A new time and investment trend in the Internet market born since this new year, California leader in investment company NeXt BDC Capital Corp. ( the oldest business development corporation in the United States ) started a closed mutual fund to buy shares in famous fast private tech startups before they go public with an IPO, which could include Twitter, Linkdln, Facebook and other social media. That would give the public, who can buy closed shares that are traded like normal stocks, a chance to get in on the action.
The question is not if you know what the today private internet company do because a lot investor don’t know what exacly they make out there, the question is how much risk I take today if I invest in the oil market? or automobile sector? the answer is I take big risk and internet startups will be never can turn a profit and sustain business because i put my capital in old and not reasonable model.Shareholders are not going to understand the complexity of the internet product but they will invest to the winner.