Pre-IPO Investment Risk & Reward Calculator
Investment Details
Company Growth Projections
Enter annual growth rates and profit margins for different scenarios.
IPO & Exit Assumptions
Risk Tolerance & Results
Pre-IPO Investment Analysis Results
Investment Summary
Metric | Value |
---|---|
Initial Investment Amount | |
Current Pre-IPO Share Price | |
Total Shares Purchased | |
Investment Date | |
Projected IPO Year | |
Total Holding Period (approx.) |
Scenario-Based Projections at IPO
Metric | Bear Case | Mid Case | Bull Case |
---|---|---|---|
Projected Annual Revenue at IPO | |||
Projected Annual Profit at IPO | |||
Projected Company Valuation at IPO | |||
Projected Share Price at IPO | |||
Potential Total Return ($) | |||
Potential ROI (%) | |||
Internal Rate of Return (IRR) (%) |
Risk Assessment
Metric | Value |
---|---|
Break-even IPO Share Price | |
Potential Loss if IPO Fails / Valuation Drops Significantly (up to) | |
Risk-Reward Ratio (Mid Case) | |
Meets Minimum Acceptable Return (%) | |
Within Maximum Acceptable Loss (% of initial investment) |
Key Inherent Risks to Consider:
- Liquidity Risk: Pre-IPO investments are highly illiquid. Funds are locked up until a liquidity event (IPO, acquisition), which may never occur or be delayed.
- Valuation Uncertainty: Private company valuations are less transparent and more subjective than public market valuations, leading to higher uncertainty.
- IPO Failure/Delay Risk: The company may fail to go public, or the IPO may be significantly delayed, impacting your investment timeline and exit opportunities.
- Dilution Risk: Future funding rounds can dilute your ownership percentage, potentially reducing your per-share value at IPO.
- Market Conditions Risk: General market downturns or sector-specific challenges can negatively impact IPO valuations and success.
- Company Performance Risk: The company may not achieve its projected growth or profitability targets, directly affecting its IPO valuation.
- Competitive Landscape: Increased competition can impact market share and future growth prospects.