Is This The Next Social Media Giant?
Recently at StreetAuthority, we’ve been telling readers about a way to invest in some of the most exciting companies the world has to offer — before they go public on traditional stock exchanges.
This is an absolute game-changer for investors. It means, for the first time ever, regular, non-accredited investors can get in on the early stages of what could become the next Google, Facebook, Microsoft and more. And it should go without saying that the potential profits to be had are enormous.
If you missed my recent interview about this with Joseph Hogue, Chief Strategist of our newest premium advisory, Pre-IPO Millionaire, go here. In that issue, we talk about everything from the loosening of regulations that make this possible to the various crowdfunding platforms investors can use to make incredible triple-digit-plus gains that many investors have already realized from this space.
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Today, I’d like to give you a little preview of Joseph’s first Pre-IPO Millionaire pick. And while I won’t share Joseph’s full analysis (to get that you’ll have to become a charter member of Pre-IPO Millionaire) I will reveal the name of the company and a few reasons why it’s a compelling pick for potential pre-IPO investors.
Is This Company The Next Social Media Giant?
If you own a small business that has a website, or heck, even if you’ve dabbled in blogging on your own personal website, then you know how important social media has become when it comes to driving web traffic. Few are more important than Pinterest.
The social network’s uniqueness lies in its layout, where users can “pin” images, links and more that they like to a personal page, and users can search for pins based on categories as diverse as DIY home design to inspirational quotes and more. This uniqueness has made it a favorite not only for social media users, but also for advertisers and retail brands.
As such, management expects to triple the platform’s user base and grow revenue by 1,557% over the three years through 2018. As Joseph points out, that might seem optimistic, but after running his own analysis (remember, Joseph’s background is as an analyst for venture capital firms), Joseph’s projections came in extremely close to management’s.
The Deal
Equity crowdfunding site MicroVentures is raising up to $2 million in a funding round for Pinterest. And if the user and revenue growth come even close to those expectations, then Joseph thinks pre-IPO investors could easily see the company’s valuation double over the next few years.
#-ad_banner-#Another thing that makes this compelling for investors is the fact that it’s a late-stage funding deal, which means more certainty and a faster payout. The company has already raised $1.32 billion in 12 funding rounds since 2009, and many of the rounds were seeded by iconic Silicon Valley groups like Bessemer Venture Partners and Andreessen Horowitz.
As Joseph points out, Pinterest is already one of the largest social platforms by user base, and it booked $169 million in 2015 sales. Microsoft’s (Nasdaq: MSFT) recent acquisition of LinkedIn has revived the market’s interest in social media deals — as has the rekindling of buyout rumors for Twitter (NYSE: TWTR).
Also worth noting: At $10,000, the required minimum investment for Pinterest is a little higher than some of the other deals you’ll find on pre-IPO crowdfunding platforms. But the good news is that seed investors and angel investors alike have been with the company for more than six years and will be pushing for an exit soon, so if you decide to invest, that capital will not likely be tied up for long. Not only that, but based on Joseph’s detailed valuation analysis (which is available to Pre-IPO Millionaire subscribers only), the chances for a high return on investment are quite favorable.
If you’d like to get access to Joseph’s full analysis of this deal and many more, go here.