Pre-IPO: An X Spaces on investing in digital assets
We were recently featured in an X Spaces about investing in digital assets. Here is an excerpt of the chat.
AT IPO CLUB We Provide Performance and Safety in Pre-IPO Investments for Accredited Investors
In the landscape of investment opportunities, the allure of pre-IPO companies stands out for their potential to deliver substantial returns. The IPO CLUB, set up in 2021, is at the forefront of unlocking these opportunities for our members. Born from the successful exits of AIRBNB, PALANTIR, SOFI, and CONFLUENT, we envisioned a platform that simplifies and secures investments in pre-IPO companies. Our mission is clear: to provide a safe, transparent, and profitable path for investing in the next big names before they hit the public market.
How IPO CLUB Works
Our operational model is centered on a success fee, ensuring our interests align perfectly with our members. The process includes rigorous steps from KYC and onboarding to deal with structuring, auditing, and due diligence, culminating in a comprehensive management of SPVs. We pride ourselves on being principals, investing our capital alongside our members in carefully vetted target companies, and highlighting our commitment to the mutual success of our investments.
A Diverse Investment Universe
The IPO CLUB's investment strategy is designed to cater to specific sectors, focusing on what we know and understand and can add value. Our portfolio spans five verticals: money and payments, energy and defense, software and AI, logistics and mobility, and food and housing. Geographically, we prioritize the US while exploring opportunities in other OCSE countries, aiming for a target return of 2X to 4X per company.
Innovative Investment and Regulatory Framework
A robust regulatory framework backs our operations, ensuring compliance and security for our members. The IPO CLUB works under a 506(c) offering, adhering to its stringent requirements. Our innovative approach extends to our investment platform, powered by BlackRock's Investment Café, helping seamless digital onboarding, communication, and documentation management.
Our Investment Philosophy and Performance
Our strategy's core is the search for discounted opportunities in secondary markets. We aim to buy low and sell high, thus maximizing returns for our members.
Our historical exits, including companies like Palantir, Airbnb, and SoFi, are a testament to our ability to find and capitalize on lucrative pre-IPO opportunities.
MODERATOR QUESTION: “CAN YOU MAKE AN EXAMPLE OF WHY IT IS BETTER TO USE IPO CLUB INSTEAD OF ANOTHER COMPANY TO INVEST IN PRE-IPO SHARES?”
We can’t stress enough the importance of paying the lowest possible price for pre-IPO investments.
The most significant determinant of the return on the investment is the purchase price, which is why savvy investors often seek comparative analyses to make informed decisions. Today, we turn our attention to a comparison between IPO Club and a popular source of Ripple Shares.
The comparison focuses on several crucial investment metrics based on a $10,000 purchase, assessed as of February 20, 2024.
Price per Share
The competitor offers shares at $40 each, while IPO Club presents a more accessible entry point at $29 per share.
Number of Shares
With the competitor, an investment yields 254 shares, while with its lower share price, IPO Club provides 350 shares, offering a greater share of ownership for the same investment.
Expected Exit
We estimate an exit at $61.15, the price of Ripple's last funding round and the price at which It Has tendered shares twice in the past year.
Market Value and Gross Profit
The competitor's market value is $15,618, with a gross profit of $5,458, while IPO Club exceeds with a market value of $21,322 and a substantial gross profit of $11,372.
Commission and Carry
The competitor charges no carry, while IPO Club implements a carry of $2,274, paid only on and if there is a profit.
Net Profit and Return on Equity (ROE)
After accounting for the carry, the competitor's net profit is $5,458 with an ROE of 54.58%, while even after the carry, IPO Club boasts a net profit of $9,097 and an ROE of 90.97%.
The Analytical Verdict
This comparison reveals that while the competitor allows investment without carry, IPO Club's higher market value and gross profit potential translate to a significantly higher net profit and ROE. Consequently, IPO Club may offer a more lucrative option for investors seeking to maximize their returns.
Strategic Investment Considerations
Investors must consider not only the potential financial return but also the share volume, the entry price point, and the ownership proportion in the underlying asset. Moreover, the strategy should align with individual risk tolerance, investment horizon, and portfolio diversification objectives.
IPO Club offers a compelling value proposition for investors prioritizing more shares and potentially more significant returns. The analysis underscores the importance of scrutinizing investment platforms based on comprehensive financial metrics. IPO Club remains committed to offering its community detailed insights and competitive opportunities as the investment landscape evolves.
MODERATOR QUESTION: “CAN YOU TALK ABOUT OTHER COMPANIES IPO CLUB INVESTED IN, OTHER THAN RIPPLE?”
Investors seeking diverse opportunities will find IPO Club's latest offering of companies at the cusp of technological innovation and strategic growth. These are two companies we like a lot:
Boxabl is Revolutionizing the Housing Market
Boxabl innovation in house-tech introduces an affordable, scalable solution to housing. Although not detailed in the visual, it is implied that Boxabl is among the offerings that IPO Club believes hold potential for significant impact and growth.
Addepar is Reshaping Wealth Management Through Technology
Addepar emerges as a transformative force in wealth management. With its cutting-edge platform, Addepar provides unparalleled clarity, scalability, and security to investors and advisors managing complex portfolios.
Addepar technology supports the massive wealth transfer between baby boomers, GenX, and Millennials.
Investment Considerations
People interested in learning more should go to ipo.club/accredited and book a call with us.
Each company represents a strategic opportunity in its respective field, offering IPO Club members the chance to diversify their portfolios with investments in defense, housing technology, and fintech. With varied valuation points and stages of growth, these companies are positioned to cater to investors with different risk appetites and investment theses.
MODERATOR QUESTION: “WHAT DO YOU DO EXACTLY AT IPO CLUB TO FACILITATE A SAFE, TRANSPARENT, AND PROFITABLE INVESTMENT IN PRE-IPO SHARES?”
We have skin in the game.
We are Principals, investing our capital to buy shares in the Target Companies. At times, we may syndicate deals with members. This means we run as direct investors, using proprietary funds for investments, and sometimes collaborate with members on collective investment deals.
We follow the process:
People interested in learning more should go to ipo.club/accredited and book a call with us.
IPO CLUB’s process flows with various stages of engagement in buying and distributing shares in target companies. It starts with the 'Research' phase, where analysis and primary and secondary flow studies are conducted. The next phase is 'KYC Onboarding,' which is done with the Investor; it’s a due diligence process for client knowledge. Following this is the 'Structure deals/acquire shares' stage, composed of securing the investment in the Target company. Ultimately, the 'IPO or M&A' stage is when the company makes an initial public offering or gets acquired by a listed company. Finally, the 'Distributions of shares' step is when the allocation of shares is transferred to the investor.
MODERATOR QUESTION: “BEFORE WE OPEN THE FLOOR TO QUESTIONS, DO YOU HAVE A FINAL STATEMENT?”
Acceptance of the market's ebbs and flows without resistance facilitates a clear, calm, and strategic mindset crucial for making informed investment decisions. The IPO CLUB is more than just an investment platform; it's a community of like-minded investors driven by a shared vision to unlock the potential of pre-IPO investments. Our proven track record, strategic approach, and commitment to excellence set us apart, making us the premier choice for investors seeking to navigate the rewarding yet complex world of pre-IPO investments.
What is IPO CLUB
We are a club of Investors with a barbell strategy: very early and late-stage investments. We leverage our experience to select investments in the world’s most promising companies.
Disclaimer
Private companies carry inherent risks and may not be suitable for all investors. The information provided in this article is for informational purposes only and should not be construed as investment advice. Always conduct thorough research and seek professional financial guidance before making investment decisions.
