Chris’ note: For six years now, tech expert Jeff Brown has tried everything under the sun to get everyday investors in on private deals. And he’s finally found a way…
Next Wednesday, he’ll reveal all the details in a special presentation. So make sure to reserve your free spot here.
Then, read on to hear from Jeff about the life-changing wealth waiting for you when you invest on “day one.” And you can start with just a tiny grubstake…
On Thursday, June 17, 2010, a group of investors got an email about an early stage company raising capital.
There wasn’t much to go on…
[UberCab is] everyone’s private driver. We’re solving the taxi scarcity problem with on demand private cars via iPhone and SMS.
The email informed the investors that after two weeks in the App Store, the alpha set of 10 drivers was doing 10+ rides on weekend evenings in San Francisco.
That was it.
Out of all the investors who received that email, only five of them invested in the seed round.
Those who didn’t missed out on mind-boggling wealth. It’s a decision they’ll regret for the rest of their lives.
The company, of course, became Uber (UBER).
It wasn’t the Uber we know and use today. Back then, it was just an experiment to figure out if tech could disrupt an entire industry.
It was a chance to empower a product or service that could do something faster, better, and cheaper than anything else available.
It was “day one.” That’s the earliest point when you can get into private tech companies – when their valuations are lowest.
There’s no better time to be an investor. Yes, the risks are much higher. But with a portfolio of “day one” companies, all with incredible potential, the winners more than make up for those that don’t survive.
With the right strategy and time horizons, the returns that come from investing in a disruptive “day one” company can be life-changing.
Take this seed-round investment in Uber as an example of how transformative day-one returns can be…
Naval Ravikant invested in it. His $25,000 stake grew into $124,137,000 at the time of Uber’s initial public offering (IPO).
Cyan and Scott Banister invested $50,000 in the same round. It turned into $248,275,800 at the IPO.
Their original investments generated 4,965x in returns. That’s enough to transform a $100 investment into $496,500… or a $1,000 investment into nearly $5 million.
That’s all it takes.
You don’t need to invest $25,000, $50,000, or more in each “day one” company to generate life-changing returns.
That’s why investing at day one is the single best way to set yourself up for the retirement of your dreams and give your family financial independence for generations.
I know this personally. I’ve invested in more than 250 private deals, some of which have achieved returns in the thousands of percent.
But for most investors, these kinds of deals have been out of reach for far too long.
As you’re probably aware, not just anyone can access private deals.
Normal investors have been excluded because of the Securities and Exchange Commission (SEC)’s rule that only accredited investors can take part in private deals. It defines an accredited investor as someone with a net worth greater than $1 million or an annual income greater than $200,000.
In December 2019, the SEC announced it would revise this definition.
We hoped the update would lead to a more inclusive definition, opening the door to everyday investors.
Sadly, that didn’t happen.
The SEC did change the definition… But all it did was add people who hold certain securities licenses – like stockbrokers – to the list.
It expanded access to private deals to a larger subset of “insiders” who work in the financial services industry. For most folks, this change meant nothing at all. Talk about a disappointment.
And the rule doesn’t make any sense in the first place…
Think about it. The federal government is perfectly fine with nonaccredited investors going to the casino and gambling their paychecks away. Why can’t those same people invest in the most promising private companies, too?
I do tip my cap to SEC Commissioner Hester Peirce, who spoke out against the accredited investor rule…
Why shouldn’t mom and pop retail investors be allowed to invest in private offerings? Why should I, as a regulator, decide what other Americans do with their money?
[…]
A person’s economic status may demonstrate an ability to withstand losses, but it certainly does not demonstrate financial sophistication.
She summed up the problem with her final remarks…
[Regular Americans] cannot use their experience, local knowledge, education, and investing acumen to build a balanced investment portfolio, to maximize the nest eggs they pass on to their children, or to invest in their own communities.
But there’s a silver lining…
Just this year, we saw another change in private investment regulations. This one was profound. And for the very first time, everyday investors will be able to invest in quality “day one” companies.
I’ll share the full story during my Day One Summit on Wednesday, November 17, at 8 p.m. ET.
If you’ve been waiting for the opportunity to see generational wealth through investing, please make sure to attend.
It’s completely free. Simply go right here to RSVP.
I look forward to seeing you there.
Regards,
Jeff Brown
Editor, The Bleeding Edge