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Ways to realize Pre-IPO
There are two main ways to realize the influence of Pre-IPO fund on the stock price of enterprises. From the investment management process of Pre-IPO funds, in order to control their own investment risks, Pre-IPO funds will conduct detailed due diligence on business, law, finance, management team and the possibility of listing before investing, and as a professional institution, Pre-IPO funds have stronger industry analysis and value judgment ability than ordinary investors. Therefore, Pre-IPO has played an exemplary role in "eating crabs first" for ordinary investors, especially for some reputable foundations to enhance the image of enterprises in the capital market, such as Morgan Stanley versus Mengniu Dairy, which helps to enhance investors' confidence in the open market.

However, there are also views that Pre-IPO funds require the valuation of the shares of enterprises when they enter the enterprise to be lower than the expected value of the shares in the capital market in order to make profits from investment. If an enterprise sells the shares occupied by the Pre-IPO fund in the open capital market, its capital will be higher than that obtained by introducing the Pre-IPO fund. Pre-IPO funds will be gradually withdrawn. If the withdrawal speed is too fast, it will cause the stock price of the enterprise to drop sharply, which is not conducive to the subsequent refinancing of the enterprise.

From the experience of Hong Kong and American stock markets, it is very important to develop PRE-IPO funds by adopting the principle of marketization. Through market-oriented operation, these funds survive the fittest in competition, pay attention to establishing good credit, protect the interests of small and medium-sized shareholders and enterprises and win their trust. However, if administrative means such as examination and approval system and license plate are adopted as before, it will only produce a number of inefficient fund management enterprises. This can be proved by practice. At present, there are many domestic funds looking for PRE-IPO enterprises, and some PRE-IPO fund management companies with good brands and strong strength stand out from the competition.