Investing in Circle | How to Buy Pre-IPO Shares (2025)

Circle operates as a decentralized peer-to-peer payment ecosystem. It has been a pioneering effort in the market for over a decade. Today, the platform is best known as the issuer of the stablecoin USDC. USDC is one of the top-performing regulated stablecoins in the world. It's used by millions of people daily and is widely accepted across the decentralized economy.  Circle's commitment to innovation and transparency makes the prospect of an IPO exciting. As such, there’s a lot of demand for pre-IPO shares of this fast-growing market leader.

In July 2021, Circle announced that it would go public. At the time, the IPO would involve merging with Concord Acquisition Corp. In total, the merger would’ve been valued at $4.5B. However, the plans were called off in December 2022, leaving many investors seeking pre-IPO solutions. Here's what it takes to get your hands on Circle's pre-IPO shares.

What is Circle?

Circle entered service in 2013 as an open and permissionless digital payment ecosystem. The project quickly garnered media attention as it was the first recipient of a BitLicense from the New York State Department of Financial Services. Notably, the Circle Pay dapp gained popularity because it enhanced the usability and accessibility of decentralized payment solutions to businesses, which helped to drive adoption.

Source – Circle

Circle partnered with Coinbase, North America's largest CEX (centralized exchange), in September 2018 to launch the stablecoin USDC. USDC is fully licensed and regulated across the US and other nations. It's among the most reputable stablecoins in the market and features a 1:1 peg to the US dollar.

Circle secured a reputation for transparency and security thanks to its open business model. For example, the Circle Mint protocol allows anyone to convert funds between USD and USDC seamlessly. Once converted to USDC, businesses and users can send value globally in seconds for less than a cent. Additionally, integration was a prime concern for USDC developers, who wanted to ensure rapid global payments and 24/7 financial markets.

Circle users may also leverage USDC as collateral to launch proprietary dollar-backed financial services that can operate seamlessly across applications and networks. Anyone can create purpose-built applications that empower clients while leveraging the advantage that USDC brings to the market. This openness enabled USDC to overtake Tether (USDT) in transaction volume in 2024.

Historical Funding Rounds

Summary of Circle Funding:

• Total Funding: Circle has raised a total funding of $1.01B over 6 rounds.
• Largest Round: Circle's largest funding round was a Series E held on April 12, 2022, that secured $440M
• Investors: A total of 47 institutional investors backed Circle
• Latest Round:  The last funding round was a Series E round held on Aug 22, 2023, that secured an undisclosed amount.

Funding Rounds Breakdown:

• 5 late-stage
• 1 ICO

Key Investors:

Circle has received funding from many prominent investors, including Coinbase, BlackRock, Fin Capital, Fidelity Investments, Marshall Wace, Fidelity Investments, Marshall Wace, Willett Advisors, Atlas Merchant Capital, Digital Currency Group, FTX, Breyer Capital, Valor Capital Group, Pillar VC, BITMAIN, and Alameda Research.

Funding Data is Sourced from Tracxn

Why Invest in a Circle?

There are several reasons why investing in Circle could make sense. As the market front-runner, Circle is always within the top 3 stablecoin contenders. It has a proven security track record and is backed by some of the biggest names in the industry. Other reasons why investors would seek out pre-IPO Circle shares include:

Largest Stablecoin Issuer: USDC has outgrown competitors without shrinking away from its commitment to users. The stablecoin is accepted globally and continues to be a critical component in new dapps.

Transparency: Cirlce has USDC reserves held in an SEC-registered 2a-7 government money market fund called the Circle Reserve Fund (USD XX). This fund is monitored by third parties which give daily updates to the community.

Unmatched Interoperability: Circle's network and market positioning continues to expand. The platform now has assets on +15 blockchains. Specifically, Algorand, Arbitrum, Ethereum, Hedera, NEAR, Noble, OP Mainnet, Polkadot, Polygon PoS, Solana, Avalanche, Base, Celo, Stellar, Sui, and Zksync support USDC at this time. This expansive network of blockchain users and developers has helped Circle remain a prominent force in the community.

Daily Users: There's currently +$34.37B USDC in circulation and $34.59B in reserves. The project overtook USDT this year in terms of transaction volume largely due to its added transparency and integration into new blockchain ecosystems. This strategy will continue to work for Circle as demand for USDC and other decentralized payment solutions is rising.

Customizable: The open nature of the Circle ecosystem makes it an ideal solution for businesses seeking to integrate faster and more efficient payment methods. Companies can enhance their UX by offering dollar payments and financial services across a variety of assets in a p2p manner.

How to Buy Circle Pre-IPO Shares

Circle may have called off its first IPO, but hopes are high that the company will return to this strategy in the coming months. As such, Circle remains a privately held company, meaning that you will need to utilize a specialized approach to get access to shares. Here is what you need to consider.

1. Pre-IPO Secondary Marketplace

Investors sometimes gain exposure to private companies through secondary marketplaces, which connect accredited investors with early shareholders—such as employees, venture firms, or insiders—looking to sell shares before a company’s IPO.

