How to Buy Databricks Stock Before the IPO

Databricks just raised $10 billion at a $62 billion valuation—the largest private funding round in history for a software company. The company’s data lakehouse platform powers AI and analytics for over 60% of the Fortune 500. You want in before it goes public.

The short answer: most retail investors cannot buy Databricks stock directly. The company remains private, has enough cash to stay private for years, and the secondary markets that trade Databricks shares require accredited investor status with minimums starting at $10,000.

But if you qualify—or want exposure through alternatives—this guide breaks down exactly how to access Databricks shares, what you’ll pay, and what options exist if you don’t meet accreditation requirements.

Quick Summary

What Is Databricks?

Databricks is an enterprise software company that provides a unified data lakehouse platform—combining the best features of data warehouses and data lakes with integrated AI and machine learning tools.

Founded in 2013 by the creators of Apache Spark at UC Berkeley, Databricks has become the dominant platform for organizations that need to process, analyze, and derive insights from massive datasets while building and deploying AI models at scale.

Key Products

• Databricks Lakehouse Platform — Unified architecture for all data workloads
• Delta Lake — Open-source storage layer with enterprise reliability
• MLflow — Machine learning lifecycle management
• Databricks SQL — High-performance analytics engine
• Unity Catalog — Centralized data governance
• Databricks AI — Generative AI capabilities for enterprises

Why Investors Are Interested

Databricks sits at the intersection of two massive trends: enterprise data infrastructure and artificial intelligence. As companies race to implement AI, they need platforms to manage the underlying data—and Databricks has positioned itself as the infrastructure layer powering that transformation.

The numbers reflect this positioning:

• $1.5+ billion estimated annual recurring revenue
• 50%+ annual growth rate
• 15,000+ organizations using the platform
• 60%+ of Fortune 500 companies as customers

Strategic partnerships with Microsoft (Azure Databricks), AWS, and Google Cloud give Databricks distribution across all major cloud platforms.

Can You Buy Databricks Stock?

Direct answer: Accredited investors can purchase Databricks shares through secondary market platforms. Non-accredited retail investors cannot buy shares directly but have several indirect exposure options.

The Accreditation Barrier

Unlike public stocks you can buy through any brokerage, private company shares are restricted by SEC regulations. Databricks shares trade on secondary markets, but these platforms are only open to accredited investors.

This isn’t a Databricks-specific restriction—it’s federal securities law designed to protect less sophisticated investors from the risks of private market investing.

Current Secondary Market Availability

Databricks shares are actively traded on several platforms:

Note: Linqto, another popular pre-IPO platform, filed for Chapter 11 bankruptcy and is not currently a viable option.

Do You Qualify as an Accredited Investor?

The SEC defines accredited investors as individuals meeting at least one of these criteria:

Income Test

• $200,000+ annual income for the past two years (individual), OR
• $300,000+ combined income with spouse
• Plus reasonable expectation of the same income this year

Net Worth Test

• $1 million+ net worth, excluding your primary residence

Professional Credentials

• Series 7, 65, or 82 license holders
• Certain other professional designations

Reality Check: Approximately 13% of U.S. households qualify as accredited investors. If you don’t meet these thresholds, skip to the “Alternatives for Retail Investors” section—there are legitimate ways to get exposure to the data infrastructure thesis without accreditation.

Verification Process

Secondary market platforms require documentation to verify accredited status:

• Tax returns showing income
• Brokerage or bank statements showing net worth
• Third-party verification services (some platforms accept these)
• Professional license documentation

The verification process typically takes 1-3 business days.

How to Invest in Databricks (If Accredited)

If you meet accredited investor requirements, here’s how each platform works:

EquityZen

Best for: Smaller investments ($10,000-$50,000)

EquityZen aggregates investor capital into funds that purchase shares from employees and early investors. You’re investing in a fund that holds Databricks shares rather than buying shares directly.

Process:

1. Create account and verify accreditation
2. Browse available offerings (Databricks availability varies)
3. Commit capital when an offering opens
4. Wait for transaction to close (can take weeks)
5. Hold until liquidity event (IPO, acquisition, or secondary sale)

Fees: 5-10% of transaction value

Hiive

Best for: Mid-sized investments ($25,000-$100,000)

Hiive operates as a marketplace connecting buyers and sellers of private company shares. You can place bids or accept asking prices from sellers.

Process:

1. Create account and verify accreditation
2. View current asking prices and recent transaction data
3. Place a bid or accept an offer
4. Complete transaction through Hiive’s escrow process
5. Shares transferred to your name (subject to company approval)

Fees: 2-5% transaction fee

Databricks is included in the Hiive50 index, indicating consistent trading activity.

