We have seen that 2018 has been a record year for IPOs. In the first 9 months of 2018, 173 companies have been listed on public exchanges, compared to 160 last year. Will 2019 be another record-breaking year? The data certainly points to this premise.
Strong drivers may result in various tech IPOs next year
The economy is strong. Further, unemployment rates are low and investor optimism is sky-high resulting in rising tech valuations. Several tech companies such as Airbnb ($31B), Uber ($72B), Slack ($7B) and Lyft ($15B) could all go public in 2019.
Uber remains the most anticipated IPO in years despite its slowing growth and high operating losses. Uber reported a net loss of $1.07B in the third-quarter of 2018. While Uber is currently valued at $72B, it might go public at a valuation of close to $120B. Uber might easily be the biggest IPO in history.
Chinese heavyweight Alibaba [BABA] currently holds this title as it offered $25B in 2014 at a valuation of $120B.
Record money raised by VCs
In the first 9 months of 2018, 173 domestic IPOs have raised $45B. This is a 50% year-over-year increase compared to the same period last year. The year has seen the strongest IPO activity since 2014. It might very well lead to a glut of tech companies going public next year.
Venture Capitalists (or VCs) might very well have the front row seat at Wall Street next year and exit the market with billions in their pockets once these tech companies go public.
Video: Compound Interest, Explained
3 Ways To Invest From Your Smartphone For Under $5
The numbers say 80% of millennials don’t invest in stocks.
Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.
In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”
Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)
Be that as it may, here are three ways to get started for $5 or less.
What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.
How it works: Download the app and choose your investment.
Minimum investment: $5
Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”
What: iOS and Android app.
How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.
Minimum investment: $5
Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”
What: A commission-free investment app (iOS and Android).
How it works: Download and start buying stocks.
Minimum investment: Whatever stock you want to buy.
And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.
CHART: How Blockchain Powers Bitcoin
Blockchain, Bitcoin. Bitcoin, blockchain.
The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.