Pre-IPO — investing ahead of everyone else
“One step ahead” is an approach we take toward selecting new investment ideas for the United Traders platform. We keep track of new types of investments with high returns such as pre-IPO.
What pre-IPO means
Pre-IPO investments mean investing in private firms several months or years prior to their listing. We select the best companies from Silicon Valley which have basically set the groundwork for becoming publicly-traded within the next 1-3 years. These companies may be larger than many publicly-traded ones and come with a valuation of over $1 billion.
Until so far such pre-IPO investments have been accessible only to major investors, the entry threshold was from $10 million. We at United Traders made pre-IPO investing possible for everyone. The minimum investment is from $10.
How investments in pre-IPO work
Pre-IPO companies vs publicly-traded ones
The chart shows the value growth
- 200 private technology companies (pre-IPO)
- 500 largest publicly traded U.S. companies
Overall, young private companies grow at a faster pace than major publicly traded ones.
Source: crunchbase.com
Pre-IPO vs IPO
The chart shows a better profit from pre-IPO investing due to a lower entry price
- Return from pre-IPO
- Return from IPO
Percentage of applications fulfillment
Share allotment means the percentage of share allotment you get with your application. The more people subscribe to an investment, the fewer shares can be sold to every one of the investors who has joined. For instance, if you apply for $1,000, and the share allotment is 10%, you eventually get shares for only $100, the rest $900 will return to your account.
In 2020 the share allotment for IPO investment ideas has been about 7%. The share allotment for pre-IPO investments is 100% since the buy-in process is different.
Allotment in IPO ≈7%
Allotment in pre-IPO — 100%
Examples of several IPOs and pre-IPOs
