Chris’ note: Our mission at the Cut is to deliver market-beating investment ideas that regular folks… not just Wall Street elites… can profit from. That’s why I need to share an eye-opening essay from Palm Beach Research Group’s star analyst, Teeka Tiwari.
Most folks know Teeka as the “crypto guy.” But he began his career on Wall Street in the 1990s. And as a former insider, he understands the real money on Wall Street is through private deals, not publicly available stocks.
Normally, you have to be a “one-percenter” to get in on these deals. But as Teeka reveals below, now there’s a way that non-millionaires can get in. As you’ll see, in some cases you need a grubstake of no more than $100 to get started.
“I put up $100,000 and made $8,000,000.”
“Teeka, I put up $100,000 and made $8,000,000.”
“Teeka, we got in on the first round of funding for [redacted] and made $11,000,000.”
Lately, all I hear from my rich and super-connected friends in California is how they’re making millions from private tech deals. And today, I’ll let you in on the secret they’re using to make a killing.
But before I get to that… You should know that a total of 136 new private companies have gone public so far this year – with staggering returns:
Zoom jumped 71% in less than two months.
Turning Point Therapeutics rose 117% in under five months.
Shockwave Medical leaped 120% in one quarter.
MMTec gained 410% in about one month.
Beyond Meat rocketed 422% in under three months.
Record amounts of venture capital (VC) are pouring into private companies. In the first half of 2019 alone, VC investments hit a 19-year high of $53.3 billion. That’s a 21% increase versus the first half of 2018.
And all this VC cash is creating a tech boom unlike anything I’ve seen since 1999.
Investing in tech is hands down one of the best ways to make money. But here’s a secret you might not know: The biggest returns aren’t made on the public stock market.
Now, in the 1980s and 1990s, the average investor could make life-changing wealth by investing in early-stage tech firms like Microsoft, Oracle, and Apple. But today’s investors are locked out.
You see, by the time a hot tech company starts selling its shares to the general public, the biggest profits are already off the table.
For instance, some of these early investors buy in privately at a penny… with the company’s initial public offering (IPO) planned at $17.
That’s why wealthy elites and insiders walled off these “hidden” profits from the public for years. It’s also why my friends are funding tech companies at an early stage.
Now, I call these private investments “sweetheart deals.” And they make it harder to get rich from the stock market these days.
You have to be a “one-percenter” to get in on them. The other 99% of Americans get left out.
So I’m sharing a backdoor way you can use to tap into this hidden market, too…
Venture capitalists invest in these private deals all the time. And over the long term, VC funds vastly outperform public market indexes.
It’s no wonder the already rich want to keep these sweetheart deals away from the public.
These deals are usually made on private golf courses and private jets… or in reserved boxes at sporting events and top-floor meeting rooms at five-star hotels. If you’re not part of the financial elite, you can’t get in on them.
But all that’s changing…
Thanks to new rules by the Securities and Exchange Commission, non-millionaires can now invest in sweetheart deals.
They’re called Regulation A+ offerings. And they’re open to the general public – not just accredited investors who make over $1 million per year. In some cases, you can buy into them with minimums of $500-1,000.
To get an idea of how quickly these types of deals can grow your wealth, we dug into investments from top VC firms Sequoia Capital, Andreessen Horowitz, and Lightspeed Venture Partners.
In 1999, Sequoia invested $12.5 million in Google. After Google’s IPO in 2004, that stake was valued at $4.3 billion – 344 times Sequoia’s initial investment. That would’ve turned every $1,000 investment into a life-changing $345,000.
In 2013, Andreessen Horowitz invested in ridesharing app Lyft when it was worth only $275 million. Lyft went public in March 2019 – and its market cap reached nearly $20 billion. So VC firms made 100 times their money on Lyft just on IPO day.
In 2017, social media company Snap went public at a $25 billion valuation. Lightspeed’s $8 million stake turned into $2 billion – a 250x return.
For individual investors to make similar returns, these companies’ market caps would have to grow to the trillions after they go public. And that’s simply not going to happen…
Back in the 1980s and 1990s, all you had to do to get rich was buy a diversified portfolio of tech stocks and hold ’em.
And when you cashed in, you’d buy 30-year bonds with 7% yields. You’d be set for life.
But with the 10-year Treasury note yielding 1.8%… and private-market buyers sucking up all the best deals… the wealth-building strategies of the past are gone forever.
You must get in on these sweetheart deals if you want to have a shot at moving the needle on your net worth.
Making 6% a year in stocks is just not going to cut it. That’s why I recommend everyone dedicate at least a small portion (no more than 5-10%) of your liquid net worth to private investments.
Now, you can’t buy private startups from your brokerage account. And your investment advisor will probably never tell you about them.
So if you want to explore private equity investing, consider crowdfunding platforms such as SeedInvest and MicroVentures. They list dozens of startup companies raising money from the general public.
In some cases, you can get started with as little as $100.
And remember, always do your homework before making any investment. And never risk more than you’re willing to lose.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. Over the years, I’ve brought a number of life-changing opportunities to my subscribers – from cryptos to the types of sweetheart deals I mentioned above.
But for the first time in my career, I’m revealing the only system so accurate and lucrative, I pulled some money out of cryptos to invest in it instead…
It’s a breakthrough trading system made possible only by combining rocket science with today’s modern computing power and the stock market. And I’ll show you how to use it so you can potentially take over $12,000 a month in extra cash off the table – often getting in and out of trades in only a few days.
I’ll explain it all during a free special event on Wednesday, November 13 at 8 p.m. ET. Now, only a small number of people will have the opportunity to take part in this. So if you want to learn how to join them, click here to reserve your seat.