Alta Insights 101 Series - Winning as an Early Investor: Opportunities in Investing in Pre-IPO Companies
What do investors like Tim Draper, Mark Cuban, and Ben Horowitz have in common?
Apart from being successful entrepreneurs, they have been immensely successful at growing their wealth further by investing in fast-growing private firms. A simple strategy that has seen returns of many multiples of their initial investment.
More than that, they also lead renowned venture capital firms like Andreesen Horowitz, which attract like minded investors to pool their funds and participate in the success (or demise) of these high-growth firms.
These potential rewards come with risks. With the macroenvironment at the time of writing in late 2023, these risks have only become much more in focus.
Yet the rewards of investing in unlisted high-growth companies before they become public and reach their peak valuations are still very real – companies like OpenAI and SpaceX are still some of the most valuable companies today, and remain outside of the public sphere.
Companies wanting to stay private for longer are becoming increasingly common; this means that many opportunities to grow one’s wealth exponentially remain squarely in the domain of private equity.
Alta has facilitated over $600 million in over 1,500 transactions, including investments into sector leaders like SpaceX, Grab, and Gojek.
Here, we will briefly look at what inspired the creation of Alta, the experience of building the region's largest digital exchange for alternative assets, and the potential business opportunity that lies within this platform.
Alta: Solving for Access & Liquidity
Since our founding in 2016 as Fundnel, we've been working hard to transform the traditional approach to private capital markets. Specifically, we focused on solving two huge hurdles for any investor thinking of private market investments: access to opportunities, and finding liquidity for investments.
Today, as the region's largest digital securities exchange for alternative assets, we've streamlined the investment process for investors, offering opportunities to invest in a growing range of unlisted companies, funds, luxury assets, and more.
Digital Exchange, Powered by Blockchain
As an exchange, we facilitate price discovery and trades, bringing what used to take months to a matter of days. This is possible by leveraging the power of blockchain, where investors are able to trade digital and non-digital counters any time, anywhere. As a result, we believe that alternative investing today is more accessible than ever.
We believe that alternative investing today is more accessible than ever.
To date, investors on Alta have completed more than $600 million in transactions across a diverse range of investment opportunities, including access to some of the world’s most high-profile firms.
Most recently, investors were able to participate in the primary rounds for companies like Stripe, OpenAI, and SpaceX. Best of all, many of these investors were able to invest at ticket sizes as low as US$10,000.
Thinking of starting your journey into alternative assets? Join us today.
(P.S. Curious to know more? Check out Alta CEO Kelvin Lee's interview on BFM)