Why investing in pre-IPO companies is attracting attention
Many of the world’s most interesting and promising companies stay private for longer. This means a substantial part of the growth and value creation often takes place before a public listing.
Historically, access to these investment opportunities has been reserved for venture capital funds, institutional investors, and well-connected family offices. Invesdor aims to democratize capital markets and offer selected investment opportunities in pre-IPO companies to retail investors.
Investing in pre-IPO companies is not the same as investing in publicly listed companies. Pre-IPO secondaries typically involve lower liquidity, longer expected holding periods, and a more complex legal structure. For this reason, transparent documentation, careful review of the investment opportunity and material, and diversification are central to this product.
What waitlist members can expect
By signing up for the exclusive waiting list, investors can ensure early access to the first pre-IPO secondary investment opportunity on Invesdor.
Early notification
Be among the first to hear when the first pre-IPO secondary investment opportunity becomes available.
Priority access
Gain access before the wider public launch on Invesdor, subject to final allocation mechanics.
Detailed project info
Receive background information on deal structure, risks, timelines, and exit mechanics.
Important risk information
Investing in pre-IPO secondaries involves significant risks and is not suitable for all investors. The return may be significantly lower than anticipated. The full amount invested might be lost. Your capital is at risk.
Pre-Ipo secondary investments are typically illiquid, which means you may not be able to sell your investment for prior to an exit. Exit timing depends on future events such as an IPO, acquisition, or secondary transaction. An exit might be significantly delayed or may not occur at all.
Company names used on this page are for illustrative purposes only and do not constitute confirmed investment opportunities unless explicitly stated in the live offer documentation.
Please familiarize yourself carefully with all relevant investment documentation prior to making an investment decision.
FAQ: Pre-IPO investing via Invesdor
Investing in pre-IPO secondaries refers to investing in a company before it becomes publicly listed on a stock exchange. Such investment opportunities have typically been available only to venture capital or private equity funds, institutional investors or family offices.
A secondary transaction refers to the fact that the shares are aquired from a current shareholder in the company. Access for retail investors to these investment opportunities is often structured with intermediate structures such as Special Purpose Vehicles (SPVs).
Retail investors do not invest directly in the target company. Retail investors typically invest directly through a Special Purpose Vehicle (SPV) or through a bond issued by a SPV. This is often called a derivative as the value of the investment product is derived from the return on another asset, or the target company. The SPV acuires the shares in the target company on behalf of the investors.
Upon a potential future exit the SPV sells the shares in the target company and repay the funds to the investors either directly or through repaying the bond issued to the SPV. The exact structure will always be described in the relevant deal documentation.
Despite legally being structured as a bond issued to an SPV, or a derivative, the investment product has equity-like characterisics and should be regarded as such.
The timing of an exit depends on future liquidity events of the target company such as an IPO, trade sale, acquisition, or secondary sale. These events are uncertain and may take years or may not occur at all.
Upon an exit event the proceeds from the exit are paid to the Special Purpose Vehicle (SPV). The SPV repays the bond issued to the investors. The shares in the target company acquired to the SPV might be subject to a lock-up period. Lock-up periods vary but are typically 6 – 12 months. The investors in the bond issued to the SPV or directly in the Special Purpose Vehicle can only be repaid after the final exit in the target company by the Special Purpose Vehicle.
The return on investment to the investors in the bond issued to the SPV or in the SPV directly depending on the structure of the investment product is dependent on the valuation of the target company at the time of exit. This valuation may be different from the valuation at the exit by the target company.
No. Investing in pre-IPO secondary transactions is generally more complex and involves more risk than investing in publicly listed securities such as stocks or bonds.
Pre-IPO secondary transactions may be suitable only for investors who understand the risks associated with the investment opportunity. The risks include but are not limited to illiquidity, valuation uncertainty, and long holding periods.
The waitlist allows investors interested in pre-IPO secondary investment opportunities to register and receive information before the first pre-IPO secondary investment opportunity is made available by Invesdor.