Was searching for information on investing in Pre-IPO rounds for companies. Can anybody help here about what is the process, what is the minimum amount required to invest, when the pre-ipo round opens for investment and whom to approach for such investments?
Pre IPO funding differs depending on our ticket sizes (Amount willing to invest),You can either invest directly for the exchange of shares in the target company in your name or you can pool your money with like-minded investors to an AMC like a company which would then get shares in its own name.
The minimum ticket size is around ten lakhs (Bare minimum)
The time of opening actually depends on the fund (I.e companies like EquityZen or something)
You have got to approach them directly and commit them an amount within a range towards a company, When they have got sufficient investors they will get all the paperwork done and ask you to transfer the amount which will then get you your shares.
My experience with equity zen has been dull so far, I am continually in touch with them for shares in Ola. I have offered them a ticket size of 15 Lakhs and yet have received nothing materialistic. This is a place where big whales come into play. So it is better we join a fund that invests in such companies if we really want to get into them rather than approaching them as an individual investor.
Thanks for the reply. Is there any criteria they use to get minimum investors like 50 or 100 investors. Do they inform the investor that so and so company will be coming with a Pre-Ipo offer and you can allocate the funds towards the same?
Do you know of any such funds that invests in startups and pre-ipos? Are they like portfolio management services?
No criterion as far as I know. They obviously have a target pool amount.I think that they might approach the target company know their plans and sell them to investors. Nope Unless you are a whale you have to run behind them. There are individual analysts (As they say) who are assigned to you, You will have to contact them regarding the companies.
A google search might lead you to a couple of contacts. I am dealing only with equityzen, If you are going after directly acquiring shares in your name The broker (Guy who sets up the deal) is out of the picture once the deal is done. However if you pool your money, Then the company might function like a PMS
I havent tried them . If any one has any info on this please share.