Investing in early-stage private companies can be incredibly lucrative.
It’s the only investment I know of where you can turn a few hundred dollars into millions.
But to be fair, it does have its drawbacks:
For one thing, it can be risky.
And it often takes many months, if not years, to see a return on your money.
But today I’ll introduce you to a different type of private investment...
Not only can the rewards be very high—
But your risk is low, and your profits can come rolling in quickly.
Sometimes I’d Rather be Late Than Early
You can earn staggering profits by investing in a company at its earliest stages.
For example, a man named Peter Thiel put $500,000 into Facebook just when it was getting started.
When Facebook went public, Thiel cashed out for an estimated $1 billion. That’s a 200,000% return on his money.
But for every Facebook, there are hundreds of start-ups that deliver mediocre returns, or simply fail.
Which is why we sometimes choose to invest in private companies that are further along—companies that already have dozens of employees, millions of users, and substantial revenues.
These are still private companies, so they don’t trade on a stock exchange. But they’re well past their “start-up” stage.
The thing is, these later-stage private investments can still deliver big returns to investors—and the profits can come in faster and with less risk.
Let me show you a few examples…
Profits Calling...
In 2008, a company called Twilio got started.
Twilio made it easy for software developers to add telephone calling and text messaging to their apps.
The company quickly found that its services were in high demand. And to meet that demand, it needed capital to expand its business.
So, over the years, Twilio raised multiple rounds of funding totaling $233 million.
It raised $130 million of that amount in July of 2015. At the time, the company was valued at $1 billion.
11 months later, the company went public on the NYSE—and its market cap skyrocketed to $5.6 billion.
In other words, if you’d invested in Twilio’s last private round, you would have made 560% on your money in less than a year.
And here’s another late-stage investment that handed investors triple-digit gains in less than a year...
High Yield, High Returns
Have you ever heard of a company called Lending Club?
It runs a marketplace where people can lend money to one another. Average yields for lenders have been in the 8% range.
Lending Club grew quickly—and like Twilio, it needed capital to help support that growth.
So Lending Club raised a large round of funding. At the time, the company was valued at $3.75 billion…
But when it went public 8 months later, its market cap rose to $9.88 billion—and private investors made 263%.
In other words, in just 8 months, they more than doubled their money.
Twilio and Lending Club both delivered quick profits to their investors, but their stories are nothing compared to this next one...
Drive Me to the Bank
Several months ago, we wrote to some of our subscribers about an interesting new car company called Elio Motors.
Just like Twilio and Lending Club, Elio was raising capital from private investors, and then it intended to go public shortly thereafter.
The best part was that Elio was inviting regular investors like you to invest.
And if you’d gotten in on that one investment, your stake would have soared by more than 300% in just 30 days.
You see, just one month after accepting investments, Elio went public—and private shareholders had the opportunity to sell their shares on the open market.
One of our subscribers, Marie M. said, “I made over 325% profits when Elio went public. I was sooo happy!”
Your Turn
If you’re a Private Market Profits subscriber, you’ve already learned about a number of exciting later-stage private investments.
We’ll certainly aim to bring everyone more opportunities like those in the near future.
In the meantime, if you’d like to look for later-stage opportunities on your own, keep an eye on the MicroVentures funding platform. It regularly features exiting later-stage private equity deals that could potentially hand you quick gains.
Happy investing.
Best Regards,
Founder
Crowdability.com
