A "Record-Setting Decade" for Private Investors

By Matthew Milner, on Wednesday, February 26, 2020

Investors in private startups pocketed a fortune last year…

According to a report just released by PitchBook, they took home $256.4 billion.

That’s a record high — and as you’re about to learn, these profits are expected to continue.

So today, we’ll show you what’s driving these profits…

And then we’ll show you two easy ways to get in on the action.

How Private Investors Make Profits

Before I tell you how to get started in this world, let me back up for a moment…

Let me tell you how investors in private startups make their profits.

They profit when the startups they invest in have an “exit.” And exits happen in two main ways:

  1. When a startup gets acquired by a bigger company, or
  2. When the startup goes public in an IPO.

According to PitchBook, a prominent market research company, the 2010s were a “record-setting decade” for exits…

A “Record-Setting Decade”

You see, as recently as 2016, private investors took home just $72 billion in exits.

But recently, that number has been rising:

  • In 2017, there were $97 billion in exits.
  • In 2018, exits soared to $130 billion.
  • And in 2019, that figure doubled to $256 billion.

What do all these exits mean for their investors? They mean huge profits!

On average, over the past 20 years, these exits have returned roughly 55% per year. And at 55% per year, in 20 years, you could turn a $500 investment into more than $3.2 million.

Going forward, according to early-stage experts like Silicon Valley Bank, exit activity is expected to remain very strong. The reasons for this include high levels of corporate cash, and record “dry powder” for M&A.

That explains why so many different types of investors are jumping into the private markets…

Looks Who’s Taking Home the Profits

You see, it’s not just traditional venture capitalists who are investing in these deals nowadays…

According to PitchBook, “nontraditional investors” participated in 85% of these deals.

Who are these nontraditional investors? They include:

  • Mutual fund giant Fidelity, which traditionally only invested in public companies listed on the stock market.
  • Tiger Global, one of the most prominent hedge funds in the world. Tiger pulled back on its stock market investments so it could allocate more capital to the private markets. According to The Financial Times, it’s now invested in about 230 startups.
  • The world’s most successful athletes and entertainers are jumping in, too. For example, U2's front man Bono invested in Facebook when it was still a tiny startup. And Ashton Kutcher invested in Airbnb, Spotify, and Uber just when they were getting started.

The thing is, these “nontraditional” investors also include ordinary people…

People just like you

Let me explain.

Now It’s Your Turn

For the past 85 years or so, the U.S. government legally prohibited all but the wealthiest citizens from investing in startups.

But recently, because of a new set of laws called The JOBS Act, now anyone can invest in these young, private companies — and anyone can put themselves in position to make millions.

This is why, about six years ago, Wayne and I launched Crowdability:

Our mission is to help individual investors like you make sense of (and profit from) this newly available market.

Here are two easy ways to get started…

Two Easy Ways to Get Started

First, take a look at our weekly “Deals” email. We send this out every Monday at 11am EST, and it contains a handful of new startup deals for you to explore.

Second, check out our free white papers like “Tips from the Pros.”

These easy-to-read reports will teach you how to separate the good deals from the bad.

Happy Investing!

P.S. Over the years, we’ve created premium services that can quickly help you build a portfolio of profitable startups, even if you have no experience at all.

To learn more, call our VIP Member Services department at 1-844-311-3191…

Or click here to schedule an appointment with a VIP Member Representative »

Best Regards,
Matthew Milner

Founder
Crowdability.com

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