Thursday, December 17, 2009

HOW CAN SMALLER INVESTORS GET IN ON THE GROUND FLOOR?

HOW CAN SMALLER INVESTORS GET IN ON THE GROUND FLOOR?

Have you ever wondered what it would be like to get in on the ground floor as an investor in a company some 12 to 36 months prior to it listing on a stock exchange? Believe it or not, such investment opportunities are out there and they are no longer just the exclusive domain of the venture capitalists.


Prior to listing on a stock exchange, many companies have to put in a lot of hard yards, often expanding their business model, recruiting the right management & staff, securing Intellectual Property and increasing revenue streams. More often than not, capital raising begins a good year or three before a company even considers listing publicly on a stock exchange.

Whilst investing in start-up or early stage ventures often carries a high degree of risk, they can also offer incredible leverage leading up to and beyond a stock listing.

Astute company executives seeking funding understand that such a journey needs to be planned and staged, offering higher incentives for the early bird investors. E.g. Early bird investors can often get on board at say 10c per share in the first round of investment and additional rounds of investment may then be made available at an increasing rate of issuance per share, say 20c in round two, 40c in round three, 60c in round four. The ultimate goal in this example might be for the company to ultimately list on a stock exchange @ $1 through an IPO (Initial Public Offering).

Investing in such companies should not be taken lightly, due diligence and professional advice are imperative when considering such an investment and regardless of the potential for high returns, such investments should only make up a small part of a balanced investment portfolio. Always consult your licensed financial advisor.

Would You Like to Know More?

View some exciting examples of opportunities to invest in everything from early stage business ventures; through to stock exchange listed companies and everything in between!

See: http://www.EquityAssist.net/investments/



Source:
http://www.equityassist.net/How-Can-Smaller-Investors-Get-In-On-The-Ground-Floor.html

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