How to invest in Epic Games pre-IPO
One of the strongest cases for the power of the freemium business model is the success of Fortnite, the flagship video game from Epic Games. While free to play, the battle royale style game allows users to purchase in-game currency to use for things like customizing characters' outfits. All told, the game has become one of the most popular and lucrative video game franchises, generating multiple billions per year in revenue.1
With the success of Fortnite and its other business lines, like its Unreal Engine development software, Epic Games has become a sought-after investment, with big names like Blackrock, KKR, and Disney joining in over the years.2
Eventually, the public could get a taste too, such as with Pitchbook projecting in 2024 that there's a 94% likelihood of Epic Games ultimately conducting an IPO.3 Likewise, CEO Tim Sweeney told the Wall Street Journal in 2023 that although there are no plans to IPO, the company “could do that opportunistically at some point.”4
For now, accredited investors may be able to access private market shares of Epic Games through a secondary marketplace like Forge, or retail investors may be able to get indirect or related exposure through other assets.
Here, we'll take a closer look at how to invest in Epic Games stock pre-IPO.
Epic Games: Company background
Epic Games was founded in 1991 by CEO Tim Sweeney and is headquartered in Cary, North Carolina.5 While the company is perhaps best known for its video game Fortnite, the company has developed a wide range of other games, such as the Gears of Wars franchise, which Microsoft acquired in 2014.6
Epic Games is also well known for its legal battles with Apple and Google over the commissions these companies take for mobile purchases. This litigation has been costly for Epic Games,7 and the dust has not fully settled.8 However, after bans by both Apple and Google, the Fortnite app is now available for download on mobile devices globally on Android and in the EU for iPhones and iPads, but not in the U.S.9
Still, Epic Games has seen strong results, with Fortnite remaining available for PC and console downloads in the U.S. Overall, the game's revenue is projected to grow from $5.82 billion in 2024 to $6.01 billion in 2025, according to Exploding Topics.10
The litigation also led to Epic Games launching its Epic Games Store platform on mobile devices in 2024, through which it sells its own games and third-party titles. This platform is also available on PCs, where revenue grew by 15% in 2024 to reach $1.09 billion.11
Epic Games stock and funding history
Epic Games isn't a startup, considering it's been around since 1991, but its funding has taken off in recent years.
In 2018, the company raised $1.25 billion at a $555.73 per share price and a $15 billion valuation.12 Some other notable Epic Games funding rounds include raising $1.78 billion in 2020 at a stock price of $575 and a $17.3 billion valuation13, as well as raising $1 billion in 2021 at a stock price of $885 and its valuation jumping to $28.7 billion.14
In 2022, Epic Games raised another $2 billion at a stock price of $930 and a valuation of $31.5 billion.15 Most recently, in 2024, Disney invested $1.5 billion to take an equity stake in Epic Games and deepen its content partnership.16 However, this investment implied an Epic Games stock price of $600 per share and a $17 billion valuation, down a bit from previous rounds.17
Since the Disney deal, Epic Games' Forge Price™ has slid, down from $600 per share to $337.77 as of late March. That said, it has ticked back up somewhat in recent months, though still far below previous peaks, and it trails private market benchmarks.18
Forge Price™ is a derived data point that reflects the up-to-date price performance of venture-backed, late-stage companies, and is calculated based on a proprietary model incorporating pricing inputs from primary funding round information, secondary market transactions, and indications of interest (IOIs) on Forge.
How to buy Epic Games stock
Because Epic Games is a private company, its stock is not for sale to the general public. If Epic Games does eventually have an IPO, then its stock would be more readily available.
For now, investment is typically limited to high-net-worth or institutional investors chosen to participate in primary funding rounds or strategic investments, such as Disney. That said, if existing investors decide to/are able to list shares for sale on a secondary marketplace like Forge, then accredited investors could potentially buy pre-IPO Epic Games stock.
Who can invest in Epic Games pre-IPO?
Due to regulations on investing in a private company offering securities for sale, you generally have to be either an institutional or high-net-worth individual invited to participate in primary funding rounds to invest in a company like Epic Games pre-IPO; or, sometimes companies like Epic Games reach agreements with investors who come on as strategic investors outside of primary funding rounds.
That said, sometimes private company shareholders like employees or early investors list pre-IPO stock for sale on a secondary marketplace, such as Forge. In those cases, accredited investors — those who meet certain financial or professional qualifications — could then invest in Epic Games pre-IPO, if available.
