If you have the money to invest, I highly recommend looking for the disrupters in the pre-IPO market. Pre-IPOs are pre-initial public offerings, a late-stage for a private company to raise funds in advance of it’s listing on a public exchange. On this episode I discuss the incredible opportunity in investing in pre-IPOs, and give you some tips and suggestions for where to look for the next best thing.


About Indestructible Wealth: I’m Jack Gibson. I’m your wealth strategist and I’m here to help you make some money. The Indestructible Wealth Podcast is for young entrepreneurs who want to make, keep and grow wealth to enjoy now, and for years to come.

Episode #23 – How to Move the Needle on Your Wealth with Pre-IPOs

Transcription:

Welcome to the Indestructible Wealth Podcast. This is the place where we help young entrepreneurs to make, keep, and grow wealth that you can enjoy now, and for years to come. I’m your host Jack Gibson, a serial entrepreneur, founder of multiple seven and eight figure businesses, and wealth building strategist. Each week I’m going to share my tips, resources and secrets, to help you create a plan and build the life you’ve dreamed of. 

So you guys don’t know this but the rules have changed in your favor. And what do I mean? The everyday Joe and the everyday Karen.  Oh shit. I said Karen, let’s go Susan, can now invest in deals before they go public. They’re called pre IPO’s.    That stands for initial public offering and these guys you can get in for like $1000 on these deals.  You don’t need a ton of money.  Let me explain how this works you guys, this is a real chance for you to move the needle on your net worth in a fast way. This is not for somebody that has just a few thousand bucks to invest. Like I wouldn’t do these. But I think this is a great opportunity for you to take a small allocation of your total investable dollars and maybe potentially put it into hyperdrive. 

But I got to set the stage for you here. So have you ever had a really good surf and turf, like the ribeye cooked medium rare to 600 degrees, like at Ruth’s Chris? Oh my God. It’s just so good. Then you get the king crab legs already cut, not like the snow crab, where you got the little ones that you have to dig through for an hour just to get a little bit of meat out.  Then you get the melted butter to dip them. I was going to do it, that’s what she said on that last part but I just stopped. 

I can’t imagine too many things better in life. There’s like a couple things for sure. Better, but that’s right at the top of the list. And so what happens is, the regular Joe’s and Susan’s, not the karens. Karen’s, don’t probably invest too much. Main street stock investors typically get the charred and the fatty leftover pieces of the steak and then they dig through the remnants of the hard to reach leftover crab. Like the kind where you just get so full and you don’t want to work that much harder to crack like that little extra piece of shell.  So you just got these leftover remnants that’s the table scraps that are fed to us by the regular everyday investors, the people that get in before the company goes public, the venture capitalists get and capture the big part of the pie. Why is that? As soon as the company is listed on exchange, usually the price goes up, big multiples over wealth that private investors have bought in for, and so instantly overnight they capture quite a bit of equity value increase. And so what happened was back in 2012, what changed the game was the jobs act. And then it took a few years from there until 2015. This is when the first law of what’s called regulation A+ went  into effect. Now I’m going to keep this simple, okay. This is essentially what this means. This is the first time that regular investors, not just wealthy high-earning accredited investors, were able to invest in the companies that were reserved for wealthy venture capitalists. Now what’s an accredited investor. Pretty simple. You have to have over a $1,000,000 net worth or you’re making $250,000 or more individually or $350,000  jointly. 

So now, the rules of the game have changed in the favor of the everyday investor and it’s time that we really embrace it, but most people don’t know about this stuff. So I’m here to disrupt the industry and give you guys the goods. So you guys really want to pay attention today. So think about this. If you would have been on the inside and there’s a bunch of pre IPO opportunities where you would have made some like seriously life-changing gains, like to you’re talking a 100000%, 200000% increase on some of these companies that if you would have been on the inside instead of on the outside looking in that you would have really made some serious movement in your net worth.

So these types of investments however take a different type of mental and emotional approach. So I’m just going to set the stage for you when you put your money in, it’s not like a normal stock market investment where you see price action where the stock price goes up or down immediately, you could buy in and your money is like sitting in there and it could take many months or even a couple of years, even before anything happens.

So typically nothing will happen until the regulation A+ offering where they’re raising the money. That they’re going to then use to grow their business until that sells out and then even from there it could take quite a bit of time before it goes public on an exchange. So I would also recommend you not place a large bet on one pre IPO company.   you want to approach this like a venture capitalist and what’s called position size better on multiple pre IPO offerings.  So this is really easy. Okay. Don’t get overwhelmed here, stay with me. A position size bet  is where you take the total amount of money you’re willing to invest into this type of asset and you spread it evenly across each one. So for example, if you have $10,000 and you have 5 well-researched choices then you take $2,000 and you put it into each one. So instead of taking $10,000 and going all in on 1 of the 5 or 6,000, going in on one and a 1,000 on the other 4, you’re just going to spread 2000 out over all 5, because that’s because you really have no idea which one’s going to hit and it’s possible only one out of the 5 will actually be a score. Now, if one of them goes up 10 X, 4 out of 5, go to absolute zero. The one that 10 X more than made up for the other 4 that you lost out on.    you doubled your money. Because the one that went up 10 X that’s 10 times $2,000 is $20,000 and you had $10,000 in the games. You doubled your money from 10K to 20K. So if you had played say 6 games into one of them, and then the rest went to zero, then essentially all you do is break even, you would have pretty much just you would have just got your money back. Because the one that did go up 10 X you had a thousand in on it. So it went up to $10,000 and the other four went to zero. So you just completely got your money back which is totally boring and that’s not the reason why we’re investing and taking on risk. 

