This week could mark the busiest for the IPO market since November 2007. As many as 11 companies are expected to go public, including online gaming king Zynga.
Just like little kids who can't wait for Christmas and are literally counting the days until Santa arrives, a growing slice of the investment community is coping with a similar sort of impatience: The need to own companies before they go public.
This pre-IPO fever has been fueled, in part, by privately held social media phenomenons like Facebook and Twitter. Note Facebook's recently implied $100 billion valuation and it's easy to see why investors are salivating to get a hold of shares. But for the average investor, accumulating shares is virtually impossible until after the IPO.
The emergence of pre-IPO trading and pricing platforms like Second Market or Sharespost have made it possible to apply hypothetical valuations to companies long before they've filed to go public, and accredited investors (those with over $1 million in liquid assets) can partake in private share auctions.
If all of this seems a little too hot and trendy for your hard earned investment dollars, yet you acknowledge that value exists in being early to the party of discovery for young companies, then the just-listed Keating Pre-IPO Fund (KIPO) may be worth a peak.
"We've created a unique public access vehicle that allows the ordinary investor to get access to these pre-IPO companies, or private companies, just before they go public," says Tim Keating, CEO of Denver-based Keating Capital.Read More »from A New Way to Access the Pre-IPO Market