Yesterday, Palantir Technologies officially debuted on the New York Stock Exchange in what was one of 2020’s most anticipated public offerings.
I was lucky enough to have had the opportunity to invest in the company alongside some of Silicon Valley’s biggest legends.
The lessons I’ve learned from this company have guided many of my other investment decisions throughout the years.
Palantir was founded in 2003 by billionaire Peter Thiel – one of the people I’ve looked up to the most during my own career. (More on that here.)
It’s a software company that specializes in data-gathering and analytics, with over $1.5 billion secured in government contracts.
The company opened for trading at $10/share and closed the day with a whopping $21 billion market value. Instead of pursuing a traditional IPO, Palantir held a direct listing, in which no new shares were created.
I invested in the company via Growth Technology Partners, my venture capital firm which was acquired by 10X Capital – where I currently serve as Co-Head of Venture Capital.
While I can’t disclose its name, we had a $1 billion+ institution backing the investment, and I invested several times into the company – with my most recent investment taking place on January 25, 2020 at $5.50/share.
Our most recent investment took place on January 25, 2020 at $5.50/share. That investment alone netted me a 138% internal rate of return (IRR).
To put that into perspective, the entire S&P 500 only netted a 3.5% IRR during the same time period.
That percentage is – quite frankly – crazy.
Including Palantir, I’ve invested alongside Founders Fund, Peter Thiel’s venture capital firm, in a total of seven deals.
But the ultimate success with this investment points to one of the most critical facets of startup investing…
The importance of building relationships.
Through the years, I developed a great working relationship with Palantir – including at the CXO level.
I fostered this relationship for many years… and when I saw the ability to buy secondary at a very low price, I leveraged my relationship to make it happen.
Here’s the thing, though…
It’s not easy to get in on deals like this one.
Palantir is one of the world’s leading software companies, and it took years of relationship development to be able to work alongside them at all.
And that goes for all of my portfolio companies. I’ve used this same strategy time and time again to secure investments in some of the world’s most promising private companies.
Right now, in fact, I’m working with six different companies whose founders I’ve known for a while on a both personal and professional level.
Every single entrepreneur on this list has a history of successful ventures, and I’ve put at least a six-figure stake into each of their companies…
That’s how much I trust these guys to deliver. These deal recommendations come straight from the independent research team.
Now, these types of investment opportunities are normally reserved for only the VC elite of the world… but I’m leveraging my relationships to give you a chance to see how to get in, too.
These companies are accepting investments right now. I encourage you to learn how to claim your stake before the doors on these deals could close for good.
Just click here to get all the details we are sharing.
Is Palantir Technologies a good example of the typical time it takes for a start-up to reach IPO? Were there opportunities to “sell-out” before the IPO? Were you able to sell immediately on the IPO date, or is there a “lock-out” time? I consider my investments in start-ups to be “speculative”, as I’ve seen a lot IPOs spike way up and then crash just as fast. It seems like you would want to sell ASAP to avoid the price drop.
There was opportunities to sell via secondary which we didn’t take due to being bullish on the stock. Startup exits can range depending on the stage of the startup.