So what makes a good private placement pre IPO. What makes it good? I’m going to talk to you guys about an exampleof one. I think this one might’ve sold out but you guys, this is the one I put quite a bit into now I did exactly what I’m telling you Not to do. I put more than my position size bet, but I thought this one was so incredible and I felt so strongly about it I was willing to take that chance, but normally it’s just a flat amount of money that I put into these types of deals. Okay. So just letting you know that, do what I say. Don’t do what I do and I can also, I can take on a lot more risks than you guys do because I have multiple businesses and I have 12 streams of income. I have quite a bit of cash flow coming in so this one doesn’t work out. Like it doesn’t matter. My life isn’t going to change at all. Okay. So this one is called a robot cache. So what makes a really good IPO. 3 things. Number 1, poised to disrupt a massive industry.  so think about Uber completely disrupted the entire taxi industry. Airbnb disrupted the entire hospitality industry. Facebook completely reinvented social media so that’s 1 thing poised to disrupt a massive industry. Number 2. It’s still in its early stages so in this case, this company is only worth $30,000,000 or it’s worth $30,000,000 I should say. This means the private companies value when it’s in its early stages is less than a billion. We are in the infancy with this company. And then the 3rd thing is that it has an IPO on the horizon so this is the real secret to making life-changing gains. You gotta be able to find a way to get into the deal before it goes public and then it’s valuation explodes. So video gaming is a $162,000,000,000 market and it’s set to grow 30% annually over the next 6 years. It’s bigger than the film industry, globally music industry and the publishing industry and it serves over 2.7 billion people worldwide. And I can testify to the fact that my 11 and 13 year olds spend most of their money in this industry. The amount of consoles and new gaming systems and the games. They’re all their disposable income, which is very little. It’s not like they’re higher earners. But the money that they do get Bam, it’s just a fight to get them to not spend all their money on video games and items within Fortnite. My Lord did they want to drain their bank accounts just getting suckered into all those little tricks and things that they did in that Fortnite game. So I actually ran this investment by them too, to see what they thought. That’s how when you got an incredible deal, you run it by an 11 and 13 year old. Boom. Sure fire. They like it. Oh man. This is a no brainer. Okay. I’m kidding. So how does this one work? 

How it’s going to disrupt the video game industry? The normal video game industry as such where say game stop is an outdated business model. So the fact that people are buying so many of their shares and all of that deal. That is incredible because gamestop definitely won’t even be here 5 years from now. Almost guaranteed. So at some point along the line people are going to lose a lot of money that they put into it, chasing that stock but that’s a wholly different podcast. So I digress but with 

traditional video games like my kids they go to GameStop, they purchase a game when they’re done with it they could take it back in, the actual disk and they could trade it in and they’re going to get pennies on the dollar. They’re not going to get much of their money back and then they’re going to actually somebody have to drive them  physically to game stop to not only purchase the game but then to take it back. So it’s a little bit of a pain, it’s like going to the movie store, going to blockbuster, and that’s why Blockbuster’s not in business because there’s faster, cheaper, and better, more efficient way to be able to digitally download games.

My kids are starting to digitally download games, but here’s the deal:  when they get bored with that game, they’re done with that game, inevitably it happens. They can’t do anything to get any of their money back. What robot cash is doing is genius. You guys say my kid they buy a new game for $60, they’re going to be able to sell it back on this platform and get $15 of their money back. And so the next person who buys it, it’s essentially new to them because they’re not buying a used game per se. It’s just a digital copy. So when they get bored then they can sell it back and on and on it goes that one game that digital copy could be sold 10 times, 20 times. All of that is where it gets good, think about this, all of that revenue of that gain being sold over and over again for the $60 minus the $15 buyback okay the trade in price, all of that money is getting paid back to the developers of the games. So now they’re making more money, the developers the ones coming up with these games. So they’re going to be incentivized to create their games on robot cash because they can get paid on it, on the sale of the same copy over and over, in the current model they cannot, they only get paid one time. So now developers are going to be incentivized. The gamers are incentivized because they can get their big and download really cool new games quickly and efficiently and then sell them back and get some of their money back and then on top of that you’ve got the robot cache was just going to be making a spread on the sale of every game as well.