Where to buy pre-IPO Epic Games stock
As a private company, Epic Games stock is limited in terms of who can buy shares and where. However, accredited investors may be able to buy Epic Games stock pre-IPO through a secondary marketplace such as Forge, subject to availability. The stock has traded on Forge recently, but like with any private company, Epic Games pre-IPO shares can have varying liquidity.
Still, those who are interested in investing in Epic Games pre-IPO may wish to create an account with Forge and speak with a Private Market Specialist to stay informed about whether pre-IPO Epic Games stock or similar shares become available through Forge.
Alternatives for unaccredited investors who want to buy Epic Games stock
As much as fans of Fortnite might want to directly buy Epic Games stock, retail investors typically cannot directly invest in private companies like this. However, there are some other ways to gain indirect or related exposure.
For example, investing in Disney, a publicly traded company, could provide slight exposure to Epic Games. In addition to their content partnership and Disney's $1.5 billion stake in Epic Games, there could be some correlation in terms of these stocks potentially both doing well if the entertainment industry grows and there's strong consumer spending. However, Epic Games is only a small slice of Disney's vast media empire, so investing in this stock also exposes investors to many areas outside of Epic Games.
Retail investors in the U.S. could also buy ADR shares of Tencent Holdings, a tech conglomerate that owns a minority stake in Epic Games, although recent antitrust concerns led to two Tencent-appointed Epic Games board directors resigning.19 Still, investing in Tencent could provide exposure to Epic Games, along with Tencent's other holdings such as Riot Games, another popular video game developer. Like with Disney, there could be some correlation in terms of Tencent's performance and Epic Games' stock based on growth in the tech and media industries, but Epic Games is still just a slice of Tencent's portfolio.
Another option could be to invest in funds that hold Epic Games shares, such as the Fidelity OTC K6 Portfolio. However, this fund is generally only available within certain employer-sponsored retirement plans, and Epic Games accounts for just 0.128% of the fund holdings as of the end of 2024.20 So, this too would provide very limited exposure to Epic Games.
Retail investors could also invest in publicly traded competitors, such as Activision Blizzard or Electronic Arts. While these are rivals in many ways, it's possible that growth in the video game industry benefits all of these companies.
How to analyze Epic Games stock
As is the case with most private companies, details on Epic Games' financials are relatively limited, and thus analyzing its stock can be more complicated than it is for publicly traded companies. That said, Epic Games does disclose some financial data, such as revenue from its Epic Games Store,21 and you can find estimated revenue for Fortnite.
Reviewing data like this, along with information such as Epic Games' funding rounds, could potentially provide some insight into what Epic Games stock should be valued at, especially when comparing Epic Games to other consumer and lifestyle private companies trading on private marketplaces like Forge. Granted, this type of analysis is often still highly subjective.
Another option is to look at the valuations of publicly traded video game companies like Activision Blizzard or Electronic Arts to try to draw some comparisons to Epic Games. However, private companies typically have different valuation factors than public companies, due to differences in liquidity risk and the limited transparency of private companies.
Thus, investors may have to determine more of a personalized analysis style that works for their risk tolerance and goals when analyzing Epic Games stock.
Get started investing in Epic Games on Forge
If you want to invest in Epic Games pre-IPO if/when shares become available, create an account with Forge Markets to access our deep marketplace of private market securities.
When you create a free account, you'll be connected with a Forge Private Market Specialist to determine your eligibility, and from there you can potentially buy and sell private market shares in Epic Games and other startups.
Forge stands out for its transparency into what can otherwise be an opaque private market, and as a publicly traded company itself, Forge provides a regulated, proven way to invest in the private market.
FAQs about investing in Epic Games
Where do I buy Epic Games stock?
Since Epic Games is a private company, investing in pre-IPO Epic Games stock is generally limited to those chosen to participate in primary funding rounds or chosen as strategic investors. However, accredited investors could potentially find pre-IPO Epic Games stock on a secondary marketplace such as Forge, subject to existing shareholders deciding to/being able to list there.
Who can invest in Epic Games?
Investing in private companies such as Epic Games is typically limited to institutional investors or accredited investors. Although individuals typically do not have access to directly participating in primary funding rounds, accredited investors can potentially find Epic Games shares for sale on a secondary marketplace such as Forge.
Who are Epic Games' competitors?
Epic Games' competitors include several other video game companies such as Riot Games, Activision Blizzard, Electronic Arts, Take-Two Interactive (parent of Rockstar Games), and Ubisoft, to name a few. To some extent, other media companies that aren't as involved with video games could be considered competitors, considering the competition for consumers' limited time and wallets. For example, Netflix stated in 2019 that it competes more with Fortnite than HBO.22
--
