mParticle is an enterprise-grade database software solutions provider. The company streamlines analytics, providing businesses deep insight into their customers’ data. Since its launch, the firm helped multiple major corporations get the most from their data, increasing demand for its shares.
Currently, mParticle is a privately owned company, meaning that pre-IPO shares are the only way to gain a stake in the firm. Notably, the company hasn’t shared any plans to go public yet. However, as its revenue, client base, and partnerships expand, the prospect of a mParticle IPO continues to draw investors near. Here’s what you need to do to access pre-IPO mParticle shares.
What is mParticle?
New York-based mParticle launched in 2012 as an advanced data management firm. The company’s products enable businesses to manage client data accurately and securely. This real-time data enables businesses to transform customer information, gathered from multiple channels, into direct actions.
Strong Data Foundation
At the core of mParticle’s business model is a strong data foundation. The company provides automated services that protect data quality while ensuring the proper format and location. Additionally, the data structure is set up to eliminate data silos. As such, large corporations enjoy real-time frictionless data sharing.
Unified Customer View
Gather vital customer data into a single and easy-to-understand view that sheds light on the currents that power your business. Learn why certain times and products outperform others and how to connect products with clients at the proper time. The unified customer view allows for large data analysis that can be broken into smaller sections to deepen your understanding.
Source – mParticle
AI-Powered
There are several AI systems that improve mParticle’s offerings. These options can streamline vital tasks such as gathering and reviewing analytics for patterns. AI provides another level of insight into user engagement that can enhance the customer experience while reducing costs.
Grow Customer Base
mParticle clients can expand their customer base for less by utilizing advanced AI analytics. The system allows customer understanding on a new level like allowing you to see why customers select a certain product, business hours, or more. Businesses can utilize this data to improve their customer profiles, enabling firms to offer customized offerings and drive engagement.
Per Customer Revenue
Businesses can create personalized campaigns to drive per-customer revenue up. There are several unique features to accomplish this task including the ability to discount products at the perfect time, upsell personalized offers based on past client engagements, and even deliver personalized messages.
API
At the core of the mParticle ecosystem is the network’s secure API protocol. This API integrates into existing business systems, enabling automated services and AI options. The API activates data monitoring across entire networks with ease and provides a secure data transmission.
Historical Funding Rounds
Summary of mParticle Funding:
- Total Funding: mParticle secured $272M across 10 funding rounds
- Largest Round: mParticle’s largest funding round secured $150M on Oct 05, 2021, for $150M.
- Investors: A total of 26 institutional investors and 2 Angel investors back mParticle
- Latest Round: The latest funding round raised $150M and was a Series E round held on Oct 05, 2021.
Funding Rounds Breakdown:
- 3 Seed
- 2 Early-Stage
- 4 Late-Stage
- 1 Debt
m Particle Key Investors:
Several key investors that back mParticle include Permira, Arrowroot Capital Management, FJ Labs, Harmony Partners, Bain Capital Ventures, Social Capital, Ashley Carroll, Benjamin Barokas, Eric Franchi, HighGear Ventures, and Highbridge Capital Management.
Funding data sourced from Tracxn.
Why Invest in mParticle?
There are many reasons why an investor would want to have a stake in mParticles’ future actions. The company offers a variety of powerful software options designed to improve your understanding of customer behavior. These options gain additional value from their AI integrations that allow large businesses to deliver intelligent and responsive customer experiences.
mParticle Eliminates Data Silos
Another core benefit of mParticle is that it eliminates data silos. The advanced API can integrate into the system and provide direct real-time data to the client dashboard. This information provides business owners with a competitive edge.
Customer Support
Another major reason why investors continue to look towards mParticle as a smart addition to their portfolio is that it has reputable customer support. The enterprise-focused business model means that clients have full support during the data planning, team training, and operations.
Scalable AI system
Another major reason why analysts continue to rank mParticle as a winning addition is that it has a highly scalable proprietary AI engine. The developers were able to create a high-performance AI-powered data management system through the use of an end-to-end streaming architecture. Notably, this approach is much faster than the traditional batch processing used by most competitors.
mParticle Tailored Systems
Enterprise clients need fully configurable systems for many reasons. For one, they are often already heavily invested in their previous systems, meaning that they are less likely to integrate new ones if they must eliminate their old operations. Understanding this situation, mParticle created a system designed to work with existing tech stacks, reducing costs and improving onboarding times.
Proven Effective
One of the main reasons why mParticle has strong support is that it continues to prove to be a powerful tool that is both effective and secure. When you review some of the company’s past operations you can see that they have made a significant difference after integration.
For example, the New York Post tripled its campaign conversions for its premium sports membership package utilizing the software. Also, HBO MAX stated it reduced its workload by 1000 hours after integrating mParticle tools versus paying analysts.
How to Buy mParticle Pre-IPO Shares
mParticle 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 mParticle 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 securely. 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 mParticle 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 mParticle. 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 mParticle 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 mParticle and Future IPO
mParticle received a $820M valuation in 2021. This valuation does not qualify mParticle as Unicorn status but it does demonstrate its proximity to achieving it. The company secured this valuation and market positioning by focusing on the needs of enterprise clientele and providing secure, easy-to-integrate AI-powered solutions.
Since its launch, mParticle has made intelligent maneuvers to expand its services vertically. Today it offers a mix of business/productivity software, media services, and information services that enable a new level of customer engagement and personalization. In the future, mParticle has signaled plans to remain enterprise-focused. The company seeks to expand its AI services to include new systems that can conduct tasks in addition to retrieving and analyzing data.
mParticle remains a privately held company that hasn’t announced plans to host an IPO yet. If the company were to make the decision to go public, it would receive strong investor support from both the institutional and private investment sectors. This support could translate into a value increase in pre-IPO shares.
mParticle Pre-IPO Shares Conclusion
Investing in pre-IPO shares of mParticle introduces an exciting opportunity for those who can qualify. The company continues to strengthen its positioning through a combination of new services and AI options that allow business owners to maximize their data. As the AI movement continues, there will be more demand for it to build future models. As such, mParticle is well-positioned to capture additional revenue moving forward.
Investing in pre-IPO mParticle shares expands both risk and reward potential. Pre-IPO shares differ from IPO options in that there are often additional stipulations such as lockup periods and no-sale clauses. You should review your investment with a professional to ensure that you remain within your risk appetite. For those who complete these tasks and qualify for pre-IPO shares, mParticle is a smart addition to consider.
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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.