Forge Global

Best for: Larger investments ($100,000+)

Forge is the most institutional-grade platform, offering the best liquidity and pricing transparency. They publish indicative pricing data—recent Databricks shares were indicated around $190 per share.

Process:

1. Create account and complete accreditation
2. Work with Forge representative to understand current market
3. Place order (market or limit)
4. Transaction executes when matched with seller
5. Shares held in Forge custody or transferred

Fees: 2-8% depending on transaction size

Important Considerations

Before purchasing on any platform:

• Company approval required: Most private companies have right of first refusal on share transfers. Databricks must approve your purchase.
• Lock-up periods: Some transactions come with restrictions on resale.
• Pricing opacity: Unlike public markets, there’s no official “price”—you’re negotiating with sellers.
• Minimum holding periods: Some platforms require you to hold until IPO.

Alternatives for Retail Investors

If you don’t qualify as an accredited investor—or prefer the liquidity of public markets—here are legitimate ways to get exposure to the data infrastructure investment thesis:

1. Snowflake (SNOW) — The Direct Competitor

Snowflake is Databricks’ primary public market competitor. Both companies compete for the same enterprise data platform customers, and their valuations often move in tandem.

The case for Snowflake: If you believe in the enterprise data platform thesis, Snowflake gives you liquid, regulated exposure to the same market dynamics driving Databricks’ growth. You can buy one share, sell anytime, and benefit from the same enterprise spending trends.

The caveat: Snowflake and Databricks have different architectures and strategies. Owning Snowflake isn’t the same as owning Databricks—but it’s exposure to the same market opportunity.

2. Microsoft (MSFT) — The Strategic Partner

Microsoft is both an investor in Databricks and a strategic partner through Azure Databricks. While Databricks represents a tiny fraction of Microsoft’s overall value, you’re investing alongside the same thesis.

Why it works:

• Microsoft’s cloud business (Azure) benefits from Databricks adoption
• Microsoft has invested in multiple Databricks funding rounds
• Enterprise AI spending flows through Microsoft’s ecosystem

The caveat: Databricks exposure is negligible relative to Microsoft’s $3+ trillion market cap. You’re buying Microsoft, not Databricks.

3. Data Infrastructure ETFs

For broader exposure to the data and AI infrastructure theme:

These won’t give you Databricks exposure directly, but they capture the broader enterprise technology spending trend.

4. Wait for the IPO

The simplest alternative: wait. When Databricks goes public, you’ll be able to buy shares through any brokerage at market prices with full liquidity.

Advantages of waiting:

• No accreditation requirements
• Full liquidity from day one
• More pricing transparency
• SEC-regulated disclosures about the business

Disadvantages:

• May miss early price appreciation
• IPO pricing could be higher than current secondary market levels
• No guaranteed timeline

Databricks Valuation History

Understanding how Databricks reached its current valuation helps contextualize what you’d be paying on secondary markets:

Valuation Context

The trajectory is striking: Databricks has grown from a $6.2 billion valuation in 2019 to $62 billion today—a 10x increase in five years.

But context matters:

• Revenue multiple: At $62 billion with ~$1.5 billion ARR, Databricks trades at roughly 40x revenue. Public competitor Snowflake trades at ~16x revenue.
• Growth premium: Databricks’ higher multiple reflects faster growth and private market dynamics, but the gap is significant.
• Down-round risk: If growth slows or market conditions change, the next valuation could be lower—not higher.

The Real Risks of Investing in Databricks Pre-IPO

Secondary market platforms make private stock accessible, but they don’t make it safe. Here’s what you’re actually signing up for:

Liquidity Risk: You Can’t Sell When You Want

Unlike public stocks with continuous trading, secondary market shares have limited liquidity:

• Finding a buyer can take weeks or months
• You may need to accept significant discounts to exit
• Some platforms restrict sales until IPO
• Company must approve any transfer

Practical implication: Treat any Databricks investment as capital locked for 3-7 years.

Valuation Risk: The Price Is Negotiated, Not Discovered

Databricks’ $62 billion valuation comes from its latest funding round—a negotiation between the company and sophisticated institutional investors. That doesn’t mean:

• The valuation is “correct” or sustainable
• The IPO will price at or above this level
• Your secondary market purchase makes sense at current prices

Remember Instacart: valued at $39 billion in private markets in 2021, its 2023 IPO priced at $9.9 billion—a 75% haircut for late-stage private investors.

Dilution Risk: Your Slice Gets Smaller

Databricks just raised $10 billion—creating new shares and diluting existing shareholders. Future funding rounds (if any) would dilute you further. By the time Databricks IPOs, early secondary market buyers may own a smaller percentage than they expected.

