Investing in Neo4j | How to Buy Pre-IPO Shares

Neo4j provides AI-powered graph database management services designed to scale up to meet the needs of enterprise-level clientele. It combines proprietary AI algorithms with analytics, providing deeper insight and enabling businesses to streamline crucial tasks, including programming and development.

Since its launch, Neo4j has continued to expand operations. Today, it’s the leading graph database proveedor globally with a clientele spanning 80 Fortune 500 customers, 300k developers, and 170 strategic partnerships.

All of these factors have sparked interest in Neo4j shares. However, the company remains a privately owned and operated venture. As such, these shares can’t be purchased via regular brokers. Instead, you will need to navigate the secondary markets to gain access. Here’s what you need to know.

What is Neo4j?

Neo4j entered the market in 2007. Its founders, Emil Eifrem, Johan Svensson, and Peter Neubauer, envisioned the platform as the premier graph database provider. Notably, there are several types of databases, with the most popular options being relational, object-oriented, graph, and cloud databases.

Each of these databases is ideal for certain scenarios. For example, relational databases are ideal for text or other data that needs to be stored in rows and columns, enabling fast sorting and filtering when needed.

Object-oriented databases store data as objects, enabling users to show data flows when needed. Cloud databases are another option that provides exceptional accessibility via platforms like Amazon Aurora, Google Cloud Spanner. Neo4j saw limitations in these options, leading the developers to focus their platform on interconnecting data across networks via graph databases.

Graph Databases

Graph databases are similar to object-oriented databases in that they store the data as items. However, in a graph database, the data is stored as nodes and edges. This structure enables developers to show relationships, alongside properties for each.

Source – Neo4j

Graph databases are ideal when dealing with interconnected data stored in different formats across networks. It can help users make sense of complex relationships and organize data so that it can be retrieved efficiently.

Ideal for Social Networks

Graph databases are ideal for social networks, supply chain management, fraud detection, and other dynamic and complex relationship tracking needs. Notably, graph databases allow you to gain a better understanding of the contextual data while eliminating data silos.

Neo4j first demonstrated its graph database services in 2010 with its version 1 release. This version showed the power of Neo4j’s enhanced graph database and how it could enhance business operations. For one, it leveraged graph query languages like Cypher, enabling more complex programming and integrations.

In 2018, Neo4j branched into cloud database options. The company’s Aura service provides a full suite of options and works hand-in-hand with the company’s other products to provide secure access from anywhere globally. Notably, the firm has made a recent pivot towards AI-powered services.

AI Integration Powers New Generation of Features

The integration of AI agents and features helped Neo4j cement its position as the industry leader. The AI system seamlessly integrates vital features like combined vector search, automated query generation, and LLM summarization. These options enable businesses to manage context, boosting accuracy and explainability.

Uniquely, Neo4j’s graph databases provide AI agents with another level of comprehension. The database gives these systems full transparency and trackability, helping them to avoid hallucinations by providing a complete history of how they came to a certain conclusion.  Additionally, this data can be used to further enhance future AI algorithms’ capabilities.

Impressively, Neo4j  has spent millions improving its technology, and today, its unique features and services have helped to carve out a niche in this competitive market. As such, investors continue to demonstrate interest in its database features.

Rondas de financiación históricas

Summary of Neo4j Funding:

Financiación total: Neo4j secured $581M across 10 funding rounds.

Mayor Redondo: Neo4j’s largest funding round secured $325M  on June 17, 2021.

Inversores: A total of 24 institutional investors and 1 Angel investor back Neo4j.

Última ronda: The latest funding round raised $66M and was a Series F round held in October 2021.

Desglose de las rondas de financiación:

• 1 Semilla
• 2 Fase inicial
• 6 Fase tardía
• 1 Subvención

Inversores clave:

Neo4j secured investment from Inovia Capital, Alanda Capital, One Peak, Eurazeo, Google Ventures, DTCP, Lightrock, Creandum, Greenbridge, Morgan Stanley, Eight Roads Ventures, European Union, Sunstone, Dawn Capital, Conor, and more.

