The startup world is going absolutely crazy right now, in all the best ways.
Among massive funding rounds, high-profile IPOs, upcoming changes to crowdfunding regulations, and more… this year (and beyond) is one of the very best moments in history to be an angel investor.
Let’s talk about why… starting with the latest headlines.
Yesterday, food delivery service DoorDash debuted on the New York Stock Exchange, skyrocketing to a valuation of around $60 billion. And today, Airbnb makes its long-awaited public debut at an expected valuation of $47 billion.
DoorDash and Airbnb will join a slew of major companies that hit the public market ranks this year. Last quarter, for example, we saw companies like Snowflake, GoodRx, Palantir, Unity, and Asana go public in what were some of the most high-profile debuts of the century.
(Snowflake, for example, was both the largest software company to ever IPO in the United States and the largest company to double in value on its opening day.)
But what makes this year’s IPO landscape more significant than really any other year?
Well, to start, this is an unprecedented year for private equity.
Not only are startups raising unprecedented amounts of money (and, for some, going public) in one of the most volatile years in history… they’re doing so successfully.
In fact, I recently read a New York Times article with some huge statistics to prove just how massive this year is for the startup world. Here’s what they said…
In Q3 2020, startups raised a whopping total of $36.5 billion. That’s up 30% from the same quarter last year.
This year, startup-land has seen 223 financing rounds of $100 million or more. These are called “mega-deals,” and we’ll likely end the year with a much higher number of them than last year.
The average valuation for later-stage startups is $584 million this year.
And in just Q3 alone, there were 81 IPOs that raised a total of $28.5 billion.
I haven’t seen a funding landscape as fertile as this in years (if ever).
These days, angel investors and venture capitalists are throwing their money at the world’s biggest startups.
That’s because these investors recognize that the real return potential in any company comes way before it ever makes its public debut.
For example… let’s talk about Airbnb.
Airbnb was founded in 2008 at a valuation of $2.5 million. Today, it’s expected to debut on the NASDAQ at a valuation of $47 billion.
That’s a valuation hike of around 1,880,000% from start to finish.
Now, let’s say you’d invested just $50 into Airbnb in 2008. If all goes to plan on IPO day, that $50 would be worth around $940,000 today… simply because you got in on day one.
Of course, not everyone could invest in these types of high-profile companies back in 2008.
It wasn’t until recently that the doors opened up so anyone could take a stab at lifechanging returns like that.
But today, you can do just that.
And if you haven’t yet, I believe the next few months will be the perfect time to get started. This type of dealmaking whirlwind only comes around a few times in a generation.
These days, some of the most promising startup companies in the world are turning to equity crowdfunding – and everyday investors like you – to help make their big ideas a reality.
(With the SEC regulations slated to change in just a few weeks, these types of opportunities are likely to increase tenfold. More on that here.)
That’s exactly why I founded our community over at the Angels & Entrepreneurs Network a year and a half ago.
I knew from the get-go that we’re coming into one of the best moments in history to be a startup investor, and I wanted to make that opportunity accessible for anyone and everyone.
If Airbnb’s valuation, and others, are any indicator, I believe these guys have a whole lot more room to grow. By getting in right now, you’ll still be on the ground floor of the growth they could see over the next few months and years.
If you’re interested in taking a shot at lifechanging returns, I suggest you at least watch the video to learn more about this opportunity. I’m breaking it all down today, and you don’t want to miss it.
Neil Patel is a successful entrepreneur and investor who has been active in the startup scene for nearly two decades. Born in London, England, he moved with his family to Orange County, California when he was two years old, where he was surrounded by entrepreneurs and innovators from an early age. Neil is the founder of several companies, including Crazy Egg, Hello Bar, and Quicksprout – companies that established Neil as one of the world’s leading digital marketers. But Neil spends more time these days on the other side of the table – as an angel investor. He has made some unbelievable returns backing early-stage startups. Now, he’s here to teach you to do the same. Neil launched the Angels & Entrepreneurs Network to pull back the curtain on the world of “pre-IPO” investment, because he believes everyone should have access to the same playing field – not just society’s high and mighty.
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