Billionaires — they’re just like us! Or, rather, we’re gaining the tools to become just like them. Increasingly, financial vehicles are emerging to help accredited investors tap into the high-growth opportunities once reserved for the ultra-wealthy.
Private market investing in particular is growing into a viable strategy for investors looking to diversify their portfolios and play the long game — even without access to a venture capital fund.
Below, we’ll explore how to invest in private companies, including the benefits, risks, and strategies involved.
It’s been the boilerplate pitch for small businesses for what feels like forever: “We’re smaller and more agile.” But it’s cliché because it’s true. Private startups often exhibit agility and innovation, yielding significant growth opportunities for investors.
On top of that, more companies are staying private for longer, as they now have access to other sources of capital. This could mean that private secondary transactions are one of the only ways to tap into some of the most potent growth opportunities on the market.
For a long time, “success” on Wall Street was synonymous with going public. But a booming private market may have changed that narrative.
In 1980, the median age of a company at its initial public offering (IPO) was six years. By 2024, that number ballooned to nearly 11, per Morningstar.
Meanwhile, according to Morgan Stanley and Capital IQ, over 17,000 private U.S. businesses reported an annual revenue of $100 million or more, as of February 2025. There were just around 4,000 public companies of the same size.
Public companies must report their results on a quarterly and annual basis. This can lead to an outsized focus on short-term gains in the public sector.
But investing in a private company early in its lifecycle — when it might still be developing a product, for instance — necessitates a long-term approach. And historically, long-term investments typically outperform short-term transactions.
Many associate private investing solely with venture capital (VC).
This typically involves a professional firm throwing money behind a growing company, in exchange for a percentage of ownership, or equity. (Think Mr. Wonderful’s O’Leary Firms locking in a huge stake in a startup on Shark Tank.)
But not every investor can start a VC fund, which often requires investors to meet high income requirements. Even without this access, there are several ways to invest in private companies.
This refers to early-stage investments in startups and small businesses in exchange for equity in the company, typically by a wealthy individual, rather than a VC firm.
This involves putting your money into established companies to drive up their value prior to an exit event, such as an IPO, merger, or acquisition.
Emerging platforms are making investing in private companies easier than ever.
Investment crowdfunding, for instance, asks a slew of backers to each contribute a relatively small sum in exchange for equity shares in the company.
Investors also have access to a growing private secondary market, allowing them to buy and sell their shares of private companies before an exit. Learn how secondary markets work and how they improve access to private investments.
Platforms like Augment* help make these transactions more efficient and secure. Augment’s marketplace has created an alternative to traditional VC investment, which typically requires larger capital commitments. This increased access has made investing in private companies that much easier.
Investing in private companies can be a gateway to high-growth opportunities. Private investors can explore a much wider variety of companies beyond publicly traded firms, hand-picking those that align with their personal goals and risk tolerance.
On the flip side, it’s important to note private investments are generally less regulated than those in the public market. It’s crucial to thoroughly research and understand these risks before investing.
Publicly traded companies must file financial statements with the SEC, allowing anyone to scrutinize their finances. Private companies, on the other hand, aren’t required to provide this information. This can make valuing a private company more difficult; there’s no publicly available stock price, for instance.
Platforms like Augment* are working to change this lack of transparency by displaying real-time pricing for private companies. By making it easier for sellers to find qualified buyers, the Augment marketplace also aims to bring more liquidity to the private secondary market, another area where it has historically lacked.
Exploring private investments may be an attractive option for investors looking to diversify their portfolio and fine-tune their financial strategy to better align with their personal goals and risk tolerance. And who knows? You might not need to be an angel to find the next unicorn.
Ready to get started? Explore Augment’s Marketplace and discover private investment opportunities tailored to your goals.
*Securities transactions are executed on Augment Capital, LLC's ATS and offered through Augment Capital, LLC (member FINRA/SIPC).
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.