Break Into the World of Private Investing

For decades, private investing has been an exclusive club, reserved for venture capitalists, industry elites, and those fortunate enough to have well-connected networks. These insiders have had early access to the most transformative companies of our time—before they became household names. Companies like Google, Nvidia, and Netflix were once nascent startups that insiders backed, while most investors were left on the sidelines, unaware of the opportunities they were missing.

The result of this exclusivity is a stark divide between who gets to invest early and who does not. For most, the chance to invest at the critical growth stage of these companies never existed. And even more troubling? The window for these opportunities is shrinking. The number of companies going public has been steadily declining, and today, more capital than ever is being raised in private markets.

The IPO Freeze

For much of the 20th century, the IPO was the gateway to innovation for everyday investors. Companies like Amazon and Apple went public at pivotal points in their growth journeys, offering the public a chance to own a piece of their success. But over the past decade, the number of companies choosing to go public has plummeted to historic lows.

The reasons behind this shift are complex but boil down to one overarching challenge: the pressure of public markets. Companies that go public face scrutiny from shareholders and analysts who demand short-term results. This relentless focus on quarterly earnings often forces businesses to prioritize immediate gains over long-term innovation.

To avoid these pitfalls, companies are staying private longer, leveraging private markets to secure record-breaking amounts of funding. Take Databricks, a leading force in data analytics and artificial intelligence. In December 2024, the company raised $10 billion in funding, elevating its valuation to $62 billion. Following this milestone, CEO Ali Ghodsi explained the reasoning behind their decision to avoid an IPO, remarking, “It’s dumb to IPO this year.” He pointed to unfavorable market conditions and emphasized the advantages of remaining private, such as the ability to focus on long-term innovation without the short-term pressures of quarterly earnings reports.

To put this into perspective, when Google went public in 2004, it had a valuation of approximately $23 billion. Databricks’ private valuation today is nearly three times that amount. This dramatic shift highlights how private markets have evolved into a space where companies can achieve valuations once attainable only through public offerings.

This trend isn’t just anecdotal—it’s backed by the numbers. In the past two years, private companies have raised nearly double the total capital of all IPOs combined. These figures underscore the extent to which private markets have become the dominant arena for high-growth businesses, leaving everyday investors with fewer chances to participate in the early stages of transformative companies.

Why Private Markets Matter

The private market is where innovation takes root. It is the fertile ground where transformative ideas grow into industry-defining companies, often long before the public even knows their names. For investors, the private market offers the unique opportunity to be part of a company’s most pivotal growth stages—when the potential for outsized returns is at its peak.

Consider the stories of some of today’s most influential companies. Facebook revolutionized how we connect and communicate, but it wasn’t until years after its founding that it went public. Tesla was quietly building the foundation for the electric vehicle revolution while most investors were still skeptical about its viability. And Airbnb transformed the travel industry while remaining private, relying on early backers to scale its vision.

For decades, these early stages of growth were accessible only to venture capital firms and those with insider connections. Everyday investors could only enter the picture once these companies went public—long after much of the value creation had already occurred.

But the private market isn’t just about financial returns; it’s about shaping the future. This is where breakthroughs in artificial intelligence, clean energy, biotechnology, and countless other fields are being forged. Companies like SpaceX are redefining space exploration, while transformative innovators like OpenAI are pioneering advancements in artificial intelligence that will impact nearly every aspect of modern life. The innovations emerging from private companies today will drive the economy and society of tomorrow.

For those interested in investing in innovation and reaping the rewards of doing so, exploring the private market is increasingly important. As companies raise more capital privately than ever before, the opportunities to support transformative ideas at their earliest stages are no longer confined to traditional venture capitalists. Instead, they’re becoming accessible to those willing to explore, learn, and engage with this new frontier of investing.

Barriers to Entry

For many, the private market feels like an exclusive club with a long list of rules designed to keep outsiders at bay. While the potential rewards of investing in private companies are significant, the challenges can seem daunting. These barriers have historically limited access to those with insider connections or institutional resources.

1. Identifying Opportunities

Private companies don’t generate the same level of publicity as their public counterparts. Unlike the stock market, where you can easily research thousands of publicly traded firms, private companies are harder to discover. Their successes, setbacks, and even their very existence often go unnoticed by most investors. Without specialized knowledge or networks, finding the right opportunities can feel like searching for a needle in a haystack.

2. Conducting Thorough Research

Even if you find a private company that piques your interest, understanding its true potential is a significant hurdle. Private companies are not required to disclose financial statements or operational data the way public companies are. Evaluating their performance and prospects often requires deep due diligence, something typically reserved for professional venture capital firms. For individual investors, this lack of transparency can make it difficult to gauge the risks and rewards of an opportunity.

