Why Tech Investing P***es Me Off (And What You Can Do About It)

nasdaq stocks startup equity 1

By Andy Gordon

I’m a big believer in tech stocks.

But I’m not talking about the Nasdaq.

It’s not where you go big-game hunting. Not anymore. Sure, you can still make nice gains if you select well.

But giant, life-changing gains?

Historically, the Nasdaq has depended on an influx of hundreds of IPOs to juice growth.

Guess what? The number of IPOs peaked way back in the mid-‘90s, when they numbered in the 600s. Nowadays?

They totaled 111 in 2016. This year is more of the same.

The fast fade of small IPOs has been particularly damaging.

They now account for less than 10% of all IPOs, compared to 30% to 60% in the 1980s and 1990s.

Talk about a crippling double whammy…

Fewer IPOs – and far fewer small IPOs – have put an end to a moneymaking dynamic that gave tech investors their big returns.

Companies joined the Nasdaq when they were very small and then grew very big.

This simple wealth-producing dynamic has gone away. It’s not coming back soon.

Personally, I don’t think it’s ever coming back.

So why am I still incredibly excited about tech?

I invest in the one place where the “from very small to very big” growth dynamic is still in play…

In the private markets. Among startups.

Google earned early investors 1,500 times their money.

But that’s nothing compared to Uber. Despite its recent troubles, early-stage investors stand to make more than 6,000 times their money.

Of course, when Uber IPOs, it won’t be a small IPO. I think it has already experienced 90% of its total lifetime growth. Pretty typical these days.

Which is why the “big money” is pouring into startups. Take Chinese money for instance…

It’s not just China either. Japan and Saudi Arabia have created a giant $100 billion tech “vision fund” aimed at American companies only.

Let’s not forget corporations…

I’m not surprised that startup investing has caught fire.

Growth attracts money. Hypergrowth attracts big money.

But how about everyday investors?

They’re in danger of getting left behind. Which p***es me off.

There’s absolutely no reason why they should not be participating en masse in the best tech market in the world, bar none, and enjoying the “Triple A” advantages of startup investing…

Affordability? You can invest for as little as $100.

Access? No problem. Check out the latest startups raising money under crowdfunding rules at our favorite sites: SeedInvest.com, Wefunder.com, MicroVentures.com, Republic.co and NetCaptital.com.

Acceptable risk? Yes, for three reasons…

[iu-adbox]

First reason: The quality of deals on these websites is getting better and better. Exceptional startups – perhaps the next Google – are now going online to raise money from everyday investors.

Second reason: Managing risk is simply a matter of hitting your numbers. It’s the familiar 80-20 rule in action… 80% of your gains will come from 20% of your startup holdings. For the rule to work, you should invest in at least 10 to 15 startups.

Third reason: Even with these very young companies, risk can be assessed. And you don’t have to talk to the founders multiple times like I do when I’m checking out companies.

Much of the information you need is …read more

Source:: Investment You

The post Why Tech Investing P***es Me Off (And What You Can Do About It) appeared first on Junior Mining Analyst.