Prospective investors go through a thorough due diligence process, after which they can bid anonymously. Orders of interest for buyers & sellers follow a similar process: both fill an investor qualification questionnaire while funds and shares are deposited in an escrow account by buyers and sellers, respectively.
You access LevelX secure web portal and complete the Investor Qualification Questionnaire.
Upon approval, you will have access to our Pre-IPO inventory with the ability to enter order of interest, which will be followed by request for supporting documentation
Private Equity “Pre IPO” – Investing in companies before they go public
Private Equity is an asset class which involves unregistered securities. Because of this it is highly risky, as organizations do not have the public disclosure requirements beholden to publicly traded companies. Private Equity has historically been the realm of large well capitalized and sophisticated firms such as Venture Capital, Family Offices, Hedge Funds, and High Net Worth individuals. A trend has been emerging in the IPO market whereby high growth companies are delaying their IPO in many cases substantially. Company valuations of these Pre-IPO companies have ballooned to as much as $60 Billion and more, all the while staying private. Meanwhile, a secondary market of shares has emerged known as “Pre IPO” which focuses on late stage companies that typically would already be public. According to the strict definition of “Unicorn” that’s a $1 Billion valuation, but most common names have valuations much higher. This market is not easy to access, because of the traditional barriers to entry and the firms that mostly make up the market are mostly long-term investors and are not interested in receiving tender offers. LevelX has built a database of hard to find sellers, specialist firms, Venture Capital firms, and other active participants in this market.
While the focus is often at the late stage or ‘mature’ Pre-IPO stage, companies could be anywhere on the time horizon. Investors typically avoid very early stage companies due to the high risk associated with startups. What’s fascinating about this asset class are the kinds of companies that it’s producing.
If you’d like to learn more, we can setup a meeting in person or virtual to discuss:
Well known Pre IPO “Unicorns”
Pre IPO investing as an alternative asset class (As part of Private Equity)
How the process works and what LevelX can offer