Chris’ note: With stocks crashing and the economy in recession… it’s a scary time. So we’ve been hunting down ways to protect and grow your wealth… even when markets are in turmoil. And this week we’re spotlighting some of our new experts here at Legacy.
That includes the new chief analyst over at our Palm Beach Venture advisory, Tim Collins. He’s a former hedge fund manager who invested early in Facebook and Twitter when they were still private companies. Teeka Tiwari brought him on board to identify private deals with the potential to 10x their money or more.
Tonight, at 8 p.m. ET, Teeka is going live with details of the latest deal he and Tim have their sights on. They say it could 42x your money – even if stocks continue to crash. So if you haven’t already, reserve your free spot for here.
Then read on for more from Tim about how private deals can deliver home run returns… and how you can take part.
Imagine hitting “home run” returns of 50x… 344x… and 467x…
That last one turns every $1,000 stake into $467,000.
I’m not making this up…
These are past wins by a company called Sequoia Capital.
It’s one of the world’s most successful Silicon Valley venture capital (“VC”) firms.
It’s headquartered in Menlo Park, California, which is also home to Facebook (META).
And its focus is technology startups.
Sequoia funded some of today’s most well-known companies before they became famous: Apple (AAPL), Google (GOOG), Oracle (ORCL), PayPal (PYPL), and Dropbox (DBX).
It also funded Instagram, WhatsApp, and YouTube.
And as I mentioned, it’s knocked it out of the park a bunch of times…
Facebook’s acquisition of WhatsApp turned a $60 million investment into $3 billion – a 50x return.
Google’s initial public offering (“IPO”) turned a $12.5 million investment into $4.3 billion… more than a 344x return.
And the IPO of cloud-based file storage company Dropbox turned three Sequoia “seed rounds” – or initial funding rounds – into an all-in average 467x return.
But there’s a twist…
Top VC firms like Sequoia miss way more often than they hit. Some have win rates of only 10%.
They strike out 90% of the time. Yet they’re still highly successful.
Today, I’ll show you why… We’ll also look at how you can apply this strategy to help you on your path to financial freedom.
In markets environments like we’re in today, private investments are some of the best to shield yourself from volatility.
How Home Runs Make You Rich
Being a successful pre-IPO investor isn’t just about how many small bets you win or lose.
Instead, it comes down to the average returns of your winning and losing investments.
You see, your win rate isn’t as important as the size of your average winner versus the size of your average loser.
That’s why VC firms look for private companies with 10x potential upside or more. If they score one giant win, it more than makes up for a string of losers.
The table below explains how the math works…
|Hypothetical VC Portfolio||Investment||Return||Balance|
|Private Investment 1||$100||-100%||$0|
|Private Investment 2||$100||-100%||$0|
|Private Investment 3||$100||-100%||$0|
|Private Investment 4||$100||-50%||$50|
|Private Investment 5||$100||-50%||$50|
|Private Investment 6||$100||-50%||$50|
|Private Investment 7||$100||-25%||$75|
|Private Investment 8||$100||-25%||$75|
|Private Investment 9||$100||-25%||$75|
|Private Investment 10||$100||1,000%||$1,100|
Finding private companies with high upside and letting them run is key to making this strategy work. These home runs will more than make up for the strikeouts.
If you wait until they go public, it’s much more difficult because the buy-in price is much higher. And the higher the price you pay for an investment, the lower your profit when you go to sell.
That’s why VCs focus on companies before they have an initial public offering (IPO).
Consider this… When Airbnb (ABNB), Uber (UBER), and Facebook went public, they had already built $20 billion in pre-IPO value.
Not only did pre-IPO investors watch their share prices rise substantially… but also IPO-day investors paid significantly more for those same shares.
Research by investment firms Blackstone (BX) and KKR reveals that private companies outperform the S&P 500 (made up of 500 of the largest stocks in the U.S.).
Plus, they have lower volatility – or day-to-day price swings – than publicly traded companies, performing better during challenging times.
So VC investing is great if you’re looking for outsized returns to swing for the fences.
There’s just one problem…
No More Gatekeepers
Most people can’t invest with VC firms.
They limit their funds to “accredited” investors and large institutions. If you don’t have at least $1 million in net worth, you’re mostly out of luck.
On top of that, spending more upfront on IPO day for smaller returns limits your ability to spread your investment dollars across multiple ideas.
That results in less diversification in your portfolio… and less of a chance of one of our investments being a home run.
But thanks to changes to the law, these firms are no longer the gatekeepers to some of the best deals on Wall Street…
In the past, Main Street investors couldn’t get private shares in Uber, eBay (EBAY), or Google, even if they wanted to. You had to be a millionaire or an insider.
But a rule change from the U.S. Securities and Exchange Commission (“SEC”) now allows self-directed investors to invest in private companies before they go public… along with the VCs.
This has seen Blackstone go from managing about $58 billion from non-accredited investors in 2018… to about $233 billion today.
It’s thanks to what are known as Regulation A+ and Regulation CF offerings. These deals are open to regular investors… no matter what their net worth.
Often, you can buy into these private deals with minimums of $50, $100, or $500.
Chance to 42x Your Money
I used to co-manage a hedge fund that invested in pre-IPO stocks.
And through my fund, I was an early investor in Facebook, Twitter (TWTR), and Airbnb.
Now, colleague Teeka Tiwari and I have zeroed in on a private deal that has a chance to not only 42x your initial investment.
This company is on the frontlines combating a crisis that will catch millions of Americans off guard.
It’s a crisis so catastrophic, billionaires like Jeff Bezos, Bill Gates, and Rupert Murdoch have already moved hundreds of millions of dollars outside the market.
They’re buying a recession-proof investment that will help them prepare for what Teeka believes will be a catastrophe of biblical proportions.
Unfortunately, most Americans are in the dark.
That’s why Teeka is holding a special briefing tonight at 8 p.m. ET to help you prepare, too.
He’ll share details of the coming crisis… how this private company plans to solve it… and how you can profit from its success.
Again, it’s a chance to make up to 42x your money… with a minimum investment of $500 at 37 cents a share. That’s enough to turn $1,000 into $42,000.
You’ll also get a free special report. This includes Teeka’s blueprint for this coming catastrophe… how to protect your family from the crisis to come… and a recommendation that could double your money as this crisis plays out.
It’s a chance to put your money in a recession-proof investment just like Bezos, Gates, and Murdoch.
So go here now to reserve your spot and join Teeka tonight at 8 p.m. ET.
It’s going to be fascinating event… and potentially one of the most profitable moves you’ll make all year.
Where to Find Your Own VC Deals
And in the meantime, you can search for private deals on crowdfunding platforms such as SeedInvest and MicroVentures.
They list startup companies raising money from everyday investors. In some cases, you can start with as little as $100.
Just be sure to diversify your positions and treat these investments as speculations. That means never investing more than you can afford to lose.
And be prepared to fail.
You won’t succeed on 100% of these VC-style investments. You probably won’t win 75% – or even 50% – of the time, either.
But one home run winner can more than make up for all the losers.
Chief Analyst, Palm Beach Venture