A pre-IPO round is a large private financing raised shortly before an initial public offering. It brings in crossover and institutional investors, and helps set expectations and a price benchmark heading into the IPO.
Where in the journey
Late-stage, preparing to go public.
What the money is for
Final private capital and validation ahead of the public listing.
Common investors
Crossover funds, mutual funds, sovereign wealth funds.
Watch out for
If the IPO underperforms, pre-IPO investors can be caught above the public price.