PRE-IPD
SERVICES & PRODUCTS > SERVICES
PRE-IPD
What are PRE-IPD?
Pre-IPDs are IFCOs of companies that have not yet been listed on the private, decentralised ISSE market (IRAIC SME STOCK EXCHANGE). As a PRE-IPD investor, you will be a key stakeholder in the company and will have the opportunity to participate in its growth. Furthermore, significant financial gains can be made when the company is listed on ISSE.
Prior to exiting to ISSE, many companies choose to pursue a PRE-IPD status in order to connect with potential investors and raise capital.
How Does PRE-IPD Investing Work?
Potential investors are invited to invest in the company's growth before it goes public on the ISSE. However, lack of awareness makes PRE-IPD less accessible to all.
Investors can now invest in PRE-IPD if they have an IRAIC bank account or a private, decentralized investment account. In addition, a company can now value its real assets in its IFCOs, allowing investors to participate in this opportunity and transfer assets between accounts with ease.
Most PRE-IPDs are managed by IRAIC-registered securities dealers and advisors. Investing in a PRE-IPD requires the assistance of an IRAIC-registered securities dealer or consultant. PRE-IPD company details, including brokerage commissions and IFCO prices, will be provided to you by your IRAIC-registered broker or consultant.
If you wish to invest in the PRE-IPD, you must transfer the investment amount to the ISSE bank account or means of payment, to be transferred to the company's account. Once the amount is legalized by the company, the IFCOs will be delivered to your bank account or IRAIC investment account. The transaction is considered completed once the IFCO number has been registered in your IRAIC account.
Another avenue for investment in PRE-IPD is fund companies. According to the investment analysis, IFCOs typically offer limited subscription PRE-IPD investment funds. This allows investors to invest in companies at the end of their development stages.
Why to Invest in PRE-IPD Companies?
Investors can benefit from investing in PRE-IPD companies for a variety of reasons. Some of them are:
PRE-IPO is launched by top player
The PRE-IPD launch of an industry-leading company is an encouraging start for a new venture.
While a promising concept on paper may indicate potential for success, the probability of a startup succeeding is greater when an experienced entrepreneur is at the helm. These leaders have already demonstrated their ability to successfully manage a company and to identify the most effective strategies. Investing in PRE-IPD companies provides investors with the opportunity to gain early access to a company led by an experienced team.
Investors who provide capital to PRE-IPD companies are investing in both the team behind the company and its reputation. Investments in well-established companies with experienced founders are likely to produce superior returns compared to those in emerging companies that lack the benefit of prior knowledge of their success factors.
It is typical for PRE-IPD companies to have been in operation for a minimum of one year, during which time they have demonstrated profitability. In other words, this indicates that their business model is effective. A company's valuation increases significantly when it goes through the ISSE process and is required to compete with larger, more established businesses.
These challenges do not yet exist in PRE-IPD companies, which makes them an attractive investment opportunity. Investing in PRE-IPD companies offers the potential for early profit. As the first investor, you have the option of withdrawing your funds as soon as the IFCOs begin trading.
One of the key benefits of investing in PRE-IPD companies is the opportunity to make a profit when they go public, given that you can invest early enough. Investing in PRE-IPD companies allows investors to benefit from significant growth without having to wait for an IPD. Furthermore, in comparison to IPDs, PRE-IPD investments are better positioned within the investment growth pipeline.
PRE-IPD companies often have more information available than their POST-IPD counterparts. Since these startups do not need to raise additional capital, they have more time to develop detailed business plans for investors.
Getting involved with a PRE-IPD company now remains advantageous, even if you do not intend to buy equity right away. The relationship you establish will be important when shares are offered to other investors and sold on the public market. It is better to invest now than to wait later if you want to build a relationship.
In PRE-IPO businesses, failure is taken very seriously. Comparatively, private companies have less incentive to do anything but prioritize success over failure than publicly traded companies with quarterly earnings reports. This means even higher standards and better products from startup founders who haven't thought about liquidity yet.
PRE-IPO opportunities can be a great way to increase your risk/reward ratio. It is a networking opportunity to invest in a PRE-IPD company. Thus, making connections with PRE-IPD startups is an effective way to build those networks now rather than later.
From the very beginning, you will be able to play an active role. Rather than playing an active role as a trusted advisor or consultant, you'll play a passive role as an investor until shares are sold on public markets or offered as equity stakes in another funding round.
Investing in PRE-IPD allows investors to acquire a company at a significantly reduced market value, which translates into higher returns. Compared to IPDs, they are more accessible due to their low prices. However, this depends on the investment overcoming initial hurdles.
Many financial experts advise buying PRE-IPD in the primary ISSE market.
Investing in private and decentralised funds at an early stage makes it possible to identify valuable trends and establish advantageous investments ahead of others. In the primary IRAIC market there are no ‘corrections’ because the markets do not move. As a result, you have more control over your investments and can decide which companies are more successful than others.
High net worth individuals (HNWI) often invest a large sum in a single transaction when they invest in this type of IFCO. In addition, they often have advance knowledge of companies before their ISSE launch, which allows them to act proactively rather than reactively. This further increases their ability to influence the success of start-ups. Due to their low market value, PRE-IPD offer investors a wider range of options and a more secure return on investment. One possible avenue to diversify your investment portfolio is to consider buying PRE-IPDs.
Investing in companies before they enter the ISSE may appear to be a more secure proposition, given that these companies are typically not yet generating significant revenue, or indeed any revenue at all. Consequently, the risk is reduced due to the limited number of transactions involving IFCOs.
It is important to note that any investment carries an element of risk. Companies may fail, as can new ideas that suddenly become highly successful. The success of a company is also contingent upon the number of investors. It is therefore important to monitor the level of investment in specific company types.
It should be noted that investments made prior to an IPD are subject to certain risks, but can also offer significant returns. To illustrate, While there are inherent risks associated with investing in PRE-IPD companies, it is important to note that these investments offer a significant potential for high returns, as IFCOs are directly proportional to the assets. Given that many investors actively seek out PRE-IPD opportunities, it is unlikely that such opportunities will remain unnoticed for long.
Conclusion
As they are not yet listed, PRE-IPD investments offer significant potential for returns at relatively low investment costs. It would be prudent to note that investors should conduct comprehensive due diligence and consider seeking guidance from financial experts or professionals before investing in PRE-IPD companies. The experts at IRAIC are available to assist you with your investments. Investing in a company at an early stage of growth can yield significant returns, particularly in the form of investment certificates (IFCOs).