Linqto, a platform for investing in private companies, filed for Chapter 11 bankruptcy, raising investor concerns about the pre-IPO market.
Reasons for Linqto's Bankruptcy
Linqto filed for bankruptcy, drawing attention to potential repercussions for private investments. However, EquityZen, one of the largest platforms for secondary trading of private shares, assures that Linqto's bankruptcy will not impact other businesses in the pre-IPO space. EquityZen co-founder and CEO Atish Davda states, 'We can confidently confirm that investments made on EquityZen's platform have no exposure to Linqto.'
Overview of the Pre-IPO Market
The pre-IPO market involves investing in shares of companies that are not yet public. EquityZen reports a 56% rise in interest for such investments in June, marking the highest level since March 2023. This growth follows a steep 38% downturn in April.
Ripple's Popularity on EquityZen
Ripple ranked among the most popular companies in the pre-IPO segment on EquityZen during the second quarter of 2025, alongside firms like SpaceX. While Ripple is the only crypto-related company in the top list, others like Tether and Gemini are also showing momentum in the market.
Thus, despite Linqto's bankruptcy, the pre-IPO market remains active and interested, particularly concerning companies like Ripple and other leading players on the EquityZen platform.
