The $120 billion market for coveted pre-IPO stock enters its scaling era

A $120 billion market for pre-IPO stock has emerged, attracting the attention of Wall Street firms and other major institutions. Companies like Morgan Stanley and Charles Schwab have either acquired pre-IPO-focused trading platforms or formed partnerships aimed at expanding private market alternatives for clients in the wealth channel.

The growth of this market is driven by high-net-worth individuals seeking investment opportunities outside the public market. Secondary trading has gained importance over the past decade, reaching a value of more than $120 billion, according to PitchBook estimates. Platforms like EquityZen and Forge Global have made it possible for individuals to directly own stock in companies before they go public.

These platforms have seen significant growth, with EquityZen having 721,000 users by the end of 2024 and Forge Global boasting over 800,000 users. The integration of these platforms into major Wall Street firms, such as Morgan Stanley's acquisition of EquityZen and Charles Schwab's purchase of Forge Global, signals a deepening conviction about the strategic opportunity presented by the convergence of public and private markets.