Into the Future: How Pre-IPO Investing Opens Doors to AI and Megatrends

In a world of constant change, some trends stand out for their sheer staying power. These are megatrends—long-term shifts that reshape entire industries and economies. These are the big waves you want to be riding, not swimming against.

Right now, artificial intelligence is the wave. In 2025, AI is everywhere, from powering tools in healthcare and finance to driving the next generation of software and automation. AI has gone from headline to reality, becoming a key engine of innovation.

Naturally, investors want in. But there’s a catch: most of the real action is happening behind closed doors. The most exciting AI companies are still private, and by the time they hit the stock market, much of their growth is already baked in. That’s where pre-IPO investing comes in. It offers a way to get in earlier, before the public headlines and inflated valuations.

This post explores how pre-IPO access works, why it’s becoming more available to everyday investors, and how it could unlock opportunities in AI and other megatrends that public markets can’t always reach.

Megatrends are long-term forces of change that shape the future of markets, industries, and societies. Unlike short-term trends driven by fashion or consumer fads, megatrends are rooted in structural shifts.

Megatrends are defined by a few key characteristics:

• Disruptive Impact: Megatrends change how businesses operate and how consumers behave, often in profound ways.
• Cross-Sector Influence: Their effects ripple across industries, influencing the global economy in unexpected ways.
• Long Time Horizon: These trends evolve over decades, influencing several business cycles and requiring a long-term investment view.

These megatrends often emerge from deeper, macro forces, such as:

• Technological Advancements: Innovations like AI, robotics, and quantum computing are reshaping industries.
• Demographic Shifts: Aging populations, urbanization, and generational wealth transfers are all influencing the economy.
• Environmental Pressures: Climate change, water scarcity, and the shift toward renewable energy are driving new industries.
• Geopolitical Realignment: Changes in global trade patterns and growing concerns around digital sovereignty are altering market dynamics.

The potential of these trends is clear. For instance, AI is streamlining business operations, while climate tech is accelerating the global transition to a low-carbon economy. The space economy, meanwhile, is opening new frontiers in satellite data and telecommunications.

For investors, these megatrends are important because they create new markets, disrupt existing ones, and offer growth potential for those who get in early. Spotting these trends and the companies leading the charge is essential for long-term investment success. By positioning themselves ahead of the curve, investors can capitalize on the opportunities that lie ahead.

Among megatrends, AI stands out in 2025. In the U.S., startup funding in the first half of 2025 surged over 75%, reaching $162.8 billion—64% of which went to AI ventures. Venture capital funds like Cathay Innovation have even launched $1 billion AI‑focused vehicles to capture this momentum.

In Europe, AI is also experiencing significant growth. In 2024, AI startups in Europe raised a record $11 billion, marking a substantial increase from previous years. This surge is partly attributed to the European Union's InvestAI initiative, which aims to mobilize €200 billion for AI development.

But it’s not just the money. AI is permeating diverse sectors, such as:

• Finance: AI tools are being used for everything from fraud detection to automated trading.
• Healthcare: Startups like Hinge Health and Sword Health are using AI to streamline patient therapy and diagnostics
• Logistics & manufacturing: Predictive models and automation are optimizing supply chains and factory floors.

With AI funding booming and real-world adoption across industries, it’s clear why AI is spearheading the megatrend wave. For investors, the challenge is not just identifying it, but accessing the companies driving this change.

Shrinking IPO Pipeline

The global IPO market has experienced significant volatility in recent years, with companies increasingly choosing to stay private longer. In 2023, global IPO proceeds fell 30% year-on-year to $120.05 billion, while the number of IPOs globally dropped 16% to 1,344 IPOs. This downturn reflects broader trends, including increased reliance on private capital and investor caution amid economic uncertainties.

However, there are signs of recovery. In 2024, global IPO activity showed renewed momentum, with deal value climbing approximately 5% to reach $126.10 billion, with notable listings in the US including several AI and technology companies—indicating renewed investor confidence in growth sectors, particularly those leveraging artificial intelligence.

