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Started By
Message
Investing in a company pre-IPO
Posted on 10/5/22 at 1:38 am
Posted on 10/5/22 at 1:38 am
I have a friend who takes small businesses public on the stock exchanges, primarily on the NASDAQ and OTC markets. He is currently in the capital infusion stage, raising money before he goes public, for a company named A-game. Its a sports hydration drink that would compete for market share with Gatorade, Powerade, Body Armor, ect. Bo Jackson was recently appointed on the board of directors.
I have an opportunity to invest in this company before it goes public. Should i just dab a toe in or put a sizeable amount? From what i hear, this could very well be a homerun investment. Thoughts?
I have an opportunity to invest in this company before it goes public. Should i just dab a toe in or put a sizeable amount? From what i hear, this could very well be a homerun investment. Thoughts?
8
Posted on 10/5/22 at 2:03 am to AuburnTigers
It ain’t taking down Gatorade, Powerade, Body Armour, and good ole fashioned high quality H2O. Think even celebs like Logan Paul have their own line now too.
Seems like a crowded space, what makes “A Game” unique enough to compete? What’s the secret sauce? It’s a horrible name for starters, I can’t see that flying off the shelves.
Insert Randy Jackson - it’s gotta be a no for me dawg
Seems like a crowded space, what makes “A Game” unique enough to compete? What’s the secret sauce? It’s a horrible name for starters, I can’t see that flying off the shelves.
Insert Randy Jackson - it’s gotta be a no for me dawg
Posted on 10/5/22 at 7:53 am to Zzyzx
quote:did you pay sports? A-Game is a great name imo. To each his own
It’s a horrible name for starters
quote:Wow, just imagine if Body Armour thought the same thing when they started out. It's not about taking down a company, it's about gaining market share, and there is a massive market for thirsty human beings.
It ain’t taking down Gatorade, Powerade, Body Armour, and good ole fashioned high quality H2O
quote:Sales are great right now. Primarily found in northern states, however product diffusion is picking up as more retail chains are signing up to carry the product.
I can’t see that flying off the shelves.
quote:the taste is second to none. Truly fantastic flavours
what makes “A Game” unique enough to compete?
thanks for your thoughts
Posted on 10/5/22 at 8:13 am to AuburnTigers
I’ve made a couple of investments similar to your circumstances but different spaces. One a bank and one a medical device company. I always try to invest in the people. There are millions of great ideas everyday but it is a good leader that can execute and make a successful company. The bank looks like a great investment so far. Medical device company is still TBD.
Also, I always assume I will lose every penny I put in these investments so I only invest as much as I can lose and not alter my financial well being. In other words, don’t over extend yourself to put some cash into this.
One more thing, you said this is your friend. Chances are very high that if this goes belly up they will no longer be a friend. You okay with that?
Also, I always assume I will lose every penny I put in these investments so I only invest as much as I can lose and not alter my financial well being. In other words, don’t over extend yourself to put some cash into this.
One more thing, you said this is your friend. Chances are very high that if this goes belly up they will no longer be a friend. You okay with that?
Posted on 10/5/22 at 8:41 am to AuburnTigers
What’s different about it? You basically normalized there product in your question. Differentiate this company from the rest and you’ll find out your answer
Posted on 10/5/22 at 8:41 am to Zzyzx
The play for most new drink companies, isnt to compete, its to get bought by the big dogs. take just enough shelf and market share, they will just buy you out. Look at Celsius energy drink, once they got super popular, Pepsi just bought 10% for $500 million and has said they want to buy 50% of the company.
This post was edited on 10/5/22 at 8:42 am
Posted on 10/5/22 at 9:01 am to BamaAlum02
quote:Thank you for your reply.
I’ve made a couple of investments similar to your circumstances but different spaces. One a bank and one a medical device company. I always try to invest in the people. There are millions of great ideas everyday but it is a good leader that can execute and make a successful company. The bank looks like a great investment so far. Medical device company is still TBD.
Also, I always assume I will lose every penny I put in these investments so I only invest as much as I can lose and not alter my financial well being. In other words, don’t over extend yourself to put some cash into this.
One more thing, you said this is your friend. Chances are very high that if this goes belly up they will no longer be a friend. You okay with that?
As to losing the friend if it goes belly up, I dont put a price on friendship my man. There are a lot of contributing factors for business failure; however, his work ethic and drive will not be one of them.
Posted on 10/5/22 at 9:04 am to Tshiz
quote:Not sure how you drew that conclusion.
You basically normalized there product in your question.
Posted on 10/5/22 at 9:08 am to MizzouFan13
quote:this is exactly the plan. Same with Coca-Cola and vitamin water.
The play for most new drink companies, isnt to compete, its to get bought by the big dogs. take just enough shelf and market share, they will just buy you out. Look at Celsius energy drink, once they got super popular, Pepsi just bought 10% for $500 million and has said they want to buy 50% of the company.
Posted on 10/5/22 at 9:15 am to AuburnTigers
If I was going to do it I would want to know more about how your friend values these companies and his history of correctly valuing or undervaluing, because that is how pre IPO money is made. Understand how long you have to hold the stock after it goes public. Also, I would probably still just do a little bit, if it works out well, go in more on his more and more the in future when he asks you. If he continues to do this work, he will need investments again in the future.
Posted on 10/5/22 at 9:29 am to Stuckinthe90s
quote:He has been taking companies public for decades now and I can honestly say, this man is a winner. His work ethic is second to none.
