Private Markets 101

Foundational concepts for the modern portfolio.

Investing 101 Intro to secondaries Pre-IPO platforms

Investing 101

A good place to start. Get the low-down before you dive in.

SpaceX

Share price

$588.77

Est. Market Cap

$1.4T

Stripe

Share price

$65.51

Est. Market Cap

$168.8B

What is an alternative investment?

A specialized category of investment that falls outside of traditional assets like public stocks, bonds, or cash.

"Alts" is shorthand for Alternative Investments—assets like private equity or real estate that aren't traded on public exchanges. While traditional investments involve public stocks and bonds, alts can provide qualified investors access to private sector growth, which has become more attractive as companies are staying private for longer than they used to. Read the full definition in our glossary.

<strong data-w-id="5198ccff-ec1e-30a8-5b34-aa21cb7115fa">How are private markets different from public?</strong>

Private markets involve investing in companies that are not publicly listed, some of which may offer higher returns with less volatility, but low liquidity.

The public markets are what most people know: this is where stocks like Apple or Amazon may trade daily on exchanges with "live" prices and strict reporting rules. The private market is an estimated $20 trillion* universe where companies like SpaceX or Stripe grow for many years before possibly going public. In the private market, information is less available, pricing is negotiated, and transactions may be subject to restrictions like company approval, ROFRs.
*Source: Preqin data via Institutional Investor (2024).

What are private shares?

Units of ownership in a company that is not publicly traded.

While a traditional stock may trade on an exchange like the NYSE, private shares represent ownership in companies that have chosen to stay private—sometimes for 12 years* or more. These are typically "common shares" held by employees or "preferred shares" held by venture capitalists or other investors. They aren't available to the general public. They are often subject to specific company rules and are less liquid than public stocks.
*Source: CNBC, Startups are staying private longer thanks to alternative capital (2025).

Intro to secondary markets

How private shares move without an IPO.

Primary vs. Secondary

Primary markets involve buying new shares directly from a company. Secondary markets involve buying existing shares from current holders.

Buying on the primary market helps a company raise fresh capital. In the secondary market, you are purchasing shares from current holders such as employees or investors who want to sell. Secondary trading is the most common way for people to invest in public companies, and the same can be done with private companies. Read the full definition in our glossary.

Why do secondaries exist?

Secondaries in the private markets give shareholders a way to sell while the company is still private.

Because companies are now staying private longer than they used to, employees and investors may want to "unlock" their wealth before a potential IPO. Secondary markets allow these holders to sell, while giving new qualified investors a "way in".

What is liquidity?

How quickly and easily you can turn an investment back into cash without a significant loss in value.

Many public stocks are highly "liquid" because they trade daily on exchanges and anyone can buy or sell with one click. Private shares are “illiquid.” They take longer to sell, require finding a specific buyer, and are often subject to restrictions like ROFRs or company approval. Marketplaces like Augment can make it easier. Read the full definition in our glossary.

See full manual

Pre-IPO platforms

Navigating the path to ownership.

Who can invest in private companies?

In the U.S., these opportunities are typically reserved for institutional and Accredited Investors who meet specific financial criteria.

Because private companies have limited liquidity and fewer disclosure requirements than public ones, regulators require investors to meet certain criteria—such as a consistent annual income over $200,000 ($300,000 with a spouse) or a net worth exceeding $1 million (excluding your primary home) or certifications that indicate a level of financial sophistication. Read the full definition in our glossary

What companies can I invest in?

You can seek exposure to private companies— some may be mature, high-growth businesses that have chosen to stay private longer than previous generations.

Augment tracks the Power 20, which includes names like SpaceX, Stripe, Anthropic, and Databricks. While these companies are "private," they are often fully operational and globally recognized long before they may make their public debut.

How are investments structured?

Private market investments are usually accessed through Direct Secondary Transfers or Special Purpose Vehicles (SPVs).

In a direct transfer, you purchase existing shares from a seller; in an SPV, multiple investors pool their capital into a single entity to buy a block of shares. This "feeder" structure often allows for smaller investment minimums while providing professional administration of the paperwork and transfer process.

See full manual

Follow up to date news or learn the fundamentals

Augment reports on private markets and explains how they work. Start with current developments or build from the fundamentals.

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FOR QUALIFIED INSTITUTIONAL AND ACCREDITED INVESTORS ONLY: Under federal securities laws, private market investments on this platform are available exclusively to Institutional and Accredited Investors. Verification of status required before investing. Private investments involve significant risks including illiquidity, potential loss of principal, and limited disclosure requirements. "Augment" refers to Augment Markets, Inc. and its affiliates. Augment Markets, Inc. is a technology company offering software and data services, not a bank or financial institution. Cash Accounts are provided by Modern Treasury Corp. financial institution partners and through Augment's technology. Augment does not act as a money services business, provide money transmission, or serve as a custodian of funds. Funds held in your Cash Account are not FDIC insured unless expressly disclosed. Full terms available in the Augment Cash Account Agreement.Brokerage services are offered through Augment Capital, LLC, an affiliated broker-dealer and member FINRA/SIPC. “Investment accounts” are not brokerage accounts and do not hold customer funds or securities. Investment advisory services are offered through Augment Advisors, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. Augment and its affiliates do not provide legal or tax advice; consult your attorney or tax professional regarding your specific situation. For additional information, please refer to Augment Advisors, LLC’s Form ADV Part 2A (Firm Brochure) and FINRA BrokerCheck.

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