How to invest in the private market
The path for startups has changed in the past two decades. Some of the largest names in technology — like Apple and Amazon — started in garages, with founders receiving private funding via family members and “angel investors,” and building up the companies until they could successfully conduct an IPO. With an IPO, the companies had capital to generate growth and expand into new business lines, while offering liquidity for early investors with the potential for attractive returns. For example, the $50,000 that Jeff Bezos convinced his family members to invest in 1994 would subsequently be worth more than $15 billion in 2024.1
In more recent times, the rise of venture capital has fueled the growth of many of today’s largest publicly traded companies, including Alphabet (the parent company of Google) and Meta (the parent of Facebook), among other examples. But some of the most innovative companies, particularly in areas like AI, have chosen to remain private.
Some of the biggest names in AI — including OpenAI, Anthropic, xAI, Perplexity and Databricks, among others — are currently only available in the private market. Beyond AI names, many prominent companies in other sectors, such as SpaceX, Anduril and Ripple, are also still private. Plus, new unicorns — startups valued at more than $1 billion — continue to be born.
One of the reasons that the private market has grown is because companies are staying private much longer than they had in the past, delaying or even forgoing an IPO. According to Morningstar and Pitchbook data, as of 2024, companies were waiting nearly 11 years before going public, compared with just under seven years in 2014.2 By staying private, founders can potentially exert more control over their companies, limit disclosing significant amounts of information and avoid other certain regulations that publicly traded companies are subject to.3 Because they have access to capital, these companies appear to be in no rush to embark on an IPO, nor do they necessarily have to be public to keep growing and thriving.
Who is eligible to purchase private company shares
While there has been a push to democratize access to pre-IPO company shares, access to pre-IPO company shares is limited. Only institutional investors with assets above $5 million — such as pension plans, endowments and foundations, family offices and other large investors — and individuals who are accredited investors may be eligible to buy shares of private companies.
Per SEC guidelines, individuals can meet the accredited investor threshold by possessing a net worth exceeding $1 million (not including equity in their primary residence) or having an annual income over $200,000 for a single person, or $300,000 for a married couple, for the two most recent years. Individuals can also qualify by holding certain professional certifications, such as a Series 7, 65 or 82 license. It is important to note that these guidelines could change over time, so it’s important to review the SEC website to stay up to date.
The differences between public and private market transactions
If an investor is looking to buy shares of a public company, they may usually complete the transaction on their online brokerage account or via an app. Pricing is usually very transparent – investors can often get a real-time quote and decide if they want to buy a set number of shares, a dollar amount that can be translated into shares, or in some circumstances, investors may even be able to buy fractions of a share.4 They also do not need to be accredited.
The same general principle — using an online platform to purchase at a set price — applies to buying common investment products like exchange-traded funds (ETFs) or mutual funds as well. That said, it is important for investors to know that various platforms operate differently (and usage fees may vary) and that investors need to understand the risks involved in any type of investing. And while it may seem like public market trades are instantaneous, it still can take several days for them to finalize settlement behind the scenes.5
How private company shares can be traded
When compared to completing a public market transaction, purchasing shares of a private company can be more challenging. Yet, you can still invest in private company shares by using pre-IPO investment platforms, such as Forge, to buy shares of private companies before they go public.
Once you’ve identified a company that you wish to invest in, you’ll need to determine the price you intend to bid. Like all transactions, buyers and sellers of private shares need to agree on a price to proceed. Thankfully, Forge offers Forge Price™, a derived pricing dataset designed to provide an up-to-date, indicative view of price performance for approximately 200 venture-backed, pre-IPO companies. Using a robust methodology that incorporates recent funding round data, secondary market activity, deal history, and platform interest, Forge Price offers a unique window into private company valuations—insights that have traditionally been hard to access or interpret.
During a private market transaction, once a buyer agrees on a price and quantity of shares with a seller, the process is not yet complete. Many transactions are subject to a ROFR (right of first refusal) process. In this process, companies have the ability to block purchases of their stock and may do so for a variety of reasons, including a desire to limit investors listed on their capitalization (cap) table.
Presuming that the company declines to exercise ROFR, a direct transaction can usually close within 45 to 60 days, though timelines can vary. Once funds are distributed, the buyer becomes the owner of the shares. It is important to note that the process described here is for a generic transaction, and individual transactions may depart from these general guidelines.
Unicorns continue to be born in the private market
As some of the most exciting companies in the world choose to remain private, investing in the private market offers an array of opportunities. In Q2 2025 alone, 24 private companies achieved unicorn status, meaning their valuations exceeded $1 billion.
While the process for investing in private companies is not as straightforward as simply clicking in a brokerage account, Forge offers a wide array of resources and insights to help investors navigate the private market and potentially access some of the most interesting companies in operation today.
Take the next step
If you’re interested in private market investing, take a moment to read “How to buy private shares on Forge: A complete guide,” which offers a step-by-step guide to the process. And, if you are ready to begin your private market investing journey now, you can sign up for a Forge account today.
FAQs about the Clario upcoming IPO
Why invest in the private market?
As some companies delay or forego IPOs, shares of some of the most innovative companies are only accessible in the private market. The private market offers investors access to many of the leading names in AI and other in-demand sectors that are not traded on public exchanges.
Who can invest in the private market?
Unlike public market transactions, there are limits on who can buy shares of private companies. In general, institutions with more than $5 million in assets and accredited individual investors can purchase shares in private companies.
Individuals may qualify as accredited investors if they meet any of the following wealth, income or financial sophistication criteria:
- A net worth of $1 million, with the exclusion of the value of their primary residence.
- Annual income over $200,000 (individually) or $300,000 (with spouse or spousal equivalent) in each of the prior two years, and a reasonable expectation of the same for the current year.
- Holding a current Series 7, 65, or 82 financial securities license from the Financial Industry Regulatory Authority (FINRA).
- Accredited investors can invest directly in the private market and can leverage technology like the Forge platform.
How do you get access to the private market?
Private share marketplaces like Forge offer a platform to match buyers and sellers of private company shares.
What are the benefits and risks of investing in the private market?
Private market investing offers the potential for investors to gain access to non-publicly traded companies that otherwise may not be available. As many of the most innovative companies are staying private for longer, investors may find compelling opportunities in the private market.
Private market investing carries risks, including but not limited to the potential for loss of value, limited liquidity for exiting positions, less transparency into financials and other data compared with publicly traded stocks, and other general risks entailed in any type of investment.
How does private investing work?
Private investing may include asset classes such as real estate, private equity, private credit, infrastructure, and other types of so-called alternative investments beyond publicly traded stocks and bonds. Investors may be able to purchase funds or other investment products to gain access to these private assets.
For Forge, the private market refers to companies that are still privately held and not traded on a public exchange. Forge has created a marketplace to match buyers and sellers of private company stock, offering industry-leading data and intelligence to help both parties make more informed decisions.
