For decades, it was the same, simple, profitable process…
A Hollywood production studio would release a film to movie theaters. Then, the feature would weave its way down to video rental stores.
From there, consumers could pick it up, grab some snacks along the way, and drive back to watch it in the comfort of their own homes.
This simple process made Dallas-based Blockbuster a household name. At its peak, it was worth $5 billion… had 60,000 employees across 9,000 stores… and generated $6 billion in annual revenue.
Then, on August 29, 1997, a proverbial “asteroid” hit… ultimately making Blockbuster as extinct as a dinosaur.
You see, that day marked the launch of a tiny DVD mail-order business called Netflix. And the rest is history…
Netflix now reigns supreme in the streaming media space, with a market cap over $214 billion. Today, its market cap is larger than fast food veteran McDonald’s, and almost as large as entertainment behemoth Disney.
Meanwhile, Blockbuster has gone the way of the dodo.
But what many people don’t realize is Blockbuster had the opportunity to avoid extinction at the hands of an unassuming startup…
Besides failing to pivot into the mail-order business – and later streaming – the movie store giant had the chance to buy Netflix for $50 million in 2000. Blockbuster passed, thinking Netflix was too “niche.”
That was almost two years before Netflix went public. If Blockbuster had the foresight to grab onto this opportunity at the time, it could’ve gotten in around the split-adjusted initial public offering (IPO) price of $1.20 and be sitting on about a 36,900% gain today. That’s enough to turn each $1,000 invested into $370,000.
This massive growth is a testament to Netflix’s disruptive business model.
Getting In on the Ground Floor
Seeing Netflix’s astronomical profits, it’s tempting to wonder: What if you could go back to 1997 – right as the “asteroid” struck Blockbuster – and buy Netflix shares while it was still private?
You would’ve been on board even below the $1.20 IPO price… and positioned yourself for truly life-changing gains.
In the past, only millionaires and institutions could invest in private companies like Netflix. So even if you wanted to buy into Netflix back then… you couldn’t.
But thanks to recent regulatory changes, ordinary individuals can now participate in these deals, too.
We call this new asset class “pre-IPO deals.” And they’re open to the general public – not just accredited investors. In some cases, you can buy into these private deals with minimums of $500–1,000.
And they’re a game-changer…
Take Harvard Medical School professor Timothy Springer, for instance.
He invested in a private biotech company called Moderna in its early years. When the company went public in 2018, his $5 million stake skyrocketed to $320 million on IPO day.
And in just two years, that windfall turned into more than $800 million – a 15,900% gain to be exact.
Now, I know most people don’t have $5 million to invest. But a $500 stake in Moderna at the same time Springer made his investment would have turned into $79,500.
That’s the power of investing in private companies. And now’s the perfect time to get started…
This Sector Is Set to Profit
Longtime readers know Daily editor Teeka Tiwari and I travel the world to find the best moneymaking ideas for our readers. And we’ve redoubled our efforts to work around the coronavirus pandemic.
You see, Big T and I were pinpointing private companies with high growth potential before the coronavirus pandemic.
But through our research, we’ve found some are doing even better amid this crisis. And demand for their products and services have skyrocketed during this pandemic.
I’m talking about biotech firms, like Moderna. These companies are on the cutting edge of science and medicine. And the COVID-19 outbreak is accelerating their potential.
That’s why Forbes calls it “the most profitable sector” in the United States today.
Since the COVID-19 outbreak, we’ve seen biotech companies like Inovio Therapeutics, Moderna, and Seres Therapeutics soar 131%, 126%, and 693%, respectively. And there are dozens more examples we could name.
This biotech bull market is happening at the same time as the IPO craze… which means there are monster profits waiting for those who can take advantage of this timing.
Nearly half of the IPOs so far this year have come from the biotech space.
And according to data from Pitchbook, venture capitalists invested an estimated $5.5 billion in U.S. biotech companies in the second quarter of 2020 alone. That’s the largest quarter in the history of the industry. Plus, they just added $1.2 billion to that sum, bringing the total to a whopping $6.7 billion.
But while you can find worthwhile biotech companies in public markets, if you truly want to take advantage of this opportunity and book life-changing gains… you need to tap into the private markets.
If you want to test out investing in private markets, consider crowdfunding platforms like SeedInvest and MicroVentures. They list dozens of promising companies raising money from everyday investors. In some cases, you can get started with as little as $100.
As always, make sure you do your homework before investing in any idea.
Though it may seem counterintuitive to say this in today’s doom-and-gloom environment… in a few years, we believe you’ll look back at this moment as the single-best time to be a private investor. You won’t see opportunities like this again.
Analyst, Palm Beach Daily
P.S. While it’s nice to fantasize about what could have been… Big T and I are happy to announce we’ve actually found the next disruptive company in the biotech industry. Think of it like getting into Netflix in 1997…
Now, it’s not working on a vaccine for COVID-19 like a lot of biotechs making headlines right now. But it is a pre-IPO company working on a therapy to treat a series of rare disorders that have been around since long before.
Teeka revealed all the details in a special briefing this past Wednesday. You can watch the replay right here…