3. Gaining Access

Discovering and researching a private company is just the beginning. Accessing the best investment opportunities is often an even bigger challenge. Private deals are typically reserved for those with “warm” introductions—insiders who already have a seat at the table. Without the right connections, even the most promising opportunities can remain out of reach.

4. Navigating Fees

Even if you manage to overcome the barriers of discovery, research, and access, you might encounter another obstacle: exorbitant fees. Many private market opportunities come with complicated and often opaque fee structures that can significantly reduce your returns. The difference between a fair fee and a predatory one could mean losing over 50% of your capital gains—a sobering reality for any investor.

These barriers are why private markets have long felt inaccessible to everyday investors. Yet, as the private market evolves, opportunities to overcome these challenges are emerging for those willing to explore new paths.

Keeping Private Markets Cool

Private investing can often feel like an exclusive world, with significant barriers for individual investors. From limited transparency to the challenges of finding and accessing opportunities, the private market has long been dominated by insiders. Cold Capital was created to change that, offering a way for investors to explore private markets without requiring exclusive networks or deep industry connections.

Cold Capital provides a window into private investing, equipping investors with insights and tools to confidently participate in private market opportunities. Whether you’re drawn to transformative companies like Databricks and SpaceX or looking to discover under-the-radar startups with high growth potential, Cold Capital serves as your guide.

Through thoughtful research, clear guidance, and access to timely opportunities, Cold Capital simplifies the complexities of private investing. More importantly, it enables you to invest alongside top-tier venture capital firms like Sequoia, Andreessen Horowitz, SoftBank, and Lightspeed.

Founded by a startup veteran with over a decade of experience scaling fast-growing companies and investing at a $500M venture capital firm, Cold Capital bridges the gap between the private market’s exclusivity and your ambition. It’s a way to engage with private investing thoughtfully, confidently, and completely on your terms.

How We Empower Investors

We are more than just a gateway to private markets—we’re a resource designed to empower you with the knowledge and tools you need to make informed decisions. Every week, you’ll gain access to carefully curated insights into private market opportunities, ensuring you’re always ahead of the curve.

Here’s what you can expect:

• Company Snapshots: Understand what a company does, why it matters, and how it fits into larger market trends. These profiles are designed to highlight key details without overwhelming you with jargon.

• Investment Analysis: Gain a balanced perspective on the risks, rewards, and growth potential of private market opportunities. Our goal is transparency, helping you evaluate whether an opportunity aligns with your investment strategy.

• Step-by-Step Guidance: From identifying opportunities to taking action, we provide clear, actionable advice so you can confidently participate in private market deals.

Private markets move quickly, and opportunities are often finite and competitive. We’re here to ensure you have the information you need, when you need it, so you can act with confidence.

Whether you’re interested in investing alongside leading venture capital firms or exploring the emerging companies shaping tomorrow’s economy, we’re here to help you navigate this new frontier with clarity and purpose.

Take the First Step

The private market is no longer an exclusive club. With the right tools, insights, and guidance, it’s a space where accredited investors can participate and thrive.

We’re here to help you unlock opportunities that were once reserved for industry insiders. By aligning with the strategies of top-tier venture capital firms, you’ll have the chance to support transformative companies during their most critical stages of growth.

Whether you’re new to private investing or looking to expand your portfolio, the journey starts with a single step. Subscribe today and join a growing community exploring private markets with clarity and confidence. Are you ready to take that first step?

Disclaimers Below

_{This material has been distributed solely for informational and educational purposes only and is not a solicitation or an offer to buy any security or to participate in any trading strategy. All material presented is compiled from sources believed to be reliable, but accuracy, adequacy, or completeness cannot be guaranteed, and Cold Capital makes no representation as to its accuracy, adequacy, or completeness.}

_{The information herein is based on Cold Capital’s beliefs, as well as certain assumptions regarding future events based on information available to Cold Capital on a formal and informal basis as of the date of this publication. The material may include projections or other forward-looking statements regarding future events, targets or expectations. Past performance of a company is no guarantee of future results. There is no guarantee that any opinions, forecasts, projections, risk assumptions, or commentary discussed herein will be realized. Actual experience may not reflect all of these opinions, forecasts, projections, risk assumptions, or commentary.}

_{Cold Capital shall have no responsibility for: (i) determining that any opinions, forecasts, projections, risk assumptions, or commentary discussed herein is suitable for any particular reader; (ii) monitoring whether any opinions, forecasts, projections, risk assumptions, or commentary discussed herein continues to be suitable for any reader; or (iii) tailoring any opinions, forecasts, projections, risk assumptions, or commentary discussed herein to any particular reader’s objectives, guidelines, or restrictions. Receipt of this material does not, by itself, imply that Cold Capital has an advisory agreement, oral or otherwise, with any reader.}