Purchasing Unlisted Companies

[NikG]

Hi,

fairly new to trading but wondering if anyone knows how to purchase shares prior to the IPO or is this not possible?

much appreciated 

nik 

[DSchenk]

Yes, it's possible. That's called private equity.

If you have at least 50k to invest, then you can participate in so called Seed rounds, where private companies sell shares to private as well as institutional investors (so called VC, Venture Capitalists).

Once a firm has exhausted all their seed rounds, they typically do a Series A fund raising (and Series B/C), where they raise a few million $ before the big IPO, where you typically raise north of $100 million up to several billion $.

Easier option is to go directly to a Venture Capitalist firm, give them your money and tell them to invest it in private equity. But again, need 50k+ at least, before they even start talking to you.

[Guest Nik G]

On 16/10/2020 at 01:19, DSchenk said:

Yes, it's possible. That's called private equity.

If you have at least 50k to invest, then you can participate in so called Seed rounds, where private companies sell shares to private as well as institutional investors (so called VC, Venture Capitalists).

Once a firm has exhausted all their seed rounds, they typically do a Series A fund raising (and Series B/C), where they raise a few million $ before the big IPO, where you typically raise north of $100 million up to several billion $.

Easier option is to go directly to a Venture Capitalist firm, give them your money and tell them to invest it in private equity. But again, need 50k+ at least, before they even start talking to you.

Awesome, thanks so much for the response DSchenk. Might be a few more years for me yet then :) 

[Guest Nik G]

Awesome, thanks so much for the response DSchenk. Might be a few more years for me yet then :)