Why Invest in Neo4j?

There are several reasons why the number of investors seeking to own Neo4j shares continues to rise. For one, the platform provides a plethora of helpful tools designed to streamline building intelligent Apps and AI services. Additionally, it’s fully ACID Compliant, ensuring your data remains safe.

Escalabilidad

Neo4j was built from the ground up to service large enterprise-level clientele. Consequently, it’s the ideal solution when dealing with large datasets and complex queries. It can provide reliable transactions, consistent data, and enterprise-grade security protocols.

Flexible Options

There are several options for those seeking to utilize Neo4j to enhance their business operations. The company has a selection of subscriptions, ranging from an AuraDB business-critical option that includes daily backups, role-based access control, and more, all the way to a free option that gets you in the door.

Easy Deployment

In terms of deployment, businesses have several ways to integrate the system into their strategy. For one, it’s designed to work with existing infrastructure, including Google Cloud architecture. Notably, it’s the only high-security-level database provided to Google Cloud marketplace users. Additionally, it also operates as a NoSQL database system, making it a flexible alternative.

Comunidad

Neo4j hosts gatherings and events designed to educate users. These community meet-ups empower users to expand their skills and learn about new products. There are often tips and courses on how to maximize your interactions and create next-generation graph-powered apps and AI systems.

Datos sobre financiación e inversores procedentes de Tracxn.

1. Mercado secundario pre-IPO

Los mercados secundarios son bolsas creadas a tal efecto que ponen en contacto a los accionistas de empresas en fase previa a la OPV con inversores potenciales. Estos mercados pueden ofrecer estos activos porque trabajan en estrecha colaboración con empleados, inversores en fases iniciales e inversores de capital riesgo, que son cruciales para el crecimiento de la empresa antes de la OPV.

Investing in pre-IPO shares of Neo4j could offer strong returns if the company’s valuation increases following its IPO. It’s common for company valuations to increase following an IPO. As such, it makes sense to add pre-IPO shares to your portfolio before the firm announces plans to go public.

Los mercados secundarios tienen muchos requisitos. Estas son algunas de las cuestiones que debe tener en cuenta:

Admisibilidad: Este enfoque requiere que usted sea un inversor acreditado, lo que significa que tendrá que demostrar al menos $1M en activos líquidos para calificar para el acceso.

2. Empresas de capital riesgo

Las empresas de capital riesgo acceden a acciones pre-OPV durante las rondas de inversión. A continuación, ofrecen estas acciones a inversores acreditados de alto poder adquisitivo con una comisión. Se sabe que las empresas de capital riesgo tienen estipulaciones adicionales, como el bloqueo de la venta de acciones durante años en algunos casos.

3. Ventas de acciones a los empleados

Many consider employee equity sales as the best way to acquire pre-IPO shares in Neo4j. This method of acquiring pre-IPO shares requires you to connect with former employees. It’s common for companies to issue shares as part of an incentive package. Notably, this profit-sharing method has become more popular, leading to more pre-IPO share opportunities for investors.

Transacciones privadas: Para llevar a cabo una transacción privada previa a una OPI, hay que pasar por muchos obstáculos, como la creación de acuerdos jurídicos específicos, la realización de valoraciones y el establecimiento de limitaciones a la transferencia del activo.

Corretaje: Los intermediarios eliminarán gran parte de la confusión del proceso previo a la salida a bolsa. Estos profesionales pueden guiarle en cada paso, garantizando el pleno cumplimiento y evitando errores comunes que cometen los profesionales sin formación.

Existen varios riesgos que debe tener en cuenta antes de lanzarse a invertir en acciones pre-OPV. He aquí las principales preocupaciones:

Riesgo de liquidez

Si busca un activo que pueda vender de inmediato, las acciones pre-OPV no son la mejor opción.

