Bitcoin may have been the darling of 2017 – posting gains of 1,318%. Yet in 2018, the world’s biggest cryptocurrency has been sinking. It’s down 17% year-to-date.
Meanwhile, initial public offerings – or IPOs – of technology and biotech stocks are thriving.
Two companies are preparing for new IPOs in March. And each has a value of over $1 billion. A select group of investors use a “secret backdoor” to BUY pre-IPO shares.
So, what are the two companies?
First, we have cloud computing company Dropbox. The company has a value of $10 billion. Last year, Dropbox revenues topped $1.1 billion.
Second, we have music streaming company Spotify. The company has 71 million paying subscribers and earned $5 billion in revenues last year. Recent private transactions suggest a valuation of around $20 billion.
These will be the biggest new IPOs of 2018.
Yet, we’re already seeing strong performance from tech and biotech stocks this year.
- Biofrontera +35%
- Cardlytics +33%
- PlayAGO +33%
- Menlo Therapeutics +96%
- Solid Biosciences +107%
- ARMO BioSciences +172%
The strong performance of these new IPOs shows that the market remains very healthy. That makes sense. New IPOs represent the fastest growth opportunities in the market.
There are now 169 private companies valued at more than $1 billion, according to The Wall Street Journal.
Each of these has raised capital from venture capital firms. Many of those investments are from five to 10 years ago.
That means these firms will need a liquidity event to cash out. There are only two ways to exist a successful investment.
The first option is to merge or get acquired by another company in exchange for cash or publicly traded stock. And the second option is to go public in an IPO.
Strong performances from Dropbox and Lyft could encourage more Silicon Valley tech companies to go public.
It’s impossible for most investors to BUY IPO shares. That’s because the limited number of shares are distributed to a bank’s top clients.
That means you have two choices.
First, wait for the IPO to start trading and pay a premium price to buy shares on the NYSE or NASDAQ.
Second, use this “secret backdoor” to BUY pre-IPO shares. The best part is that you don’t need to be an accredited investor to get access to these secret IPOs.
Right now, I’m looking to add exposure to Dropbox and Spotify using this little-known IPO secret.