Investment Movie: “Inside the Pre-IPO Market”
LESSON 1 · 1 hour watch
Why Invest in Pre‑IPO
Staying ahead of the curve is our way to select investment opportunities for the Dizraptor platform. We track new types of high-return investments, such as pre-IPO.
What Pre-IPO Means
Pre-IPO investments refer to investing in privately held companies several months or years before they go public. Primarily, we target fast-growing tech companies from Silicon Valley, which have set the groundwork for listing within the next 1-3 years. These companies are often larger than many publicly traded companies and typically have valuations over $1B.
Until recently, such investments were only available to major funds, and the entry threshold was in millions of dollars. We at Dizraptor made pre-IPO investing possible for all ¹accredited investors. The entry threshold varies depending on market conditions, with a minimum of $1,000.
¹ To qualify, you must meet one of the criteria: your annual income for each of the prior two years should exceed $200,000 ($300,000 for joint income), your net worth should be at least $1M (excluding primary residence) or you should hold at least one license of FINRA’s Series 7, 65 or 82.
Pre-IPO vs Public Equity
Young private companies typically grow faster than major public ones.
Dizraptor’s Results
Here are several companies we invested in prior to their listing: Airbnb, Coursera, DigitalOcean, Robinhood, Palantir, etc. Over the past 4 years, our pre-IPO investment strategy generated on average +33% yearly return.
View the full list of our exits and portfolio companies at the end of the Invest Now section.