A few weeks ago, I warned you to NOT invest in Klarna’s IPO.
At the time, Klarna — the Swedish “buy now, pay later” fintech giant — was getting ready to go public. It was one of the most hyped IPOs of the year.
As usual, Wall Street was doing what it does best:
Dangling shiny new shares in front of ordinary investors at sky-high prices.
What Happened Next
At the IPO, Klarna’s stock opened at $52.
Fast-forward just a few weeks, and those shares are now trading at about $38.
In other words, if you’d bought Klarna stock at the open, you’d be sitting on a 27% loss.
And that’s exactly what I was trying to protect you from.
The IPO Trap
This isn’t unusual. IPOs are often designed to reward insiders — the bankers, executives, and big institutions that got in earlier — while leaving everyday investors holding the bag.
By the time the stock hits the open market, it’s already priced for perfection. Which means there’s far more downside than upside.
That’s why I said don’t invest in Klarna’s IPO — and why I’ll keep giving you the same warning when the next “hot IPO” comes along.
The Private Investor Advantage
But here’s the part that doesn’t make headlines…
Even though Klarna’s IPO has been a disappointment, many of its early private-market investors are still sitting on massive profits. Let me show you what I mean:
- Private Round #1
Klarna’s first major outside investor, AB Öresund, came in when the company was valued at just $60 million. Even at today’s deflated stock price, Öresund investors are still UP about 23,200%. That’s 232x their money.
- Private Round #2
With Sequoia Capital’s investment, Klarna’s valuation grew to about $100 million. Today, Sequoia is up 13,900%. - Private Round #3
When Visa invested, Klarna’s valuation got pushed to $2.25 billion. Even at today’s deflated stock price, this later-stage private investor is up about 520%!
Here’s how it looks on a chart:
Look at those returns for private investors — and don’t forget: this is after what most people are calling a “failed” IPO!
Why This Matters to You
The moral of the Klarna story isn’t just that we were right about skipping the IPO.
It’s that if you want to put yourself in position to earn life-changing returns, you need to flip the script. Instead of waiting until a company goes public, you need to invest before the IPO.
That’s where the biggest upside lives.
Of course, not every private company will become a Klarna. Many won’t succeed at all. That’s why diversification and careful research are so important.
But with the right strategy — and the right partners helping you with research — you can put yourself in a position to capture early-stage gains instead of Wall Street crumbs (or losses).
Our Mission at Crowdability
At Crowdability, our mission is to help everyday investors like you tap into these opportunities.
We’ll keep showing you why IPOs are risky, how to avoid the hype, and most importantly — how to get into private deals that used to be reserved for billion-dollar funds and insiders.
Because while Klarna’s IPO investors are licking their wounds, its private investors are celebrating some of the biggest wins of their careers.
And next time, we want those wins to be yours.
Happy Investing
Best Regards,
Founder
Crowdability.com
