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Why Strategic Investors are choosing Pre-IPO Shares Over IPO

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Why Strategic Investors are choosing Pre-IPO Shares Over IPO allotments in India?


In 2025, while headlines celebrate the latest IPOs Ola Electric, Mobikwik, FirstCry, but here is the shocking truth: HNIs, family offices, and venture capitalists are not. Pre-IPO is their new golden boy rather than IPO. Why? Because the Pre-IPO market is a new guaranteed wealth builder instead of an IPO.


Why Strategic Investors Are Avoiding IPOs in 2025?


The current IPO landscape has very less to offer for HNIs, family offices, and venture capitalists. It’s overhyped, oversubscribed, with very poor listing day performance and rather unpredictable performance. The IPO grey market, which used to be a reliable indicator, is now marred by speculation and manipulation.


Moreover, most IPO-bound companies in 2025 are already priced for perfection, with little headroom for growth. This makes IPOs a short-term bet with high risk, especially in volatile markets. That’s why strategic investors are avoiding IPOs altogether and instead opting to enter companies before they go public, where the valuations are more attractive and the upside is significantly higher.


Pre-IPO vs IPO: The Return Gap


When comparing Pre-IPO investments vs IPOs, Pre-IPO is the clear winner. Pre-IPO investors can invest early, so the entry price is often low at valuations 30–50% lower than the IPO price. This early entry allows them to benefit from the full growth cycle of the company, including the IPO listing pop and post-IPO rally. In contrast, IPO investors often buy at the top of the valuation curve and rely solely on short-term listing gains, which have become rare and inconsistent.


This is why Pre-IPO investments in 2025 are delivering 2x to 10x long-term gains, IPOs are delivering short-term returns of just 5-15%, and often expose investors to listing day losses.


Here is how retail investors can be strategic investors with  Supremus Angel


Formally, only wealthy elite HNIs, VCs, and institutional investors had access to Pre-IPO investments due to the huge investment amount. Now, the landscape is changing, and Supremus Angel is leading that transformation. We made Pre-IPO investing easy for retail investors, providing handpicked early-stage opportunities that were previously out of reach.


Retail investors can now invest in high-potential companies before they go public, with minimum ticket sizes starting as low as ₹25,000. Supremus Angel offers end-to-end support, deal research, company background, investor education, and seamless onboarding. If you’re confused or trying to diversify investment, don’t worry, Supremus Angel gives you a front-row seat to startup equity before IPO.


Who Is Investing in Pre-IPO Shares in 2025?


HNIs are diversifying into unicorn pre-IPO valuations on priority, keeping the target of multi-bagger exits within 3-5 years in mind. Pre-IPO rounds are turned out to be profitable for Venture capital firms that before the company goes public they can plan profitable exit. This convergence of smart capital across the board validates the power of Pre-IPO.


Smart money follows the real growth; they see the potential in Pre-IPO investing


In a year when India’s most informed investors are no longer standing in line for IPOs because IPO allotment risks are at an all-time high, and listing gains are no longer guaranteed. They’re getting in early, riding the wave of startup growth before the public even hears the name.


Whether you’re an HNI or a salaried professional looking to build generational wealth, the real returns in 2025 are in early-stage equity investment before the IPO hype begins.

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