Investing in IPOs (Initial Public Offerings) is one great way to give yourself a foothold in the market, with some of the best startups and most anticipated companies, before they launch on the stock market at any given time. The beauty of this investing type is that you are investing in late stage start-ups that have usually already proven themselves. Often you will know the companies and may have even used their products or services before.
As these companies have not yet floated publicly, often buying shares this early will be cheaper than buying regular shares. On the other hand investing in late stage startups rather than early stage or seed, negates a lot of the risk that comes with the unknown. The difficulty here though can be successfully getting allocations in these in-demand positions at this stage. This is something TRADE.com are offering investors through their IPO offering on the Secondary Market.
How Does the Secondary Market Work?
Investing in IPOs before they float on the stock market is typically the preserve of institutional investors, who have access to these opportunities through the primary market, where they can typically get the best value for money. IPOs will then often rise in price as they hit the secondary market and become available to retail traders.
The TRADE.com IPO Marketplace has effectively become the broker in offering these PRE IPOs before they go public, through private, limited allocations. In essence, this allows you access to a pre-IPO market where you too can take advantage of some of the best pricing before the launch of many high profile IPOs. It is often unusual for a small investor to be able to become exposed to these kinds of opportunities.
The 5 IPOs to Watch
Here is a look at 5 of the currently trending IPOs. These are all listed as investments on the TRADE.com IPO section of the website. To access these, simply register and speak to an account manager to get started.
Stripe was founded in 2009. Since that time they have quickly become one of the most utilized providers of payment processing solutions for online businesses around the world. Stripe technology is widely used across a number of the biggest platforms in the online retail industry such as Shopify, and Amazon. The company describes themselves as a technology company that builds economic infrastructure for the internet and caters for businesses of every size. Their IPO is expected in 2020.
Founded in 2015, Revolut is another digital payment service which has taken the personal finance sector by storm. They offer a range of trading services alongside their very popular banking services that now provide bank accounts, debit cards, currency exchange, and insurance to users. They now offer services to millions of users and are also planning a 2020 IPO.
Epic Games have been around since the 1990s but they really made a name for themselves with the huge success of their Fortnight game in the last few years. This has propelled them onto the global scene to become one of the most well-known developers and producers of video games in the world. It is no surprise then that their planned 2020 IPO is also among the most talked about in the industry.
Lemonade are an American insurance company, founded in 2015 that specializes in property insurance primarily. They have been heavily backed by a number of very well-respected investors, and are pioneering a socially responsible business model which also sees them donate up to 75% of premiums to a good cause of the customer’s choice if no claims are made. This, has contributed, along with the strong backing they have received, to make Lemonade a very attractive proposition in terms of upcoming 2020 IPOs.
Spacex have grabbed all the headlines recently. Owned by the enigmatic Elon Musk, they have become the first private company to launch American astronauts into space at the end of May as they joined up with the International Space Station in a successful mission. They have also won a number of lucrative defense contracts. It is expected that they will soon hold their own IPO and become publicly traded as early as this year.
It is not always easy and sometimes even impossible to gain access to investing in IPOs as a retail investor. TRADE.com helps to open that door and provide some excellent opportunities to invest in some of the most popular and exciting IPOs at an earlier stage than almost anyone else. Therefore, if you are on the lookout for an early investment opportunity, this is the platform to choose, along with some of the most eagerly anticipated IPO launches around.
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