At HUDSONPOINT, we are committed to bridging the gap between sophisticated investors and can offer private pre-IPO opportunites by leveraging our exclusive network, we provide our clients with access to pre-IPO offerings that were once the domain of select insiders.

In the past, we have given access to companies within the cybersecurity, technology, data mining, and AI space among others. These Pre-IPO opportunities can possibly offer both growth potential and portfolio diversification for investors that are willing to tolerate greater risk.

What are Pre-IPOs?

Pre-IPOs, or Pre-Initial Public Offerings, involve purchasing shares of a private company before it goes public. For investors, these early-stage investments investments have the potential for substantial returns while giving companies critical capital to fund growth.

How Do Pre-IPOs Work?

Unlike traditional public investments, pre-IPO shares are often steeply discounted, making them an attractive option for those with high-risk tolerances who see to maximize returns. Pre-IPO investing can also serve as a bridge to accessing some of the most promising companies before they go public.

Here’s how pre-IPO shares work:

• Private Sale: Companies sell pre-IPO shares privately to select investors, such as venture capitalists, hedge funds, and select individuals.
• Valuation Growth: Investors purchase these shares at a discounted valuation, which may rise significantly once the company goes public.
• Liquidity Events: Upon the IPO or a liquidation event, investors can sell pre-IPO stock, potentially realizing significant gains.

Why Invest in Pre-IPOs?

Imagine the possibility of acquiring shares in a company before it becomes a household name. Pre-IPO investments are very risky but allow qualified investors to purchase shares of private companies at valuations typically much lower than those seen after an initial public offering (IPO).

Pre-IPO investments offer several key benefits that set them apart:

Possible High Rates of Returns

Investing early can allow an investor to purchase shares at a discount compared to the IPO price, allowing for potentially significant returns once the company goes public.

Portfolio Diversification

Pre-IPOs offer exposure to private markets, providing a level of diversification not typically available through traditional stocks or mutual funds. Unlike stocks that fluctuate with market trends, pre-IPO shares offer a chance to participate in private markets with unique growth dynamics but do carry their own risks.

Access to High-Growth Sectors

Many pre-IPO opportunities are in dynamic industries such as technology, biotechnology, and renewable energy, sectors often driving innovation and growth.

Exclusive Opportunities

Historically, access to pre-IPO shares has been limited to institutional investors. HUDSONPOINT capital democratizes this process. Our network provides access to pre-IPO shares that would otherwise be limited to institutions. Our solutions can help gain insider access to high-growth opportunities.

What Are The Risks Of Investing in Pre-IPOs?

Lack of liquidity. Pre-IPOshares are not as easily tradable as those in public markets. Investors should expect to wait several years before a company goes public or is acquired,during which their capital is typically locked up.

Higher uncertainty. Startups and private companies often operate in highly competitive environments. On top of this, private companies are not required to disclose information about their financials, growth and performance publicly, which can pose a due diligence hurdle for private market investors. Even with thorough due diligence, the success of these companies can be unpredictable. Working with an experienced broker in the pre-IPO market can help mitigate this risk and arm investors with the information needed to make prudent decisions.

Valuation risks. Determining the fair value of a pre-IPO company is challenging. Overvaluation at the time of investment can result in disappointing returns, even if the company performs well post-IPO.

Regulatory and market risks. Changes in regulatory landscapes or market conditions can significantly affect the trajectory of a private company. For instance, shifts in data privacy laws,technology standards or economic downturns can adversely affect their prospects.

Overcoming Barriers to Entry

Traditionally, pre-IPO investments have demanded substantial capital and insider connections, making them out of reach for most investors.

Our team conducts comprehensive due diligence to carefully select opportunities that align with each client’s unique financial goals and risk profiles. We simplify what was once a complex and exclusive endeavor, ensuring a seamless journey from qualification through investment.

Examples Of Previous Pre-IPO Offerings

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Please keep in mind that this is not an exhaustive list. These offerings are exclusively available to qualified and sophisticated investors.

How We Access Pre-IPOs

Traditionally, pre-IPOs have been conducted on a ‘first come, first served’ basis and require significant investment stakes. Until recently, pre-IPO access has been limited to hedge funds, private equity firms, venture capital firms, insurance companies, and other institutions.

The investments we can offer are structured in such a way that we only take a single “slot” of a company’s capitalization. Retail investors can then purchase membership interests in a company’s funds at lower dollar amounts.

Once the company in question goes public, shares may be liquidated or distributed shares to the members, depending on market conditions and the investment valuation.

This kind of opportunity gives retail investors access to the pre-IPO market. While it’s important to remember that pre-IPO investments also carry inherent risks, we work hard to continually find what we beleive are the best opportunities for our clients.

Choosing the Right Pre-IPO

‍With over 50 combined years of client-focused financial experience, we pride ourselves on our transparency and goal-oriented approach. Our financial professionals help you choose pre-IPO shares that suit your investing style, risk tolerance and goals.

For qualified retail clients, we have two sources of insider shares:

• ‘Unicorn’ startup employees who want liquidity
• Angel investors and venture capitalists looking for liquidity

If you’d like to learn more about the pre-IPOs we have available right now, please schedule a call, and we’ll get in touch with you!

Take the Next Step

‍Pre-IPO investing may offer a unique opportunity to grow your wealth and diversify your portfolio. HUDSONPOINT capital has the access to investment offerings, expert guidance, and a streamlined investment process.