Abdul Golden breaks down how investment timing changes returns: early private rounds average 25% annual returns, dropping to 15%, 7-8%, 3%, and 1.5% as companies mature toward and past IPO. Individual investors can access these early rounds and capture the biggest gains.
As you can see, earlier you invest in a company, the more money you make. If you invest very early on, look at how much you can make, average of 25% a year compared to when you wait to when the company goes public. After a company goes public, your returns are down to just 1.5%, right? 25% when you invest early, 15% of the a little later, down to 77% if you invest a little later, 3% even later, one and a half percent when a company goes public. Now, keep in mind, regular folks, regular folks can invest here. These rounds, this company raising millions of dollars in individuals. Unless you happen to be a multimillionaire billionaire, individuals are not writing checks to invest in this phase, but individuals can definitely invest in this phase. And this is actually where you want to be because this is your biggest potential to make the most money.
