Frequently asked questions
Short, sourced answers on pre-IPO investing, private markets and Unicorn Private.
- What is pre-IPO investing?
- Pre-IPO investing is the purchase of shares or economic interests in a private company before it lists on a stock exchange. It is most relevant for late-stage technology companies that stay private for years and reach valuations above one billion dollars.
- How can I invest in a company before its IPO?
- The main routes are direct secondary purchases of existing shares, special purpose vehicles that hold shares for several investors, funds, tender offers organized by the company, and participation in primary funding rounds. Most routes are restricted to qualified or professional investors.
- Can anyone buy pre-IPO shares?
- Generally no. Private offerings are usually reserved for qualified, professional or accredited investors, and most companies restrict transfers of their shares. Rules differ by country, so investors should check their own jurisdiction.
- What is a unicorn company?
- A unicorn is a privately held company valued at more than one billion dollars. Companies above 10 billion dollars are called decacorns, and above 100 billion dollars hectocorns.
- Which are the most valuable private companies in 2026?
- As of 20 September 2026, the highest reported private valuations in our tracker are Anthropic, OpenAI and ByteDance. SpaceX is no longer private: it listed on Nasdaq as SPCX on 12 June 2026. See the unicorn tracker for figures, dates and sources.
- Is SpaceX still a pre-IPO investment?
- No. SpaceX priced its IPO on 11 June 2026 at 135 dollars per share and began trading on Nasdaq under the ticker SPCX on 12 June 2026.
- What is a lock-up period?
- A lock-up is a period after an IPO during which existing holders cannot sell their shares. For SpaceX, reporting indicates 366 days for insiders and 180 days, with staggered release, for other pre-IPO investors.
- What is a right of first refusal (ROFR)?
- A ROFR lets the company or existing investors match the price of a proposed sale and buy the shares instead of the outside buyer. It is one of the main reasons private share transfers can be delayed or blocked.
- What is the difference between an SPV and a fund?
- An SPV usually holds the shares of a single company for a group of investors, while a fund holds a portfolio of investments. Both can add management fees and carried interest on top of the share price.
- What are the main risks of investing in private companies?
- Illiquidity, valuation opacity, limited information, layered fees in pooled structures, transfer restrictions and uncertainty over the timing and outcome of an exit. The whole investment can be lost.
- How are private company valuations determined?
- They usually come from the latest priced funding round or from secondary and tender transactions. They are negotiated values, not market prices, and can differ from what a buyer would pay today.
- What is Unicorn Private?
- Unicorn Private is a private equity firm established in 2015 and structured as a Delaware LLC. It acquires secondary market stakes in late-stage technology companies before their IPO. It was founded by Lorenzo Gussoni. Its website is unicornprivate.com.
- Who publishes Unicorn Private Research?
- Unicorn Private Research is the research publication of Unicorn Private. Content is educational and cites public sources. It is not investment advice.