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Pre-IPO Advantages

Reasons to invest in major companies that are not listed on the stock exchange

Sergei (CPO at UTEX.io) avatar
Written by Sergei (CPO at UTEX.io)
Updated over 2 months ago

Pre-IPO investment means buying shares of private companies at the stage preceding the IPO (placement on the stock exchange). We mainly select tech companies from Silicon Valley, which, by all indications, can enter the stock exchange within 1-3 years. As a rule, these private companies are already larger than many public ones.

Young private companies grow faster than public ones

Investments in pre-IPOs have a greater return potential compared to trading in the stock market and lower risks compared to investments in startups.

In general, young private companies grow faster than major public companies.

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Investment returns are higher than at the IPO stage

It used to take 4-5 years from the foundation of a company to its IPO. Today, it takes 6-12 years. Thus, the main profit for investors is generated even before the company goes public. In addition, at the pre-IPO stage, investors have the opportunity to buy shares of a popular company at a relatively low price.

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