Yesterday, Matt showed you something pretty shocking:
He showed you how a group of investors made a fortune from a single investment.
These investors had put money into one of 2019’s hottest IPO stocks: Slack (WORK).
But they didn’t invest at the company’s IPO. Instead, they invested before it went public — back when it was still a private business.
By getting in early, they turned every $1,000 they invested into roughly $2.1 million.
But for investors like you, this raises an important question:
How can you find “the next Slack”?
Let’s take a look…
A couple of weeks ago, Matt and I shared one of the keys to investing success:
You need to eliminate emotion from your investing decisions.
Instead, you need to rely on a numbers-driven system.
That’s the key to earning big returns, and to protecting yourself from crippling losses.
It also happens to be the key to identifying investments like Slack — over and over again.
You see, after decades of investing, and after years of doing private market research, we’ve uncovered a powerful investment system. This is the system used by many of the most successful private market investors in the country.
If used properly, it can consistently help you identify investments like Slack.
The reason it’s so powerful is simple:
It helps you overcome the key challenges of making private market investments.
CHALLENGE #1 — Private Market Detective
Determining whether or not to invest in a public company’s stock is relatively easy.
You log into your brokerage account, punch in a symbol, and you’ll instantly have a myriad of information at your fingertips — the company’s financial performance for the past few years, a list of its competitors, etc.
But for private companies, it’s a different story.
Just finding these opportunities is difficult enough…
But uncovering reliable information about them can be a truly daunting task.
And when you’re aiming to find investments with Slack-like upside potential, that’s just the first challenge you’ll face…
CHALLENGE #2: Is the Company Gold… or Garbage?
The second challenge is determining whether or not it’s actually a “good” company.
Is it run by a competent management team?
Does it have a strong product?
Does its “go-to-market” strategy make sense?
Ultimately, you need to determine whether it has a shot at surviving — and ultimately, succeeding.
With a public company, such questions are easy to answer. After all, most public companies are in mature industries, and have millions of dollars in sales and profits.
But private companies tend to be in new industries, and they have very little in the way of a track record or operating history.
Furthermore, even if you can determine that a company has a good chance of success…
That still doesn’t mean you should invest in it!
CHALLENGE #3: Is the Investment Gold… or Garbage?
You see, after making an investment in a private company, you can’t just sell your stake whenever you want — like you would with publicly traded shares.
Instead, you have to wait for an “exit.”
An “exit” happens when a company gets acquired, or when it goes public.
When one of those events happens, you can cash out.
But if you’re investing in a company months (or even years) before it’s ready for an exit, how can you determine so far in advance whether it’ll be a money-maker or not?
CHALLENGE #4 — How Much To Invest?
And even if you can determine that the company and the investment opportunity make sense, there’s still another hurdle:
You need to decide how much capital to put into the company.
Put in too little — and if things work out, you’d have left a fortune on the table…
Put in too much — and if things don’t work out, you could lose a fortune!
How can you maximize your profits but minimize your losses?
Announcing: Your FREE Private Market Bootcamp!
Today, I outlined the key challenges of investing in the private market.
These investments can be incredibly lucrative…
But identifying deals like Slack is very challenging.
Which is why I’m so excited to announce a special free gift we’ll be giving away to all Crowdability readers during the month of July.
For the next four weeks, we’ll be giving away two lessons on private market investing in our newsletter — for free!
We’ll give you the tools, tips and “tricks” you need to overcome all the challenges you learned about today.
We’ll also reveal the details of our investing system — a system that’s being used by many of the top private investors in the U.S. today.
By the end of this “bootcamp,” you’ll know how to find the best private market investments…
And you’ll know how to build a portfolio of those investments, safely and confidently.
So stay tuned…
Because Matt will be back next Wednesday, July 3rd, with your first lesson!