Private market investors include  individual investors, venture capital funds, mutual funds, and more. To participate as a buyer in the U.S., the investor must be deemed an “accredited investor”, as defined by federal securities laws.

Qualifying as an accredited investor depends on meeting certain financial or professional thresholds, such as having income over $200,000 ($300,000 with spouse or partner) for the past two years, with a reasonable expectation to have the same in the current year.

Or, an individual can qualify as an accredited investor if they (alone or with a spouse/partner) have a net worth of at least $1 million, not counting their primary residence.

Or, the individual is a licensed security professional.

Pre-IPO investing refers to investing in a company before it goes public and offers its shares on a public stock exchange. Pre-IPO investing can provide new opportunities for investors who believe that a company is poised for growth and has the potential to generate significant returns. However, it can be a high-risk investment, as there is typically less information available about the company's financial performance and future prospects than there would be for a publicly traded, reporting company.

Investors who participate in pre-IPO investing often do so through private placements or secondary market platforms like P2P Shares that allow them to purchase shares in the company before it goes public. For more on pre-IPO investing.

Investors buy pre-IPO shares for several reasons, such as:

• The potential for outsized returns
• Investing early in a startup
• Diversifying portfolios

Rather than investing solely in publicly traded companies, which often means investing in mature companies and facing a lot of competition from other investors, buying pre-IPO shares can potentially mean getting an ownership stake in a company early offering greater potential for upside.

You don't need to  use a broker to invest in private companies. Accredited investors and institutions find that it’s easier and pay zero commissions when buying private company shares through P2P Shares marketplace.

Buyers can also benefit from P2P Shares expertise in systems with private company transfer processes, knowledge of applicable securities laws and transaction documents, and the ability to bring these elements together in a transaction.

Other broker marketplaces charge commissions up to 5% to both buyers and sellers. P2P Shares does not charge commissions. 

P2P Shares does not charge a fee to create an account or to access our marketplace and join our global network of buyers and sellers.

Investors set valuations based on the recent  trading activity on a secondary marketplace like P2P Shares, recent funding valuations, and valuation histories at comparable companies.

A direct investment involves buying shares directly from another shareholder or from the company itself. A fund investment is where an investor purchases fund units in an entity created to hold a specified asset such as the shares of a privately held company. In a fund investment, the investor does not directly own or hold shares of the private company but owns fund units, which give the investor 1:1 exposure to the shares of the privately held company.

When you submit a non-binding bid on the P2P Shares marketplace, it appears in the live order book. Sellers can choose to accept your bid or negotiate directly with you through the platform. When a match is made, escrow is opened for you to deposit funds with a custodian bank and P2P Shares coordinates the transaction process. We facilitate document signing, managing compliance processes,  communicate with the private company for approval and issue notice for them to transfer the shares. You’ll receive updates along the way.  Once complete, ownership is  transferred to you by the private company. 

For large, complex transactions, P2P Shares can help you identify potential buyers.

To receive priority access to new deal flow and the ability to direct message sellers, you can open and deposit funds in your P2P Shares wallet managed by an FDIC insured bank partner. P2P Shares never touches your money. Additionally, Sellers will see you are a Pre-funded verified buyer when you place bids increasing the chance they will match with you. 

If you have not prefunded your account and a seller accepts your bid, you will have 72 hours to fund the escrow.

No, trades are not automatically matched. However, you can view real-time bids and asks on the order book. You can accept a bid instantly. Both parties are notified when a match is made and the transaction can proceed through the platform. 

Our standard minimum for direct secondary transactions is $100,000 USD. Many P2P Shares fund offerings may accept investments as low as $5,000. 

You can access transaction and valuation data and stay informed about the latest private company trends on your P2P Shares dashboard. Our marketplace provides detailed analytics and historical pricing, so you can see the implied value of your investments. Additionally, you can set up notifications so you don’t miss any opportunities .

When your bid is accepted by a shareholder, P2P Shares will notify you via email and include information regarding opening and funding the escrow. P2P Shares facilitates the transaction by distributing documents for signature, coordinating with the company and third parties to help ensure a smooth process. Once all requirements are met, you will receive confirmation the ownership has been  transferred to you by the private company and escrow is closed. 

No. You must be an Accredited Investor to purchase private securities on P2P Shares..

You can  invest in private securities through self-directed IRAs (SDIRA). P2P Shares works with various custodians to facilitate these transactions. If you're considering investing through a trust, our marketplace can support that as well, provided it meets applicable requirements. We recommend consulting with your financial advisor or IRA custodian to ensure compliance with their requirements. 

There may be restrictions on buying shares from specific companies on P2P Shares’s marketplace. These restrictions can vary based on factors such as the company’s policies, shareholder agreements, regulatory requirements, the availability of shares, and whether P2P Shares supports trading in that company’s shares. Some private companies impose transfer restrictions or require board approval before shares can be transferred, while most have rights of first refusal that give the company itself or existing stakeholders priority in purchasing shares from those who sell. If you're interested in a specific company, please register for an account, and visit that company’s page—P2P Shares provides company-specific context regarding transferability restrictions.

If you haven't already, you can open a P2P Shares account and accept a current bid or submit an offer to sell your shares Once listed, investors  can  accept  your offer or negotiate directly with you through the platform. For larger or more complex transactions, P2P Shares specialists can assist to help identify potential counterparties. 

You dont pay P2P Shares. Once escrow is open you will deposit funds covering the purchase price into a secure custodial bank escrow. There are no fees and you pay zero commissions

The purchase price is fully refunded to you if the transaction doesn’t close.