Last week, we showed you exactly how early investors in Slack made 2,100x their money…
Simply put, they invested before it went public, when it was still a tiny, private startup.
But identifying good startup deals like Slack is challenging…
Early-stage startups don’t have a track record, and they haven’t made any measurable
progress — so there’s nothing you can point to and say, “That’s a sign of a great investment!”
But after decades of investing — and thousands of hours of private-market research — Wayne and I uncovered a system used by many of the most successful private market investors.
This system could help you find and fund high-potential startups when they’re just getting off the ground — and put you in position to profit when their value skyrockets.
And during the month of July, we’ll be sharing this system with you, for free, as part of our special month-long Private Market Bootcamp.
So, without further ado, let’s get started with your first lesson!
“Where Do I Even Look?”
Before you can invest in a startup, you need to know where to find these deals in the first place.
Fortunately, this part is pretty easy. You find them on “funding platforms.”
Funding platforms are a special type of website that’s regulated by the U.S. Securities and Exchange Commission (SEC).
These websites play “matchmaker” between investors like you who are looking for private investments, and entrepreneurs seeking funding.
Currently, dozens of funding platforms exist…
Some focus on tech start-ups, where you’ll find the next Google or Facebook. Others focus on food and beverage products, or bio-tech deals, or even cannabis companies.
Every week, Crowdability publishes a list of new deals from the best platforms…
So when it comes to “sourcing” deals, we’ve got you covered!
“But Do the Platforms Have Good Deals?”
The next question many investors have about these platforms is an obvious one:
“Do these platforms actually have good deals?”
And the answer to this one is easy: Yes!
For example, past winners from the platforms include:
Uber, where early investors made an estimated 7,800x their money (which, by the way, is enough to turn a $500 investment into nearly $4 million)…
Cruise Automation, which GM acquired for $1 billion…
And ReWalk Robotics, which went public less than a year after investors like you invested.
But obviously, not all the deals will work out…
Narrowing Down Your Options
So, to separate the “winners” from the “losers,” you need to start narrowing them down.
That’s why the platforms provide you with some key information.
You can review a startup’s business plan, and see detailed information about its team…
You can look through its financial statements…
And you can watch a presentation showing how the startup’s product or service works.
Get Ready for Your Next Lesson!
But as mentioned earlier, most startups have no track record or operating history.
For example, when Uber was first raising money, it was little more than a couple of guys with a “big idea.”
So, back then, how could anyone have known that Uber would be a great long-term bet?
Tomorrow is a national holiday (happy July 4th!) so we won’t be publishing then…
But next Wednesday, I’ll continue your “bootcamp” with an incredibly important lesson:
I’ll show you the first step to determine whether a company could become a great investment…
Even if it’s a tiny startup just getting off the ground!
So stay tuned…