A new record has been set in the venture capital (VC) world.
South African VC firm Naspers just made a 60,000% return on a single investment.
In 2001, Naspers bought a $32 million stake in an unknown Chinese web company called Tencent.
In the 17 years since, Tencent has become indispensable to the average Chinese person… and, in the process, has become one of the world’s largest companies.
That $32 million investment has grown into $175 billion.
I’m telling you this because for a couple of decades, only the rich and well-connected have been able to get these kinds of returns.
But today, we have a chance to get into the small companies that are normally reserved for VC firms. As I’ll show you today, cryptocurrencies allow us to get in on the ground floor of these companies—at least for the time being…
Only the Rich Get to Invest in These Companies
And that gives venture capital and private equity (PE) firms a huge advantage… They don’t have to compete with you and me for investments.
This has allowed them to score big returns like the 60,000% return on Tencent. And a 10,000% return on Facebook. Or the 50,000% return early investors made on Uber.
We couldn’t invest in them… For most of us, it was illegal. The government says people who make less than $200,000 per year or have less than $1 million can’t invest in these types of companies.
Only VC and PE funds can. And only those rich, accredited investors can become clients of those funds.
And the rich are piling into these funds. Right now, these funds have a record $1 trillion in cash waiting to be deployed.
Profitable Companies Are Staying Private Longer
VC firms have all this money because the wealthy want to invest in small, profitable companies. And since these companies are staying private longer, VC firms have to invest in these funds to gain access to them.
As you can see in the chart below, in 1996, the median company was only 3.1 years old when it went public. And it only raised $12 million in the private markets.
In 2016, median companies stayed private for 7.7 years… and raised eight times more before they went public.
All this funding allows investors in these private companies to reap bigger returns. And private companies like this arrangement as well…
But That’s Now Changing With Cryptocurrencies
For maybe the first time ever, Main Street was able to get in on an investment before Wall Street.
Companies behind initial coin offerings (ICOs) like it because they don’t have to follow burdensome regulations.
It’s time to take advantage of this rare opportunity to get into companies that were previously reserved for the wealthy.
Many of the projects Teeka Tiwari has recommended to Palm Beach Confidential subscribers are tiny compared to publicly traded companies. These are VC-type investments.
And a few should make VC-type returns. Many already have… including a 52,138% gain in just over a year…and four other recommendations that are already up 1,000%-plus.
The crypto market is still down from its peak. That’s giving us a great buying opportunity to get into these projects. Palm Beach Confidential and Palm Beach Letter subscribers should check their portfolios… Many of the picks are well under their buy-up-to prices.
Institutional money will also push up the big cryptocurrencies like bitcoin and ether. Right now, you have to buy these cryptos before you can make an investment anywhere else. So these funds will keep their “dry powder” in bitcoin and ether.
If you haven’t considered buying cryptos yet, now is the time. You may only have a short window to do so (more on that tomorrow)…
Nick Rokke, CFA
Analyst, The Palm Beach Daily
We’re looking for someone who eats, sleeps, and breathes micro-cap stocks…
…someone who combs the market for little-known companies with explosive potential…
…someone with a deep network of contacts in a variety of industries…
…someone with great investment ideas we’ll never see on Bloomberg or in The Wall Street Journal…
If that sounds like you, read on here… You may have what it takes to join our team as a high-profile investment expert.
Today, feedback for last week’s video update on crypto market volatility from Teeka Tiwari continues to pour in. (Palm Beach Letter subscribers can watch it here. And Palm Beach Confidential subscribers can access it right here.)
Just watched the latest Teeka video on market volatility… Hilarious, but unfortunately needed, haha. Love the updates and issues; keep them coming. And you can tell Teeka that I do follow his position sizing and broadness. Thanks, Big T!
Please thank Teeka for the latest video on the crypto market volatility. It was well done and I appreciate how he educates people using the past stock market volatility and comparing it to the crypto market. It reinforces my belief that using his advice of uniform and small position sizes on his recommended picks and sitting back and relaxing is the way to go.
Teeka and the PBRG Team,
Hafa adai (hello) from Guam, USA!
I wanted to say THANK YOU for the recent "Crypto Market Volatility Update" video. The insight you provide into the crypto space serves as a great education for me.
In my humble opinion, the strategic info (bird’s-eye view) and tactical info (how to open a wallet, etc.) are just as important as your recommended coin picks.
I’m saving up for a Palm Beach Confidential subscription, but in the meantime, I wanted to express my gratitude for what you provide in The Palm Beach Letter!
Take care and always remember… LET THE GAME COME TO YOU! 🙂
Hi Teeka, I appreciated your most recent market update. Nice to know you’re still more confident than ever, and good seeing the current crypto market progress in perspective
“Good order makes men bold, and confusion, cowards.” —Niccolo Machiavelli
Hey, kudos on this meaty and informative update. Teeka apologized for it being lengthy, but I really appreciated how he took the time to flesh out the details of our investing strategy with these visuals.
It was also fascinating to hear Teeka describe former bear markets and his (sometimes humorous) reactions as a trader. It’s reassuring to know that this strategy is grounded in experience and that psychologically, he has been where we are currently.
Most valuable to me was getting a visual sense of scale of how early we are in the crypto market, and also the continued emphasis on small, uniform position sizes. Feeling like you put too little into a coin that moons can be just as bad as putting too much into a coin that bombs.
Really liked the latest Teeka video, as I do all his videos. The comparison of the volatility we are experiencing now in the crypto market to the tech stocks in the mid- to late-’90s was fantastic. Teeka has a unique ability to explain things with great clarity and reassurance.
Even though my portfolio is down more than 50% from my highs this past year, he makes a strong case for holding these positions for the next year or two. I always feel much more relaxed after listening to Teeka!
I really enjoyed Teeka’s update. I sat on my hands at the beginning of the internet boom of the 1990s and had periods of regret since. So him showing the history of it in comparison got me excited. I’d like to see more history or any knowledge that Teeka can share from his experience. It gives me more confidence.
If possible, tell Teeka that if he’s in San Diego, my wife and I would be honored to treat him to dinner.
Just a quick note of appreciation for Teeka’s video update on March 21, the “Crypto Market Volatility Update”.
It’s all the stuff he’s mentioned before over the last few months in other updates, but it’s great to see it gone through in detail relating back to previous market patterns
Keep them coming!
Thanks as always for writing in, everyone. Keep your comments, suggestions, and questions coming right here.