Now here’s where it gets even better. They’re adding in crypto mining onto this platform. So essentially the gamers are going to be able to lead their computer on and through this platform it’s going to be mining for credits towards free games. So if they leave their computer on it and it’s mining cryptocurrency then that the essentially robot cache is getting that crypto that’s being mined by these thousands and thousands of gamers leaving their computers on that are doing this mining, so then  robot cache is making even more money and the gamers are getting their games for free. And so everybody’s waiting on this platform. So this is why it took a big chunk because I completely understand it. I see this in play and I can get in right now on robot cache for 30 cents per share.

So they’re projecting the company that I get all this research from, Palm beach venture, at the top range of their, what they call their blue sky scenario. We could see gains as massive as 266,000% if robocash just secures 5% of the global gaming market share. That’s enough to turn a $1000 stake into a massive $533,000 windfall.

Wow. Wow, that’s incredible. No, I’m sorry. No. On the top end, that’s on the that’s on the lower end of their projections on the top end it could be as much as $2,666,000 that you take the thousand dollars if robocash were to capture 5% of the total global video game sales mark.   it’s now the blue sky scenario, but even on the lower end it’s looking pretty good. So if you’d like this idea again, I think that this one sold out, but you can go check it out for yourself. I think there’s a waiting list actually, you visit the website. It’s invest.robocache.com. Invest.robocache.com. And you can potentially get on the waiting list because they may be opening up another round of funding. Now I’m giving you guys my favorite pick here completely for free. because I just want to give incredible value on my platform. I paid thousands and thousands of dollars for this research from Palm beach venture but I’m giving this away to you guys for free because I’m awesome and I love you.

But here’s the deal. If you want more picks, here’s what you are going to do. You can earn them. What do I want from you? I just want some engagement on all my shit. Okay. So go to my freaking Instagram page and comment not just like but comment on all my reels that come out for the next 2 weeks, 3 weeks. Come on. Just give me some love comment on them. I need to hack this algorithm. They’re fun too, they’re good. All right. They’re pretty a lot of my stuff sarcastic. I’m sure that you are surprised to hear that but like my shit. And then comment on it. And then just give me some engagement.

You haven’t given me a 5-star review yet on apple podcast and go give me a 5-star review and write up a little review of the actual review of the service. How incredible that this podcast is, how much value that you get out of it. Okay. So you guys do that and then you just send me a DM on Instagram. So I guess you got to follow me first to do that, but send me a DM and then ask me some questions to give me some interaction so I can know what you guys want to know more about. I want to serve the audience as best I can so ask some questions on my story. I got a little button there in my Instagram story that you can boom. You can just ask pop a question right there. And then if you are on LinkedIn, I’m not asking you to go set up a LinkedIn account. But if you’re on LinkedIn, follow me on LinkedIn  Indestructible wealth and comment on my posts. I’m getting complete total crickets. So far the only one is like my post I put up 4 posts is my LinkedIn coach who she’s fucking paid to do it. It’s awful Oh my God. It’s so awful to get complete crickets. Like I’m like oh, that’s not my stuff’s good too. I’m like man, it’s a great post. Crickets nothing. God not even nobody’s you can even hit the like button it’s not happening.

 All right. So yeah, just give me it’s some engagement and then once you’ve given me some engagement and you want them I’ll send you over the list I don’t expect like that many people none of your probably even do this because you’re probably even don’t care that much or it’s just too much effort but if you do want them, I’ll send them to you for free just give me something in return. Give me  a little love. Hope this helps again, I’m not telling you, I’m not giving you financial advice. These are definitely riskier. I can promise you that your money and also your money could be locked up and not liquid for I don’t know how long I have no idea. But this could give you a chance to really get some outsized gains. If you’re interested, just be really responsible. This is definitely a lot more speculative type investment. It’s not something that you want to bank and put a lot of money into in relation to your total investable dollars, but it could be for you and your situation it could be worth looking into and then popping some money in and then just forget about it.

My mom told me. Jack a watched pot never boils, don’t stare at the water. It takes forever for it to boil. That’s good advice. So these will never go IPO if you keep looking and thinking about it and you put your money into these, you just almost got to forget about that you did it because otherwise, you’re going to be anxious and it’s just not worth being anxious, any investment if you’re anxious with it, it wasn’t worth doing it. It wasn’t worth trading any sort of anxiety for the future result. Okay. All right.

That’s a wrap for this episode on the Indestructible wealth podcast. Before we part ways, I want to help you to take advantage of 2 incredible tax saving strategies that could help you save a lot of money.  All you have to do is leave me a 5 star review – if I’ve earned it – and comment in iTunes, Stitcher, Spotify, or wherever you tune in. After you’ve done that simple step, just email me a screenshot to [email protected] and I’ll send you everything you need to save money on your taxes for years to come.  If you’d like to dive deeper into your own wealth building strategy, check us out at myindestructiblewealth.com and follow along on social media. Also, please share this podcast with anyone who’s looking for guidance on their own wealth building journey. Until next time, remember our mission here is to help you make, keep, and grow wealth you can enjoy now, and for years to come.

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