Why invest in pre-IPO?

Pros:

• Potential for high returns: By investing in a startup, investors can potentially gain outsized returns If the company performs well and its share price increases significantly, investors can earn substantially higher returns on their investment than someone who invested in the company's IPO
• Chance to build long-term wealth: Pre-IPO investing allows investors to invest in a company that is on its way up, potentially allowing them to build enormous wealth over a period of time
• Priority over later-stage investors: Pre-IPO investors are entitled to share in any proceeds from the sale of shares and are allowed to sell their holdings before the IPO takes place
• Influence and shape publicly traded companies ahead of time: Pre-IPO investors can influence and shape publicly traded companies ahead of time

Cons:

• Potential for low returns: The biggest risk associated with pre-IPO investing is that there is no guarantee that the stock will perform well If the IPO fails and there is no demand for the company's stock, investors might not get the returns they expect to get
• Higher risk: Investing in a pre-IPO company can potentially carry more risk. For one, the company might never go public or have a liquidity event A company that has not yet gone public is not as transparent as a company that is already trading on a public exchange

It is important to consider the risks and potential rewards before making an investment decision.