![\"Untitled\"\/](\"https:\/\/www.wallstreetzen.com\/blog\/wp-content\/uploads\/2023\/02\/Untitled-17.png\")
<\/figure><\/div>\n\n\nBut I\u2019m guessing you don\u2019t need a McKinsey report to know that.<\/p>\n\n\n\n
Unless you run a private equity firm or are very<\/u> wealthy, there\u2019s no way to invest in private companies, right?<\/p>\n\n\n\n
Not exactly.<\/p>\n\n\n\n
Retail access to private companies is limited but it does exist. In 2026, you can invest in private companies before they go public, even if you don\u2019t want to invest through a private equity firm or know a cofounder.<\/p>\n\n\n\n
Several limitations are still in place, but this segment of the market has become much more accessible to the everyday investor.<\/p>\n\n\n\n
Here are the 5 best ways to invest in private companies.<\/p>\n\n\n\n
How to Invest in Private Companies Before They Go Public (5 Ways)<\/strong><\/h2>\n\n\n\nBefore I jump into the methods, keep in mind that not all of the forms listed below involve investing in the company directly – some are ways to invest indirectly.<\/p>\n\n\n\n
Additionally, some of the methods require you to be an accredited investor. If you don\u2019t know whether you qualify as an accredited investor, skip down to the section titled \u2018How to Invest in Private Companies as an Accredited Investor\u2019.<\/p>\n\n\n\n
Here\u2019s how to invest in pre IPO companies as a retail investor.<\/p>\n\n\n\n
1. Pre-IPO Investing Platforms<\/strong><\/h3>\n\n\n\n\n- Direct investment:<\/strong> Yes<\/li>\n\n\n\n
- Accreditation required:<\/strong> Yes<\/li>\n<\/ul>\n\n\n\n
A great way to invest in private companies? Via pre-IPO investing platforms. My favorite of these platforms is Hiive<\/a>.<\/p>\n\n\n\nHiive is a marketplace that connects shareholders (who might be employees, venture capital firms, or angel investors) of private, VC-backed companies who want to sell their pre-IPO shares to accredited investors. These aren’t just random companies: We’re talking OpenAI<\/a>, Waymo<\/a>, SpaceX<\/a>, and more.<\/p>\n\n\n\nSince its founding in 2021, Hiive has rapidly attracted a strong user base, with approximately 12,000 registered investors. These investors have access to a growing portfolio of over 2,000 companies, with monthly transaction volumes surpassing $100 million and active listings amounting to more than $3 billion. <\/p>\n\n\n\n
With no buying fees, the ability to negotiate, and a robust marketplace with thousands of companies, Hiive is a great way to invest in companies before they IPO.<\/p>\n\n\n\n
\nRegister for Hiive<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<\/p>\n\n\n
\r\n\tAny views expressed here do not necessarily reflect the views of Hiive Markets Limited (\u201cHiive\u201d) or any of its affiliates. This communication is for informational purposes only, and is not a recommendation, solicitation, or research report relating to any investment strategy or security. Investing in private securities is speculative, illiquid, and involves the risk of loss. Not all private companies will experience an IPO or other liquidity event; past performance does not guarantee future results. WallStreetZen is not affilated with Hiive and may be compensated for user activity resulting from readers clicking on Hiive affiliate links. Hiive Markets Limited, member FINRA\/SIPC.\r\n<\/div><\/div>\n\n\n
2. Investing via Alternative Asset Funds<\/strong><\/h3>\n\n\n\n\n- Direct investment:<\/strong> No<\/li>\n\n\n\n
- Accreditation required:<\/strong> It depends<\/li>\n<\/ul>\n\n\n\n
Investing in alternative asset funds, such as those offered by Yieldstreet<\/a> and Fundrise<\/a>, gives investors access to a diverse portfolio of private companies.<\/p>\n\n\n\nFor example, the Yieldstreet Alternative Investment Fund (formerly the Prism Fund<\/a>) has a $10,000 minimum investment and invests in a variety of alternate assets, such as art, marine real estate, and legal finances.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.wallstreetzen.com\/blog\/wp-content\/uploads\/2024\/10\/yieldstreet-alternative-income-2000x1030.png\")
<\/figure><\/div>\n\n\nWhile Fundrise<\/a> is perhaps best known for its private real-estate investments, the platform also offers pre-IPO tech stocks through their Innovation Fund, which includes several up-and-coming tech superstars like Databricks<\/a>, OpenAI<\/a>, and more. <\/p>\n\n\n\r\n\tNote: We earn a commission for this endorsement of Fundrise. <\/p>\r\n<\/div><\/div>\n\n\n
3. Use a Specialized Broker<\/strong><\/h3>\n\n\n\n\n- Direct investment:<\/strong> Yes<\/li>\n\n\n\n
