What’s the difference between “early stage” and “pre-IPO”?
A “pre-IPO” company is one on a clear path to going public: an initial public offering (IPO). These are usually mature companies with relatively stable revenues.
Just because a startup is private does not make it pre-IPO. That’s a common misconception. The majority of companies at this stage will never make it to public markets. Most will either be acquired or fail.
Early-stage startups are at the other end of the spectrum from pre-IPO ones. They’re young companies at the beginning of their journeys. Valuations are low, ranging (roughly) from $2 million to $100 million, depending on stage and traction.