Is The Pre IPO Code by Jeff Brown Legit?

In today’s article, we will be taking a closer look at a financial webinar by Jeff Brown called The Pre IPO Code.

The webinar takes place in the interview format where Jeff sits with Chris Hurt to discuss his new pre-IPO investment strategy on which he will base his new advisory service, The Blank Check Speculator.

This is not your typical teaser where he hints at some pre IPO companies that you should get in on as soon as possible (with the only way of doing that being by signing up for his newsletter).

This one is different in the sense that it is about a new wave of IPOs of companies that are going to change the world (and grow your investment). He wants you to consider investing in these pre-IPO companies to collect massive returns when they come good.

In this article I will be dissecting this to help you understand what he is talking about when he talks about pre-IPO investing.

Before I start…

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Is The Pre IPO Code by Jeff Brown Legit? 1

The Pre IPO Code Review

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Introduction to The Pre IPO Code

The Pre IPO Code is the title of Jeff Brown’s first webinar of 2021. Published by Brownstone Research, his boutique investment research firm (which is affiliated to Bonner & Partners — Rogue Economics).

During the event he talks about a new way to invest in companies before the IPO day.

The Pre IPO Code

Jeff Brown talks about a special type of deal that can be done by individual investors to get in on private investing (via pre-IPO code). He says that when you buy shares of these companies, you get to benefit from the emergence of a new crop of tech companies that are changing the world.

And he gives some examples…

“In the Southwest, the world’s first commercial spaceport is ready for launch. In Silicon Valley, a college dropout has all but won the self-driving car race. And in the rust belt, GM has shipped thousands of jobs overseas until… the local plant was saved by an electric truck company.”

Initially, you wouldn’t have access to these opportunities (as they were the preserve of accredited investors) because you need a special code that only the wealthy investors and big investment banks had access to:

“The Pre-IPO code is a new innovation that will let you secure a stake in billion-dollar tech unicorns before IPO day. With the right codes, you don’t need to be an accredited investor, and taking advantage of these kinds of deals could mint millionaires.”

“The moment you enter a Pre-IPO code and click buy, you’re awarded units — not ordinary shares of stock, I mean units, contractual share of the enterprise you’re buying.

He says that there is a “revolution quietly sweeping the pre-IPO market” that legendary venture capitalists and angel investors are in on. He says that Kevin Hartz, an early investor in Airbnb and PayPal, has mentioned that it’s going to be a revolution and Stacey Cunningham, who is the president of the New York Stock Exchange, considers it a renaissance.

The good news is you don’t need to be part of these angel communities to benefit. You just need to learn about pre IPO investments and the growth potential they have before they become publicly traded.

Jeff Brown is obviously talking about Special Purpose Acquisition Companies (SPACs), a unique type of company created for raising money.

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What is a Special Purpose Acquisition Company?

A Special Purpose Acquisition Corporation/Company, also known as a blank check company, is formed to raise money via an initial public offering to finance a merger or acquisition.

You can think of it as a “shell corporation” that is listed in the market with the purpose of acquiring a private company and taking it public without going through the traditional IPO process. These companies raised $82 billion in 2020, in what was a particularly good year for them.

These companies go public in an IPO to raise funds from the public with the allure of what they might do with the money. The money is held escrow until a combination transaction is completed. If the acquisition is not made, the SPAC is dissolved. Since the idea is risky and based on a vague premise that is likely to make the regular investor uneasy, the deal comes with conditions.

First, the SPAC sponsor (the sponsor that comes up with the SPAC) has a set period in which they have to put the capital to use. Most of these companies set a period of two years. The money is usually tied up in a trust fund and when the sponsor fails to find a good deal within the specified period, it is refunded to the shareholders through a liquidation process.

The SPAC acquires one (or more) private company(ies) and takes it onto the public markets using the money that was raised in the IPO.

Right before the deal to merge with a private company is completed, shareholders can vote on it thus allowing them to reject a deal that they don’t like. They are also allowed to redeem their shares for a portion of the company once the deal is competed. The terms set for redeeming these shares are usually spelt out in the filings.

Then there are warrants. When a SPAC goes public, it trades units that comprise a share of the fund (that can be redeemed as outlined above) and a warrant.

Depending on the terms set by the sponsor of the deal, each unit of ownership can have a warrant or a fraction of a warrant. The decision to give a full warrant or a fraction of it depends on how well known the sponsor is and how easily they can raise capital. When a sponsor is reputable, they tend to offer fractions of a warrant (a third is the most popular).

A warrant works like a call option with the key difference being that warrants are not standardized (regulated by a market maker). Warrants can be bought and sold to secondary owners.

