Can a lil guy like me can invest in spacex priv. company

Discussion in 'Wall St. News' started by ggelitetrader000, May 31, 2018.

  1. No, you can't. Elon Musk IPO's his company that probably won't do too well in the long term (Tesla) and keeps his company that will do well in the long term private (SpaceX)
     
    jys78 likes this.
  2. truetype

    truetype

    There are 4,000 publicly-traded companies to research and trade. Plenty to keep you busy.
     
  3. Sig

    Sig

    If you meet the accredited investor criteria from SEC Reg D rule 501 ( net worth of at least $1,000,000, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year) you can buy shares of private companies that you may have heard of on secondary markets like SharesPost and EquityZen. It's a pretty manual brokered type process and the illiquidity goes without saying, so it's probably not worth the overhead if you're not investing at least a couple million in each transaction and plan to hold for a while. Keep in mind that the valuations you see published are based on a funding round and are generally purely illusionary for anyone except the investors who invested in that round. Also keep in mind that the type of shares you're buying on the secondary are probably subordinated ordinary shares from former employees which are at a severe disadvantage in shareholder rights from the shares held by the VCs, which would make them worth far less if they were trading on an open market.
     

  4. Bono took this route for Facebook - he was in pre-ipo.