Today’s companies stay private longer, developing most of their value for investors even before going public. With the Dizraptor app, you can invest in private tech companies at pre-IPO and middle stage starting at $1000!
Download the app and tap the Invest Now section to see the offerings handpicked by Dizraptor’s experts. Track your investments in the Portfolio section, and use the Guide to answer any questions.
Investments are available to accredited investors under Reg D 506 (с). To start investing, it is necessary to pass a simple identity verification (KYC) and confirm your accreditation status.
When investing in a private company via Dizraptor, an investor becomes a shareholder in a fund (Special Purpose Vehicle or SPV), which in turn owns the shares in the company. Such a fund is registered in the USA for each investment opportunity. Each SPV has a manager and administrator who conduct the affairs of the fund. All transactions are registered with the SEC.
Dizraptor publishes a full description of the offering in the app. Investors send their money to SPV’s account and get their share. An SPV purchases shares of the company in one of the following ways: directly from companies, from SPVs who directly own shares, or from the company’s employees.
How you make money
Pre-IPO investments mean investing in private companies several months or years prior to their listing on the stock market. It’s a long-term investment. You make a level-headed decision on every company and over time build a portfolio with an investment horizon of several years. After you make an investment, all you have to do is to wait for an exit. Meanwhile, you can follow the company’s news and the dynamics of your share price directly in the app. Generally, you need to wait 1 to 3 years before your investment is closed. In a basic scenario, investments in a private company ends when this company goes public and the lockup period of 200 days is over. After that the shares will be automatically sold and returns from the investment will be transferred to your bank account.
How Dizraptor makes money
Dizraptor is developing software and business solutions that help private companies raise funds from accredited investors. They earn commissions on the investments they offer, which varies depending on an investment offering.
Is it safe?
Investments through Dizraptor involve risks. There are no guarantees that they will be successful — an investor can lose all or a significant part of the amount invested. Due to low liquidity in the private market, the ability to sell shares before an investment is closed is severely limited. Before investing, legal, accounting, and other advice would be helpful. General risks of investing in the majority of private companies include: listing time uncertainty, asymmetry of information, low liquidity, dilution of equity capital, failing to pass the Right of First Refusal, bankruptcy, and unfavorable terms of M&A deal. Investments into a special purpose vehicle (SPV) (or fund) and its strategy is speculative and involves significant risks, including those associated with investments in SPV's targeted industry and market. SPV's performance may be volatile and is suitable only for investors who can afford fluctuations in the value of their capital.