Although blank check companies have been getting a lot of attention, they are risky because investors have no idea what company they will acquire. As you’d expect, some of them provide information regarding the sector they intend to operate in.

That being said, you’ll read about the massive returns SPACs are earning but you should bear in mind that this isn’t because they are a secret investment idea. It is probably because there were some big winners early on, some hot trends that were suited to them, and the large number of retail investors that have gotten into trading.

When a SPAC is listed on an exchange, it needs to provide its capital when issuing the IPO. This capital must not be less than 5.1% of the money that it intends to raise from the public. The party that provides this capital is called the sponsor.

Who is a SPAC Sponsor?

As we have established, the company or person providing the pre-IPO capital is called a sponsor. There are various types of sponsors depending on their goals:

  1. Experienced executives who have good project ideas but lack the funds to realize them.
  2. Companies that want to raise money from capital markets for their projects or projects of group companies without having to do an IPO. IPOs are more expensive to launch.
  3. Private investors who want to be sponsors to benefit from the potential returns on the day of the IPO as well as later acquisitions of the SPAC.

Therefore, they can be sponsored both by individuals or companies.

Management

The company is led by a management team comprising three or more members with operational experience on private equity and mergers and acquisitions.

This team gets 20% of the equity at the time of offering and this does not include the value of the warrants.

The team members are not paid before they do a business combination and they don’t play a part in the liquidating distribution (if the company fails to consummate a successful combination). In most cases, the management team even agrees to pay for the added expenses if there is a liquidation because they did not acquire a target.

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Who Is Jeff Brown?

Jeff Brown is the founder and chief investment analyst for Brownstone Research where he leads a team of financial advisors and analysts.

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Jeff Brown spent 25 years as a high-technology executive during which time he worked for some of the biggest technology companies on wall street as an executive, including NXP Semiconductors, Qualcomm, and Juniper Networks.

He is an angel investor who invests in early stage technology companies. He typically targets those that have a good management team and have a host of other fundamentals going for them and hopes that they will become billion dollar tech unicorns.

He considers himself at an advantage over most investors because he has access to information the public never knows about those startups due to his connections in tech and silicon valley.

Jeff has a wide range of industry experience spanning semiconductors, broadcasting, video technology, technology infrastructure, mobility, IT networking and security, consumer electronics, and the automotive industry. He is also at the forefront of tech trends such as 5G, artificial intelligence and machine learning.

Jeff Brown runs a popular e-letter called The Bleeding Edge.

He also has a large customer base for his premium newsletter services. The content he writes at the Bleeding Edge targets small investors looking to strike gold on the next crop of successful startup companies.

He also writes about nascent technological advancements with a good example of that being when he recently teased a company working on a trend he was calling SAV (Self-driving Vehicles).

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How Does The Pre IPO Code Work?

Irrespective of your net worth, connections, and whether or not you are an accredited investor, Jeff claims that you can get in on potential billion-dollar tech unicorn investment opportunities before they initial public offering ipo – that’s why the webinar is about the Pre-IPO code or pre-ipo investing.

How to make Pre IPO Investments

He breaks down the process you follow to invest in these pre-IPO codes:

  1. Log into your brokerage account
  2. Key in some pre-IPO code that he will provide
  3. Click on Buy.

Although he refers to a Pre-IPO Code as an innovation that will enable you to invest in billion-dollar tech companies before IPO day, remember that a lot of work goes into tracking them to ensure that, for example, your warrants don’t expire and become worthless while they are in the money. For that, you have to keep tabs with the filings.

Picking the right PRE IPO Companies

He also says that by investing in the right companies, you may earn decent returns when they go public as the ipo price often rises. He gives examples of tech unicorns that have earned big returns in the past.

For example, for investors who had the foresight to get pre ipo shares before their respective IPOs, Yahoo brought in a pre-IPO gain of 8100%, Amazon offered a gain of 9165%, Facebook recorded returns of 200,000% from pre ipo shares just to mention a few tech giants.

Of course tech stocks aren’t the only kind of stock to invest in, there are others too.

To gain access to a Pre-IPO code every month, you have to sign up for his newsletter, the Blank Check Speculator.

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What is the Blank Check Speculator (The Newsletter)

The Blank Check Speculator is an advisory service — published by Brownstone Research — that finds and recommends special purpose acquisition companies (SPACs).

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With his target audience being main street investors, Jeff Brown writes about investments opportunities that were initially thought to be the preserve of institutional investors. It is designed to bridge the information gap and allow ordinary people to be early investors in these companies before they take off.

Jeff Brown also uses his experience and connections to find pre-IPO codes of well-run blank check companies before they take promising startups public through a “reverse merger.”

