Chris’ note: Our mission at the Cut is to help you really move the needle on your wealth. And right now, one of the top opportunities on our radar is investing in companies before they list on a public exchange. This year, private investors are averaging 22,946% gains on the day a company goes public.
Access to private shares used to be limited to billionaires and well-connected insiders. But now, rule changes are opening up these investments to everyday investors. And as you’ll read from my colleague Teeka Tiwari below, there’s never been a better time to be a private investor.
So tune in tomorrow night at 8 p.m. ET for Teeka’s free Set for Life Summit. During this one-of-a-kind event, he’ll reveal how you could be financially set for life on one private deal he’s identified in one of America’s hottest sectors. To make sure you don’t miss out, secure your spot here now.
I’ve been in the market as a professional since 1989. I’ve seen three major boom-and-bust cycles.
And as painful as each market crash is… they also create new life-changing opportunities.
Take the 2008 financial crisis, for example…
The market dropped 40-50%. That’s worse than during the early stages of the coronavirus pandemic in 2020.
The 2008 financial crisis bankrupted 64,318 businesses that year alone. More than 1 million Americans lost their homes. And over 3.5 million people lost their jobs.
But out of the ashes, two notable startups launched – Square and Uber.
Square is an electronic payments platform. It allows businesses to use smartphones to accept payments.
It was a boon for the wave of small, nimble businesses created in the wake of the 2008 crash.
In 2009, Square had a $30 million valuation. Today, it’s worth over $60 billion.
Investors who bought the initial public offering (“IPO”) in 2015 would’ve turned every $1,000 into $9,285.
But that’s crumbs compared to the lucky few who invested when Square was still private in 2009. They turned every $1,000 into nearly $1.5 million.
Ride-hailing service Uber followed a similar path. You see, the financial crisis spawned an entirely new gig economy as Americans looked for flexible job opportunities.
In 2010, Uber had a $4 million valuation. Today, it’s worth $60 billion. Early investors had the chance to turn every $1,000 into $12.5 million.
These aren’t the only success stories. Slack, Airbnb, Pinterest, and WhatsApp also minted a new generation of millionaires.
Today, I’m seeing a similar opportunity arising from the COVID-19 pandemic.
The COVID-19 crisis will accelerate the next generation of startups. Washington is loosening rules to make it easier for them to raise funds.
Let me explain…
After the 2008 financial crisis, President Obama signed the Dodd-Frank bill. It increased regulations on the big banks behind the crisis.
One provision – the so-called Volcker Rule – banned banks from making risky bets like hedge funds. It also stopped them from investing in startups.
In June, the Federal Deposit Insurance Corporation (FDIC) rolled back the Volcker Rule. The repeal will now allow banks to fund startups. The agency says it’ll help startups hurt by the pandemic.
Friends, this move will send a tidal wave of capital into this space…
According to estimates, the repeal could inject $40 billion into private equity. That’s an insane amount of money going to small startups.
Meanwhile, the Securities and Exchange Commission (SEC) is proposing a rule change that’ll allow private companies to increase the amount of money they can raise from $50 million to $75 million.
So not only will we see billions more dollars pour into startups… each individual startup can raise even more capital.
Here’s why that’s a big deal for you…
Before 2015, the SEC limited these private deals to the wealthy. If you didn’t have a net worth over $1 million, you couldn’t invest in startups like Square and Uber.
In the past, these private deals were only made at golf courses… swanky resorts… or on private jets. If you weren’t an insider, you were out of luck.
Now, thanks to new rules, everyday Americans can buy into private startups just like the ultra-wealthy do.
Main Street can finally take advantage of the deals Wall Street fat cats and West Coast venture capitalists have used for decades to generate incredible wealth outside the stock market.
The new rules I cited above will act as huge catalysts for startups. It’s only a matter of time before big banks start piling into these deals.
According to our research, early-stage, private companies have returned over 12x what public companies have during the past two decades.
Here’s the key to making a fortune from this emerging trend: You must position yourself now… before the tidal wave of money comes flooding in.
You can search for private deals yourself on sites like SeedInvest and MicroVentures. They list dozens of startups raising money from the public. In some cases, you can start with as little as $100.
Remember, this asset class comes with risk. You only need a small stake for potential gains of 10x, 50x, 100x, or more.
And tomorrow, September 9, at 8 p.m. ET, I’m holding my first-ever Set for Life Summit. During this one-of-a-kind event, I’ll show you how you could become set for life on one pre-IPO deal I’ve identified.
This deal is in one of the hottest sectors in the U.S. capital markets – biotechnology. Forbes calls it the “most profitable sector” in America…
The event is free to attend. The only cost is an open mind. All you have to do is click here to reserve your seat…
Let the Game Come to You!
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Teeka Tiwari
Editor, Palm Beach Daily