How accredited investors are unlocking liquidity in the pre-IPO market

Startups are staying private longer and IPOs are becoming less frequent, due, in part, to the growing range of ways companies can raise money without going public. As a result, accredited investors are turning to the pre-IPO market to unlock liquidity. 

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Rather than waiting for a company to go public, these investors use private secondary markets and specialized platforms to buy and sell shares in late-stage private companies. As demand for early exposure to high-growth startups blossoms, accredited investors are reshaping how and when value is realized in the private market.

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They’re also unlocking liquidity. Here’s how. 

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Why liquidity matters in pre-IPO investing

Liquidity used to be a major challenge in pre-IPO investing. In the past, early-stage shareholders often had to wait until a company went public or got acquired to exit their investments. 

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That lack of liquidity can be an issue for employees and founders who need funds for big life decisions. Similarly, fund managers and venture capitalists may want to realize value and free up funds for other investments.

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Pre-IPO investing does not work in the same way as regulated exchanges like the Nasdaq or NYSE. Shares of public companies are often highly liquid, as there is usually a high volume of buyers and sellers. In contrast, shareholders of private companies have historically not benefited from this liquidity. However, that is changing with the growth of private secondary markets.

How liquidity unlocks portfolio flexibility

Increased liquidity enables investors to make informed moves that optimize their portfolio strategies and fine-tune their positions in response to market shifts and evolving diversification needs.

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Private secondary markets make it easier for accredited investors to buy and sell assets quickly. This can increase the flow of activity, creating more liquidity for private company stocks. Explore the key benefits of secondary market investing, from price discovery to earlier exit opportunities.  Increased liquidity can give stakeholders more freedom and flexibility in how they manage their portfolios.

The rise of pre-IPO marketplaces and secondary platforms

Pre-IPO marketplaces and secondary platforms trade privately held companies that are not listed on stock exchanges like the NYSE or Nasdaq. Private market transaction volumes have surged by at least $80 million in the last 15 years.

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The platforms are growing in popularity, spurred by technological advancements, changing regulations, institutional engagement, and other factors. New pre-IPO investment platforms provide another avenue for accredited investors to gain exposure to companies before they go public. Secondary markets are playing a key role in expanding access to these opportunities, creating more flexibility for investors outside traditional venture capital networks.

How pre-IPO platforms work

Private companies might have the end goal of going public, but in the meantime, founders will likely issue equity to venture capitalists and private equity firms to raise money. Startups often also offer equity to employees as a way to attract top talent. 

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Shareholders and founders no longer have to wait for a company to go public to sell their stock. Instead, they can use pre-IPO platforms to connect with buyers, increasing liquidity for private company shares. The platforms give accredited investors the chance to invest early in promising ventures with the potential to generate attractive returns.

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However, investing in the private market may involve different risks from trading shares of public companies. For example, liquidity is increasing, but finding a buyer could still be difficult. There's also less public information, making it harder to value the company. Investors should consider these factors carefully. Here’s what to look for before investing in late-stage private companies, where liquidity, valuations, and governance can vary significantly.

Best platforms for pre-IPO liquidity in 2025

1. Augment – Secondary trading with early liquidity options 

Augment Capital* is a pre-IPO platform for trades between shareholders of private companies and accredited investors. With companies like OpenAI and SpaceX currently listed on the platform, Augment has redefined private market liquidity by connecting buyers and sellers and executing trades from start to finish. 

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Augment helps investors access private markets by facilitating the purchase and sale of shares before an IPO or acquisition. Its real-time, accurate pricing data paves the way for informed investment decisions. 

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The platform operates like a mini–stock exchange for private shares, executing trades faster than traditional broker-assisted platforms. This ease of use, coupled with its wide-ranging coverage of the sector, stands out in this growing corner of the secondary market. 

2. Forge – Focused on large-cap private tech

Forge Global’s platform also offers investors exposure to private company shares. Forge is known for its private market index, which reflects the up-to-date performance and pricing activity of venture-backed, late-stage companies.

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The company recently forged a partnership with Yahoo Finance to create a large-scale public-to-private company comparison tool that leverages Forge’s pricing data to educate investors on private market investment opportunities.

3. Hiive – A newer liquidity-driven marketplace

Hiive is a marketplace for private stock, catering to venture-backed companies and their shareholders. Founded by former principals of a brokerage in the private equity and venture capital secondary market, the company touts its all-in-one liquidity solution. 

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It attempts to offer access to the global pre-IPO secondary market while addressing the inefficiencies traditionally associated with private market trading. Chief among its features is Hiive50, an equal-weight price index of the 50 most liquid securities on Hiive. Generated from user orders and transactions on the Hiive platform, the index attempts to mirror the direction and momentum of the late-stage pre-IPO market.

Final thoughts: Investing with flexibility in private markets

The private market is changing, and accredited investors have more tools than ever to navigate it with confidence. Instead of waiting years for an IPO, they can now access earlier returns through platforms designed to improve transparency and liquidity. 

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What was once a slow and rigid process is becoming more flexible, giving investors greater control over how and when they engage with private companies. This has created an investment where liquidity is no longer a barrier but a powerful, accessible advantage. 

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*Securities transactions are executed on Augment Capital, LLC's ATS and offered through Augment Capital, LLC (member FINRA/SIPC).

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Important Disclosures: Investing in private securities involves substantial risk, including the potential loss of principal. Private securities are typically illiquid, have limited pricing transparency, and often require longer holding periods. These investments are available exclusively to qualified accredited investors and offer no guarantee of returns. Additionally, past performance of private securities does not indicate or predict future results.