How to Invest in Valve Pre-IPO

By Motley Fool Staff – Updated Aug 27, 2025 at 11:11 AM | Fact-checked by Margo Winton Parodi

Key Points

Valve Software, creator of Steam, remains privately held, unlikely to IPO soon.
Alternative investment options include shares in other public gaming firms like EA or Take-Two.
Interested in gaming investments? Consider gaming-focused ETFs like ESPO or HERO.

Valve Software has become to gamers what the Apple (AAPL -0.10%) Store is to TV, movie, and music fans. The privately held company, created in 1996, rose to the top of the heap with its 1998 release of Half-Life and its 2003 unveiling of Steam, a massive online gaming store.

Here, we'll look at Valve's history, its prospects for launching an initial public offering (IPO), possible alternatives to buying Valve stock, and the financial status of the gaming titan.

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IPO

IPO (Initial Public Offering) is the first sale of stock by a private company to the public, making it a publicly traded entity.

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Person playing online video game. — Image source: Getty Images.

Harrington left Valve in 2000 to spend time with his family, but Newell remains president of the company. Under Newell, Valve continued to develop new products, including its Steam online platform in 2003.

Since it's not publicly traded, Valve doesn't have to release detailed financial data. A March 2024 Bloomberg analysis estimated the company's value at $6.9 billion.

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Stock

A stock represents an ownership interest in a business. When a business wants to raise money, its board of directors determines the number of shares to issue.

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Two kids play a video game together. — Image source: Getty Images.

Microsoft

Microsoft has made waves with its video game development since launching its Xbox console in 2001. By one measure, Microsoft is currently second on the list of the biggest companies in the world, with a market capitalization of $3.75 trillion. The company reported 2024 net income of $88.1 billion on revenue of $245.1 billion, a 22% increase from the previous year.

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You'll need a brokerage account to buy shares of any publicly traded companies. If you still need to open one, these are some of the best-rated brokers and trading platforms. Here's a step-by-step guide to buying stocks.

Open your brokerage account: Log in to your brokerage account where you handle your investments.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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The bottom line on Valve Software

Video game developers reaped big benefits during the COVID-19 pandemic when millions of people were locked down in homes with little entertainment. The boost from the pandemic has subsided, but if Valve Software ever goes public, it might be a good option for investors seeking to diversify their portfolio.

As always, consider your financial goals and risk tolerance, especially for an IPO stock likely to suffer ups and downs. The video game market can be extremely cyclical, and Valve's investment style may raise concerns among more traditional investors.

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The Motley Fool has positions in and recommends Apple, Microsoft, and Take-Two Interactive Software. The Motley Fool recommends Electronic Arts and Nintendo and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.