It’s a story that’s been grossly overlooked since Election Day…
While the media was in a frenzy over the outcome of the U.S. presidential election… the U.S. Securities and Exchange Commission (SEC) quietly busted open one of Wall Street’s most lucrative backroom strategies.
Average Americans can now profit from untapped markets propelled by massive, unstoppable trends… and all before the rest of the market catches on.
But I haven’t seen a single headline about it on mass media channels like CNN, ABC, or Fox. Not even a peep from news outlets like Bloomberg or The Wall Street Journal.
Folks, that’s the difference between a mass media outlet and us here at PBRG. We stay laser-focused on bringing you the best wealth-building opportunities… no matter who’s in the White House.
That’s why I’m sharing news on a big move by the SEC. It involves something called pre-IPO deals.
If you’re not familiar with them, an initial public offering (IPO) is when a private company lists on a public exchange like the New York Stock Exchange. And buying IPOs on the day they list can be lucrative.
For example, Main Street investors made 31% the first day Amazon went public. And investors who bought Google on Day 1 saw an 18% gain.
But those are table scraps compared to buying private companies before they go public… or when they’re still in their pre-IPO stage.
Pre-IPO investors in Amazon walked away with 9,165%… and Google’s early investors saw an incredible 1,500,000% return on IPO day.
And then there’s Uber. Silicon Valley insiders made a 64,200% gain when the company went public… while Main Street investors lost 8% in the first day of trading.
Not long ago, these deals were only available to the rich and connected. So you had to either be a millionaire or an insider to get in before an IPO.
But recent regulatory changes allowed small investors to partake in this estimated $5 trillion private playground. Of course, there was a catch…
It was prohibitively expensive for companies to structure these deals. And that severely limited the number of private placement opportunities available to Main Street…
But all of that changed on November 2. And it’s good news for you…
The Highest Returns of the 21st Century
On November 2, the SEC announced a rule amendment with a press release titled, “SEC Harmonizes and Improves ‘Patchwork’ Exempt Offering Framework.” And with a headline like that, it’s no wonder it didn’t grab any attention from the looming election.
The amendments “[eliminate] complexity and [facilitate] access to capital and investment while preserving or enhancing important investor protections.”
The changes apply to private deals known as Regulation A+ and Regulation CF offerings.
Startups can use Regulation CF deals to raise capital. However, the SEC capped their fundraising limits at $1.7 million. A fast-growing startup might burn through that amount in a few months.
But the new rules raised the limit to $5 million. That’s enough to support many startups for about a year… while allowing for additional growth. It also means when it’s time to raise money again, their valuation could be significantly higher.
Regulation A+ deals are mainly used by mid-sized private companies to raise funds. The amended rules raised their funding limits from $50 million to $75 million – a 50% increase.
And the overall process has been streamlined to remove much of the red tape for companies going this route.
The big picture here is that it’s never been easier for Main Street to get in on private equity deals.
That’s why we’ve been pounding the table on this space for years… It’s one of the few markets where you can turn tiny grubstakes into life-changing gains.
A Simple Way to Profit From the IPO Boom
As early as January, Daily editor Teeka Tiwari was predicting we’d see a huge IPO boom this year that would rival the ’90s tech boom:
What I’ve discovered is 2020 will be the beginning of an IPO boom in an overlooked sector. Given the scope of this venture capital investment, I think it could be as lucrative as the IPO boom of 1995–1999. For those of you who were active back then, you know as well as I do how amazing that time was… And 2020 will mark the beginning of an IPO boom that could put the ’90s to shame.
And he’s been proven correct.
Since January, we’ve seen 306 IPOs. That’s up 60% from this time last year. And IPO funding has increased 101% over the same period.
In fact, nine IPOs – including Sotera Health, Yatsen, and Aspire REIT – are expected to raise an impressive $1.9 billion this week alone.
And unicorns (private companies worth $1 billion or more) like Airbnb, Wish, and DoorDash plan to go public by the end of the year.
But here’s a dirty little secret about IPOs: Even if you bought what became the most successful IPO of 2020, you’d only be getting Wall Street’s table scraps.
For example, GoodRx went public in 2020… and on IPO day, Main Street investors saw gains of around 11%. But pre-IPO investors reaped a 2,179% windfall.
And while the SEC’s recent rule changes have expanded pre-IPO access to more people than ever before… there are still a lot of bad deals out there. And it takes extensive research, a deep Rolodex, and boots on the ground to separate the good from the bad.
In fact, this year, I’m likely one of the few people to notch platinum status as I’ve flown tens of thousands of miles with Delta. Travel has dried up in many places. But for these pre-IPO deals, the market is hotter than ever. And I owe it to our readers to bring them the best deals every month.
In our elite private placement service Palm Beach Venture, we use a proprietary strategy to find the best private deals out there. Big T has personally used it to make millions of dollars from private deals… as have many of the folks in our professional network.
The beauty of this approach is that you can make 10x, 50x, and even 100x or more on your money without ever risking your current lifestyle. Just a tiny grubstake of $400 or $500 could potentially turn into $50,000, $500,000, or more.
We saw that Tuesday when our first pre-IPO deal went public. It saw gains as high as 300% a few hours after its listing. But if you only bought it on IPO day, your gains would have been 33% at best. That’s the power of pre-IPO investing.
The good news is we still have five private deals open. But you must act soon. When they close, the chance to make 300% gains in one day will be gone.
Big T put together a video presentation with all the details. Click here to watch it.
Analyst, Palm Beach Daily