When the Government Gets Out of the Way… Big Money Is Made

Andy Snyder|February 1, 2022

It’s not too often the government puts up its hands and gets out of the way.

Most often, we write about where the government is sticking its big, fat hands. We point out the fallacies, the trouble and the pain. It’s not hard to show that where the government goes, bad things follow.

But what’s happened in one virtually unknown corner of the market shows why we’re so loud and insistent with our opinions.

When the big guy steps out of the way… great things happen.

Since the government dropped much of its regulations on the equity crowdfunding market, some $1.1 billion has flowed into the nation’s smallest startups.

It’s a big number. But baby, we haven’t seen anything yet. The action is just getting started.

Half of that billion-dollar-plus torrent of cash flowed into these companies last year.

Better yet, the number is expected to double this year.

Over the next 11 months, market watchers expect another $1.1 billion (and we think it’ll likely be more) to flow into small, off-market deals.

And that’s just the beginning…

By 2025 – just three years from now – current guesses put the equity crowdfunding market at $200 billion.

That’s huge.

But it’s no surprise.

Unicorns Are Flying

Just as big money is flowing into this segment… even more money is flowing out. It’s like startup alchemy.

In fact, more billion-dollar unicorns were minted last year than in the previous five years combined.

There were 19 of them.

OpenSea was the biggest. The company, a marketplace for NFTs (nonfungible tokens, one of the hottest assets on the planet last year), secured a $13.3 billion valuation after an end-of-year funding round put a huge price tag on it.

The deal shows just how fast things can move in the space. Just six months earlier, the company was worth $1.5 billion.

That’s a surge of nearly 800% in half a year.

And it’s no surprise that three of the top five unicorns from last year are tied to the crypto space. The industry went from a speculative idea to attaining widespread adoption in a matter of months. The early investors who rode the wave were rewarded handsomely.

Take Kraken, for example. Our Alpha Money Flow subscribers have heard us talking about it.

In 2019, the company turned to the recently opened world of crowdfunding. It was hoping to raise $10.2 million. It got it in just four days.

It extended its offering and ended up receiving about $14 million.

Those investors got a good deal. After another funding round last year, Kraken locked in a valuation of more than $10.3 billion.

What’s crazy is that few folks are investing in these off-market deals… even though they could do so quite easily.

There are now dozens of portals that can help ordinary investors get a stake in some of the nation’s smallest tech companies. And you can do it for as little as $100.

For some reason, most investors are fixated on investing in the next hot meme stock or in a public company that’s trading for 10X (or more) its fair valuation. They don’t realize that the government has quietly stepped out of the way, allowing entry to one of the hottest spaces in all of finance.

It’s not often we get less regulation and an open doorway.

But when we do… oh my.

It’s exactly what we’d expect. It’s a very big opportunity that has the potential to put a lot of money in a lot of pockets.

If that sounds at all interesting to you… click here to continue learning about the space.

We just released a report on a tiny, high-tech opportunity that I believe could 100X early investors’ money.

All the details on what’s happening and how you can get in are here.