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Kiplinger
Kiplinger
Business
Brianne Lynch, CAIA

Is Pre-IPO Investing Worth the Risk of Getting Burned?

Part of a hundred-dollar bill is on fire.

Investing in companies before they go public, also known as pre-IPO investing, has garnered considerable interest, especially in recent years. The allure is undeniable: the chance to get in early on the next big thing, potentially reaping significant rewards when the company goes public. However, like with all investments, pre-IPO investing comes with risks.

So, is it worth it? Here we’ll weigh the potential risks and rewards to determine if it’s a worthwhile strategy for the average investor.

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