Pre-IPO shares are essentially a way to invest in a company before it goes public on the stock market. Instead of buying shares once the company is listed, investors can purchase these shares in a private sale. Typically, large institutional investors like private equity firms or hedge funds are the ones buying these shares in sizable amounts.

The advantage of investing in pre-IPO shares lies in the potential for significant discounts compared to the eventual public offering price. This is because investors are taking on more risk by investing in a company before it has proven itself in the public market.

To buy Pre IPO shares, investors can work through a platform or service that specializes in facilitating these transactions. The process involves providing a margin amount, and on the transaction day, the purchased shares are delivered to the investor's demat account. This method allows investors to get in on the ground floor of a promising company before it becomes widely available on the stock market.