Despite getting lucrative offers from Fortune 500 companies, executives still prefer start-ups. The reason is pretty simple, they will get to have the shares of the start-up before the company’s initial public offering. This is more pronounced in gaming industry, start-up gaming companies lure talented employees and angel investors by offering an opportunity to buy the company’s stock before planning on an IPO.
The total revenue of gaming industry is well over $ 12.5 billion during 2012 in the united states. However 80% of all the start-up companies (in the gaming industry) fail miserably. It needs a good eye to find out the gaming companies that will be profitable over a long run. It is important to understand that not all pre-IPO companies will work out to be profitable. Thousands of companies will not even reach the point of filing for an IPO. Sometimes even after launching an IPO there will be lockup periods where the pre-IPO shares cannot be sold in the market.
Hartford Group International’s Pre-IPO Game-plan for Gaming Industry:
Hartford Group International is one of the top financial services companies in Asia, they offer several products and services related to financial investments. They are a well established company with a proven track record of over 9 years. They are now looking to diversify in to several other areas like insurance, venture capital and selling pre-IPO issues. They have a solid reputation of being the fastest growing investment brokerage in Asia, mainly because of the exceptional research team they own. Their research team is now looking at the Gaming Industry to identify those start-ups and small scale companies for potential investment and pre-IPO opportunities.
Hartford Group International is planning on selling pre-ipo shares to customers with a focus on several important factors.
- You will not be able to sell the stock in public markets as the pre-IPO company will not be public, however the group will attempt at targeting companies that will have a buy back option. They also have a huge client base and unlike the general norm you can be relatively safe when you buy through Hartford Group International.
- It goes without saying that there will not be any secondary market, so you will not get to know the true price of the stock. Though the gaming companies will have independent and certified audits, it is important for a trusted and reputed third party to do a proper research for a better price discovery. Hartford’s research team will do the price discovery for you. There are several cases where the price will be fixed above the book value and any purchase above that price is speculative, this is where a group like Hartford can help you.
- Selling pre-IPO shares is not that easy, it becomes very difficult when the securities are under SEC Rule 144 (these are restricted securities). The third party buyer for such stocks should be a qualified and accredited investor. The wide client base of the group can help you under this scenario as well.
We at GamingAdvanced.com are looking forward to the entry of Hartford Group International in the Gaming Industry.