Private-market insights

Risks of Investing in Pre-IPO Companies

By TriArc CapitalPublished 2026-09-126 min read

Liquidity risk

Private-company shares may not have an active market. Selling can take time, depend on demand, or be restricted by the company or transaction documents.

Valuation risk

Private-market prices may rely on limited transactions, negotiated terms, or estimates. A price is not a guarantee of underlying value or future performance.

Listing and information risk

A company may never list, and available information may be less extensive than for a listed company. Review the information available and seek appropriate independent advice.