Zipline Stock: How to Invest in Zipline Pre-IPO

Wondering how to buy Zipline stock? This brief guide will help you understand the company and how to invest in Zipline stock IPO.

Zipline Instant Delivery & Logistics is a delivery logistics startup that aims to solve global problems using autonomous drones. It was founded in 2014 and designs makes and operates the largest drone delivery network in the world. 

The company is quite young and still has grown into a vast commercial drone delivery system that runs on an autonomous logistics network. It has already made more than 70,000 deliveries worldwide. To date, Zipline has delivered over 9 million items and has flown over 63 million miles. 

When it comes to revenue, the company generated over $25.2 million in 2022. It is estimated to cross the $180 million mark in the coming years. Drones are the future of delivery systems as they are faster, cheaper, and don’t require any special manpower to function. Not to mention, the company’s delivery system has up to 97% fewer gas emissions, compared to fuel-powered vehicles. 

Drones will be invaluable for businesses and customers in the future. But how do you exactly invest in Zipine Stock? Let’s learn. 

Is Zipline Publicly Traded?

At the time of writing, Zipline is not publicly traded, meaning its shares do not trade on major stock exchanges like the New York Stock Exchange(NYSE) or NASDAQ. Most people won’t have access to Zipline stock with an average brokerage account. 

However, Zipline has raised funding in a series of private investments. The investors and insiders with a majority share in the company will want an opportunity for greater liquidity, possibly encouraging Zipline to go public in the future. 

There is no stock symbol for Zipline as it is still a private company. However, rumors have been circulating the market that Zipline will have its IPO quite soon. In the near future, Zipline could go public through an initial public offering(IPO) or opt for a direct listing either. 

Regardless, it must apply with the Securities and Exchange Commission(SEC) first, giving investors time to evaluate the numbers before deciding to invest. 

But does that mean you can not invest in Zipine? Not exactly. 

There is still a way to invest in Zipline stock before its IPO. 

How to Buy Zipline Stock?

The answer to this question is quite tricky. It ultimately comes down to whether you are an accredited investor or a retail investor. 

You can qualify as an accredited investor if you meet one of the following criteria- 

• Annual income of $200,000 individually or $300,000 jointly
• Net worth exceeding $1,000,000 (excluding your primary residence)

The SEC regulated investment options in private companies, only allowing participation from accredited investors. 

How to Invest in Zipline as an Accredited Investor?

Private market exchanges like Equity Bee and Forge Global give accredited investors access to high-potential VC-backed startups like Zipline. 

The current price per share of Zipline is $16.24 with a valuation of $4.2 billion. Accredited investors can access private companies at past valuations by funding employee stock options. 

You will get a percentage of future proceeds from any successful liquidity events in exchange for funding options. 

How to Buy Zipline Stock as a Retail Investor?

Can you invest in Zipline stock if you are not an accredited investor? Yes, it is possible to invest indirectly in Zipline through the shares of Alphabet((GOOG 0.1%)(GOOGL 0.21%), Goldman Sachs (GS -1.28%), and Toyota Tsusho.

Additionally, retail investors can also invest in Zipline through ETFs, which we will cover later. 

Alphabet

Alphabet, the parent company of Google, is renowned for its Google search engine and YouTube video streaming platform. But, Google Ventures(GV) is its lesser-known venture capital arm. 

Google Ventures has participated in multiple funding rounds for Zipline, meaning it owns shares in the delivery & logistics business. If you buy Alphabet stock, you own a small percentage of Zipline. 

However, Alphabet is one of the world’s largest companies, so it has a fairly small stake in Zipline. Google Venture’s portfolio has hundreds of companies and Zipline is just a small part of its venture investments. 

Goldman Sachs

Similar to Alphabet, Goldman Sachs also participated in multiple funding rounds for Zipline. So, shareholders of Goldman Sachs also own a small percentage of Zipline. 

However, much like Alphabet, Goldman Sachs is also a huge company with a market cap of $100 billion. Even if Zipline booms and is incredibly successful, it won’t have a considerable effect on Goldman Sachs shareholders. 

Toyota Tsusho Corporation

Lastly, Toyota Tsusho Corporation is a Japanese company that has invested in Zipline and is also a customer of the delivery & logistics brand. In the remote southwest Goto Island of Japan, Toyota Tsusho delivers medical supplies with the collaboration of Zipline’s autonomous drones. 

Toyota Tsusho is a publicly traded company on the Tokyo Stock Exchange. However, trading foreign stocks on foreign stock exchanges takes more work. It is recommended to consult a professional if you choose to go this route. 

How to Buy Stocks: A Simple Guide

In case you were wondering, here is a step-by-step guide to buying stocks. 

Step- 1 Create a Brokerage Account

First and foremost, you have to open a brokerage account. Lucky for you, it is now significantly easier and cheaper than in the past. Various online investing services like Fidelity and SoFi offer brokerage account services and are trusted by a large number of investors. Besides these two, there are several other good options available as well. 

Step- 2 Determine Your Budget

After opening a brokerage account, the next step is to determine the budget. This is a personalized decision as budgets vary from person to person. The stock market can be incredibly volatile and it is better to avoid investing money that you might need soon. 

Step- 3 Conduct Research

Once you have decided on your budget, you can step into the market and start researching stock picks that might interest you. Make sure to consider the potential risks and returns to better understand your investments. 

After careful research, investors can buy stocks. All brokerages have different user interfaces and the process can differ from platform to platform. Typically, you just input the desired ticker symbol and the number of shares you want to buy. 

Is Investing In Zipline Profitable?

Zipline is still a private company and is not required to disclose financial information to the public. Regardless, it is fair to assume that investing in Zipline is not profitable. 

Private companies generally focus on growth and expansion, instead of profits. This is also why private investors have provided hundreds of millions of dollars to Zipline as funding, as they expect the company to grow fast and expand. 

Should I Invest in Zipline?

The market for autonomous drone delivery is expected to grow at a CAGR of 24% till 2030, exceeding $90 billion. There is enough evidence to believe that it will be a big trend in the coming years. And, Zipline is the company headlining this industry. 

Plus, Zipline has a competitive advantage in the autonomous drone delivery market. The Federal Aviation Administration(FAA) controls the airspace in the United States and Zipline became the first company to be approved for long-range delivery in 2022. 

When it comes to investing in Zipline, there is no right answer as the future is quite uncertain. Investors must conduct a thorough risk analysis and evaluate the potential upsides to determine whether investing in Zipline is suitable according to their financial condition. 

ETFs with Zipline Stock

Till now, most of Zipline’s funding is from venture capital. Fortunately for retail investors, the ARK Venture Fund, from Cathie Wood’s Ark Invest seeks to democratize venture capital. 

The Ark Venture Fund has a portfolio of both public and private companies. Zipline is the fifth-largest company in the fund with a 4.34% allocation. The fund is available to retail investors but requires a minimum investment of $500. 

Final Words

Zipline is a logistics & delivery startup which uses autonomous drones to make deliveries worldwide. The drone delivery system market is expected to boom and grow at a CAGR of 24% till 2030, meaning it could be quite big in the future. 

There are multiple ways to invest in Zipline both directly and indirectly. However, because it is still a private company, all relevant information is not available to the public, making it hard to assess it as an investment. 

Frequently Asked Questions(FAQs)