EXPLORE INVEST PRIOR TO IPO

Access is only the first question.

Structure, valuation, fees, ownership, and the ability to sell matter just as much. Work through them one at a time.

Deal structure

Direct shares or an SPV

Direct shares and an interest in a special purpose vehicle can provide different rights. Ask who appears on the company’s shareholder register and what legal interest you receive.

Read: Direct shares, funds, and SPVs: ask what you own ↗Ask about deal structure

Ownership & fees

The valuation and fees

Request the share class, entry price, all layers of fees, carried interest, and relevant dilution assumptions. A headline company valuation does not describe your net economics.

Read: Before considering a pre-IPO investment ↗Ask about ownership & fees

Exit uncertainty

When I could sell

An IPO is uncertain and may never occur. Transfers can require issuer approval and holding periods can be long. Read the actual liquidity and transfer terms.

Read: Plan for an investment you may not be able to sell ↗Ask about exit uncertainty

Editorial illustration of business owners reviewing documents together

TAKE THE NEXT STEP

Make room for a better-informed decision.

Discuss a company