Pre-IPO investments offer the chance to invest during a company's high-growth phase, often at lower valuations than in the public markets. However, these opportunities come with important considerations:

• Eligibility: Secondary markets typically require you to be an accredited investor, meaning you must meet certain income or net worth thresholds.

• Liquidity Risk: Private shares are usually illiquid until the company goes public or is acquired, meaning you may need to hold them for several years—or potentially indefinitely.

If you meet the requirements and are comfortable with the risks, several platforms offer access to pre-IPO opportunities:

• Forge Global: One of the largest private stock marketplaces, offering shares in late-stage startups like SpaceX, Stripe, and Databricks. Minimums typically start around $100,000.

• EquityZen: A popular platform allowing accredited investors to buy into private companies with minimums as low as $5,000. Past offerings include companies like Discord and UiPath.

• Rainmaker Securities: A full-service broker that helps source and negotiate private share sales, including opportunities in companies like OpenAI, Stripe, and Palantir.

• Hiive: A newer platform with live bid/ask pricing for hundreds of private companies. Transparent and low-fee, with minimums starting around $25,000.

• MicroVentures: Offers pooled access to late-stage companies through special purpose vehicles (SPVs), including past investments in SpaceX and Instacart.

• EquityBee: Allows investors to fund employee stock option exercises at startups, often at discounted valuations, with minimums around $10,000.

• Augment: A digital-first marketplace showing real-time pricing for pre-IPO shares, targeting tech-savvy investors and offering lower transaction fees.

• StartEngine Private: Launched in late 2023, this platform offers accredited investors access to Regulation D offerings in later-stage, venture-backed companies. In its first nine months, it generated $16.5 million in revenue, with average investments around $32,000

Important: Always perform thorough due diligence and consult a financial advisor before investing in private company shares.

2. Private Equity Firms

Private equity firms gain access to pre-IPO shares during investment rounds. They then offer these shares to high-net-worth accredited investors with a commission. Notably, private equity firms are known to have extra stipulations, including blocking the sale of shares for years in some cases.

3. Employee Equity Sales

Many consider employee equity sales as the best way to acquire pre-IPO shares in Circle. 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.

Private Transactions: there are a lot of hoops you will need to jump through to complete a private pre-IPO transaction, including creating specific legal agreements, conducting valuations, and setting in place any limitations on the transfer of the asset.

Brokerage: Brokers will take a lot of the confusion out of the pre-IPO process. These professionals can guide you through each step, ensuring full compliance and avoiding common errors untrained professionals make.

There are several risks that you should consider before jumping into the pre-IPO shares investment arena. Here are the top concerns:

Liquidity Risk

If you are looking for an asset that you can sell right away, pre-IPO shares are not the best option. These investments can include sales and transfer clauses that prevent the transfer of the asset until certain criteria, such as the IPO's completion. It's even common for pre-IPO shares to require you to wait years before gaining the ability to sell your assets.

Regulatory Risk

The blockchain market has seen considerable scrutiny from regulators and lawmakers. While the technology is far better understood than in its early days, there are still many lawmakers who see it as a threat to the traditional financial system, As such, you need to always consider how new regulations could affect the value of your pre-IPO shares.

Market Risk

Purchasing pre-IPO shares in Circle means that you stand behind the project and its team.  The company has secured a reputation for excellence and has previously expressed a desire to go public. However, no concrete data has been provided yet. As such, it's vital to understand that the blockchain market is an active space that experiences strong fluctuations that could result in a different share value between now and any future IPO launch.

Valuation of Circle and Future IPO

Circle has a valuation of $9B as of February 2022. This valuation places it in Unicorn status. The company obtained this value through its Circle pay features and the USDC stablecoin project. Together, these products have empowered the blockchain community and driven adoption.

There is a lot of speculation regarding when Circle will go public. Given That the company had already announced plans years ago, it's highly likely that the firm will make the maneuver sooner rather than later. As USDC sees more integration into the blockchain market, the demand for Circle to go public should increase as well.

If Circle would commit to an IPO date, it could be one of the most anticipated projects to go public. Notably, Circle has pioneered the blockchain payment sector and its pre-IPO shares could see massive demand from the community. This demand would grow as more nations, businesses, and users join the blockchain economy via Circle offerings.

Conclusion

Investing in Circle pre-IPO shares could open the door for major benefits in the future. However, there are some risks that you can't ignore. Circle remains a prominent innovator that has set the pace for the stablecoin movement. Now, the company wants to take its blockchain services and integrate them across every industry, enhancing payment solutions globally. If successful, Circle will remain a dominant player in the market for the foreseeable future.

You should always do your own research before making any pre-IPO investments. It's also recommended that you consult a financial expert to ensure that you remain within your risk tolerance and investment strategy goals. For those willing to take on the pre-IPO risks, Circle could provide some upside potential.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Pre-IPO shares are typically available only to accredited investors and carry significant risk. Always perform thorough due diligence and consult a financial advisor or legal expert before making investment decisions.