- Accreditation required:<\/strong> Yes<\/li>\n<\/ul>\n\n\n\n
Most stock brokerages do not provide access to private companies, but some do.<\/p>\n\n\n\n
These brokers have formed arrangements with IPO underwriters to provide shares to their clients before the company becomes publicly traded. <\/p>\n\n\n\n
Here comes the bad news: most of this is still only available to those that qualify as accredited investors, and even specialized brokers only provide access to IPOs every now and then.<\/p>\n\n\n\n
Some of the brokers that offer access to IPO stocks and IPO preorders are:<\/p>\n\n\n\n
\n- TradeStation<\/a><\/li>\n\n\n\n
- Fidelity<\/a><\/li>\n\n\n\n
- TD<\/a> Ameritrade<\/a><\/li>\n<\/ul>\n\n\n\n
Buying an IPO stock straddles the line between investing in a company before and after it becomes public. Technically you\u2019re still buying a private company, but only a few days or weeks before it goes public.<\/p>\n\n\n\n
Investing at this stage is essentially just a bet on a hot IPO.<\/p>\n\n\n\n
4. Buy Shares Directly<\/strong><\/h3>\n\n\n\n\n- Direct investment:<\/strong> Yes<\/li>\n\n\n\n
- Accreditation required:<\/strong> It depends<\/li>\n<\/ul>\n\n\n\n
If you know a founder, have industry connections, or can trade your knowledge and work for equity, you can leverage that into ownership.<\/p>\n\n\n\n
This method is only available to the lucky few, but it\u2019s worth mentioning. If there\u2019s a private company you want to invest in and a friend of a friend knows a cofounder, ask for a connection.<\/p>\n\n\n\n
5. Invest Indirectly<\/strong><\/h3>\n\n\n\n\n- Direct investment:<\/strong> No<\/li>\n\n\n\n
- Accreditation required:<\/strong> No<\/li>\n<\/ul>\n\n\n\n
Any retail investor can invest in a number of private companies indirectly.<\/p>\n\n\n\n
The easiest way to accomplish this is to invest in public companies that own stock in private companies that interest you.<\/p>\n\n\n\n
For example:<\/p>\n\n\n\n
\n- A large portion of OpenAI is owned by Microsoft<\/li>\n\n\n\n
- Ownership of Hulu is split between Disney and Comcast<\/li>\n<\/ul>\n\n\n\n
![\"Untitled\"\/](\"https:\/\/www.wallstreetzen.com\/blog\/wp-content\/uploads\/2023\/02\/Untitled-19.png\")
<\/figure><\/div>\n\n\nBy investing in Microsoft, you can gain exposure to OpenAI\u2019s upside. Microsoft has made a $10 billion investment in Open AI, the lab behind the AI tool ChatGPT. Since Microsoft is publicly traded, anyone can buy it and own a piece of Open AI.<\/p>\n\n\n\n
Remember, if you\u2019re going to invest in Open AI via Microsoft, you\u2019re investing in Microsoft\u2019s entire $2 trillion business, of which its investment in Open AI is just a small part.<\/p>\n\n\n\n
You can also invest in private companies via private-equity ETFs, although they typically charge high fees.<\/p>\n\n\n\n
The Best Way to Invest in Private Companies<\/strong><\/h2>\n\n\n\nAs mentioned above, the best way to invest in private companies is on pre-IPO investing platforms, of which Hiive is our favorite.<\/p>\n\n\n
\n \n
- \n
- Direct investment:<\/strong> Yes<\/li>\n\n\n\n
- Accreditation required:<\/strong> Yes<\/li>\n<\/ul>\n\n\n\n
A great way to invest in private companies? Via pre-IPO investing platforms. My favorite of these platforms is Hiive<\/a>.<\/p>\n\n\n\n
Hiive is a marketplace that connects shareholders (who might be employees, venture capital firms, or angel investors) of private, VC-backed companies who want to sell their pre-IPO shares to accredited investors. These aren’t just random companies: We’re talking OpenAI<\/a>, Waymo<\/a>, SpaceX<\/a>, and more.<\/p>\n\n\n\n
Since its founding in 2021, Hiive has rapidly attracted a strong user base, with approximately 12,000 registered investors. These investors have access to a growing portfolio of over 2,000 companies, with monthly transaction volumes surpassing $100 million and active listings amounting to more than $3 billion. <\/p>\n\n\n\n
With no buying fees, the ability to negotiate, and a robust marketplace with thousands of companies, Hiive is a great way to invest in companies before they IPO.<\/p>\n\n\n\n
\nRegister for Hiive<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<\/p>\n\n\n
\r\n\tAny views expressed here do not necessarily reflect the views of Hiive Markets Limited (\u201cHiive\u201d) or any of its affiliates. This communication is for informational purposes only, and is not a recommendation, solicitation, or research report relating to any investment strategy or security. Investing in private securities is speculative, illiquid, and involves the risk of loss. Not all private companies will experience an IPO or other liquidity event; past performance does not guarantee future results. WallStreetZen is not affilated with Hiive and may be compensated for user activity resulting from readers clicking on Hiive affiliate links. Hiive Markets Limited, member FINRA\/SIPC.\r\n<\/div><\/div>\n\n\n
