A Private Company — How To Buy A Stake In

For the heavy hitters, putting money into a PE fund allows professionals to buy and manage stakes in private companies on your behalf.

If you’re looking to follow in Elias’s footsteps, here is how the process actually works: how to buy a stake in a private company

AI responses may include mistakes. For financial advice, consult a professional. Learn more For the heavy hitters, putting money into a

They spent weeks arguing over what the company was worth. Maya saw the future—millions of units sold. Elias saw the present—a prototype and zero revenue. They settled on a "pre-money valuation" of $2 million. Elias decided to invest $200,000. Learn more They spent weeks arguing over what

Sites like Wefunder or Republic allow regular investors to buy small stakes in private startups for as little as $100.

By putting in $200,000 on a $2 million valuation, the "post-money" value became $2.2 million. Elias didn't just give her cash; he bought 9% of the company. Maya’s 100% ownership shrunk to 91%, but her 91% of a funded company was suddenly worth much more than 100% of a broke one.