Share Class Mechanics in Pre-IPO Transactions: A Buyer's Reference

The Biggest Source of Avoidable Loss

Being right on the business but wrong on the instrument. Common stock with senior preferred overhang can deliver a worse outcome than a higher price on the cleaner class.

Four Instruments

Common (residual claim, default employee class for SpaceX, Stripe, Anthropic); preferred (seniority, ratchets, information rights); forward contracts (economic exposure without legal title); SPV interests (pooled holding, extra fee layer).

Pricing Hierarchy

Preferred > common > SPV common > forward common. The spread on a single name is typically 20–40%. Revolut parcels have shown particularly wide class-driven dispersion.

SpaceX Pre-IPO Stripe Pre-IPO Anthropic Pre-IPO Revolut Pre-IPO IPO Index Investor Platform Pre-IPO Operating Manual Valuing Fintech Secondaries