In our essays last week, Wayne and I began to reveal how we identify high-potential startup investments.
Essentially, we use a proven process that involves more than 40 screens and filters.
- Some of these screens help identify the startups with the best chance of staying in business and succeeding.
- While others reveal which startups could hand us at least 10x our money.
But this week, we’ll show you one of the most important filters of all:
Because this one can help you identify the startups that — even with the smallest upfront investment — could make you wealthier than you’ve ever imagined.
We Target 10x Returns… But That’s Just the Beginning
Last week, Wayne and I started to reveal our screens and filters for startups.
For example, Wayne told you how to screen companies by their valuation…
As he explained, the sales price for the vast majority of startup acquisitions is less than $100 million...
So if your goal is to earn 10x your money, you need to invest at valuations of $10 million or less.
But we also look at a filter to see if a startup could deliver returns far greater than 10x…
In other words, it reveals if a single startup investment could change your life.
Make Friends with a Trend
To use this simple filter, you just need to ask yourself one question:
Is this startup taking advantage of a major, explosive trend?
You see, for the biggest gains in startup investing, you need to identify the most important trends — and you need to identify them early.
That’s how you put yourself in position not just for gains of 10x…
But for gains of 10,000x or more.
To show you what I mean, let me give you three examples.
10,000x Your Money — I Want It Now
This first example is about a trend called the “On-Demand” economy.
With on-demand companies, workers connect with clients to handle tasks that need doing now. For example:
- If you need someone to assemble your Ikea bookshelf, you can use TaskRabbit.
- If you need groceries delivered, you can use InstaCart.
- And (here’s where things really get interesting) if you need a ride somewhere, you can call an Uber.
Even after the pummeling Uber (NYSE: UBER) took after going public, and even after the recent market crash, its earliest startup investors have made a fortune:
If they held onto their early stake and didn’t get diluted, as of today, they’ve made 10,000x their money…
That’s enough to turn $5,000 into $50 million.
That’s the type of reward you can earn by hopping on a major new trend early.
210,000x Your Money — Buy it Online
Now let’s look at another trend: the ability to buy things online.
Initially, most people thought this idea seemed crazy.
But e-commerce was a major, explosive trend — and Amazon was there at the beginning.
According to its founder Jeff Bezos, the first 20 or so investors in Amazon put in around $50,000 each for a stake of a little less than 1% of the company.
And if they held onto their early stake and didn’t get diluted, as of today, they’ve made 210,000x their money. That’s enough to turn each 1% stake into $10 billion.
Even a small stake of $5,000 would have turned into $1 billion.
10,000,000x Your Money — Digital Money
Or how about this one…
About ten years ago, at the dawn of digital currencies, bitcoin was trading for $0.0008.
That’s just a tiny fraction of one penny.
But today, it trades for about $8,000 per coin.
So if you’d bought $5,000 worth of bitcoin ten years ago, it would now be worth…
$50 billion.
Breakthrough Technologies
And there you have it.
Now you know what can happen when you identify major new trends early.
But this leaves us with an important question:
How do you spot these trends in the first place?
Well, stayed tuned…
Because that’s what Wayne will explain tomorrow.
Happy Investing.
Best Regards,
Founder
Crowdability.com
