Good morning.

For decades, IPO shares went to the same people: Goldman Sachs clients, hedge funds, and institutional investors who got in at the offering price.

Retail investors could only buy after trading opened—usually 20-40% higher.

That changed in 2021 when Figs became the first company to offer IPO shares to anyone through Robinhood. Now companies are routinely setting aside 10-30% of IPO shares for regular investors.

In today's investor rundown:

Hey there,

Alberto here with your Tuesday newsletter.

This week we're breaking down something that's quietly reshaping access to public markets: retail IPO allocations.

For the first time, regular investors can buy shares at the same price institutions pay. But before you get too excited, let me show you why this isn't the opportunity you think it is.

The first companies to open IPO access didn't do it for everyone. They did it for their most loyal users.

Lyft (2019) offered drivers with 10,000+ rides the option to buy IPO shares at the offering price. It was more PR move than actual access—most drivers got small allocations.

Uber (2019) followed with "Driver Appreciation Rewards" for high-volume drivers. Same idea, same limited scale.

Airbnb (2020) invited eligible U.S. hosts based on tenure and activity. If you'd been renting your place on Airbnb for years, you got a chance to buy shares before the public.

Rivian (2021) reserved up to 7% of its IPO for customers with pre-orders. Early adopters who put down deposits could become shareholders.

These were called Directed Share Programs (DSPs). They rewarded community members and generated positive press. But they were exclusive by design—most retail investors were still locked out.

Everything changed in 2021 when Figs became the first company to offer IPO shares to anyone on Robinhood.

It was only 1-3% of the total offering, but it proved the model could work. Any Robinhood user could request shares at the IPO price—no invitation required.

Then Robinhood itself went public in 2021 and reserved up to 35% of its own IPO for its users. Customers became owners. It was symbolic and substantive.

Fast forward to 2025, and the model is becoming standard.

Bullish (2025) allocated 20% to the general public. The CEO said retail investors are "underestimated" and wanted to prove it.

Gemini (2025) set aside up to 30% for individuals after seeing massive demand from retail investors.

Reddit (2024) gave 8% to eligible users and moderators based on karma scores and community engagement.

This is no longer experimental. Major companies are routinely opening 10-30% of their IPOs to retail investors through platforms like Robinhood, SoFi, and Webull.

Retail IPO access is a step forward. You can finally buy at institutional prices instead of watching the opening-day pop from the sidelines.

But here's what most people miss: by the time a company IPOs, the biggest gains are already gone.

Look at the math. Airbnb went public at $68 per share in December 2020. Early investors who got in during Series A at around $0.20 per share made 340x their money.

IPO investors who bought at $68? The stock trades around $130 today. That's less than 2x in four years. Not bad, but nowhere close to what early private investors made.

The real wealth is built before the IPO—in Series A, Series B, and late-stage private rounds where valuations are still growing and the upside is still massive.

Institutional investors don't wait for IPOs. They invest in private rounds years before companies go public.

That's the access we provide at Founderscrowd Premium. Every Thursday, you get one fully vetted private market opportunity—companies that could IPO in 2-5 years, when the upside is still substantial.

This is where 10x, 50x, and 100x returns happen. Not in the IPO. In the years leading up to it.

Want access to pre-IPO deals? Click here to learn more about Founderscrowd Premium