Scale AI Stock: Can You Invest Before the IPO?

Explore potential ways to own Scale AI stock before the company pursues an IPO. Get access to select pre-IPO startups at Equitybee. 

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Recent Scale AI Stock IPO News

08/24/2023: OpenAI partners with Scale AI
07/18/2023: Alexandr Wang Testifies Before Congress
04/11/2023: Alexandr Wang Scale AI Profile
01/10/2023: Scale AI cuts 20% of its workforce
02/02/2022: Scale AI gets into the synthetic data game
10/07/2021: Scale AI launches rapid data-labeling service
07/12/2021: Scale AI’s Rapid Growth Reflects Demand for Smart Software
12/01/2020: Scale AI hits $3.5B valuation 
08/07/2018: Scale nabs $18M

What is Scale AI?

Scale AI is a data platform for artificial intelligence (AI) applications. Its mission is to accelerate the development of AI applications. 

The company’s data-centric, end-to-end solutions help its customers manage the “machine learning (ML) lifecycle” — annotate, manage, automate, evaluate, collect, and generate data. 

The high-quality datasets assembled in the data platform enable the advancement of AI initiatives in wide-ranging industries. Its diverse customer range includes Waymo, Toyota, Flexport, the U.S. Army, and Skydio, and Sam Altman’s OpenAI.

Founder and CEO Alexandr Wang dropped out of MIT to start Scale AI in 2016 at age 19. Scale AI was part of the July 2016 Y Combinator cohort.

Wang told TechCrunch in 2018:

Our goal is to be a pick axe in the AI gold rush. — Alexandr Wang

Here’s a video of a keynote address that Wang gave at the TransformX conference in 2022. The presentation is about applying AI to redefine every industry :

Scale AI employs more than 600 people. Its headquarters are in San Francisco.

The Scale AI in this article is unrelated to a company by the same name based in Canada. 

Is Scale AI Stock Publicly Traded?

No. Scale AI is a private company. 

Who Owns Scale AI?

Scale AI is a venture-backed private company. Shareowners include the founders, employees, and some of Silicon Valley’s most recognizable venture capital firms. 

The company has raised over $600 billion in private funding.

The latest Series E funding round raised $325 million and was completed in April 2021. 

Prominent venture capital investors include Accel, Coatue, Dragoneer, Durable Capital, Founders Fund, Greekoaks Capital, Index Ventures, Spark Capital, Thrive Capital, Tiger Global, Wellington Management, and Y Combinator.

Scale AI Valuation

The April 2021 Series E funding round confirmed the latest post-money Scale AI valuation to be $7.3 billion. 

When is the Scale AI IPO Date?

The Scale AI IPO date is currently unknown.

With the release of startup OpenAI’s ChatGPT to the public in late 2022, interest in artificial intelligence technologies has surpassed blockchain and cryptocurrency as the future-of-technology-de-jour.

There’s been little speculation that a Scale AI IPO is imminent. However, with the recent buzz surge in AI, pure-play companies like Scale AI may take advantage by raising money through a public offering. 

Scale AI is approaching the two-year mark of its last fundraising activity. This could indicate that a new private funding round is near. If the company is generating enough cash flow to avoid another private funding round, the next step could be an IPO in the next 12-24 months. 

However, it may pursue one last private round to boost its private valuation, positioning itself for a blockbuster IPO, enabling it to raise more money and reward early investors. 

If the company decides to pursue a public listing, watch for reporting about exploring a possible IPO with investment banks or a confidential S-1 filing with the SEC.

Bookmark this page for the latest developments.

What is the Scale AI Stock Symbol? Scale AI Ticker?

There is no Scale AI stock symbol yet because it is a private company.

Here are a few Scale AI ticker suggestions that appear to be available in the U.S.: 

• SCAL
• SCAI
• SLAI

What is the Scale AI Stock Price?

A public Scale AI stock price does not exist because the company is private. 

The April 2021 Series E round had an issue price of $9.37. 

Can You Access Scale AI Shares via Pre-IPO Marketplaces?

The author has seen evidence of Scale AI stock availability on prominent pre-IPO investing platforms. 

A recent offering on a well-known pre-IPO investing platform offered Scale AI shares at a small premium over its latest valuation. The minimum investment, however, was in the low six figures. 

Additional shares may become available if early investors or employees want to cash out before the IPO. This may become more likely if the company raises another round of private equity capital or if market uncertainty reduces IPO deal flow. 

The SEC requires pre-IPO investors to be accredited, meaning a net worth above $1 million (not including primary residence) or an income above $200,000 (or $300,000 with a spouse).

Check out our list of top pre-IPO investing platforms for current share availability across platforms. 

How to Invest in Scale AI Stock

Since Scale AI is a private company, it is challenging to become an equity owner today.

