Investing in Private Market Company Stock Using Nasdaq Private Market: A Guide for Healthcare Professionals

Nov 20

What is Nasdaq Private Market (NPM)?

Nasdaq Private Market is a platform that facilitates buying and selling shares of private companies (Pre-IPO). It provides liquidity solutions for private company shareholders, including employees and early investors, and offers a marketplace for secondary transactions. NPM also supports companies with tender offers, equity management, and capital raising.

How to Invest in Private Company Stocks (Pre-IPO), Using Nasdaq Private Market

1. Accessing the Platform

Nasdaq Private Market primarily serves accredited investors and institutional investors.
You need to create an account and verify your investor status.
Access is often granted through invitations from companies or brokers.

2. Finding Investment Opportunities

NPM hosts private company share offerings, including secondary sales from existing shareholders or new funding rounds.
Investors can browse available shares of private companies that have chosen to use NPM for liquidity.

3. Due Diligence and Information

The platform provides detailed company information, financials, and transaction terms to vetted investors.
Investors can review documents and ask questions before committing.

4. Executing Transactions

If interested, investors submit bids or offers through the platform.
Once terms are agreed upon, NPM handles legal paperwork, compliance, and settlement.
The platform ensures the transaction complies with securities laws and company policies.

5. Post-Investment Management

Nasdaq Private Market offers tools for investors to track their holdings.
It supports ongoing communication between shareholders and the company.

Benefits of Using Nasdaq Private Market

Liquidity: Provides a regulated marketplace for trading private shares, which are usually very illiquid.
Transparency: Offers access to verified company data and standardized transaction processes.
Compliance: Ensures adherence to securities regulations and company bylaws.
Convenience: Streamlines the process of buying/selling private stock, including legal and administrative tasks.

Example Scenario

Imagine you are an accredited investor interested in shares of a fast-growing private tech company. The company is not publicly traded but has shares available through Nasdaq Private Market.

You sign up on NPM and verify your accredited investor status.
You find the company’s shares listed for secondary sale by early investors.
After reviewing company financials and terms on NPM, you decide to buy shares.
You submit your offer through the platform.
NPM facilitates the transaction, completes legal documents, and transfers shares to your account.
You now hold private company stock, which you can monitor via NPM until an exit event or secondary sale opportunity arises.

Important Considerations When Using Nasdaq Private Market

Eligibility: Must be an accredited investor or meet platform requirements.
Limited Availability: Not all private companies use NPM, and share availability can be sporadic.
Illiquidity: Even with NPM, selling shares depends on company policies and buyer interest.
Investment Horizon: Private investments are typically long-term and may take years to realize gains.

Using AltsPRISM to Gain Advised Access to Private Company Stock

Healthcare professionals often seek alternative investment opportunities beyond public markets to diversify their portfolios and access high-growth potential companies. However, direct investing in private market stock—such as shares offered via Nasdaq Private Market (NPM)—can be complex, requiring accreditation, due diligence, and compliance with regulatory requirements.

A financial intermediary and advisory platform like AltsPRISM can bridge this gap by providing healthcare professionals with advised, compliant, and streamlined access to private market stock offerings facilitated on Nasdaq Private Market.

Who is AltsPRISM?

AltsPRISM is a financial intermediary platform that specializes in providing access to private market investments — including private equity, venture capital, real estate, and other alternative assets — through an advised, curated, and compliant process. The platform connects investors with vetted private market opportunities and provides advisory services to help navigate these complex investments.

Why Use AltsPRISM for Access to Nasdaq Private Market?

Expertise & Advice: AltsPRISM advisory support is valuable for healthcare professionals who may not have the time or expertise to navigate private market complexities.
Compliance & Efficiency: The platform ensures all regulatory requirements are met, reducing legal and administrative burdens.
Curated Deal Flow: Access to exclusive, vetted private stock offerings on Nasdaq Private Market that might not be widely available.
Tailored to Busy Professionals: Streamlined onboarding and investment process designed to fit healthcare professionals’ schedules and needs.

Example Scenario

Dr. Lee, an anesthesiologist, wants to invest in private biotech startups but is unsure how to access these opportunities or evaluate risks.

