Invest In Shield AI Stock | Buy Pre-IPO Shares | EquityZen (2024)

FAQs

Invest In Shield AI Stock | Buy Pre-IPO Shares | EquityZen? ›

Accredited investors can buy pre-IPO

Investing in pre-IPO companies gives you first dibs on profit: Being first to invest (and profit) on an IPO lets you cash out as soon as your stock starts trading. Meanwhile, those who buy on day one typically don't see any rewards until late investors cash out.

Accredited investors can purchase shares in private companies like Shield AI. Investors can rely on Notice Premier Brokers to find supply and guide them through the trading process. Because Shield AI is privately held, its stock is not available for purchase through public stock exchanges like the NYSE or Nasdaq.

If you wish to invest in the Pre-IPO, you must send the investment amount to the broker, who will transfer the amount to the company's account. Shares will be delivered to your Demat account by T+0 evening or T+1 morning. The transaction is complete once you see the ISIN number of the shares in your Demat account.

OpenAI is a privately held company. This means only accredited and institutional investors can invest in the company before its IPO. Investors seeking exposure to OpenAI can invest indirectly via venture funds and investment syndicates, or purchase shares directly on pre-IPO marketplaces like Hiive.

High Risk & Low Liquidity: Pre-IPO companies are inherently risky ventures. There's no guarantee they'll go public, and even if they do, success is not guaranteed. Additionally, pre-IPO shares are typically illiquid, meaning they can be difficult to sell before the IPO.

The Pre-IPO shares are subject to a lock-up period of six months from the date of listing. Once the IPO is announced, you cannot sell the pre-IPO shares immediately, either through an unlisted broker or through the stock exchange. You must wait six months after listing.

Shield AI, the defense and aerospace startup creating AI pilots, raised a $200 million Series F at a $2.7 billion valuation.

The company was founded in 2015 by Ryan Tseng and his brother, Brandon, a former Navy SEAL who serves as president, along with Andrew Reiter, a technical fellow at the company.

Which broker is best for pre-IPO? ›

However, in contrast, the pre-IPO shares are not traded publicly and may not have a clear value. Any shares you buy before an initial public offering (IPO) will likely be priced at the most current estimate of your company's fair value.

One potential problem with IPOs is that many investors might rush in. It might be worth waiting to see how the newly issued IPO shares perform in the market. Or, if you do jump on an IPO, you might want to consider buying shares in small quantities over time rather than going all in at once.

As of mid-May 2023, there are no plans for an OpenAI IPO on the horizon, but the Wall Street Journal reported on January 5 that the AI lab is in talks with venture capital firms to sell at least US$300 million worth of existing shares in the company.

The current price of OpenAI ERC (OPENAI ERC) is $ 0.004109. Top cryptocurrency prices are updated in real-time on Binance's price directory.

Choices include more speculative direct AI investments in individual companies or ETFs and mutual funds that offer a portfolio of multiple companies in the AI space. You can also look to invest in companies that are positioned to increase their revenues as AI is more widely adopted across the economy.

Waiting until the stock starts trading

The days, weeks, and months following an IPO will typically reveal whether it was priced well and what kind of growth prospects might lie ahead.

Pre-IPO investors can influence and shape publicly traded companies ahead of time. Investors who get involved before an IPO also get to enjoy higher liquidity as buying/selling decisions are executed more quickly and at lower cost, especially if they want to liquidate all assets for an equity portfolio.