Should You Invest in Startups? Why We Prefer Pre-IPO Deals

Get as much diversification across asset classes as you can, but early-stage investing isn’t for everyone. The risk is much higher on an early-stage investment than on a late-stage one. That’s why Ticker Tape focuses on pre-IPO deals: companies we’re betting will go public soon.

For us, that matters more than the company’s value, quality or growth. What we want is the spread between a company’s value while privately held and the value of the same business, with the same revenues, once it’s publicly traded. Do that a thousand times and you should win, because more often than not a public company is worth more than the same company when private.

Key points

  • Early-stage startups carry much higher risk than late-stage companies.
  • Ticker Tape focuses on companies expected to go public soon.
  • The target is the private-to-public valuation spread.
  • Repeated many times, that spread should favor the investor.

Accredited investors: learn about current opportunities at tickertapeinvestments.com.

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