How to Play This Year's Most Catastrophic IPO Yet

 
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The Startup Investor
Tuesday, October 15, 2019
How to Play This Year's Most Catastrophic IPO Yet
Dear Startup Investor,

It's been a rough year for tech IPOs.

Some of the most highly-anticipated debuts - Uber, Lyft, Slack, and Peloton, to name a few - have seen some of the most precipitous first-year drops the market has seen in decades.

But SmileDirectClub (NASDAQ:SDC) takes the cake. This startup, founded in 2014, is a direct-to-consumer (D2C) seller of clear orthodontic aligners that cost 60% less than braces.

Despite promising financials and a growing user base, SDC stock has suffered considerably, dropping nearly 60% in just over a month. That's a crushing blow for anyone who bought SDC stock at the IPO - but little more than a chilly breeze for its angel investors.

While we can only guess at the details of SDC's earliest funding rounds, it's pretty typical for a seed-stage company to land at a valuation around $10 million. That means, even with its latest slide, SmileDirectClub has probably grown by about 59,900% since its earliest funding rounds.

With the economy growing more volatile, and the possibility of a recession looming, savvy investors are likely to shy away from trading stocks. Why spend your time watching your portfolio eke out a few points here and there when you could wait a little longer and potentially hit the jackpot?

For example... Right now I'm looking at a company that's poised to completely revolutionize the "wearable tech" market.

Plenty of public companies make wearables now - Apple Watches, Fitbits, and so on - but this tiny company is developing a completely new type of tech that could change everything about the way we interact with our world.

Experts project that by 2023, consumers will buy 200 million wearable devices annually. That means if this startup harnesses even just a tiny piece of the market, it'll have the potential to reach unicorn status in just a few years' time.

Personally, I think they have a pretty good shot - but they won't be accepting investors for much longer. Just click here to learn more.

Until next time,

Neil
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