A New Breed of Tech IPOs Is Hitting the Market

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Rachel’s note: Tonight, our friend and colleague over at Palm Beach Research Group, Teeka Tiwari, is hosting a special event you can’t afford to miss.

You see, despite all the recent market uncertainty, Teeka believes one of the biggest wealth-building events in the world is unfolding right now.

It involves a private market once off-limits to everyday investors…

And it’s creating a megawave of IPOs.

Thanks to a new rule from the SEC, Main Street can get in on these lucrative deals… before they hit public markets. And this year, they’ve delivered gains averaging 22,946%.

That’s why tonight, at 8 p.m. ET, Teeka’s hosting a free event where he’ll reveal all the details… and even give away his top pick for 2020. Go right here to reserve your spot.


A New Breed of Tech IPOs Is Hitting the Market

By Teeka Tiwari, editor, Palm Beach Daily

Teeka Tiwari

This year is set to smash IPO records last set in 1999…

During the dot-com boom, investors’ thirst for internet companies was unquenched. In that year alone, they raised $62 billion in capital for tech IPOs.

We saw companies like Amazon, eBay, and Nvidia go public during the dot-com boom. Today, they’re some of the biggest names in the world.

Now, if you’ve been following me since January, you know I’ve been predicting a mega wave of IPOs this year. Remember an IPO – or initial public offering – is when a private company files to list on a public exchange.

In the second half of 2020, we’ve seen 241 IPOs so far. It’s the fastest start to the second half of the year since 2007, according to financial data provider Refinitiv.

And based on a number of industry estimates, we could see record-breaking amounts of capital raised for IPOs in October.

That round will be led by a massive IPO from Chinese firm Ant Group – the payments arm of multinational tech company Alibaba – which has a targeted valuation of $225 billion alone.

Other private companies planning to go public with multibillion-dollar valuations include data analytics firm Palantir… and food delivery services DoorDash and Postmates.

They’re all part of a new breed of tech companies…

Unlike the internet stocks of the past… the firms going public today are leading the charge against the COVID-19 pandemic.

They’re providing goods and services like remote learning and work software… delivery services… and therapies that’ll help us live in the “new normal.”

Now, I’m not suggesting you chase these huge IPOs when they hit the open market. Unless you’re satisfied with Wall Street’s table scraps, I see a much bigger opportunity at play here.

Wall Street's Favorite IPO Game

For years, Wall Street has been hoarding the most innovative tech companies for themselves.

Here’s what I mean…

During the dot-com bubble, the average age of a company going public was just five years. Today, it’s about twice that.

That’s pushed the number of publicly traded U.S. stocks lower. In 1998, there were about 8,000 U.S.-listed stocks. Today, we’re down to about 3,700.

You see, Wall Street’s been making a fortune from keeping these companies private during their most profitable early growth stage.

Private companies are getting all the funding they need from their venture capital backers. But when they finally go public, regular investors pay steep prices to buy shares – while early insiders walk away with big profits.

I’ve been following the IPO market since 2019. And I knew there was pent-up demand for private companies. So my thinking was Wall Street would meet that demand by bringing hundreds of them public this year.

That’s why I started pounding the table on IPOs in January.

What I couldn’t foresee – and no one else could, either – was that the COVID-19 pandemic would increase investor appetite for IPOs.

Already, since the outbreak, we’ve seen companies like IT service company BigCommerce Holdings, financial tech company nCino, and oncology-focused tech company ADC Therapeutics, make 201%, 195%, and 56%, respectively, on IPO day.

But while these returns are nice, make no mistake… The biggest paydays aren’t in the IPO market. They’re in the pre-IPO market. A pre-IPO is when you buy shares in a company before it goes public.

If you look at all the companies that had IPOs this year, the difference between buying at the IPO price and the pre-IPO price is staggering. On average, gains made on IPO day are 36%. But for pre-IPO investors, those same one-day gains are 22,946%.

Outsized returns like that are why companies stay private for so long. They know once they go public, retail investors will pile in – thinking they’ll make a killing with their double- and triple-digit gains.

Meanwhile, pre-IPO investors are walking away with 100 times that.

That’s because, while they pay “wholesale” prices for their private shares – meaning pennies on the dollar – you pay “retail” prices when the company goes public.

In other words, when insiders are ready to cash out of their private shares, they serve them up as an IPO to you. They give you enough money to perhaps take a nice vacation… while you’re giving them enough money to buy a new jet.

If you want to make money like Wall Street fat cats, you have to think like them. And that means getting into these companies at the pre-IPO level.

Ordinary Folks Getting Rich From Pre-IPOs

I know it sounds crazy. But ordinary folks are making millions of dollars from pre-IPO deals.

I’m talking about guys like David Choe, a former graffiti artist who turned $60,000 worth of pre-IPO Facebook stock into $200 million (worth over $500 million today).

And I’ve personally made millions of dollars from private deals… as have many of the folks in my professional network. But if you’re not already rich or exceedingly well connected, it’s difficult to get into these deals.

But thanks to new rules by the Securities and Exchange Commission, non-millionaires can now invest in these pre-IPO deals. In some cases, you can buy into these pre-IPO deals with minimums of $500–$1,000.

As you can see, you don’t have to be rich to buy into these deals.

Now, you can’t buy them from your brokerage account. And your investment adviser probably won’t ever tell you about them, either.

So tonight at 8 p.m. ET, I’m holding my first-ever Set for Life Summit.

I’ll show you how to get in on lucrative pre-IPO deals via the private market. I’ll also show you why your current net worth or background will no longer stop you from getting in.

I can’t reveal all the details now. But what I can tell you is, I’ve found a pre-IPO deal in an industry Forbes calls “the most profitable sector” in the country right now.

So come join me tonight 8 p.m., and I’ll share everything I’ve found about this opportunity. You can RSVP right here

Let the Game Come to You!

signature

Teeka Tiwari
Editor, Palm Beach Daily

P.S. As I mentioned above, the biggest gains are not in the IPO market. They’re in the pre-IPO market.

This year, pre-IPO one-day gains are averaging 22,946%.

I haven’t seen profit potential like this since the 2017 crypto boom.

So tonight, at 8 p.m. ET, I’m holding my first-ever Set for Life Summit. During this one-of-a-kind event, I’ll show you how you could be set for life on one pre-IPO deal I’ve identified.

It’s part of a group Forbes calls the “most profitable sector” in America…

The event is free to attend. The only cost is an open mind. All you have to do is click here to reserve your seat


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