Pre-IPO market exposure has become one of the fastest-growing areas in tokenized finance, but the infrastructure to support it is not keeping up with demand. That is according to new research from DWF Labs, a global digital asset market maker and high-frequency cryptocurrency investment firm.
The report, titled “The Pre-IPO Gold Rush,” reveals that pricing premiums of 20-40% over previous-round valuations are now common. Investors face clear redemption mechanisms and lack short-side counterforces, which leaves them exposed when underlying firms eventually price in the public market. The report suggests that the platform that solves for liquidity first could grab an outsized share of the next market cycle.
The study examines three main structures for retail investors to access private firms: SPV-backed tokens, synthetic perpetual contracts, and registered closed-end funds. There are significant differences in backing, redemption, fees, and management across these options. With an estimated $160 billion in IPO proceeds expected this year, the market for pre-IPO exposure remains underdeveloped and unproven at scale.
Key Findings on Market Mismatch
The report highlights several important trends. Companies are staying private much longer than before. The average time from founding to IPO has doubled from 4-5 years in the 1990s to nearly 12 years today. This means the most valuable growth phase is happening behind private markets. Demand has clustered around crypto, artificial intelligence (AI), and fintech sectors. Pre-IPO shares are trading at persistent 20-40% premiums, which is a sign of strong investor appetite.
Andrei Grachev, Managing Partner at DWF Labs, said the research points to a structural mismatch between investor demand and available infrastructure. He noted that companies staying private longer concentrates growth in private markets, driving retail demand toward on-chain alternatives. He pointed out that Hiive’s average transaction size on its platform exceeded $1 million in 2025, which suggests it largely serves institutional buyers. Retail demand for pre-IPO exposure, he added, remains an underserved market, though competition is emerging on-chain.
Opportunity for Liquidity Platforms
Grachev believes durable value will build as the market matures. He said there is a huge opportunity for a platform that can solve for liquidity and address the risks outlined in the report. In his view, the platform that handles liquidity effectively will win in the short term, but regulation will be key in the long term.
