Growth Backers
Frequently Asked Questions
Our founder is a strategic advisor to private companies that have engaged his firm to go public.
We have a network of lawyers, accountants, auditors, consultants and investment bankers who share their deal flow with us. We also scour SEC filings on a regular basis.
Companies we discuss might go public by direct listing, reverse merger or initial public offering. These are typically small to mid-size companies, not billion dollar companies going public through Goldman Sachs....
Yes, in some cases.
Most people who are interested in the next upcoming IPO don't realize they are buying retail, what others previously purchased wholesale.
While retail investors clamor to get into a hot IPO, dozens of others already got in well before the public listing. Have you ever read an SEC registration statement and looked at the fine print to see who invested earlier and what they paid per share?
Often, the hot IPO that people chase at $16 per share was bought by others for $0.25 or $1 or $2. Frequently, the really big money is made buying well before that upcoming IPO date.
Until fairly recently, the 'small' guy couldn't get into a deal before a company goes public, because Federal and State laws made it difficult for companies to advertise (to reach you) and for you to invest (unless you are an 'accredited' investor). All that is changing. There's a democratization happening to Wall Street.
Companies can now use relatively new rules to raise capital from anyone, before they go public. Under Regulation CF, companies can raise up to $5 million and under Regulation A+ companies can raise up to $75million. Most companies leveraging these rules do so without an investment banking firm, venture capital or private equity. They network among, friends, family, business associates and often advertise their offerings online - within the legal and regulatory framework. Now, anyone with $100 can generally participate in these deals, before their public listing.
At Growth Backers, we help educated investors connect with these entrepreneurs. If you love the idea of investing in early-stage companies before they go public, you've come to the right place.
Companies typically announce their offering and close their financing within a few weeks. Some incentivize their first investors with a very meaningful discount off their stock price or pay a higher dividend yield. These offerings can be very lucrative, so it's important to find opportunities quickly...
We help investors find opportunities to invest in companies that plan to go public within 12 months.
All else being equal, we believe that investors prefer to invest in private companies that have a clear plan, timeline and capacity to go public.
Why invest in a company that doesn't have a real liquidity plan?
The primary reason small to mid-size businesses pursue a direct listing is because the disclosures and resulting transparency provide credibility and trust that enables entrepreneurs to more effectively use their stock, options and warrants to complete acquisitions, recruit talent, raise capital, and generally align interests with others who can bring opportunities.
Smart entrepreneurs can use all this to their advantage. We believe there's no better way to scale a business faster and larger.
No, but it might feel that way!
Here's the actual definition from the United States Securities and Exchange Commission (www.SEC.gov):
"Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information."
The essence of "insider trading" is that one investor has an advantage over another investor. What we're talking about is investors having the opportunity to buy directly from the company, based on publicly disclosed information and these are of companies that are not yet trading.
Insider trading occurs when material, nonpublic information is used by one investor to the disadvantage by another.
Growth Backers shares very important information in a timely manner on selected companies, but only after that information is made available to the public by the companies raising capital. In the case of Regulation CF or A+ offerings, each company would also have already filed an information or registration statement with the U.S. Securities and Exchange Commission, before we share any information about the company or investment opportunity.
Furthermore, none of the companies we write about are publicly traded so there's no way for one investor to profit due to the information advantage of another investor.
Receiving the information we publish provides an investor with an opportunity to evaluate and potentially purchase common shares, preferred shares and other securities directly from the company.
The fact you may be able to purchase stock before a company goes public is definitely not inside information.
No. We aren't analysts, brokers, investment bankers or investment advisors. We can't tell you whether an investment is suitable for you.
Please consult with your investment advisor and other professionals. If unsure, do not invest.
Companies we profile are generally small to mid-size companies, from startup to $10+ million in revenue.
Common folk like us don't get the opportunity to invest in billion dollar companies right before going public through Goldman Sachs.
All investments are risky. No investment is guaranteed. You should never invest in anything unless you understand the risks.
We often hear stories about people who made 10x or 100x or 1000x. It's often not true and even when true, we don't hear how much risk they took, or when they lost some or all of their money on other investments. Don't be fooled into thinking that investing is easy. It isn't.
Companies we profile set their own minimum. It's not up to us. What we typically see is $500 as the minimum for regulated public offerings and $10,000+ minimums for private placements. We've seen people invest $300,000+ in these deals....
Each company we mention will provide investment details to review and decide whether you want to invest.
We are not involved in the collection or processing investments.
Never send money to anyone at Growth Backers or anyone claiming to be a representative of Growth Backers.
The standard subscription is currently free and provides you with our newsletter and invitations to private webinars. You can unsubscribe anytime.
We also have a Pro subscription which provides our newsletter, invitations to private webinars and notification on offerings before released to those on the standard subscription.
Pro members have more time to complete their due diligence and invest in offerings before others, and in some cases, get early-bird perks which can range from a lower stock price or higher dividend/interest rate.
We are committed to being completely transparent with subscribers for two reasons: it's the right thing to do and it's required by law.
We will always clearly disclose if we, our founder, officers, management or any related parties (to the best of our knowledge), have any financial relationship or other interest with any company we profile.
We've seen a very concerning trend in capital markets. Government regulation has made it relatively easy for entrepreneurs to raise capital from anyone through exempt securities offerings like Regulation CF and Regulation A. Now, anyone with $100 can be an "investor". We've watched billions of dollars flow one-way, from millions of investors to a relatively small number of entrepreneurs.
With few exceptions, investors never receive any of their money back. Private companies rarely pay dividends, repurchase shares, get acquired or go public. Investors and their capital are permanently stuck until there's a liquidity event. It's an enormous problem for investors, ethical companies and for efficient capital markets.
While most investors focus on their potential return on investment, we are also highly concerned about the prospects for a return of capital. That's why we focus on companies that are going public, are already public, or are offering securities that pay dividends or interest.
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We are a newsletter. We are not a registered broker-dealer or placement agent. As such, we do not engage in, or offer, investment advice or consultations regarding capital raising through securities offerings. We do not recommend, endorse, or suggest investments in any specific company, nor do we advise companies on offering securities to specific investors. We are not involved in negotiating or executing transactions for the purchase or sale of securities. We do not hold or manage funds or securities on behalf of any party. No securities transactions are conducted or negotiated through us. We do not receive any form of compensation in connection with the purchase or sale of securities. Please see our Privacy Policy, Terms of Service and full Disclaimer too.