Startups are my all-time favorite type of investment!
After all:
- Their average returns are nearly 10x higher than stocks.
- It’s exciting to be involved in cutting-edge products and technologies.
- And by investing in startups, you’re helping to create jobs and boost the economy.
What’s not to love?
But there’s one simple thing that could make startup investing even better, one thing that could give it a perfect score. And now, it’s finally happening…
As you’re about to learn, this one simple thing could give you the chance to make 400x your money — faster than you ever thought possible!
How To Make Startup Profits Even Better
If I had a magic wand, I’d change just one thing about startup investing:
I’d make it so I could sell my shares exactly when I wanted to.
You see, startups are very young companies. That’s why, generally speaking, it takes some time for them to mature, and it takes some time before the successful ones have an “exit.”
An exit happens when a startup gets acquired by a bigger company, or goes public in an IPO. That’s when investors like me and you make our profits.
Sure, as long-time Crowdability readers already know, plenty of startups have had big exits just months after we’ve introduced them to you.
For example, a startup called Elio Motors helped many Crowdability readers make nearly 400% on their money in just 60 days.
But what if a startup you invest in today still has a ways to go before its exit — but you want some of the cash you invested now?
Well, traditionally, there wasn’t much you could do.
But now that’s changing…
Selling Your Shares to Other Investors
A moment ago, I told you about the two main ways startup investors earn their profits:
Acquisitions and IPOs.
But there’s also a third way:
Sometimes, startup investors sell their shares to other startup investors.
For example, look what happened with Uber, the transportation company:
Several years ago, when Uber was still a tiny startup, our business partner Howard Lindzon invested in it.
Most private investors waited almost a decade to cash out their shares — they waited until Uber (NYSE: UBER) went public.
But Howard was able to sell his shares years before that.
Here’s how he did it…
400x His Money
Uber had many startup investors besides Howard. One of them was Google.
The thing is, Google wanted to own more shares than Uber was willing to sell. So Google offered to buy out the shares of early investors like Howard.
That’s why Howard didn’t have to wait for a takeover or an IPO. He was able to sell his shares to another investor — for a windfall!
More specifically, for every $5,000 he invested, he got back about $2 million.
That’s 400x his money.
Until recently, this type of exit — it’s called a “secondary” transaction — was only available to wealthy investors.
But now it’s becoming available to all investors… including you!
The First “Stock Market” for Startups
A few weeks ago, one of the largest U.S. platforms for investing in startups — it’s called StartEngine — launched the country’s first SEC-approved secondary market for startup shares.
Here’s how it works…
After investing in a deal on StartEngine (and in the future, perhaps deals from any platform), you’ll be able to offer your shares to other investors.
In other words, as long as another investor wants shares in the startup you’re selling, you’ll be able to cash out of your early-stage investments years before they go public or get acquired.
It will be like a stock market for startups!
This will put you in position not only to earn massive returns…
But to earn those returns quickly — just like my partner Howard did!
This market only launched a few weeks ago, so deal flow is still limited…
But if you’d like to learn more, simply click here »
Happy investing.
Best Regards,
Founder
Crowdability.com
