Should I invest money in the pre-IPO stocks soon to be offered by the company that I work for?
Is it wise to do this? What should I be thinking about? What are the risks?
I'm one of the first employees, hired in October 2013. The company is a startup in high technology, in the Silicon Valley, and filed S-1 with the SEC for IPO in February. I also have stock options.
Friends and family can purchase pre-IPO stock.
The company has a highly experienced and successful management team, a product that has extreme potential, and already has large companies interested in investment. They're presently demonstrating the product to potential investors and customers.
Ok, it's now a year later. March 28, 2014 IPO cost per share was $6. Out of the chute, stock zoomed up 100%. It's now still 50% above IPO cost.
Best news is that we have a signed 1st tier electronics company, cash, talent, and we're in the wireless power uncoupled market.
So, I'm glad I bought.