So You Want to Be a Secret Sharkey? A Guide to Investing in Private Companies (That Doesn't Involve Stealing Stock Certificates)
Ah, the allure of the private company. No pesky stock market fluctuations, just the thrill of getting in on the ground floor of the next tech unicorn...or the next homemade pickle empire (hey, there's a market for everything!). But unlike public companies where you can just waltz onto a trading app and throw your money at them, private companies are a bit more like exclusive clubs with velvet ropes and bouncers named Steve.
Fear not, my fellow adventurer! Here's your hilarious (and hopefully helpful) guide to becoming a secret sharkey (that's a cool way to say "private company investor," right?).
Befriend a Baller (or Become One Yourself)
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This is where things get interesting. Unlike publicly traded stocks, you can't just whip out your phone and buy shares in a private company. Unless you're a sogenanmed "accredited investor," which is basically a fancy term for someone who makes a certain amount of money every year (we're talking big bucks). If that's you, high five! You can probably skip to the "Raining Benjamins" section at the end.
But for the rest of us mere mortals, we need to get creative. Here's your inner circle access plan:
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- The Buddy System: Do you know someone who knows someone who works at a cool private company? Become their best friend, bake them cookies, learn their dog's name. They might just be able to put in a good word for you with the investment team. Just don't get creepy! Nobody likes a stalker, even if they come bearing delicious baked goods.
- Angel Investor Networks: These are groups of people who pool their money to invest in early-stage companies. It's like a stock market for cool kids (and grown-ups who are young at heart). Joining one might give you access to those sweet, sweet private company shares.
How To Buy Shares Private Company |
Be Prepared to Waltz (With a Contract)
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Once you've charmed your way in, be prepared for a bit of a dance. Investing in private companies involves more paperwork than a bad tax season. There will be legalese, valuations, and enough jargon to make your head spin. This is where having a lawyer friend comes in handy. But the good news is, if the company takes off, you could be sitting on a goldmine (or a pickle fortune, depending on your choices).
The Raining Benjamins Section (For Those Who Qualify)
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If you're the aforementioned "accredited investor," congratulations! You can probably snag shares directly from the company. Just remember, private companies are a bit of a gamble. They could be the next Facebook, or they could be the next "Fizzle Out Fitness Trackers." Do your research, don't invest your life savings in fidget spinner futures, and maybe consult with a financial advisor (they're basically like therapists for your money).
**Investing in private companies can be a thrilling adventure, but remember, it's not all rainbows and unicorns (or pickles). Do your homework, be prepared for a wild ride, and most importantly, have fun!