Friday, January 29, 2010

Investors: How To Make A Fortune With Small Investments In Pre-IPO Companies

By James Scott

Investors, are you tired of running into dead ends when it comes to trying to get brokers and lawyers to give you real, honest hot tips on that next big IPO where you can double or triple your money quickly with minimal risk? Are you tired of having to be the last to know about opportunities that you could have made a killing with but no one gave you this insider information?

What if I told you there was a way to come out on top virtually every time you made an investment regardless of whether the stock market is up, down or sideways? How would you like to be a "seed" investor in a new fully reporting publicly traded company on the Over the Counter Bulletin Board (OTCBB) at a discount to the market? How would you like to have "liquidity" in your investment? How would you like to have a built in "exit strategy"? How would you like to have an opportunity to spread your risks among three or four promising opportunities rather than one?

Here is how this can be done. Skip the clich route of getting investment tidbits from your broker; it's rare that they actually have specific details about these hush, hush scenarios and most likely couldn't put you in touch with the executives of the pre-public structure which is obviously a mandatory prerequisite for investing seed capital in these companies. Your best bet is to find a consultant or consulting firm who specializes in complete facilitation of going public. Chances are, at any given time they'll have 5 to 10 different companies who are only a few weeks or months away from trading and are offering stock at a substantial discount to the public in exchange for that seed capital. Contacts in this business are crucial.

Many times they will allow you to invest for no other reason other than they are trying to meet the 40 investor minimum qualification by the SEC to go public.

Many times you can put as little as $5,000 to $10,000 into the company as seed capital and when the company is public your investment skyrockets. So the moral of this story is, team up with a good 'go public' consultant. Be serious when you're talking to them and be ready to show some sort of proof of funds as these consultants get this type of inquire many times daily but if you are a serious investor and low maintenance, these consultants will most likely hand you a stack of some of the most valuable investment material you've ever held in your hands. Each page will have descriptions of the next big thing in the technology, biotech, alternative energy, natural fuels industries and each document offers an opportunity and each opportunity is usually worth its weight in gold, literally.

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