For retail investors, this means fewer chances to buy shares in fast-growing companies during their early, high-growth stages. With a smaller IPO pipeline, the opportunity to participate in megatrend-driven companies when they're still scaling has become more limited. This is especially true for AI companies, where the most innovative firms like OpenAI, Anthropic, xAI and others remain private, making direct public market exposure to pure-play AI difficult to achieve.

Few AI Pure Plays in the Public Market

Artificial intelligence is one of the most important megatrends today, yet surprisingly few companies that focus purely on AI are publicly traded. While AI-related stocks performed well in 2024, many of the most innovative AI firms remain private. This lack of public representation in AI presents a challenge for investors who are looking to gain exposure to the sector.

Consider Microsoft's strategic stake in OpenAI as an example. Investors may think that by investing in Microsoft they have exposure to OpenAI. However, as Microsoft is valued at $3.7 trillion, their investment in OpenAI represents only approximately 3-4% of this. So investors investing $100 in Microsoft get only $3-$4 exposure to OpenAI.

This scarcity leads to high demand for AI stocks on public markets, often resulting in elevated valuations. For investors, this means it's challenging to find companies offering genuine AI exposure at reasonable prices, limiting how effectively they can capture this megatrend through public equities alone.

Late-Stage Access Dilutes Returns

Most of the value creation in high-growth companies happens before they list on public exchanges. Early investors such as venture capitalists or private equity firms take on more risk in exchange for the potential of outsized returns.

By the time retail investors can buy shares during an IPO or afterward, much of the rapid growth has already occurred. This “late-stage” entry signifies lower potential returns compared to early investors. Understanding this timing gap helps explain why alternative routes like pre-IPO investing are gaining attention as a way to access megatrends earlier in their growth cycle.

Pre-IPO investing allows investors to get in early on high-growth companies before they go public. As innovation increasingly happens behind the scenes in private firms, new platforms are making these opportunities more accessible, opening the door for more investors to participate in the next wave of groundbreaking technologies.

What Is Pre-IPO Investing?

Pre-IPO investing allows you to buy shares of a company before it goes public. Essentially, you're getting in early, before the company lists its shares on the stock exchange. This can offer the potential for big gains as the company grows, often at a lower price than you'd pay once it hits the public market.

It used to be that only big investors like venture capitalists could participate in these rounds. But with the rise of fractional shares, platforms are now making these opportunities available to more people, even those with smaller budgets.

Where the Innovation Really Happens

Most of the major AI innovations are happening within private companies. Big names like xAI and OpenAI are still private, developing game-changing technologies that will reshape industries. These companies have the flexibility to scale and innovate without the immediate pressure of public market expectations.

By staying private longer, these firms give early investors a chance to get in while the company is still growing—before it reaches its full potential on the stock market. Historically, pre-IPO investing was reserved for the wealthy or institutional investors. But that's changing. A new wave of regulated platforms is allowing everyday investors to buy shares in private companies through fractional shares, opening doors for retail investors to access high-growth opportunities, especially as we head into 2025. With more of these platforms launching, it's becoming easier to invest in innovative companies like those leading the AI revolution.

Pre-IPO investing allows investors to get in early on high-growth companies before they go public. As innovation increasingly happens behind the scenes in private firms, new platforms are making these opportunities more accessible, opening the door for more investors to participate in the next wave of groundbreaking technologies.

As with any investment, tapping into pre-IPO opportunities comes with both significant rewards and inherent risks.

The Upside of Pre-IPO Access

One of the main attractions of pre-IPO investing is accessing companies that have already achieved significant scale, but choose to remain private for extended periods. Many of today's most valuable companies—like OpenAI, SpaceX, and Stripe—have reached massive valuations while staying private, creating unique investment opportunities for those who can access them before they go public.