However, you can take action to improve your chances of early equity ownership or acquire shares in the eventual IPO. 

Accredited investors may have an easier time via pre-IPO investing platforms. 

1. Access Scale AI stock via pre-IPO investing platforms

The author has seen evidence of Scale AI stock being available on pre-IPO platforms. 

Investors can monitor pre-IPO investing platforms such as EquityZen, Equitybee, Forge Global, and Linqto for share availability.

Expect to pay at least a $10,000 investment minimum. In some cases, the minimum investment is much higher. 

It’s free to sign up for online access to pre-IPO data, deal alerts, and indicate interest in startups not currently available. 

Some investment opportunities may be available via diversified funds. Others may be direct investments. 

If enough investors indicate interest in a particular company, the pre-IPO platforms may actively reach out to equity holders to try to acquire shares for accredited investors.

Non-accredited retail investors can bypass the accreditation requirement by owning venture capital funds like the Fundrise Innovation Fund. Our comprehensive Innovation Fund review provides more information. 

However, you cannot select individual pre-IPO companies, and Scale AI is not currently in the portfolio.

Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.

2. Buy stock during Scale AI IPO through a participating broker

Scale AI conducted a private funding round in mid-2021, providing sufficient funding for operations. After almost two years of operating from that funding round and revenues, the company may need to raise cash again in 2023. 

Multiple prominent venture capital firms have invested in Scale AI and will likely seek to liquidate ownership in the coming years when market conditions favor IPOs. 

2023 looks to be a more promising year for IPOs, but it will take multiple successful high-profile public offerings to get young companies excited to go public. 

AI is an extremely hot industry at the moment. Investors will line up to invest in the next group of AI-related startups, including Scale AI and Databricks. 

IPO investors may find opportunities to invest during the IPO when it arrives — acquiring shares at the IPO price the day before the stock begins trading on the open market. 

Once reserved for Wall Street’s wealthiest customers, IPO access has become more attainable to retail investors in the past few years. 

The following online brokers give customers free access to IPOs, even with low account balances:

• TradeStation 
• SoFi Invest 
• Robinhood

Brokers sometimes negotiate exclusive IPO share allocations for retail investors.

Access to specific high-demand IPOs may be limited by which brokerage accounts you have and what broker gets exclusive access. 

TradeStation has a longer track record of accessing more than 300 IPOs and secondary offerings via its partnership with ClickIPO. 

But Robinhood and SoFi Invest have the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.

Read the S-1 filings to find mentions of these online brokers to find opportunities. 

Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.

3. Buy the stock after the IPO

Most investors will not acquire pre-IPO shares or receive an allocation during the IPO. 

There are advantages to waiting for stocks to become publicly traded before owning them. 

The IPO allows investors to review multiple sets of financials after a few quarters of reporting. Pre-IPO investing has limited financials available. 

IPO stock prices typically rise with high-demand companies. You can benefit if you’re in early and sell when the price overheats.

But without IPO access, post-IPO investors may be tempted to acquire shares at inflated prices. 

In 2021, for example, both Rivian and Robinhood became high-flying IPO stocks. But six months after the IPO, both stocks were more than 80% below their price peak. 

Stock price declines after IPOs can be excellent entry points.

Avoid buying overvalued shares immediately after the IPO. Shares often fall after the IPO due to lockup expirations and quarterly earnings disappointments. 

However, the most disruptive companies will be higher in a decade. Patience pays. 

Buy post-IPO stocks with any online broker. TradeStation is an excellent full-service broker that also provides IPO access. 

Where can I find the Scale AI S-1 Filing?

Scale AI has yet to release an S-1 filing to the public. There is no evidence of a confidential S-1 filing yet. 

The Scale AI IPO is not in the pipeline of likely IPOs yet. 

News of a confidential or public S-1 filing would kick off the IPO process, suggesting the IPO could occur during the following two to six months. 

When the company releases the S-1 filing to investors, we’ll link to and embed the document on this web page.

In the meantime, you can check out the most recent S-1 filings in our S-1 filings feed. 

Conclusion

Investors become interested in buying companies riding extraordinary macroeconomic trends (data, AI).

However, buying ownership in Scale AI before the IPO can prove difficult for retail investors, especially non-accredited ones. 

Pre-IPO investing platforms have opened more opportunities for retail investors. But venture capital investing is still mostly reserved for accredited investors. 

Investors will likely find it challenging to acquire shares before an IPO.

But if you are inclined to pursue IPO shares and early equity in Scale AI, maintain reasonable expectations. You’ll likely need to wait for the IPO, which could be years away. 

Good luck if you wish to buy Scale AI stock before the IPO. Invest in pre-IPO and IPO companies at your own risk.

* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long HOOD, RIVN, Fundrise Innovation Fund, and ARK Titan Venture Fund.