If I was going to do it I would want to know more about how your friend values these companies and his history of correctly valuing or undervaluing, because that is how pre IPO money is made. Understand how long you have to hold the stock after it goes public. Also, I would probably still just do a little bit, if it works out well, go in more on his more and more the in future when he asks you. If he continues to do this work, he will need investments again in the future.
As to the holding period, i think its 6 months but i would have to double check. It may be 3 months.
Posted on 10/5/22 at 9:32 am to AuburnTigers
I did this. Company just went public. Got my balls kicked in.
Will share the story here at some point.
Will share the story here at some point.
Posted on 10/5/22 at 9:36 am to I Love Bama
quote:My friend has been adamant he will not take the company public until the market improves. Maybe year and half, two years from now.
Company just went public.
Sorry for your loss.
Posted on 10/5/22 at 10:43 am to AuburnTigers
quote:
As to losing the friend if it goes belly up, I dont put a price on friendship my man. There are a lot of contributing factors for business failure; however, his work ethic and drive will not be one of them.
I hear you but that is what everyone says until it happens. I have seen best friends, brothers, parents, spouses, etc never speak to each other again as a result of money disagreements.
Good luck on your venture. You can make significant money on these but those returns come with great risk. Hope it works out for you.
Posted on 10/5/22 at 11:54 pm to AuburnTigers
Played a lot of sports, A Game just seems like a corny name for a drink.
“Hey man can you grab me an A Game?” Nobody’s saying that.
Just from the website alone this company looks like a scam fly by night company. There’s like 30 directors. Looks like they’re obviously just latching on to some names to get some quick sales.
Click on the products and it says purchase on Amazon but if you follow the links no drinks are available for purchase...
It seems you’re a big Auburn fan so maybe just following Bo, or your friend.
Either way, I still don’t see how this drink is any different from what’s available and I don’t see how it takes a bigger market share just because you think it tastes better.
Time will tell, but I wouldn’t buy in.
Oh and anyone can invest now, there’s a tab on their website. So it doesn’t seem like some special “in”
“Hey man can you grab me an A Game?” Nobody’s saying that.
Just from the website alone this company looks like a scam fly by night company. There’s like 30 directors. Looks like they’re obviously just latching on to some names to get some quick sales.
Click on the products and it says purchase on Amazon but if you follow the links no drinks are available for purchase...
It seems you’re a big Auburn fan so maybe just following Bo, or your friend.
Either way, I still don’t see how this drink is any different from what’s available and I don’t see how it takes a bigger market share just because you think it tastes better.
Time will tell, but I wouldn’t buy in.
Oh and anyone can invest now, there’s a tab on their website. So it doesn’t seem like some special “in”
This post was edited on 10/5/22 at 11:58 pm
Posted on 10/6/22 at 7:11 am to AuburnTigers
rough time for IPO’s and SPACs….
“From boom to bust, many companies that went IPO in 2021 have gotten crushed. IPOs from Q4 2021 have experienced a -73.1% decline through 2022 Q2.”
“From boom to bust, many companies that went IPO in 2021 have gotten crushed. IPOs from Q4 2021 have experienced a -73.1% decline through 2022 Q2.”
Posted on 10/6/22 at 7:54 am to AuburnTigers
You're not allowed to sell for a while when it hits the market, right ? Otherwise, I'd say go for it because the IPO price will usually be double what you paid. That said, some have been tanking after IPO recently--it's just a cold market for that right now. And if I'm right that you can't sell for a while, it's more risky.
Posted on 10/6/22 at 8:25 am to Zzyzx
quote:
Seems like a crowded space, what makes “A Game” unique enough to compete?
Yeah this looks like one of those attach some big names to it and hope it takes off enough to sell otherwise it goes down in flames.
Johnny Damon on how A-game is different
Video is super painful, it is clear Damon is just attached to the product to sell. He offers no insight except it is a generic sports drink. This guy is chairman on of the board.
Typical rule of thumb in life is don't mix your friends and your investments.
Looks like they are using crowdsource funding anyways. What makes you any different than any investor that comes to their website?
Invest in A-game
SEC Filing for offering 20 million shares
Damon will hold all control of this company. So really is a play on whether you think he can make it work
This post was edited on 10/6/22 at 8:39 am
Posted on 10/6/22 at 8:31 am to Zzyzx
quote:Did I say there was?
Oh and anyone can invest now, there’s a tab on their website. So it doesn’t seem like some special “in”
quote:fify. You can say that about any new drink. Better bring your A Game seems like a common phrase, no?
“Hey man can you grab me an Body armour?” Nobody’s saying that.
quote:Some people lack vision. Im sure you will "not see" a lot of things once you've made your mind up. You don't like then name so you shite on every aspect you can find. How exactly did Powerade differentiate itself from Gatorade again?
Either way, I still don’t see how this drink is any different from what’s available and I don’t see how it takes a bigger market share just because you think it tastes better.
quote:11 directors. Like 30? You're a child.
There’s like 30 directors.
Posted on 10/6/22 at 8:38 am to AuburnTigers
quote:
Im sure you will "not see" a lot of things once you've made your mind up.
What is funny is that you are writing this about the other poster but it perfectly fits your posts in this thread.
It appears you have your mind made up and are very defensive. You asked for opinions and people gave them. You don't like what they said and are getting very defensive instead of exploring the actual investment opportunity on its merits and feedback from others.
Personally, I have no clue if this is a good investment. Plenty people invest pre-IPO in companies and are rewarded handsomely for it and plenty lose 100% of their investment. If you are dead set on investing with your friend then go for it but I have 2 recommendations. Don't invest more than you are willing to lose (100% of the investment) and if this is a core friend then don't invest an amount that could sour that relationship.
This post was edited on 10/6/22 at 8:39 am
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