Forward contract (pre-IPO)

Also called: forward, pre-IPO forward

In one line

An agreement to deliver shares (or their value) to a buyer at a future event like an IPO, letting you get cash now without transferring shares today.

In plain English

When shares can't be moved yet, a forward lets you take money upfront in exchange for promising the shares or proceeds later, at the IPO. You keep legal title meanwhile but owe delivery.

If you were explaining it to a 5-year-old

A buyer pays you coins today for a promise: 'when the shop finally opens, you'll give me the toy (or the money it sells for).'

Why it matters when you sell

Forwards can create liquidity against locked-up shares, but you stay exposed to the company and bound to deliver — a structure to enter carefully.

Put it to use

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Forward contract (pre-IPO)

Related terms

Put it to use