History...

By Matthew Milner, on Wednesday, June 17, 2015

This Friday will be an historic day...

The type of day that hasn’t happened since the Great Depression—literally. Unless you were investing back in the ‘20s, you’ve never experienced something like this.

You see, the U.S. Government is finally granting you access to a profit opportunity that’s been out of your reach for 83 years:

Starting this Friday, every U.S. citizen will be able to get in on “Pre-IPO Profit Opportunities.”

Let me explain...

97% of Americans—Denied

To kick things off, let’s quickly look at how we got here:

In the aftermath of the stock market crash of 1929 and the Great Depression that followed, a law was established that aimed to protect “mom and pop” investors.

It was called the “Securities Act of 1933.”

Its intentions may have been good, but it hindered the growth of early-stage companies, and it restricted certain investors from earning outsized profits:

You see, this law denied 97% of Americans—most likely including you—investment access to “private equity,” the most profitable asset class in history.

This law ensured that only the very wealthiest investors were allowed to invest in private new business ventures.

Fast-Forward 80 Years...

But in 2012, some far-sighted business people started pushing the government to tear down the walls of the Securities Act of 1933.

Congress eventually took their cue and passed House of Representatives Bill H.R. 3606—now known as The JOBS Act.

Essentially, the JOBS Act proposes that all U.S. citizens should be able to invest in private companies.

And starting this Friday, through a provision of the JOBS Act known as “Title IV,” you’ll be given investment access to a category of private businesses we call Pre-IPO Companies.

What Are Pre-IPO Companies?

At Crowdability, we often write about early-stage start-ups. These are private businesses as well—but they’re very different from “Pre-IPO” opportunities:

A start-up might have half a dozen employees who’ve built an early version of its product. Maybe it has a small amount of revenue; maybe it has no revenue.

A pre-IPO company, on the other hand, tends to be a fast-growing business that’s already on a path toward an Initial Public Offering.

Such companies generally have thousands of paying customers and millions in revenues—in other words, they’ve already proven themselves, and it seems likely that they’ll grow into massive, profitable, long-lived entities.

As a few examples of pre-IPO companies, think about Uber, Airbnb or Fitbit.

What This Means For You

The fact that you’ll have access to pre-IPO companies means that you can invest in them before Wall Street gets its hands on them…

It means you’ll be able to invest while their stock is still cheap...

And hopefully, it means you’ll be able to “buy low,” and then “sell high” when the company goes public—as opposed to buying shares at the IPO, which isn’t always a surefire way for investors to make money.

Just look at Facebook’s post-IPO performance:

Investors who bought at the IPO lost money as the company’s stock cratered following the offering…

Meanwhile, private investors who got in before the IPO made fortunes.

Where to Find Pre-IPO Opportunities

In the coming months, you’ll start to see many pre-IPO companies available for investment.

You’ll find them on special websites known as “Funding Platforms.”

These are websites that play “matchmaker” between private companies seeking capital, and investors like you who are looking for high returns.

To learn more about how funding platforms work, check out this special video we made for you »

Best Regards,


Founder
Crowdability.com

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Tags: Airbnb Facebook Fitbit Great depression Pre ipo The jobs-act The securities-act-of-1933 Title iv Uber

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