Why Don’t Banks Tell You About Pre-IPO Investing?

You can often get a better deal on private companies like OpenAI and Anthropic than on already-public companies like Microsoft, Oracle or SpaceX. Because they’re earlier in their life cycle and still private, their shares trade at a discount.

So why don’t banks and brokerages mention it? When you sell your Microsoft stock in your Fidelity account and move the money into a pre-IPO deal, they can no longer collect fees on those assets every month. That doesn’t make pre-IPOs automatically better, but accredited investors should know what exists beyond the public markets.

Key points

  • Private companies like OpenAI and Anthropic can be bought at a discount to public peers.
  • Brokerages lose fees when money leaves for private deals.
  • Accredited investors should know the options outside public markets.

Accredited investors: learn about current opportunities at tickertapeinvestments.com.

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