Private Investing 101

Private Investing 101
By Andy Gordon
Date July 18, 2016
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A Quick-Start Guide to First Stage Investor

ABOUT FIRST STAGE INVESTOR:

We are one of the first research services to tap into the high-reward market of private startups.

Called equity crowdfunding for short, this form of investing focuses on companies that are just starting out. The shares they offer are private and limited in number. That means that once you’ve bought them, you have to hang on to them for several years.

But the fun part? That’s seeing the value of your shares grow from year to year.

WHAT YOU’RE GETTING:

First and foremost, you’ll receive a monthly newsletter that will have researched deals recommended to you. We’ll tell you exactly how to invest in these deals, step by step. You’ll also get First Stage Investor portfolio updates on the companies we’ve already recommended, plus reports on the latest technology and fundraising trends… and tips on how to get in on the best deals.

You’re also entitled to First Stage Blasts. These feature urgent opportunities that can’t wait until the next newsletter – such as if we see a startup opportunity where the investing deadline is right around the corner.

Finally, you’ll have access to special reports either written by us or by other experts we know and trust.

THE NEW CROWD EQUITY RULES:

The new startup investing rules open the door for everybody to invest in these companies’ early stages. One new rule, called Title III, lets businesses raise up to $1 million from you. The round is very early – usually their first attempts at raising money from strangers.

Another rule, Regulation A+, lets companies raise up to $50 million from you. Since this round comes later, a startup’s development is expected to be further along.

HOW MUCH YOU NEED TO INVEST:

Depending on a startup’s guidelines, you can put in as little as $100 per deal. The minimums will vary, but it’s doubtful they’ll be more than $1,000.

HOW TO INVEST:

Do you have to invest in every recommendation? No, you don’t. We’ll be giving you the “best of the best” deals we see. And believe me, we’ll be covering 99.9% of the ones available to you.

But maybe you don’t have enough money to invest in every single opportunity. In that case, no problem.

Or maybe you just want to invest in the companies operating in industries you’re familiar with. That’s understandable too. Whatever the reason, you’re allowed to pick and choose.

As for how many companies you should collect over a year’s time, the answer again is “whatever you’re comfortable with.” But the general rule is the more, the better. So if you can do 10 a year, that’s great. Fewer than 10 a year is also fine, but you should really try to invest in more than a handful.

ALL IT TAKES IS ONE BIG WINNER:

Why is it better to have more? Because all it takes is one big winner to really make a difference in your life. And the more companies in your portfolio, the better your odds are of owning the shares of a big (as in REALLY BIG) winner.

REQUIRED INCOME TO INVEST IN THESE STARTUPS:

You don’t need a certain level of income in order to take advantage of these opportunities. Anybody can invest here.

But you will be limited to investing only a certain percentage of your income. The online portals you’ll be investing through will spell out the details (and this article explains why).

YOU CAN’T USE YOUR BROKER:

You’ll be investing through online portals, not through brokers or brokerage firms. But the portals will be just as helpful as a broker. If you run into problems, they’ll be able to help you out.

ABOUT YOUR EDITORS:

Andy Gordon and Adam Sharp have 40 years of experience between them in startup investing. Together, they’ve recommended or invested in nearly 100 such companies.

They have deep roots in the startup investing community, and they personally know the people running the portals you’ll be investing through.

You’re in good hands with Andy and Adam.

QUESTIONS ABOUT YOUR SUBSCRIPTION:

If you have any questions, give us a call. You can reach us at 877.653.9118 (toll-free) or 443.353.4345 Monday through Friday, 8 a.m. to 8 p.m. EST.