What is the TechStackIPO Pre-IPO Access Marketplace? ⌃
TechStackIPO's Pre-IPO Access Marketplace is an information platform that connects accredited investors with licensed firms offering access to pre-IPO companies through SPVs (Special Purpose Vehicles), secondary share purchases, and diversified pre-IPO funds. We do not execute transactions or custody funds — all investments occur directly between investors and the listing firms.
What is an SPV and how does it work? ⌃
A Special Purpose Vehicle (SPV) is a Delaware LLC created specifically to hold shares of one pre-IPO company. Accredited investors pool capital into the SPV, which acquires shares from the company or existing shareholders. Investors receive economic rights (but typically not voting rights) proportional to their investment. At a liquidity event (IPO or acquisition), the SPV distributes proceeds net of fees.
Do I need to be an accredited investor? ⌃
Yes. All listings are offered exclusively to accredited investors under SEC Regulation D. You qualify if you have: income exceeding $200,000 ($300,000 joint) for the past two years, net worth over $1 million excluding primary residence, or certain professional licenses (Series 65, 82, etc.). Each firm independently verifies accreditation before accepting investment.
What fees do these vehicles typically charge? ⌃
SPVs typically charge 1–2% management fee and 15–20% carry on profits. Direct secondary transactions may have no carry. Fund vehicles commonly use a "2 and 20" structure: 2% annual management fee + 20% carry above a hurdle rate. Always confirm fees with the listing firm before investing.
What are the main risks of pre-IPO investing? ⌃
Key risks: (1) Illiquidity — you cannot sell before an IPO or acquisition, which may take years or never happen. (2) Valuation uncertainty — private valuations are marks, not market prices. (3) Dilution — future rounds may dilute your position. (4) Company risk — the company may fail or be acquired unfavorably. (5) SPV/fund manager risk — adds counterparty exposure. Pre-IPO investing is suitable only for accredited investors who can bear total loss.
How does TechStackIPO verify firms? ⌃
TechStackIPO manually reviews each firm's SEC registration status, FINRA membership (where applicable), and regulatory filings before awarding a "Verified Firm" badge. However, TechStackIPO does not independently audit financial claims or guarantee the accuracy of listed terms. Conduct your own due diligence.
What is the difference between secondary shares and an SPV? ⌃
Secondary shares are a direct transfer of existing shares from a current holder (employee, early investor) to a new buyer. The buyer directly holds shares subject to company transfer restrictions and right of first refusal. An SPV creates a new LLC that holds shares on behalf of multiple investors — lower minimums but an added legal layer between you and the underlying shares.
Does TechStackIPO act as a broker-dealer? ⌃
No. TechStackIPO does not act as a broker-dealer, investment adviser, placement agent, or financial intermediary. We provide informational listings only. All transactions, due diligence, subscription agreements, and capital transfers occur directly between the investor and the listing firm. TechStackIPO receives no transaction fees or compensation from listings.