Linqto Aims to Democratize Pre-IPO Investing with Accessible and Affordable Platform

As companies like Airbnb, Meta Platforms, and Uber have demonstrated, significant wealth can be amassed by investing in firms before they go public. Pre-IPO investments have traditionally been the domain of institutional investors, often requiring substantial capital. Linqto, a San Jose-based company, is aiming to change this narrative by making private equity investments more accessible and affordable for individual investors.

Linqto’s platform offers a digital, inclusive, and secure experience, with a minimum investment requirement of just $2,500. This stands in stark contrast to competitors like Charles Schwab, which recently announced an alternative investments platform requiring a minimum of $5 million in assets. Historically, other platforms have required minimum investments of $100,000, making Linqto’s offering significantly more accessible to the average investor.

The firm’s mission is to democratize private investing, and it achieves this by maintaining significant holdings in the shares of companies on its platform. These shares are sourced from founders, employees, and other investors at negotiated prices. Linqto primarily focuses on mid to late-stage private technology companies that meet specific revenue and institutional backing criteria, ensuring a robust selection process backed by in-depth due diligence.

Investors on Linqto’s platform receive shares in a Special Purpose Vehicle (SPV) managed by Linqto, offering protection against creditors in the event of bankruptcy. This structure also benefits the companies by keeping Linqto as the sole investor on their cap tables, simplifying funding and regulatory processes.

One of the unique aspects of Linqto's platform is its liquidity feature. Investors must hold their shares for a minimum of 90 days before selling, but this period is relatively short compared to traditional private equity investments. Additionally, Linqto is a registered broker/dealer with the SEC and a FINRA member, adding a layer of regulatory compliance and security for investors.

As the demand for private investments grows, Linqto’s platform offers a turnkey solution for individual investors to gain early access to companies that could become future industry leaders. This democratization of private equity investing provides a new avenue for wealth generation, particularly as many companies remain private for longer periods.

Linqto’s strategic approach and investor-friendly features make it a compelling option for those looking to diversify their investment portfolios with high-potential, pre-IPO opportunities.