If you trade on inside information in the public markets, you go to prison. In the private markets, all we do is trade on inside information. Here’s how to do it…

How to Get Exclusive Startup Data

Last year, I met with an amazing founder we’ll call Jim. The company was pre-revenue, but for a pre-revenue business, this was as good as it gets.

I wasn’t ready to invest yet. But I asked if he could put me on his investor update.

Fast forward a year…

New e-mail in my inbox. It’s Jim’s latest update.

Acting on Superior Information

When I opened that e-mail, my jaw dropped. Jim had hit several hundred thousand in ARR in just a couple of months since launch. He was growing over 40% month over month.

I replied, asking him to meet. We got on Google Meet and he gave me the latest on the company.

These guys were absolutely crushing it. But could I get a taste?

I asked Jim to invest, and he happened to have a bit more space in the round he was closing up. I quickly wired over the money, eager not to miss the opportunity.

I was able to place this bet because I had inside information.

Only a few dozen people got those updates. I was one of them.

The average investor had no idea how fast this company was growing. But I did, and I was able to profit from that knowledge.

A Scalable Model

Being on the investor update of promising companies gives me a proprietary information flow.

Every month, I get a bunch of e-mails with non-public financial info for awesome early stage startups. I pick the best and write them a check.

This is a repeatable and scalable model.

Just last week, I got an update from another company I met last year. They’ve begun to grow like crazy, and I’m setting up a meeting with them now.

If you want to outperform other investors, you need some advantage. Better information is one of the most powerful advantages you can have.

Because almost all information about private companies is private, there is nothing illegal or improper about acting based on private information. That’s the only information there is!

Take advantage of that. When you meet an awesome founder, ask to be added to their investor update.

And if you’re a founder, add investors you like to your update list. This gives them an easy way to follow your company. It also means you’re going to get crazy inbound if your growth up-shifts, which saves you a lot of time in fundraising.

Wrap-Up

“All I ever wanted in life was an unfair advantage.” That’s what Frank Costello said. I couldn’t agree more.

Getting on the update list for great startups is an easy, legal way to get an advantage. There’s no reason not to do it.

As I write this, we’re 5 days into June. Soon, a raft of new updates will hit my inbox.

Among them just might be my next investment. I can’t wait!

More on tech:

Hot Categories I’ve Never Invested In

Small Investors Lead to Big Investors

Why It’s Easier to Raise $3 Million Than $300,000

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