Investing in a product..

[vonjaja]

So, suppose you know this great product that you have a feeling (or know very well) that it will be super popular in the coming years. And that you want to invest in the company.

But you realise that the company that makes the product is not a public company.

Is this a dead end? Is there any way invest, even if "by proxy"? I am rather new at this kind of thing, but yeah, would be interested to hear what people think about this.

 

[cm-phil]

You can absolutely invest in a company that is private. It is a lot than investing publicly, mostly because you can't pull your money out by trading it on the open market.

There is usually some form of agreement that you would enter with the company that would dictate terms. However, you are assuming that this company is willing to allow you to invest - and that is a big assumption. It is possible that this company is not willing to allow small investments, in favor of going with one or PE firms to finance them entirely.