Linqto’s recent Chapter 11 bankruptcy filing won’t impact other businesses operating in the pre-IPO market, according to peer-to-peer investment platform EquityZen.
The bankruptcy has “absolutely no bearing” on EquityZen’s operations or client investments, the platform’s CEO Atish Davda stated.
Understanding the pre-IPO market
A pre-initial public offering market represents investments made in unlisted company shares prior to a public stock exchange listing. Public listings like Circle’s New York Stock Exchange debut are executed via traditional initial public offerings (IPOs).
EquityZen reported a 56% rebound in Q2 investment interest for pre-IPO assets, following a March 2024 38% decline. The platform noted that Circle’s IPO provided a significant catalyst.
Crypto’s market position
According to EquityZen, the cryptocurrency sector holds the sixth spot as the most popular industry for pre-IPO investments this quarter.
Executive Brianne Lynch attributed crypto’s rising prominence partly to regulatory support and sector developments like Circle’s successful listing.
Leveraging the list data
Among the most actively traded pre-IPO companies on EquityZen’s platform this past quarter were Gemini and Tether. Ripple also ranked highly, serving as the platform’s sole crypto representative among the top 10 listings.
