Myths About Pre-IPO Investing You Should Stop Believing
Pre-IPO investing is one of the alluring investment options that is becoming the “next big thing” in the investment industry. It has gained great importance in the past few years and will boom even more in years to come.
Investing in pre-IPO can become a powerful tool for portfolio diversification and growth, and hence, before you are led away by the common myths that hinder your financial growth, it is necessary to separate the facts from fiction.
In this blog, we will illuminate the facts hidden behind the myths about early-stage investment that make investors hesitate to invest in startup companies in the private market. We will also learn about the right platform that assures transparency and end-to-end support in pre-IPO deals.
Let us understand the myths one by one along with the reality of this investment:
Myth 1: Pre-IPO Investing is Only for the HNIs and big investors
One of the biggest myths of the unlisted market that people still believe is that only HNIs and big investors invest in pre-IPO shares. This is one of the major reasons that has kept retail investors away from this market.
Fact: Yes, traditionally pre-IPO shares were only available to a select group of investors, including high-net-worth individuals (HNIs), banks, private equity firms, and other big institutions. This was mainly because there were certain criteria that investors had to meet like net worth.
But, gone are the days when retail investors couldn’t invest in pre-IPO shares because financial markets have now been democratized enough to make them easily accessible to retail investors.
In addition, platforms like Supremus Angel make it even easier for retail investors to invest in pre-IPO shares, get early access to growth companies, and earn higher returns.
Myth 2: There is a High Risk in Pre-IPO Stock Investing
The second prominent myth investors believe is that pre-IPO investing is a high-risk investment due to lack of information, valuation challenges, and failure potential. This myth is further transformed into a reason for discouragement when investors lack a source of knowledge/platform and channel for investment in pre-IPO shares.
Fact: Nowadays, smart pre-IPO investing involves careful due diligence and a diversified approach. With proper due diligence, you get to know the company's potential for growth making it reliable.
This process is simplified with our platform, where our specialized team of analysts meticulously analyzes company fundamentals. This makes it a reliable investment option even for retail investors.
The awareness of company fundamentals thus helps increase startup investments and early-stage investments effortlessly.
Myth 3: It's Hard to Know What's Happening Inside Private Companies
When it comes to private companies people often conclude that there will be a lack of information and transparency. In addition, the vested interest of third parties in the company leads to biased or incomplete information further discouraging the investors from investing.
Fact: While private companies don't have the same disclosure requirements as public ones, you can still access valuable information. You can easily access data via investor presentations, due diligence reports, and company websites.
Now, this has become easier and even better as Supremus Angel helps you understand companies better and also provides you with options to compare and choose from. As we already discussed we also provide meticulously analyzed company fundamentals helping investors understand companies growth over the years.
Myth 4: You can invest in pre-IPO only through third-party
One of the biggest myths you should stop believing is that pre-IPO investment means third-party investment. Pre-IPO investment is seen as a third-party investment because people are unaware of the correct path and platform while investing in private companies.
Fact: If you think this myth to be true then you have reached the right platform. The main reason why pre-IPO investments are secured and transparent is that investors exactly know where their money goes. The other investment channels often lack transparency as to where they are investing the money gathered from the investors and further, they enjoy multiple returns while you are left with fewer returns in percentage.
This isn’t the same with pre-IPO and surely not when you are investing with platforms like Supremus Angel where you can directly invest in the companies without any third party involvement. This gives investors clarity as to where they are investing their money. Apart from this, you get to enjoy higher returns like big investors and don’t have to settle for fewer returns in percentages.
Conclusion:
The right approach while making an investment decision is a must:
The best and most successful approach toward investment these days comes with systematic investment planning, awareness, knowledge, and thorough research about current investment trends, market situations, and the company you are investing in. It is not very far that the pre-IPO investments market will soon go far and beyond making it a big success for investors across India.
With Supremus Angel, you will never face a dilemma and will be able to unlock greater potential returns by investing in startup companies that raise private equity funds through your investment.
At Supremus Angel you will get end-to-end assistance while investing in the best pre-IPO deals. Here you can access the high growth stock opportunities and companies can find investors for startups. All this happens in a very systematic and secure way along with transparency as you invest through direct mediums in the companies.
