The Rising Number of High Net Worth Investors in Pre-IPO Securities
Why have wealthy investors surged as the leading buy-side participants in this market segment?
When Mark Zuckerberg launched Facebook, he likely didn’t expect that it would bring about a revolution in the way investors invest. As the social media phenom readied itself for IPO in 2012, both institutional investors and sophisticated individual investors identified the opportunity to access the steepest part of Facebook’s growth curve and began buying shares from early employees and investors prior to the IPO. The vibrant market for Facebook shares was a watershed moment, establishing a new market for actively trading private securities, albeit ones with high barriers to entry and distinct sets of challenges…