Pre-IPO Insider: A New Challenger In A $1 Billion Industry

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA


The modern shaving razor hasn’t changed much since American inventor King Camp Gillette patented a new type of razor in 1901. That was fine for most people. Shaving is just one of those daily activities you don’t think much about, if you even think about it at all.

That changed in 2012 when Dollar Shave Club launched its now legendary viral marketing video. The one-minute promo introduced viewers to a new way of getting their razors. As of mid-2016, the video had been viewed more than 22 million times and helped the company grow to 1.1 million subscribers.

#-ad_banner-#Dollar Shave Club raised $163.5 million from early investors and accepted an acquisition offer from Unilever for $1 billion.

It wasn’t the company’s campy marketing videos that led to so much success — it was the rebirth of a distribution model that is bringing convenience and value to consumers in some of the most mundane products.

The subscription economy is booming!

Data firm MGI Research estimates the subscription economy could reach $100 billion by 2020 and 20% of Fortune 100 brands are already adopting some form of subscription model. The monthly, mail-delivered business model is convenient for customers and means more stable revenue for companies.

A new startup is adopting the subscription model to challenge the market leader in a nearly $1 billion market. The traditional channel for the market is only through retail and convenience stores, which means huge price markups from manufacturer to consumer.

In fact, this startup may be able to deliver the product to consumers for a third of the price offered by the market leader.

You can’t buy shares in the stock market. This is still a private company.

But you can get a piece of the action as a pre-IPO investor.

An Early-Stage Company With Sales And Strong Profit Potential
Dollar Shots Club is the first warehouse-to-consumer, supplement shot subscription service with a line of energy shots in different flavors.

Pre-IPO Investing, Dollar Shots Club

The market leader in energy shots booked $725 million in U.S. sales last year, nearly 90% of the market at $3 per bottle, but is only sold through retail and convenience store locations. That’s not necessarily convenient for consumers that want to reach for an energy boost when the day starts dragging — not after they’ve made the trip to the store.Pre-IPO Investing, Dollar Shots Club

The lean distribution model of direct-to-consumer allows the company to offer shots at a lower price, in the same way Dollar Shave Club was able to offer replacement razors for just a buck. Dollar Shots Club has already started booking sales in the most recent fiscal year and recorded a gross margin, after cost of goods sold, of 83% on sales. Compare that gross margin against an average around 24% for retail grocery stores and 60% at restaurants and you start to see how competitive the company could be in the food and beverage industry.

The company is offering common shares at $0.75 each with a $100 minimum investment, open to all investors on the Wefunder platform.

Sales are currently booked through social media but could expand through ecommerce this year. Investment proceeds will go to marketing outreach, building inventory and exploring a larger variety of flavors.

As with all investments, I encourage you to do your own due diligence. I haven’t done the detailed market and valuation analysis on Dollar Shots Club yet that I do on the highlighted monthly deals in Pre-IPO Millionaire but the company has already proven demand and could achieve profitability soon, a rare mark for startups. For more information on how to take part in this and other exciting new opportunities, click here.