2. Investing via Alternative Asset Funds<\/strong><\/h3>\n\n\n\n
- \n
- Direct investment:<\/strong> No<\/li>\n\n\n\n
- Accreditation required:<\/strong> It depends<\/li>\n<\/ul>\n\n\n\n
Investing in alternative asset funds, such as those offered by Yieldstreet<\/a> and Fundrise<\/a>, gives investors access to a diverse portfolio of private companies.<\/p>\n\n\n\n
For example, the Yieldstreet Alternative Investment Fund (formerly the Prism Fund<\/a>) has a $10,000 minimum investment and invests in a variety of alternate assets, such as art, marine real estate, and legal finances.<\/p>\n\n\n
\n<\/figure><\/div>\n\n\nWhile Fundrise<\/a> is perhaps best known for its private real-estate investments, the platform also offers pre-IPO tech stocks through their Innovation Fund, which includes several up-and-coming tech superstars like Databricks<\/a>, OpenAI<\/a>, and more. <\/p>\n\n\n
\r\n\tNote: We earn a commission for this endorsement of Fundrise. <\/p>\r\n<\/div><\/div>\n\n\n
3. Use a Specialized Broker<\/strong><\/h3>\n\n\n\n
- \n
- Direct investment:<\/strong> Yes<\/li>\n\n\n\n
- Accreditation required:<\/strong> Yes<\/li>\n<\/ul>\n\n\n\n
Most stock brokerages do not provide access to private companies, but some do.<\/p>\n\n\n\n
These brokers have formed arrangements with IPO underwriters to provide shares to their clients before the company becomes publicly traded. <\/p>\n\n\n\n
Here comes the bad news: most of this is still only available to those that qualify as accredited investors, and even specialized brokers only provide access to IPOs every now and then.<\/p>\n\n\n\n
Some of the brokers that offer access to IPO stocks and IPO preorders are:<\/p>\n\n\n\n
- \n
- TradeStation<\/a><\/li>\n\n\n\n
- Fidelity<\/a><\/li>\n\n\n\n
- TD<\/a> Ameritrade<\/a><\/li>\n<\/ul>\n\n\n\n
Buying an IPO stock straddles the line between investing in a company before and after it becomes public. Technically you\u2019re still buying a private company, but only a few days or weeks before it goes public.<\/p>\n\n\n\n
Investing at this stage is essentially just a bet on a hot IPO.<\/p>\n\n\n\n
4. Buy Shares Directly<\/strong><\/h3>\n\n\n\n
- \n
- Direct investment:<\/strong> Yes<\/li>\n\n\n\n
- Accreditation required:<\/strong> It depends<\/li>\n<\/ul>\n\n\n\n
If you know a founder, have industry connections, or can trade your knowledge and work for equity, you can leverage that into ownership.<\/p>\n\n\n\n
This method is only available to the lucky few, but it\u2019s worth mentioning. If there\u2019s a private company you want to invest in and a friend of a friend knows a cofounder, ask for a connection.<\/p>\n\n\n\n
5. Invest Indirectly<\/strong><\/h3>\n\n\n\n
- \n
- Direct investment:<\/strong> No<\/li>\n\n\n\n
- Accreditation required:<\/strong> No<\/li>\n<\/ul>\n\n\n\n
Any retail investor can invest in a number of private companies indirectly.<\/p>\n\n\n\n
The easiest way to accomplish this is to invest in public companies that own stock in private companies that interest you.<\/p>\n\n\n\n
For example:<\/p>\n\n\n\n
- \n
- A large portion of OpenAI is owned by Microsoft<\/li>\n\n\n\n
- Ownership of Hulu is split between Disney and Comcast<\/li>\n<\/ul>\n\n\n\n<\/figure><\/div>\n\n\n
By investing in Microsoft, you can gain exposure to OpenAI\u2019s upside. Microsoft has made a $10 billion investment in Open AI, the lab behind the AI tool ChatGPT. Since Microsoft is publicly traded, anyone can buy it and own a piece of Open AI.<\/p>\n\n\n\n
Remember, if you\u2019re going to invest in Open AI via Microsoft, you\u2019re investing in Microsoft\u2019s entire $2 trillion business, of which its investment in Open AI is just a small part.<\/p>\n\n\n\n
You can also invest in private companies via private-equity ETFs, although they typically charge high fees.<\/p>\n\n\n\n
The Best Way to Invest in Private Companies<\/strong><\/h2>\n\n\n\n
As mentioned above, the best way to invest in private companies is on pre-IPO investing platforms, of which Hiive is our favorite.<\/p>\n\n\n
\n\n
- Accreditation required:<\/strong> No<\/li>\n<\/ul>\n\n\n\n
- Accreditation required:<\/strong> It depends<\/li>\n<\/ul>\n\n\n\n
- Fidelity<\/a><\/li>\n\n\n\n
- Accreditation required:<\/strong> Yes<\/li>\n<\/ul>\n\n\n\n
- Accreditation required:<\/strong> It depends<\/li>\n<\/ul>\n\n\n\n
- Accreditation required:<\/strong> Yes<\/li>\n<\/ul>\n\n\n\n