Estas inversiones pueden incluir cláusulas de venta y traspaso que impidan la transferencia del activo hasta que se cumplan determinados criterios, como la finalización de la OPI. Incluso es habitual que las acciones previas a la OPI le obliguen a esperar años antes de obtener la capacidad de vender sus activos.

Encontrar un corredor

Si cumple los requisitos y se siente cómodo con los riesgos, varias plataformas ofrecen acceso a oportunidades pre-OPV:

Forja Global: Uno de los mayores mercados de valores privados, que ofrece acciones de empresas emergentes en fase avanzada como SpaceX, Stripe y Databricks. Los mínimos suelen rondar los $100.000.

EquityZen: Una popular plataforma que permite a los inversores acreditados comprar participaciones en empresas privadas con un mínimo de $5.000. Entre sus ofertas anteriores figuran empresas como Discord y UiPath.

Valores Rainmaker: Un intermediario de servicios completos que ayuda a buscar y negociar ventas de acciones privadas, incluidas oportunidades en empresas como OpenAI, Stripe y Palantir.

Hiive: Una plataforma más reciente con precios de compra/venta en directo para cientos de empresas privadas. Transparente y de bajo coste, con mínimos a partir de $25.000.

MicroVentures: Ofrece acceso mancomunado a empresas en fase avanzada a través de sociedades instrumentales (SPV), incluidas inversiones anteriores en SpaceX e Instacart.

EquityBee: Permite a los inversores financiar los ejercicios de opciones sobre acciones de los empleados en empresas de nueva creación, a menudo con descuentos en las valoraciones, con mínimos en torno a $10.000.

Aumentar: Un mercado digital que muestra precios en tiempo real para acciones pre-OPV, dirigido a inversores expertos en tecnología y que ofrece comisiones de transacción más bajas.

StartEngine Privado: Lanzada a finales de 2023, esta plataforma ofrece a los inversores acreditados acceso a ofertas del Reglamento D en empresas en fase avanzada respaldadas por capital riesgo. En sus primeros nueve meses, generó $16,5 millones de ingresos, con inversiones medias de alrededor de $32.000 €.

Importante: Realice siempre la diligencia debida y consulte a un asesor financiero antes de invertir en acciones de empresas privadas.

Valuation of Neo4j and Future IPO

Neo4j qualified for Unicorn status after the company secured a $2B valuation on June 17, 2021. The company managed to secure this value through a combination of factors. For one, it pioneered graph database technology, helping businesses get the most out of complex networks.

Additionally, the company’s pivot towards AI services has opened the door for more usability and convenience. These features enable anyone to gain deep insight into their business without the need to code or program, enabling businesses to use 3D visualizations to conceptualize complex relationships.

Investors holding Neo4j shares seek to capitalize on the company’s strong positioning and growing demand for its products. Considering how the market continues to increase in complexity, there’s definitely room for the firm to expand operations into new features based on its proprietary models.

Investing Neo4j Pre-IPO Shares | Conclusion

Holding Neo4j shares opens the door for potential growth as the company continues to pioneer graph database technology. If it can continue on its course, securing top-level clientele, the company will likely experience further growth in operations and share prices.

However, you need to consult a financial expert before making any pre-IPO investments. This step will ensure that you remain within your risk appetite and avoid common missteps made by new investors. For those who complete their research and qualify for these shares, lots of future opportunities await.

Más información sobre otras oportunidades previas a la OPI Ahora

Descargo de responsabilidad: Este artículo tiene únicamente fines informativos y no constituye asesoramiento financiero, jurídico o de inversión. Las acciones pre-OPV suelen estar disponibles sólo para inversores acreditados y conllevan un riesgo significativo. Realice siempre las diligencias debidas y consulte a un asesor financiero o a un experto legal antes de tomar decisiones de inversión.