The end of the year – and the decade – is nearly upon us. Around this time each year, I like to take a step back and look at some of the overarching trends that shaped the private equity landscape.

Not only does it paint an interesting picture of modern society… it also typically hints at what the biggest industry movers will look like in the year to come. And as you know, knowing what’s about to happen next is the absolute best way to get ahead as an angel investor.

2019 was a banner year for startups in the financial technology space – otherwise known as fintech here in the Valley.

While fintech technically refers to startups that operate in the same space as banks and lenders, I’m talking now about a broader type of fintech, encompassing everything from mortgages to loans to checking accounts and more. Unsurprisingly, two additional industries have blossomed alongside the fintech movement: insurance and real estate.

My theory? This year, Americans saw a sudden and dramatic shift in investor attitudes. The first few months of the year were practically jubilant as VCs and other funds dumped billions of dollars into flowery, growth-obsessed startups, some of them more novelty than substance.

I’m talking about businesses like WeWork, Wag, and SmileDirectClub – all of which either lost billions of dollars while private or tanked soon after their IPOs.

While it wasn’t exactly the “popped bubble” effect many analysts predicted, it was certainly a sobering reminder that growth shouldn’t always be prioritized above profitability. In the wake of these former unicorns’ untimely demises, there’s a new trend emerging in Silicon Valley: practicality.

That’s right… instead of scooters, e-cigarettes and other things people want, investors are looking for things that people need. That’s because, when times are tight, consumers will naturally keep paying for necessities long after they’ve canceled their BarkBox subscriptions, HelloFresh boxes, and Uber Ride Passes.

Heading into the new year, I’m setting my sights on startups that align with this trend… because I don’t think it’s going away anytime soon. In fact, a number of factors on the horizon – like a tumultuous election and a volatile stock market – could turn this into more of a tidal wave than a ripple effect.

Right now, I have my eye on one startup that perfectly fits the bill. It solves a big problem in a huge market… has multimillion-dollar contracts lined up with dependable clients… and improves upon a product that nearly every adult in the U.S. uses every single day.

It’s not a “sexy” invention… They don’t ship it to consumers as part of a monthly subscription… Heck, this product could become the “new normal” and you might never even notice it. But that’s the beauty of this company.

This tiny startup’s unassuming tech has already scored them contracts with DARPA, the U.S. government, and a handful of other key partners – which could collectively produce more than $1 billion in royalties.

As we head into 2020, I believe it’ll be deal opportunities like this that keep my portfolio going strong. And, while some folks think the stock market will take a beating next year, I believe the private equity markets should remain largely unruffled by all the commotion.

I’ve already put some of my own money into this startup… and I’m thinking about doubling down before things get really crazy. I fully expect this one to become a feeding frenzy once word gets out. After all, they accept both accredited and non-accredited investors… and it only costs a few hundred bucks to take advantage.

The Research Team reports that this company has passed the 1,000X Formula with flying colors, potentially making it a high-value option to add to your portfolio. You can learn more about the team’s findings by clicking here.

Until next time,

Neil Patel

Comments

7 responses to “What 2020’s Best Deal Opportunities Will Look Like”

  1. Hi Neil, I’m new. I’ve just watched the video again and still you did not reveal the names of the 3 companies?? I have a lifetime membership and I’m a bit lost. I also just read your dictionary. That helped but did not give the company names??? Where do I go for that? I work full time as a nurse so really dont have a lot of time to go site to site seeing the same videos. Please some direction would help. Thanks Tammy

    • Hi Tammy,

      As an Elite Founder, you have access to a number of deal opportunities on our sister site, angelsandentrepreneurs.com. That’s where you’ll find any and all of the deals recommended on the network. This website is our free, educational resource for beginning investors.

      Hope this helps!
      Neil

  2. Hello, I am a disabled combat veteran, a brother from the special operations group (U.S. Navy) was telling me about you. I watched some videos and I am doing more research now. I am very interested in investing, in the next week I will have a few hundred dollars; then by Feb I have a small inheritance and I am looking to invest $5,000 to $7,000 but how can I get started researching and such with no money now.

    Respectfully
    Robert E. Brown

  3. Hi Neil. I’m still waiting for the information that we’ll need so that we will be able to invest in the “Engine start up”. I guess they’re still filling out the forms for the SEC. I can’t wait to invest, thank you ahead of time for when we can actually invest. Happy New Year !!

  4. Hi Neil: I’m finding the same problem….having to jump through many hoops (many email) & not finding the company names , information about them or how to invest–if I could possidly find the information.
    Working full-time with a family. We need to quickly get to the names of the Companies and their Information in order to make an informed decision.
    Please……Less Solicitation & More (direct, easily accessed) Information!
    Once we have become members, we’d love to get to work….we already bought the product….
    Although a member we’re reading many many emails; however, unaware of where to find & who your recommended companies are & how to read about them.
    Anxious to learn & move forward with the needed information.
    Thanks,
    Joan

    • Hi Joan! Right now, you’re on The Startup Investor. It’s our free educational newsletter to teach folks about the wide world of angel investing.

      It sounds like you signed up for the Angels & Entrepreneurs Network, where we recommend specific deal opportunities and do advanced research and analysis on dozens of startups. If you are a member, you can find all deal opportunities at angelsandentrepreneurs.com.

      Hope this helps!
      Neil

Leave a Reply

Your email address will not be published.