Competition Risk: The Market Is Crowded

Databricks faces intense competition:

• Snowflake — Direct competitor with strong enterprise presence
• AWS, Google Cloud, Microsoft — Building competing native services
• Open-source alternatives — Apache Spark (which Databricks created) is free

The data platform market is large enough for multiple winners, but Databricks’ premium valuation assumes continued dominance.

Timeline Risk: No IPO Pressure

With $10 billion in fresh capital, Databricks has no urgency to go public. The company could remain private for another 5+ years. If you’re buying for an IPO pop, you might be waiting longer than expected.

When Will Databricks Go Public?

Official Position

Databricks has made no official IPO announcement. Leadership has stated the company is “IPO-ready” but focused on growth rather than a public listing.

Analyst Speculation

Most analysts expect a Databricks IPO in the 2026-2027 timeframe, based on:

• Typical enterprise software company timelines
• Current market conditions for tech IPOs
• Company’s growth trajectory and scale

However, the massive $10 billion funding round likely delays any IPO by 12-18 months. When you have that much capital, there’s no pressure to access public markets.

Signs to Watch

Indicators that an IPO is approaching:

• CFO hire or change — Companies often bring in public-company-experienced CFOs before IPO
• Auditor changes — Switching to Big Four auditors signals IPO preparation
• S-1 filing — The official SEC registration statement
• Quiet period announcements — Restrictions on company communications pre-IPO
• Investment bank selection — Hiring underwriters is a late-stage signal

Historical Comparisons

Databricks was founded in 2013, making it 12 years old. By historical standards, an IPO in the next 2-3 years would be typical—but not guaranteed.

The Bottom Line

Can you buy Databricks stock? Yes, if you’re an accredited investor with $10,000+ to invest. No, if you’re a typical retail investor.

Should you? That depends on your risk tolerance, investment timeline, and belief in Databricks specifically versus the data infrastructure market generally.

For Accredited Investors

If you qualify and want Databricks exposure:

• EquityZen offers the lowest minimums ($10,000)
• Forge Global offers the best liquidity for larger positions
• Expect to hold 3-7 years with no guaranteed exit
• Understand you’re paying a premium valuation (40x revenue)

For Retail Investors

If you don’t qualify or prefer liquidity:

• Snowflake (SNOW) is the closest public market proxy
• Microsoft (MSFT) offers indirect exposure as a partner/investor
• Waiting for IPO guarantees access with full liquidity

The data infrastructure market is real, growing, and likely to create significant value. Whether that value accrues to Databricks specifically—and whether current valuations leave room for returns—are the questions you need to answer before investing.

Frequently Asked Questions

Can you buy Databricks stock?

Accredited investors can purchase Databricks shares through secondary market platforms like EquityZen, Hiive, and Forge Global with minimums ranging from $10,000 to $100,000. Non-accredited retail investors cannot buy Databricks stock directly but can invest in public competitor Snowflake (SNOW) or wait for the IPO.

Is Databricks publicly traded?

No, Databricks is a private company. Its shares do not trade on any public stock exchange. The company has not announced an IPO date, though analysts speculate a public listing could occur in 2026-2027.

How much is Databricks worth?

Databricks was valued at $62 billion in its December 2024 Series J funding round, which raised $10 billion from investors including Microsoft, BlackRock, and Goldman Sachs. This makes it one of the most valuable private software companies in the world.

When will Databricks IPO?

Databricks has not announced an official IPO timeline. The company has stated it is “IPO-ready” but focused on growth. Most analysts expect a public listing in 2026-2027, though the recent $10 billion funding round reduces any urgency to go public.

How can I invest in Databricks as a retail investor?

Retail investors who don’t qualify as accredited investors cannot buy Databricks shares directly. Alternatives include: investing in public competitor Snowflake (SNOW), buying Microsoft stock (MSFT) as a strategic partner, purchasing broad technology ETFs, or waiting for the Databricks IPO.

What is the minimum investment for Databricks stock?

On secondary market platforms, minimum investments for Databricks shares typically range from $10,000 (EquityZen) to $100,000 (Forge Global). These platforms require accredited investor status, meaning you must meet SEC income ($200,000+) or net worth ($1 million+) requirements.

Sources

• Bloomberg: “Databricks Raises $10 Billion at $62 Billion Valuation” (December 2024)
• SEC: Accredited Investor Definition, Rule 501 of Regulation D
• Hiive: Platform documentation and Hiive50 index data
• EquityZen: Private market platform information
• Forge Global: Databricks pricing and platform documentation
• Yahoo Finance: Snowflake (SNOW) stock data
• Databricks: Company information and product documentation
• TechCrunch: Historical funding round coverage
• CNBC: “Instacart IPO Prices at $10 Billion” (September 2023)