Retail Investors Gain Unprecedented Access to Pre-IPO Markets Through Brokerage Platforms

The democratization of pre-IPO investing has reached a tipping point. Brokerages like Robinhood and SoFi are dismantling traditional barriers, allowing retail investors to participate in initial public offerings without meeting the SEC's accredited investor thresholds. This shift comes as high-profile companies like Klarna and Bullish enter public markets, though post-IPO performance remains volatile.

The mechanics are straightforward: investors request shares through their brokerage, which randomly allocates from its pool. While flipping shares on debut day is possible, firms impose penalties to discourage short-term trading. This development marks a sea change in equity access, particularly for investors who previously watched from the sidelines as institutional players captured early gains.