity only available to wealthy, accredited investors. However, with recent changes in regulations and the rise of equity crowdfunding platforms, there are now more options for non-accredited investors to get access to pre-IPO opportunities. Though risks remain, it can be a way for regular investors to diversify their portfolio. This article will explore strategies like micro-investment, SPACs, and online platforms that are broadening pre-IPO investment to a wider pool of investors.
Look into investment minimums
Many pre-IPO opportunities still require high minimum investments, often over $10,000. However, some platforms are now allowing micro-investment in pre-IPO companies, with minimums as low as $100. This makes the asset class attainable for non-accredited investors. Do research to find platforms with low pre ipo investment minimums.
Consider investing in a SPAC
Special purpose acquisition companies (SPACs) allow everyday investors to indirectly invest in private companies going public. SPACs raise money through an IPO to target acquisition of a private company. Once acquired, the private firm becomes publicly traded. Though riskier, SPACs open up pre ipo investing to non-accredited investors.
Leverage online investment platforms
Online investment platforms are increasing access to pre-IPO opportunities. Platforms like EquityZen, SharesPost, and Forge Global connect investors to pre-IPO shares in leading private companies. Some focus specifically on unicorns and allow you to build a portfolio across hot pre-IPO startups.
Consider joining an investment syndicate
Joining an investment syndicate, like those on AngelList, can give you access to pre-IPO deals. The syndicate lead pools funds from individual investors, letting members collectively invest in exclusive pre ipo opportunities.
Pre-IPO investing is becoming more accessible to non-accredited investors thanks to new platforms and innovative models. While risks exist, it allows you to gain exposure to private market opportunities.