What’s the difference between “early stage” and “pre-IPO”?

1 Answer(s)

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.

cremito Train Answered on September 7, 2015.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.