Kris’ note: Investing in IPOs (initial public offerings) after they list is often a mug’s game. One of the reasons companies list is because the owners have grown the company as much as they can. That means as new investors are buying in… the existing investors are cashing out.
So why wait until after the IPO when there’s a way to invest before the IPO? Instead of being one of the investors buying into the company at a high price, why not be an investor who buys in at the lower pre-IPO price?
That’s the choice investors have today, and it’s thanks to an opportunity identified by Casey Research friend Teeka Tiwari. Teeka has helped make more millionaires than just about anyone else in the financial newsletter industry. He’s done that with alternative ideas, such as cryptocurrencies and cannabis stocks.
But there’s one other idea where Teeka sees similar growth opportunities… and that’s in pre-IPO deals. This Wednesday at 8 p.m. ET, Teeka is holding a special event to show you exactly how to get into this market, and the top deal in his sights right now. Check out all the details below…
By Teeka Tiwari, editor, Palm Beach Daily
To make a fortune in the public markets (without waiting 30-40 years), you must get into a startup that goes from virtually zero to a multibillion-dollar valuation.
We call these early-stage companies pre-IPOs.
An IPO – or initial public offering – is when a company lists its shares on an exchange like the New York Stock Exchange (NYSE) or Nasdaq. A pre-IPO is when a company is still private. So you can buy its shares before it goes on a public exchange.
Uber, Facebook, Airbnb, Coinbase, Twitter, and Zoom… were all pre-IPOs at some point.
To catch a pre-IPO, you must find a way to buy them before they go public. That’s why we hunt for them in the private markets… because by the time they go public, they’re often worth over $100 billion.
In my experience, no other stock market event creates more overnight millionaires than catching a pre-IPO on the cusp of going public.
Google was a pre-IPO… And early investors who got in had a chance to make 36,166% in its first 24 hours of trading.
Facebook was a pre-IPO… And early investors who got in had a chance to make 121,822% in its first 24 hours of trading.
Twitter was a pre-IPO… And early investors who got in had a chance to make 110,614% in its first 24 hours of trading.
These types of companies can help you achieve true financial freedom in the first 24 hours they go public… But they’re not easy to find.
Crypto-Like Returns in 24 Hours
If you’re looking to reach true financial freedom in the public markets, I have some bad news for you…
It could take you decades… I’m talking 30, 40, even 50 years.
Outside the crypto market, the only way to make life-changing gains quickly is through pre-IPO companies.
And if you want to have a shot at real life-changing gains in as little as the first 24 hours of trading… then you need to target pre-IPOs with these three traits:
Poised to disrupt a massive industry: Just like Uber completely disrupted the entire taxi industry… Airbnb disrupted the entire hospitality industry… and Facebook completely reinvented social media… these pre-IPO companies will be looking to unmake an entire industry.
Still in their early stages: This simply means the private company’s value is less than $1 billion. So, its biggest gains… the kind that create true financial freedom… are still to come.
And have an IPO on the horizon: This is the real secret to making life-changing gains. You must be able to find a way to get into the deal before it goes public.
Here’s how powerful this formula can be…
The estimated value of the global taxi market is $160 billion. That’s massive. But that didn’t stop a tiny pre-IPO called Uber from taking it on.
Before Uber, if you wanted to hail a taxi, you had to wait on the streets hoping a taxi would drive by… or call a local taxi company and deal with the rude taxi dispatcher… and then maybe the taxi would show up.
Uber was set up for success because it went after this massive, entrenched industry. It used technology and an innovative business model to unmake the traditional taxi model by introducing ridesharing.
Uber’s app is easy to navigate. And requesting a driver isn’t complicated. All you need is a smartphone, and you can get a ride almost anywhere in the world.
By 2017, Uber had reduced traditional taxis to just 4% of the total U.S. market share.
Today, the U.S. market share of traditional taxis has been reduced to less than 1%.
In 2011, Uber’s valuation was $49 million. And it went public in 2019 at a $75 billion valuation. That’s a return of 152,000%… potentially enough to turn every $1,000 into $1.5 million within the first 24 hours of trading.
Look at Airbnb…
Like Uber, it disrupted an old, entrenched industry. And similar to Uber, you can use Airbnb’s app to quickly, conveniently, and cheaply secure lodging almost anywhere in the world.
By 2020, Airbnb accounted for about 20% of the $87 billion vacation rental market, with an estimated 7 million bedrooms listed for rental. In comparison, the entire hotel industry is estimated at around 14 million bedrooms and a market share of 40%.
In 2010, Airbnb’s valuation was $60 million. It went public last year with an $86.5 billion market cap. That’s a 144,000% increase… potentially enough to see a $1,000 investment turn into as much as $1.4 million within the first 24 hours of trading.
That’s the power of getting into a pre-IPO deal that’s in the business of disrupting a massive industry.
Pre-IPO “Deal No. 12”
In the private pre-IPO market, early investors can get into companies for pennies per share and sell them for tens of dollars. That makes it one of the few places left where you can make crypto-like gains.
I’ve personally made millions of dollars from private deals… as have many of the folks in my professional network.
The problem with private equity is unless you’re already rich or exceedingly well-connected, it’s difficult to get in.
You can’t buy them from your brokerage account. Your investment adviser probably won’t ever tell you about them, either. And without hundreds of hours of research and a team of analysts, it’s difficult to separate the good private deals from the bad.
That’s why on Wednesday, October 6 at 8 p.m. ET, I’m holding an all-hands-on-deck emergency briefing for my next pre-IPO deal.
The man behind this deal is one of the most successful venture capitalists of our generation. Insiders compare him to Elon Musk and Richard Branson. And his previous 11 deals have built his billion-dollar fortune.
For a limited time, you might be able take part in his 12th deal – before its planned IPO on the NYSE.
Here’s why I use the word “might”…
My last pre-IPO recommendation at an event like this filled up in less than 12 hours… And it’s possible this deal could fill up even faster.
That’s why I recently cancelled my trip to Hawaii… I ate the loss on the hotel cancellation fee, and I cancelled the scuba training… But most difficult of all, I cancelled out on my brother’s 49th birthday party.
All so I could do everything in my power to give you a shot at getting in on this deal.
Again, I cannot guarantee you’ll be able to get a single share because this deal is on a first-come, first-serve basis.
As mentioned, my last deal was filled in less than 12 hours. That’s why I knew it was critical I cancel my plans and bring this deal to you as soon as possible.
So come join me on Wednesday, October 6 at 8 p.m. ET, and I’ll give you all the details on how you can get in on the ground floor with this legendary venture capitalist.
Let the Game Come to You!
Editor, Palm Beach Daily