Dr. Lee signs up on AltsPRISM and completes investor qualification.
AltsPRISM advisors review her goals and introduce her to private biotech company shares listed on Nasdaq Private Market.
With advisory support, Dr. Lee selects a private stock offering, and AltsPRISM handles the paperwork and transaction through NPM.
Dr. Lee tracks her investment via AltsPRISM and receives updates on company progress and potential exit events.

How it Works

Step-by-Step Explanation

1. Investor Qualification and Onboarding via AltsPRISM

Healthcare professionals register on AltsPRISM, which verifies their accredited investor status and financial suitability.
AltsPRISM collects relevant financial information and investment goals to tailor recommendations.
This step ensures compliance with securities regulations and suitability for private market investments.

2. Curated Access to Nasdaq Private Market Offerings

AltsPRISM maintains relationships with platforms like Nasdaq Private Market and private companies listing shares there.
Through these partnerships, AltsPRISM curates access to select private company stock offerings available on NPM.
Healthcare professionals can view vetted investment opportunities aligned with their risk profile and interests.

3. Advised Investment Process

AltsPRISM provides professional advisory services to help healthcare professionals understand the nuances of private stock investments on NPM.
Advisors explain key factors such as:

Share types and rights (common vs. preferred stock)
Valuation methods and pricing
Liquidity constraints and exit strategies
Regulatory and tax implications

This guidance helps mitigate risks and aligns investments with personal financial goals.

4. Facilitated Transaction Execution

When healthcare professionals decide to invest, AltsPRISM assists in submitting offers or bids through Nasdaq Private Market.
The platform helps manage legal documentation, subscription agreements, and compliance filings.
AltsPRISM coordinates with NPM to ensure smooth settlement and share registration.

5. Ongoing Portfolio Management and Reporting

After investment, healthcare professionals can use AltsPRISM dashboard to track holdings, monitor company updates, and receive performance reports.
Advisors remain available for portfolio review, rebalancing advice, and planning for liquidity events such as IPOs or acquisitions.

Summary

By leveraging a financial intermediary and advisory platform like AltsPRISM, healthcare professionals gain advised, compliant, and efficient access to private market stock offerings available on Nasdaq Private Market. This combination helps them diversify their portfolios with high-quality private investments while managing complexity and risk.

Next Steps to Explore AltsPRISM and Nasdaq Private Market

1. Research and Register on AltsPRISM

Visit the AltsPRISM website and review their offerings and investor onboarding process.
Register for an account and complete the investor qualification process (including accreditation verification).
Schedule a consultation with their advisory team to discuss your investment goals and interests.

2. Learn About Nasdaq Private Market

Explore Nasdaq Private Market’s website to understand how their platform works, the types of companies listed, and investor requirements.
Ask AltsPRISM advisors about current or upcoming private stock offerings on NPM that might suit your portfolio.

3. Discuss Your Investment Strategy with Advisors

Work with AltsPRISM advisors to determine how owning private company stock fits into your overall private markets investment strategy.
Work with AltsPRISM advisors to identify private market opportunities aligned with your risk tolerance, time horizon, and financial goals.
Understand the specific risks, fees, and liquidity constraints of investing in private stock.

4. Complete Investment Documentation

When ready to invest, AltsPRISM will guide you through the legal paperwork and compliance steps necessary to purchase shares via Nasdaq Private Market.
Ensure you understand all terms before signing.

5. Ongoing Monitoring and Support

Use AltsPRISM platform to track your investments and receive performance updates.
Schedule periodic reviews with your advisor to adjust your portfolio or plan for exit events.

Key Questions to Ask Your Financial Advisor

Eligibility and Suitability

Am I eligible to invest in private market stocks through AltsPRISM and Nasdaq Private Market?
How does this investment fit my overall portfolio and risk tolerance?

Investment Details

What types of private companies and sectors are available on Nasdaq Private Market via AltsPRISM?
What are the typical minimum investment amounts and fees?

Risks and Liquidity

What are the main risks associated with private market stock investments on Nasdaq Private Market?
How and when can I expect liquidity or exit opportunities?