Pre-IPO market exposure is emerging as one of the fastest growing classifications within tokenized finance. Until now, infrastructure has not been able to keep up with demand, according to new research released today by DWF Labs, a global digital asset market maker. DWF Labs is a well-known high-frequency cryptocurrency investment firm and market maker.
The 20-40% price premium compared to previous round valuations, clear redemption mechanisms, and lack of short-side countervailing forces essentially expose investors to when the underlying companies ultimately price in the public markets, positioning the platform to settle for liquidity first to capture a larger share in the next market cycle. The ‘Pre-IPO Gold Rush’ report checks three exposure structures for retail investors and finds access to private companies.
Pre-IPO stocks gain momentum as interest in AI and crypto sectors grows
There are SPV-backed tokens, synthetic perpetual contracts, and registered closed-end funds, with important differences in backing, redemption, fees, and management across all three exposures. IPO revenue is estimated at $160 billion this year, and the report says the market structure for pre-IPO exposure remains untapped and unproven at scale.
There are several important key findings, including that companies are staying private significantly longer, three structurally distinct exposure types are emerging, pre-IPO stocks are trading at a persistent 20-40% premium, and demand is concentrated around cryptocurrencies, artificial intelligence (AI), and fintech. Estimates suggest that the time between startup and IPO has doubled from four to five years in the 1990s to nearly 12 years today, making it the most valuable growth stage after private markets.
Pre-IPO investment innovation accelerates with blockchain infrastructure
Andrei Grachev, managing partner at DWF Labs, said the research points to a rapidly developing structural mismatch between investor demand and the infrastructure available to access pre-IPO companies. “Companies are staying private for much longer, with the average time to IPO doubling since the 1990s,” he added.
This will concentrate the most valuable growth stage behind private markets and drive retail demand towards on-chain alternatives. The average trade value on Hiive’s platform will exceed $1 million in 2025, indicating that its market primarily serves institutional buyers. Retail demand for pre-IPO exposure remains an underserved market, and competition is beginning to emerge on-chain. ”
This is a platform that will create lasting value as the market matures, he said. “As demand grows beyond the retail level, huge opportunities exist for platforms that can solve liquidity and all the risks outlined in this report. Platforms that solve liquidity will win in the short term, but regulation remains key in the long term.”
