Investing in Liquid Death | How to Buy Pre-IPO Shares

Liquid Death is a beverage company that combines edgy marketing with a green mission. The company’s products include canned water, teas, and energy drinks designed to appeal to young, rebellious clients with names like Sweet Reaper and Rest in Peach. Liquid Death’s unconventional marketing and products have made it a popular option among a niche market with growing prospects.

Recognizing the company’s success, a growing number of investors have shown interest in acquiring Liquid Death shares. However, the company is privately owned and operated. As such, you won’t find these stocks on trading apps. Here’s how you can navigate the secondary markets to acquire Liquid Death Pre-IPO shares.

What is Liquid Death?

Los Angeles-based Liquid Death entered the market in 2014. Its founders include a graphic designer and former rocker, Mike Cessario, and Joy Ryan. Cessario was inspired to create Liquid Death after he attended the 2009 Vans Warped Tour.

There, he noticed that some of the concertgoers were drinking water out of Monster Energy cans. At first, he figured this was out of necessity, but after a few conversations, he realized that the cans also enabled the partygoers to blend into the concert crowd more naturally than drinking plastic water bottles.

Aggressive and Unique Marketing

Liquid Death is far from your typical beverage company. The company’s marketing and branding resemble those of a trendy alcoholic beverage rather than water and tea providers. This strategy was intentional, with the founders stating they selected a tall boy can for several reasons, including its ability to blend in at bars.

The company launched with an aggressive social media campaign that went viral on Facebook. The combination of rocker-style artwork, tall-boy cans, and a cult-like following helped Liquid Death expand into other avenues.

Liquid Death Fights Plastic Waste

At the core of the Liquid Death beverage movement is a push to stop using plastic bottles. The founders noted that plastic recycling has halted recently due to it being found to be unprofitable. They decided that they would serve their beverages in 100% recyclable aluminum cans.

This decision enables the company to reduce its carbon footprint and promote healthy hydration, all from an edgy punk rocker perspective. Catchy campaigns like “Murder Your Thirst” and #DeathToPlastic caught the attention of millennials, enabling the company to get placement in bars, tattoo shops, and other niche locations.

100% Mountain Water

At the core of the Liquid Deaths promise to deliver raw thirst-smashing power is its use of quality high Alkaline 7.9+ pH water. This water is sourced from the Blue Ridge Mountains in Bland, Virginia, and the Rocky Mountains in Mackay, Idaho.

This approach ensures that their water is pure and healthy. It’s calorie, sugar, and preservative-free, making it the perfect way to stay hydrated at your next concert or event. Additionally, the water possesses natural minerals and electrolytes that add to its hydration capabilities and health benefits.

Marketing At its Finest

Liquid Death continues to raise eyebrows with its unique marketing stunts. For example, in 2019, the company hired a witch doctor named Mystic Dylan to perform a curse on its water. Then, the company offered the water with a  “Certified Cursed” badge.

In 2020, Liquid Death expanded its product lineup to include sparkling waters and teas. The company’s Sweet Reaper tea, alongside other aptly named options, gained instant popularity. In one highly publicized incident, the company changed the name of its Arnold Palmer tea to “Dead Billionaire” following complaints from the golfer’s estate over naming rights.

Energy Drinks

Interestingly, Liquid Death plans to expand into energy drinks in 2026. The company announced its “Better-for-You” energy drink line, which will feature a 100 mg caffeine delivered from a fully recyclable aluminum can. Notably, no artwork for the product has been made public yet.

Merch

Another driving factor in the company’s success is its combination of membership and merchandise opportunities. Customers can gain SKULLS for every dollar they spend on liquiddeath.com. SKULLS can be used to purchase cool merchandise like hats, shirts, and more. The company even has a line of NFTs called Murder Head Death Club that feature humorous and edgy designs that reflect its rock and roll lifestyle.

Historical Funding Rounds

Summary of Liquid Death Funding:

Total Funding: Liquid Death secured $264M across 11 funding rounds

Largest Round: Liquid Death’s largest funding round secured $75M in January 2022.

Investors: A total of 29 institutional investors and 11 Angel investors back Liquid Death

Latest Round: The latest funding round raised  $55M and was a Conventional Debt round held on December 16, 2024.

