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 over a $190 billion market cap. Today, its market cap is larger than fast food veteran McDonald’s, and as large as global energy giant ExxonMobil and entertainment behemoth Disney.
Meanwhile, Blockbuster has gone the way of the dodo.
But what many people don’t realize is that 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.
This new asset class is called Regulation A+ offerings. 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.
At PBRG, we call them “sweetheart deals.”
That’s because they offer the kinds of setups that were usually reserved for exclusive golf courses and private jets… or made in reserve boxes at sporting events and top-floor meeting rooms at five-star hotels.
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 17,000% 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 be worth $85,500.
That’s the power of investing in private companies. And now’s the perfect time to get started…
Private Firms 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 during 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. Many are even deemed “essential services” by the government. And demand for their products and services have skyrocketed during this pandemic.
It’s acted like a shot of adrenaline injected into these firms. At this point, they’re all-hands-on-deck… hiring in droves… and trying to keep up with demand.
And even after the pandemic recedes, they’ll continue to grow at double-digit clips (at least) each year.
To find the best companies to invest in during this crisis, we make sure each company is meeting four criteria:
Well-funded and already growing before the pandemic
Getting a boost from their goods and services during the pandemic
Will continue to thrive when the pandemic passes
Have 10x or more potential upside
But you won’t find many companies that fit these criteria in the public markets. That’s why we continue to unearth them in 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 “Netflix” of its industry.
Just like the streaming media mogul, it’s coming in like an asteroid to disrupt an outdated business model, and it’s benefitting from more people being confined to their homes.
But you must act now. This private company will be closing its doors to new investors soon. To learn more about how you can invest in sweetheart deals like this, click here.