Become a startup investor in cannabis today…
During our first live “Ask Me Anything” Q&A session of 2021, we opened up the floor so you could get answers to your most pressing cannabis investing questions – and you didn’t hold back.
In fact, we received so many questions from you that I recorded this follow-up video to address what I wasn’t able to get to during the live session.
One of the most popular topics you want to learn more about is private cannabis investing.
To be clear right away, startup investing has its risks. You’re investing in the earliest stages of a company. The founders have an idea and maybe are making some money, but they still need to build a brand, advertise, hire more employees, and open more retail locations.
That’s what your investment will be used for.
There’s no guarantee it will succeed, and you can lose all of your money.
But for those who understand the risk, startup investing puts you there at the start, and those there from the very beginning can reap the biggest rewards. It’s a world where every dollar you invest could eventually be worth 5, 10, or 20 times that amount.
That’s why we launched the Cannabis Venture Syndicate.
Now, the most important thing you need to know is how you’re going to cash out the life-changing returns you’ll get from your cannabis startup investments…
The Difference With Private Cannabis Investing
The first thing to know about startup investing is that, unlike publicly traded companies – Jushi Holdings Inc. (OTC: JUSHF) or Curaleaf Holdings Inc. (OTC: CURLF), for example – your startup shares can’t be publicly traded.
That means you won’t find your private investment in your brokerage account.
But it also means you don’t have to worry about turning on the TV and seeing the price of your investment plummet.
Events that are affecting the overall markets – trade tensions, wars, slowing housing sales, or whatever else can throw a wrench in the overall market – will not affect the price of your investment because retail investors can’t panic sell a private investment.
Instead, with a startup, you sell your shares (and make your money) when one of two events happens: the company gets acquired or goes public.
We call this “finding your profitable exit point.”
Here’s what to look for.
Successful Exit Option 1: An Acquisition
With a buyout, another company comes along and makes an acquisition offer.
For example, rapper and actor Curtis Jackson, also known as 50 Cent, had an investment play that paid off huge.
He was a fan of the hydration product Vitamin Water, which was made by the private company Glaceau. He formed a collaboration with Glaceau to promote a new product, and he wisely chose to receive a stake in the company as compensation rather than just receiving a check for his work.
In 2005, annual sales for the company were $100 million.
Well, in May 2017, the Coca-Cola Company purchased Glaceau for $4.1 billion. According to AddictedtoSuccess.com, Jackson’s take was between $60 million and $100 million.
That’s one of the kinds of exits we are looking for – companies to come in, acquire one of our private deals, and pay you much more than what you paid to acquire your original stake in the company.
Successful Exit Option 2: An IPO
The other way we are looking to cash out is through an IPO.
When a company decides to go public, it works with bankers and goes on a roadshow to sell its shares. The founders, business partners, and suits at the bank drum up as much excitement as they can.
When the stock opens to the public, if everything goes well, it will be trading for a much higher price than you originally paid.
You sell those shares to the public, then sit back and collect your cash.
Part of our due diligence in analyzing private deals for our Cannabis Venture Syndicate members is evaluating whether the company could have a successful exit as either a takeover target or through an IPO.
After all, you’re getting into startup investing to make money!
And I have a startup investment opportunity for you today that could be your ace in the hole.
It checks all the boxes I look for in a deal that shows the biggest and best moneymaking potential this industry has to offer…
Top-tier management, an incredible brand, and a scalable solution that could grow this startup into a billion-dollar behemoth in as little as 12 months.
But private deals move fast, sometimes closing in a matter of hours. And that means you have to move fast, too, to see how to invest in this deal recommendation.
Executive Director, National Institute for Cannabis Investors
4 responses to “Startup Investing Can Make You Rich When One of These Two Things Happen”
January 27 2021