Funding Rounds Breakdown:

• 1 Seed
• 4 Early-Stage
• 3 Late-Stage
• 3 Debt

Key Investors:

Liquid Death secured investment capital from Ares Commercial Finance, SuRo Capital, Science, DeAndre Hopkins, GCCP, Live Nation Entertainment, TO Ventures, Creek Capital Partners, Derrick Green, Science Ventures, SWEDISH HOUSE MAFIA, Whitney Cummings, Studio Science, Access Capital, Nomad Ventures, GroundForce Capital, Convivialite Ventures, Velvet Sea Ventures, Fat Mike, Jamie Siminoff, Jake Strom, Blake Mycoskie, Sophia Amoruso, Jen Rubio, Science, Nick Green, Biz Stone, and more.

Why Invest in Liquid Death?

There are several reasons why investing in Liquid Death makes sense. For one, the company has a cult-like following with users helping to promote the beverage company via merch and activities. Additionally, it serves a niche market with no competitors targeting the same clientele, giving it strong positioning.

Partnerships and distribution

Liquid Death can be found in a lot of places where you wouldn’t expect it. The company’s strategic partnerships and distribution deals have helped it to gain listings on major online retailers like Amazon, GoPuff, and DoorDash. The company also has strategic partnerships in place with brick-and-mortar companies, including Whole Foods Market, 7-Eleven, Sprouts, Publix, Sheetz, GetGo, and others.

Liquid Death Marketing Rocks

Liquid Death’s marketing campaign targets a niche sector that has been underserved by water and health drink providers for decades. Their edgy artwork and core messages of not selling out and fighting the powers that be resonate among the youth and those in the punk rock and skating scenes.

Strong Product Support

Liquid Death stands by its products. It publicly shares its water quality reports online and includes its consumers in any updates regarding the product’s quality or sourcing. This transparency and support helped to build confidence in the company’s business model that combines beverages, lifestyle, and merch.

Green Initiatives

Sustainability remains at the core of Liquid Death’s strategy. The company’s “Death to Plastic” campaign promotes the use of  BPA-free and 100% recyclable aluminum cans. They point out that of all the aluminum ever used, around 77% remains in use today.

This strategy, coupled with the massive amount of damage plastic does to the environment, is more than enough to help get eco-conscious customers on board with the movement.

Funding and Investor data sourced from Tracxn

1. Pre-IPO Secondary Marketplace

Secondary markets are purpose-built exchanges that connect pre-IPO shareholders with potential investors. These marketplaces can offer these assets because they work closely with employees, early-stage investors, and venture capitalists, who are crucial to the company’s pre-IPO growth.

Investing in pre-IPO shares of Liquid Death 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.

Secondary marketplaces have many requirements. Here are some concerns you should be made aware of:

Eligibility: This approach requires you to be an accredited investor, meaning you will have to show at least $1M in liquid assets to qualify for access.

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 Liquid Death. 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, are met. It’s even common for pre-IPO shares to require you to wait years before gaining the ability to sell your assets.

Finding a Broker

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 of around $32,000

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

Valuation of Liquid Death and Future IPO

Liquid Death received a valuation of $1.4B as of Mar 11, 2024. This value qualifies the company for Unicorn status. The firm achieved this value via its strong focus on the underserved punk rock community. Its edgy messaging and youthful marketing campaigns continue to drive interest and intrigue investors.

Additionally, the company was able to generate massive buzz via its online presence and social media marketing, enabling it to secure seed funding. Those holding Liquid Death shares seek to capitalize on the company’s positioning and brand confidence. Notably, it currently ranks 2 among 163 active competitors.

Investing in Liquid Death Pre-IPO Shares | Conclusion

Liquid Death continues to redefine the beverage sector with its blend of unconventional marketing and products. If the company can succeed in its goal to reduce pollution while fueling a hydration revolution, it could result in a major upswing in share prices.

Before making any Pre-IPOI investments, it’s recommended that you consult a financial expert to ensure you remain within your risk appetite. Those who complete their research and can qualify for Liquid Death shares could secure rewards in the future if the firm remains on course.

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.