When you subscribe to the newsletter, Jeff’s goal is to enable you to get in on the these deals using your normal brokerage account. He does his research to find these private companies before they go public.

In the order form, he talks about the kind of investor he is targeting:

I’m thrilled that you’re ready to become a full member of my service – and to take part in an exciting new kind of investing that most people have been locked out of… until now.

A full year’s membership to Blank Check Speculator costs $4,000.

That’s not cheap. But this is not an entry-level newsletter for people wanting to buy Google and Apple…

It’s for a slightly more sophisticated investor ready to make significant money investing BEFORE companies are popular, well-known or even trading publicly for the first time.

In the financial webinar, he mentions that the profit potential of the companies he recommends is huge thus justifying the massive investment you need to make to become a subscriber.

Instead of waiting for these companies to do an IPO, you “cut in line” and invest your money in the best companies before they start trading in public markets.

When you become a subscriber, you will receive a briefing from Jeff Brown with a new SPAC opportunity. He gives you the pre-IPO code you need to buy units in the SPAC before the initial public offering.

pre-IPO code

He also sends you a special report called The Blank Check Manifesto. Inside this report, he explains how pre-IPO deals work, how you can purchase private shares, how you can maximize your returns, and why special purpose acquisition corporations are here to stay.

You will also receive a monthly portfolio update and access to the model portfolio

How much do you pay to join the Blank Check Speculator?

An annual subscription to the Blank Check Speculator costs $4,000.

If you sign up for it through the link at the end of the presentation, you will only have to pay $2,000 (half the usual fee)

Does the Blank Check Speculator have a refund policy?

The subscription fee is non-refundable (they don’t refund your cash).

However, they have an arrangement where you can cancel your subscription within 90 days. In doing so, they give you credit that you can use to subscribe to any other investment service offered by Brownstone Research or any of its corporate affiliates.

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Pros

  • You get to learn a new way to invest in certain companies that you cannot buy shares of in the conventional way.
  • You invest in promising companies before they go public.
  • The sign up process is simple.
  • If you subscribe to the newsletter through the Pre-IPO Code presentation, you get a discount.

Cons

  • The subscription fee you pay to sign up for the research service is non-refundable.
  • The email you use to register for the service will be used to send you promotional emails by Brownstone Research.
  • The average returns you get from investing in one of these deals is lower than that of a traditional IPO.

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Is The Pre IPO Code Legit?

The Pre IPO Code is a legit presentation.

This event by Jeff Brown is meant to show investors how to take advantage of pre-IPO investing opportunities — you learn a different way of getting in on private investments giving you an advantage similar to what hedge funds enjoy without the need for business connections or being part of an angel investing community.

SPACs have been around for years but they had largely been ignored until recently when they suddenly became very popular. As you’d expect, there has been a lack of public awareness and most investors do not understand how they work.

Why did they suddenly become popular?

In late 2018 and early 2019 during the government shutdown, the SEC was unable to review traditional IPOs. Meanwhile, SPACs were still authorized to go public without the SEC’s approval because regulations allow companies to make their registration effective if they are willing to establish a set IPO price at least 20 days before going public.

Jeff must have picked up on this when he decided to launch a new newsletter based on them.

Since Jeff is an experienced angel investor, he should be equipped to know how they work and even how to find decent opportunities before IPO day and before they are traded on the secondary market.

However, that does not mean that his advice will work since there are no guarantees when it comes to investing but this does seem to give you an advantage over traditional stock market investments.

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The Pre IPO Code Verdict

As Jeff points out, before the JOBS Act was enacted, being a private investor was not easy and the information you needed was hard to find. Only hedge funds and well-connected investors could take part in pre-IPO deals.

He decided to launch Blank Check Speculator to find pre-IPO companies with a decent chance of succeeding to enable non-accredited investors to get in on them at the ground floor.

If you do things right and are lucky enough (you need things to go right sometimes), IPOs or Initial Public Offerings are some of the best ways to invest because you can earn large returns in a short period.

Jeff Brown claims to have found a way to identify good private companies that are likely to public through a SPAC and talks about his strategy during the event. He believes that he is equipped to guide you because he has had good results investing in promising companies before they went public as an angel investor.

Investing in a private company that goes on to become a successful one can offer massive returns.

Watching the webinar to learn more about his strategy means you will learn something from him. I don’t see a reason why you shouldn’t do it because there is nothing to lose and you do it for free — the downside is that you will give up your email address and will be receiving promotional emails from Jeff periodically.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

It’s helped me earn over $300,000 in the last 12 months alone:

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(This is a 100% free training)

Is The Pre IPO Code by Jeff Brown Legit? 1