NEW STARTUPS

🎳 Fowling Warehouse

A football-bowling crossover that can be played at their 7 locations (LINK)

🤖 Babbily

Every major AI model In one platform (LINK)

❤️‍🩹 Async Health

AI health consultations to significantly reduce wait times (LINK)

THE ULTIMATE BUYING OPPORTUNITY

It’s extremely rare to find ‘free money’ opportunities.

Those too-good-to-be-true stories are often fake, exaggerated, or only available for a fleeting moment.

But this Friday, there might be an opportunity to make some serious money.

The last time this happened, I was able to buy a boatload of shares at an 88% discount to their actual worth.

In a matter of days my $3,000 investment became worth $25,750.

I’m talking about being able to buy shares of StartEngine stock on secondary.

StartEngine has a part of their site where investors can buy/sell shares of equity with other investors, it’s gone through a couple of names but is currently titled as StartEngine Marketplace.

Not every startup is available for purchase, however.

When a startup is conducting a crowdfunding round, they are not eligible to have their shares traded on Marketplace.

StartEngine is almost constantly running a crowdfunding round for themselves, practicing what they preach. This has prevented their 45,000+ shareholders from selling StartEngine stock on Marketplace.

There was a small window of opportunity in April of 2024 where StartEngine was eligible for trading on Marketplace - and investors starting throwing up ‘For Sale’ signs.

You can see in the below table I made 4 separate Secondary transactions to scoop up 20,600 shares for just $3,000.

StartEngine valued its shares at $1.25 a pop, but in Marketplace I was able to acquire them for $0.15 each.

StartEngine is an amazing company. I won’t get into it, but I’ve written extensively about it here if you want to understand why.

So why was I able to get shares of StartEngine for so cheap?

Without going out on a limb, it’s probably fair to say that 85%+ of StartEngine’s shareholders are not seasoned investors in the private markets.

When venture firms invest in startups, they know not to expect liquidity or returns for as many as 10-15 years following the investment. The average investor likely doesn’t know this - they’re used to investing in stocks where you get immediate price movement and instant liquidity.

I reckon there are a lot of people who invested in StartEngine, not knowing they’d be in for the long haul. So when StartEngine first became available to trade, they wanted to get out.

This put immense sell pressure on the market and caused the price per share to plummet.

Remember, there’s 45,000+ investors in this business - and they had a lot of shares at their disposal.

There were also challenges on the demand-side - many potential buyers didn’t even know this was happening, it wasn’t well publicized. In addition, buyers had to transfer money onto the StartEngine platform in order to purchase shares - a process that took a few days to clear.

Lastly, there was a daily transfer limit of $10,000, which made it difficult for investment ‘whales’ to relieve large chunks of the sell pressure.

So in summary, you had a ton of people looking to sell, and a lot of hurdles facing prospective buyers.

IT’S HAPPENING AGAIN

StartEngine CEO Howard Marks announced via email that the next opportunity to buy and sell shares of StartEngine will take place this Friday - for 7 days only.

Here’s my game-plan for this Friday.

First, I’ve transferred $10k into my StartEngine account - I don’t want to miss buying opportunities because my funds are taking 3 days to go from my bank → StartEngine.

Next, I’ve determined my course of action based on where the share price is:

• $0.50 or Lower: I’m loading up the truck. This implies StartEngine is a ~$500M business (or less), when it’s very clearly worth $1B+ based on their revenue & growth

• $0.50-$0.80: I’ll probably grab some shares, but not going to go crazy at this level. There’s value here, but personally for me not enough risk-reward to sacrifice my liquidity.

• $0.81-$4.99: This is no man’s land. I don’t think I would buy or sell in this range, and would just hang tight with what I have. Truthfully, I could sell in the $2.00-$4.99 range and then simply re-purchase shares when StartEngine does another round, but that’s a layer of risk I probably don’t need to take.

• $5.00 or Higher: I’d be highly surprised if it got to this level but at this price point I would look to sell a portion of my holdings.

Lastly - expect me to be locked and loaded come August 1st. Based on the sentiment in this investor Discord, there is going to be a lot of demand.

If the share price starts out low, expect investors to snag it quickly. The refresh button on my computer is going to be putting in WORK.

Now, there are a few reasons to expect the buying opportunity to be less appealing than the last time they allowed investors to list StartEngine stock on marketplace:

1. First, StartEngine actually told people this was happening. This lets potential buyers know and will increase the demand side of the equation

2. And with giving investors a heads up, potential buyers like myself have had a chance to move funds into their account ahead of time.

3. StartEngine has also increased the daily transfer limit to $250k…welcome in whales. Hundreds of sellers could be counteracted by one big buyer.

4. Lastly, it is so much clearer now then before that StartEngine is crushing it. Rocketing revenue, their first profitable quarter…people (at least the ones paying attention) are likely going to demand more of a premium on their shares this time around.

We’ll see what happens, but I’m fired up and excited to see where the market ‘values’ StartEngine this Friday.

Do me a favor, hit reply and tell me what price per share you’re pulling the trigger on StartEngine stock.

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