Pre-IPO investments refer to investments made in companies before they go public and list their shares on a stock exchange. These investments are typically made by venture capital firms, private equity funds, or wealthy individuals who are looking to invest in promising startups that they believe have the potential to grow rapidly and eventually go public. Pre-IPO investments are considered high-risk, high-reward investments. The potential for high returns is often driven by the significant growth potential of startups in their early stages. However, these investments also come with higher risks, as many startups fail to achieve success or go public. Investing in pre-IPO companies can be done in several ways. One approach is to invest through a venture capital or private equity fund that specializes in early-stage investments. These funds typically invest in multiple companies, diversifying the risk across their portfolio. Another approach is to invest directly in a startup through a private placement or a secondary market transaction. This approach requires extensive research and due diligence to assess the potential risks and rewards of the investment. Investing in pre-IPO companies comes with certain regulatory requirements and restrictions. Investors must comply with securities laws and regulations and may need to meet certain net worth or income thresholds to be eligible to invest.