Once upon a time, start-up investors had to be extremely patient:
After getting in on a “ground floor” investment, they’d need to wait for years and years as the start-up morphed into a real business—the kind of business that could get acquired or go public.
But recently, we’ve become aware of a fascinating trend:
Start-ups are getting acquired or going public fast, sometimes just 30 days after raising capital.
And for investors like you, these “quick flips” could lead to big, quick profits.
Today, I’ll show you three reasons why this trend is happening…
Then I’ll show you how to grab some of these quick profits for yourself.
Dinosaurs Trying To Stay Relevant
The first reason for this trend is something they teach in Business 101 in college:
It’s challenging for big “incumbent” businesses to stay relevant forever…
So as soon as they think they’re becoming extinct, they start acquiring smaller, younger companies that seem to understand how the “new world” works.
This reaction is especially prevalent in the new world of the Internet, where everything just seems to happen faster.
A recent example of this is Walmart’s acquisition of Jet.com.
Jet is an e-commerce company that sells basic household goods.
Just three months after its launch, it had more than 1 million customers. And just one year after its launch, Walmart acquired it for $3.3 billion.
One early shareholder made an estimated 1,100 times his initial investment in less than a year. That’s like turning $1,000 into $1.1 million in less than 12 months.
As dinosaurs like Walmart try to stay relevant, they’ll keep paying top dollar to acquire start-ups that have it figured out…
And that will let early shareholders earn big windfalls fast.
Going “Viral”
On October 6, 2010, the photo-sharing app Instagram went live.
Jack Dorsey, one of the founders of Twitter, tweeted about it and posted his first picture. All the tech geeks in Silicon Valley soon followed his lead.
Then Justin Bieber tweeted about it. He too posted a picture—of a traffic jam in LA. Not much of a picture, but instantly, millions of teenage girls discovered the app.
Within 3 months, Instagram had 1 million users. Soon it had 2 million users… then 10 million… then 27 million.
This is a common phenomenon in digital media known as “going viral.”
Basically, people discover something from their friends on social networks like Twitter and Facebook, then they share it with others. It’s called “viral” because it’s similar to how a common cold passes from person to person.
But unlike a cold, when an app goes viral, the outcome can be advantageous:
In Instagram’s case, just two and a half years after it launched, it was acquired by Facebook for $1 billion.
The acquisition happened so quickly that investors in Instagram’s last round of funding literally doubled their money in just a few days.
Before social media sites existed, there was no cost-effective way to reach an audience of billions. But today, when an app like Instagram can leverage these networks to go viral, it’s like lightning in a bottle…
The kind of lightning that can quickly lead to billion-dollar acquisitions.
Mini-IPO, Maximum Returns
IPOs let everyday investors get involved in high-growth tech companies...
But until recently, IPOs were a rare breed. They're just too expensive and time-consuming for all but a few of the highest-growth companies to take advantage of.
But last summer, the SEC unveiled something called the “Mini-IPO.”
The Mini-IPO is part of the JOBS Act, the new set of laws that’s bringing start-up investing to ALL investors, regardless of their wealth or income.
As its name implies, a Mini-IPO is similar to an IPO—it’s just smaller, less expensive and quicker to accomplish.
One of the first Mini-IPOs was for a transportation company called Elio Motors.
Just 30 days after accepting capital from everyday investors like you, it went public, and it catapulted in value.
Many investors—including readers like you who discovered the offering through Crowdability—tripled their money in just 30 days.
Get Some Quick Profits for Yourself
If you’re an investor who’s looking for a big hit in the market, and you don’t have years and years to wait for it, these trends are good news.
And for those of you who want to get started sooner rather than later, we have some more good news:
We’re about to recommend a new Mini-IPO in our premium research service, Private Market Profits.
There’s currently a waiting list to join this service, but we’ll be opening up a handful of spots in September. So stay tuned!
Best Regards,
Founder
Crowdability.com
