How to Spot a $400 Million Profit Opportunity

By Wayne Mulligan, on Thursday, May 21, 2020

Investing in megatrends like Virtual Reality can lead you to huge profits…

But only if you’re able to spot them early.

That’s why, in his essay yesterday, Matt showed you a simple trend-spotting strategy:

By watching where global tech companies like Apple and Facebook are investing and doing takeovers, you’ll get the inside track on tomorrow’s “next big thing.”

But there’s also another way you can spot profitable trends early on…

For the Biggest Profits, Start Downstream

Instead of analyzing the activity of the biggest tech companies, study what’s going on with the smallest ones:

If a cluster of startups are all focused on a particular sector, you might be witnessing the beginning of a trend…

Especially if professional investors like venture capitalists (“VCs”) are jumping into it!

For example, consider the “daily deals” sector from about ten years ago. From 2008 to 2011, investors pumped more than $5 billion into hundreds of daily deal startups like Groupon.

Then, in 2011 alone, more than 72 of those startups were acquired, handing quick gains to their early investors.

Furthermore, some of those startups went public — including Groupon, which eventually rose to a market cap of $30 billion. Its earliest investors made billions.

So, the question we should be asking ourselves is this:

Where are venture capitalists focusing now?

Virtual Worlds… Real Profits

One of the sectors that’s capturing the attention of venture investors today is Virtual Reality.

In 2012, venture investments into VR companies totaled just $89 million. But by last year, according to investment bank Digi-Capital, that figure had surpassed $4 billion.

And the world’s leading venture firms are diving in head-first. I’m referring to venture capital firms like:

Spark Capital: Spark was an early investor in blockbusters like Twitter, Slack, and Oculus (the VR company that was acquired for $2 billion).

General Catalyst: This firm’s early-stage portfolio included (bought for $3 billion), Snapchat (went public, currently worth $25 billion), and Giphy (acquired this week by Facebook for $400 million).

Lightspeed Scout Fund: This early-stage fund is affiliated with Lightspeed Ventures, which has previously invested early in billion-dollar success stories like Nutanix (IPO 2016), MuleSoft (IPO 2017) and AppDynamics (acquired by Cisco in 2017). For the past three years, Lightspeed has delivered $1.5 billion in returns to its investors.

As you can see, these VCs have outstanding long-term track records in identifying the biggest trends.

And now you can “follow” them into their next investment…

Follow that VC!

You see, these three venture firms recently invested in the same startup…

It’s an early-stage startup using VR technology to disrupt markets worth more than $860 billion.

And if you’re joining me and Matt later today for our special investor presentation…

You’ll learn all about this company, and all about how to invest in it today — before it explodes.

Happy investing.

Best Regards,
Wayne Mulligan
Wayne Mulligan


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Tags: Venture Capitalists Virtual Reality

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