Here's why:

• Access to high-growth potential: Investors can participate in the continued growth of already-established unicorns as they scale toward IPO or acquisition, especially when these companies become market leaders in their sectors.
• Avoiding the public market premium: Once a company lists, public market investors typically pay a premium for shares. Pre-IPO investors, however, get in before the hype, allowing them to benefit from the valuation increase that often happens during the IPO process.
• Exclusive investment opportunities: Pre-IPO investors have access to opportunities that retail investors can't tap into once a company hits the public radar. Companies like OpenAI and SpaceX represent the kind of late-stage opportunities that were previously unavailable to most investors.
• Extended private growth phases: Many companies now stay private longer, continuing to grow significantly in valuation even at unicorn status. This creates opportunities to participate in substantial value creation during these extended private phases.

By investing in established unicorns before they reach their peak public market valuation, you're positioned to capture the substantial growth that occurs as these companies prepare for and execute their public market debuts.

But It’s Not Without Risk

While the rewards of pre-IPO investing can be substantial, there are also notable risks to consider. However, focusing on later-stage companies with more established business models can help mitigate many of these challenges:

• Illiquidity: Once you invest in a pre-IPO company, it can be difficult to exit the investment. Unlike public stocks, which can be sold on the open market, private companies typically require years to go public or be acquired, meaning you may be locked in for the long haul. However, later-stage unicorns often have clearer paths to liquidity through IPOs or acquisitions within more predictable timeframes.
• Uncertain valuations: Private companies are not required to disclose the same level of information as public ones, making it harder to assess their true value. Without clear financials and performance data, valuing these companies can be a guessing game. More mature unicorns typically have stronger financial reporting and operational transparency, reducing this uncertainty.
• Increased due diligence: With limited transparency, pre-IPO investors need to dig deeper into their research. Thorough due diligence becomes critical to make sure you're making an informed investment and not betting on an overvalued or unstable company. Diversifying across a portfolio of established unicorns and working with experts who know the space helps apply the necessary diligence effectively.

While the potential for growth is high, these risks mean pre-IPO investing requires patience, careful analysis, and a long-term commitment. However, by targeting late-stage unicorns and spreading investments across a diversified portfolio, investors can significantly reduce these risks while maintaining access to exceptional growth potential.

Is It Good to Invest in Many Pre-IPO Companies?

Yes, diversification is key when investing in private blue-chip tech companies. Pre-IPO investments can be risky, so spreading your investments across several companies helps manage that risk.

Not every company will succeed, but by diversifying, you increase your chances of seeing returns from at least one of your investments. This strategy balances the risk and reward of investing in private companies.

As megatrends continue to reshape industries, pre-IPO investing is set to become more accessible, offering everyday investors opportunities to capitalize on high-growth companies before they go public.

Here’s what to expect:

• Increased platform accessibility: More platforms offering fractional shares are lowering barriers, making pre-IPO investing available to a broader range of investors, not just the wealthy.
• Evolving regulations: As pre-IPO investing grows, clearer regulations and standardized practices will improve transparency, providing better protection and more accurate valuations for retail investors.
• Increased competition: More private investors entering the pre-IPO space could drive competition among venture capitalists and private equity firms, leading to more favorable valuations for individuals.
• Broader participation in transformative sectors: Pre-IPO investing will become a key strategy for diversifying portfolios in high-growth sectors like AI, clean energy, and biotech, allowing investors to tap into the next wave of innovation early.

As access expands and regulations evolve, pre-IPO investing will open more doors for those looking to be part of the biggest shifts shaping the future economy.

One example of this new era of access is the Stableton Unicorn Index AMC—a unique, index-following strategy that provides diversified exposure to the Top 20 most valuable privately held tech companies, including many leaders in AI. Designed for today’s investors who want to tap into megatrends earlier, this product makes pre-IPO investing more accessible, liquid, and transparent than ever before. And with Swissquote as the official launch partner, it’s now available through one of Europe’s most trusted digital banks—bringing institutional-grade opportunities to a broader audience.

The content in this article is provided for educational purposes only. It does not constitute investment advice, financial recommendations, or promotional material.