Buying Pre-IPO Shares of Epic Games: A Guide to Investment Opportunities
Epic Games, a titan in the gaming industry, was founded by Timothy Dean Sweeney in 1991 under the name Potomac Computer Systems. Over the years, Epic Games has transformed into a powerhouse, with a recent valuation of $32B and the potential for one of the largest gaming IPOs of all time.
The company's journey began with the release of ZZT, a shareware adventure game, in 1991. By 1992, the company had changed its name to Epic MegaGames and focused on game development. In 1998, Epic Games unveiled its first-person shooter, Unreal, which was revolutionary for its time.
The success of Unreal paved the way for the Unreal Engine, launched in 2000. This powerful tool streamlined development, offering tools for multiplayer, matchmaking, and cross-platform gameplay. The engine was made available to other development studios in 2015, contributing significantly to the transformation of the gaming market, now a staggering $455B sector according to recent Statista reports.
In 2010, Epic Games entered the mobile gaming sector with the release of Infinity Blade for iOS. The company's most significant success, however, came in 2017 with the release of Fortnite, a battle royal game that has become a staple of the gaming community.
As Epic Games prepares for its IPO, scheduled for 2025, interested investors can acquire shares before the public offering. Retail participation is increasingly accessible through several channels. Platforms like ARK Venture Fund and SoFi offer private equity funds that allow U.S.-based investors to invest in a portion of Epic Games stock. Online brokerages like Robinhood and Republic also provide opportunities for everyday investors to invest before companies go public.
Investing in pre-IPO shares comes with its own set of risks, including liquidity risk and the need for thorough due diligence. However, if the company's valuation increases following its IPO, investing in pre-IPO shares could yield strong returns.
Epic Games has received funding from notable investors such as The Walt Disney Company, Sony, Fidelity Investments, Baillie Gifford, and many others. The company has also developed Epic Online Services to help streamline integrating game services into new titles. In 2018, Epic Games launched its own digital distribution platform, the Epic Games Store, offering a platform for finding and installing game titles. The store expanded to Android devices in 2022.
The Epic developer community and marketplace provide resources for Unreal Engine development, including manuals, training videos, and a forum for direct communication with other users. Epic Games Store also hosts a marketplace for selling games and in-game items.
As Epic Games moves towards its IPO, it continues to adapt to new market demands, such as transitioning from software sales to game development and the Unreal Engine as a service. The company changed its name to Epic Games in 1999 and moved its headquarters to Cary, North Carolina.
Investors eager to be a part of Epic Games' journey can explore the opportunities available in the pre-IPO market. As always, it's recommended to consult a financial advisor before making any investment decisions.
[References] [1] TechCrunch. (2023, July 1). Epic Games confidentially files for an IPO, but remains a private company. TechCrunch. https://techcrunch.com/2023/07/01/epic-games-confidentially-files-for-an-ipo-but-remains-a-private-company/ [2] SoFi. (n.d.). Pre-IPO Investing. SoFi. https://www.sofi.com/investing/pre-ipo/ [3] ARK Invest. (n.d.). Epic Games. ARK Invest. https://www.ark-invest.com/arkk/holdings/epic-games/ [4] Republic. (n.d.). Pre-IPO Investments. Republic. https://republic.co/pre-ipo-investments
- By tapping into the pre-IPO market and acquiring shares of Epic Games, investors can potentially benefit from strong returns if the company's valuation increases following its IPO.
- With the financing from major companies like The Walt Disney Company, Sony, and Fidelity Investments, and the use of technology like the Unreal Engine, Epic Games continues to innovate and expand its business, moving from software sales to game development and offering services for other developers.
