Uphold operates as a cloud-based financial and asset exchange provider via a proprietary mobile app. The company is a popular alternative to traditional banking that enables users to send value across asset classes and borders with minimal fees and effort. As such, there is a lot of demand for Uphold shares. However, the company has not listed any official IPO date yet, resulting in increased demand for pre-IPO shares.
Since its launch, Uphold has secured a reputation for quality and transparency. The company’s unique business model enables users to convert and transact in various assets. Additionally, their iOS and Android apps are free to download, enabling anyone to trade traditional cryptocurrencies, fiat currencies, gold, and certain equities.
- Source – Uphold
Today, millions of people rely on Uphold to send money internationally, covert assets, and manage their financials. The company’s strong positioning, innovative approach, and regulatory compliance are all factors driving demand for Uphold shares. Here’s how you can get your hands on Uphold pre-IPO shares.
What is Uphold?
Uphold launched in 2014 as Bitreserve. The London-based financial app was founded by JP Thieriot, Anthony Watson, and Halsey Minor to reduce the high fees and delays commonly associated with international currency and asset exchanges. To their credit, Uphold accomplishes this task exceptionally well.
Uphold Mobile App
The Uphold mobile app is free to download. It includes a variety of options and features that empower users to convert, hold, and transact assets globally. The friendly interface provides direct access to key functions like the ability to convert and trade multiple assets from one screen. Uniquely, Uphold users can convert 27 fiat currencies, gold, silver, platinum, palladium, and +350 cryptocurrencies seamlessly.
This flexibility has helped Uphold’s user base diversify their portfolios and save on fees when making international payments. Notably, Uphold’s founders refer to the application as “the world’s first and only real-time transparent and fully verifiable reserve.”
Altcoin Heaven
The Uphold application incorporates some cool features that help users locate hard-to-find and rare digital assets. The altcoin heaven feature provides early access to these tokens, opening the door for additional ROIs in many instances.
USD Interest Accounts
Uphold was among the first crypto-friendly multi-asset exchange mobile apps to meet regulatory standards. As part of this approach, the company can provide FDIC-insured USD interest accounts to users, enabling them to secure up to 5% APY on their holdings.
Historical Funding Rounds
Summary of Uphold Funding:
- Total Funding: Uphold secured $73.4M across 4 funding rounds
- Largest Round: Uphold’s largest funding round secured $57.5M on Jan 25, 2018
- Investors: A total of 7 institutional investors and 1 Angle investor back Uphold
- Latest Round: The latest funding round was an Angel round held on Jan 25, 2018, that secured $57.5M
Funding Rounds Breakdown:
- 7 institutional investors
- 1 angel
Key Investors:
Uphold has support from a variety of well-known institutional investors and the angel investor Greg Kidd.
Funding sourced from Traxn
Why Invest in Uphold?
There are plenty of reasons why someone would seek to invest in Uphold. For one, the app has secured a position at the top of a competitive market. The platform ranks 2nd among 1868 active competitors. Additionally, the developers have shown a commitment to innovation, frequently introducing new products and services.
Growing Demand
There’s an increased demand for crypto-integrated financial services. Uphold provides a streamlined integration that connects multiple asset classes and empowers users to convert between these assets to reduce fees and improve their holdings. Demand for these services will only increase as more traditional-minded investors seek to join the blockchain revolution. As such, Uphold has excellent positioning to capture these new users.
Easy Set Up
Anyone can join Uphold. The setup is similar to traditional banking applications and can be completed in minutes. Additionally, there are no complicated procedures or interfaces to confuse new users. Simply download the app for free and sign up. Once approved, you can fund your account using credit cards, bank transfers, crypto, and a variety of other popular options.
Uphold Offers Flexible Options
Uphold is one of the most flexible regulatory-compliant exchange applications available. The platform provides users with the ability to convert equities, fiat currencies, precious metals, and cryptocurrencies securely from a single interface. As such, the app is ideally suited to both experienced and new users.
Uphold has Developer Support
Uphold provides a lot of support for developers seeking to integrate its options and features into their creations. This open approach to the market helps to grow and empower the community. Developers can create helpful new platforms and add-ons that improve the user experience and onboarding processes.
Smart Acquisitions
Another reason Uphold is a smart “add” to your portfolio is its growing number of strategic partnerships and acquisitions. The firm recently announced a partnership with hardware wallet developer Ledger. The agreement enables its +10M users to send and receive assets using Uphold directly from their cold storage devices, improving security and expanding the platform’s user confidence.
White Label Options
Uphold provides businesses with white-label options, enabling them to offer their clients advanced payment and exchange features. Additionally, these systems help users create and manage digital assets like NFTs, which can improve customer engagement.
Regulatory Compliant
All Uphold app users must complete full KYC/AML regulatory requirements. You need to provide the company with your name, phone number, date of birth, valid government photo identification, and a live selfie before you can leverage the exchange, withdrawal, or send-and-receive features.
How to Buy Uphold Pre-IPO Shares
Uphold hasn’t stated that it intends to go public yet. However, the company’s finances and momentum could make it a possibility in the coming months. For now, Uphold 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, which are crucial to the company’s pre-IPO growth.
Investing in pre-IPO shares for Uphold could open the door for additional ROIs if the company’s valuation is less than when its IPO launches. 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: Notably, this approach requires you to be an accredited investor, meaning you will have to show at least $1M in liquid assets to qualify.
Liquidity: Pre-IPO shares can’t be traded like regular shares. They often include some lockup restrictions that prevent you from trading them before the IPO. Some firms have permanent “no sell” clauses that prevent any transfer of the shares following your investment.
Linqto is a reputable investment platform that connects accredited investors with pre-IPO shareholders in a secure manner. The network streamlines pre-IPO investing via an easy-to-navigate interface that provides access to all relevant data at a glance. Accredited investors seeking pre-IPO shares in Uphold should consider Linqto.
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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 Uphold. 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 Uphold 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 Uphold and Future IPO
Uphold was valued at $200M per its last filing. The company is ranked as “Soonicorn” status due to its fast-growing nature and past success. It remains a top contender in the market and its valuation reflects this positioning.
Uphold has shown a strong commitment to transparency and security. Its transparent fee structure and low rates continue to entice new users to its offerings. If Uphold announces plans to go public soon, there will be strong demand for their shares.
Many analysts believe that an Uphold IPO could secure millions for the company. The platform already has a +10M strong user base and continues to see growth. All of these factors increase demand for pre-IPO shares of this popular asset exchange and management platform.
Uphold Pre-IPO Shares Conclusion
Getting your hands on pre-IPO shares of Uphold isn’t an easy task, but it could turn out to be a lucrative one. The value of Uphold shares could see a boost if the company announces IPO plans shortly. For now, its positioning in the market, unique offerings, and low fees have cemented it as a major contender.
Anyone considering purchasing Uphold shares should take additional time to research the project. Investing in pre-IPO shares can increase risk and reward. As such, it’s recommended that you consult a financial analyst to ensure that you remain within your risk appetite. If you conduct your studies and find that Uphold fits your strategy, there’s a good chance that your pre-IPO shares will see gains.
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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.