The Most Likely Outcome of a Private Investment: Nothing

A common misconception about investing in an early-stage company or startup is that only two things can happen: it goes out of business and you lose everything, or it’s hugely successful and you make 25 times your money. The most likely result is actually neither. It’s nothing.

The company just muddles along. It never goes public, never gets sold and never pays dividends, but it never goes out of business either. There are millions of businesses like that. That’s what we watch for. We’re not investing in companies likely to go to zero: Scale, Perplexity, OpenAI and SpaceX aren’t going to zero. But we also don’t want our capital tied up for 20 years.

Key points

  • Investors often picture private deals as total loss or huge win.
  • The most common outcome is a business that muddles along with no exit and no dividends.
  • Ticker Tape targets established companies like Scale, Perplexity, OpenAI and SpaceX.
  • The goal is to avoid tying up capital for decades.

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

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