An investor asked whether, with companies staying private longer, most of the value is already captured before the IPO. Absolutely. By the time stocks go public, the money’s been made. Could late-stage private rounds also be too late? It’s a sliding scale. The earlier you go, the more risk you take. We’ll trade some upside for lower risk.
We’re not chasing a specific return. The question is whether the company will go public at a higher price than we’re paying. If we make 10% a thousand times, that’s a lot of money. If we lose, we might lose 5% or 10%, not 75%, so we can absorb those losses when deals like Ripple return 16x. Kraken shows timing matters: we invested at $24 before it announced an IPO. It’s now $32. Later investors pay more, but with less risk.
Key points
- Earlier rounds offer more upside but much more risk.
- Ticker Tape trades some upside for the lower risk of late-stage, pre-IPO deals.
- The test is whether the IPO price will beat today’s price, not a target return.
- Losses tend to be small, while winners such as Ripple at 16x can be big.
- TTI’s first Kraken round was at $24 before the IPO announcement. The price is now $32.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
