H2O.ai is an AI software developer specializing in open-source machine learning (ML) protocols and support infrastructure. The company is a leader in the AI development sector, currently serving more than 1 million data scientists and more than 20,000 organizations globally. Its client list includes some of the world’s leading firms, such as PayPal, Chipotle, ADP, Workday, AT&T, Commonwealth Bank of Australia, Hitachi, and Procter & Gamble.
All of these factors have led to investors’ interest in H2O.ai shares rising. However, it’s a privately held company, which means that you will need to follow some specific guidelines to gain access to these assets. Here’s how to navigate the Pre-IPO market effectively and secure H2O.ai Pre-IPO shares.
What is H2O.ai?
H2O.ai entered the market in 2012 to enhance developers’ capabilities and democratize AI. The company was founded by Sri Satish Ambati and Cliff Click and is headquartered in Mountain View, United States. Today, it holds a valuable position in the AI market where it continues to push innovation through new products and research.
Source – H2O
Notably, H2O.ai offers a variety of services and products to its growing customer base, which includes more than half of the Fortune 500. Products like Driverless AI help developers build, train, and deploy new ML algorithms. Additionally, the company has pivoted towards cloud services, enabling it to offer its clients access to the most advanced hardware and software within the AI sector.
H2O.ai managed to secure a spot as a go-to option when seeking open-source AI protocols. The firm offers ML options that were built from the ground up to offer unparalleled scalability, compliance, and support for the latest AI innovations. All of these maneuvers helped the company secure a strong standing across multiple industries, including education, healthcare, and environmental conservation systems.
H2O.ai continues to push the boundaries of AI research, offering critical upgrades to both generative and predictive AI models. Each of these developments helped H2O.ai further its market positioning and penetration. Additionally, it has helped to cement the platform as a valuable research tool.
Historical Funding Rounds
Summary of H2O.ai Funding:
Total Funding: H2O.ai secured $251M across 6 funding rounds
Largest Round: H2O.ai’s largest funding round secured $100M on Nov 08, 2021.
Investors: A total of 26 institutional investors and 2 Angel investors back H2O.ai
Latest Round: The latest funding round was a Series E round held on November 08, 2021, for $100M
Funding Rounds Breakdown:
- 1 Series C
- 1 Series D
- 1 Series E
Key Investors:
H2O.ai secured funding from Wells Fargo, New York Life Insurance, Crane Venture Partners, Nexus Venture Partners, Transamerica Ventures, Aegon, Ping An, Deep Learning, Goldman Sachs Investment Partners, CommBank, Pivot, Investment Partners, Celesta Capital, and NVIDIA.
Why Invest in H2O.ai?
There is a long list of reasons why investors continue to seek out access to H2O.ai shares. For one, the company has gained a reputation for its “AI for Good” initiatives. The use of artificial intelligence is on the rise in nearly all sectors. However, not every sector is beneficial to mankind’s future. Recognizing the need to utilize AI responsibly, H2O.ai has focused on providing moral and accessible AI options to the community.
AI for All
To keep up with their desire to open AI to the world, the company has put a lot of effort into creating user-friendly, automated tools that enable those with no previous experience to leverage AI. First-time users can easily navigate the AI systems and make adjustments to fit their specific needs. This open approach has helped H2O.ai gain a steady flow of new users and investors.
H2O.ai has an Expert Team
Another major benefit that H2O.ai offers is its staff. The company has some of the most talented minds in the AI market. For example, 30 of the world’s top Kaggle Grandmasters are currently employed at the company. This level of expertise demonstrates the company’s commitment to innovation.
H2O.ai Remains a Competitive Force
H2O.ai is a major competitor in the fast-paced market. Currently, it ranks 13th among 368 active competitors. This ranking continues to rise as the firm unveils new products and software. Interestingly, the company has around 124 employees, despite being one of the premier AI service providers globally.
Partnerships
You can’t overlook the massive number of high-level partnerships that H2O.ai managed to secure. Since its launch, the company has built strong relationships with some of the biggest names in tech. Specifically, it works directly with cloud providers like Microsoft Azure, Google Cloud, and AWS and leading AI hardware manufacturers like NVIDIA.
Funding and Investor data sourced from Tracxn
How to Buy H2O.ai Pre-IPO Shares
H2O.ai 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
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 H2O.ai 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 must 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 H2O.ai. 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: You will need to jump through many hoops 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 remove much of the confusion from 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 years of waiting before you can 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 around $32,000
Important: Always perform thorough due diligence and consult a financial advisor before investing in private company shares.
Valuation of H2O.ai and Future IPO
H2O.ai is one of the highest-valued AI software providers in the market. On November 9, 2021, the company achieved a $1.7B valuation. This valuation was made possible due to the firm’s dedication to innovation and support for AI developers via advanced tools designed to lower the workload and improve results.
Today, the company’s AI options help power systems spanning multiple sectors, such as auditing, credit scoring, user-based insurance, intelligence, security, fraud prevention, and patient emergency monitoring.
Many analysts believe that H2O.ai will announce an IPO date in the coming year. The company has a high valuation, strong investor support, and a variety of products that remain in high demand. These factors, combined with its proven track record of pushing innovation, continue to spark interest.
Notably, H2O.ai has not provided an IPO date. However, if the company were to announce plans to go public in the coming weeks, it would be met by huge support from both private and institutional investors. As such, investors continue to seek out pre-IPO share opportunities in the hopes of reaping rewards if the company decides to transition to publicly traded status.
Conclusion
Investing in H2O.ai shares opens the door to many possibilities. The company is one of the leading AI software providers globally, and its focus on ensuring that developers can maximize their efforts ensures that it will remain a crucial service provider moving forward. As with all AI protocols, there’s potential, and there are risks to consider.
You should consult an investment professional before investing in H2O.ai pre-IPO shares. There’s no guarantee that a company will perform as planned or remain profitable after or during an IPO event. As such, you need to consult with a professional to ensure that you remain within your risk appetite. For those who qualify, H2O.ai Pre-IPO shares have great potential, which could translate to high returns.
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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.