Pre-IPO Insider: A Fix For The Music Industry’s Digital Frustrations

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA


Sean Parker destroyed the old model for the music industry when he launched Napster, an online platform for free music sharing, in 1999. Since then, the industry has scrambled to make money and come to grips with the digital revolution.

Sean is at it again as an investor in the largest music download service in the world. He’s working with the music industry this time to build something that will bridge the digital gap and make money for everyone involved.

#-ad_banner-#I’m guessing you’ve already heard of the company, but what you probably don’t know is that you can invest alongside Sean and other Silicon Valley heavyweights.

You can’t buy shares in the stock market. This is still a private company.

But you can get a piece of the action as a pre-IPO investor.

One Of The Few Real Unicorns
There is a mythical creature in startup investing called a unicorn. It’s not the single-horned horse that lines the walls of many children’s bedrooms, but an early-stage company with a valuation of $1 billion or more.

The idea is that these large, successful companies are extremely rare in the world of startup investing. By the time a company is worth that many digits, it has usually been acquired or issued shares on the public markets.

A lot of the unicorns I see as a startup investor are just as mythical as the equine variety. Euphoric venture capital and angel investors have bid the valuation up through funding rounds, but the fundamentals and outlook just don’t justify the price.

Find a real unicorn, though, and it can be a startup investor’s dream. A company with growing sales and potential, with all the certainty of a billion-dollar market cap. True unicorns are in the final stages before sending early investors huge checks in an IPO.

One unicorn I’ve been following is raising money again… maybe for the last time before issuing stock.

Spotify surpassed Pandora in January 2016 as the leading music-streaming company, with over 100 million active users. Since the music industry’s rocky relationship with Napster in the late 1990s, the industry has learned to ally with digital services, and downloads became its primary revenue source.

The number of active users on the platform continues to surge, and the number of premium subscribers (30% of total) has doubled over the last year.

Napster founder Sean Parker was one of the earliest investors in Spotify, this time working with the music industry to make everyone money. Spotify earns revenue in two ways: from ads on the platform for non-premium members and through premium membership fees.

The company has an estimated valuation of $6.5 billion after revenue grew 80% to more than $2 billion in 2015. Spotify has all the traction and financials it needs to go public. The company could also be an acquisition target of players in tech and in the traditional music industry.

Spotify has already raised $1.56 billion in eight funding rounds from tech heavyweights like Accel Partners and Founders Fund. The co-founders have started and sold several other companies previously, and are backed by some of the strongest advisors a startup could hope for. The company has acquired seven other startups to perfect its platform, and I would not be surprised if it issues shares in 2017.

Accredited investors —  those investors with more than $1 million in net worth or annual income of $200,000 annually — can invest in Spotify for as little as $10,000 on the Microventures crowdfunding portal.

In my next full issue of Pre-IPO Millionaire, I’ll be putting Spotify under the microscope, with detailed analysis you won’t find anywhere else. In addition to a review of the market potential, I’ll be valuing the company on my two exclusive models to estimate how much the investment could produce over the next few years.

While the Spotify deal is only open to accredited investors, I highlight opportunities every month in Pre-IPO Millionaire that are open to all investors, for as little as a $100 minimum investment. For more information, click here.