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Use it, fund it, grow it – how to Lyft the stock market

Have you ever wished you could invest in the companies you use everyday that make so many parts of your life easier?

How much have you contributed to the bottom lines of Just Eat, easyJet and Ocado over the last few years?

Well, now could be your chance to benefit from your and other people’s use of these tech disruptors, which have struck fear into the hearts of their competitors stuck in the analogue age.

This month, ride sharing app Lyft listed in the US on Nasdaq and there have been some very heavy hints that more of its tech-based peers are set to follow it to market in 2019.

Your capital is at risk.

What this means is that these currently privately-owned companies want to tap into the money being made available from the people that use them every day. These new potential shareholders from around the world are ready and willing to commit to making these companies spread further than they already are. For the company bosses, it is not an easy decision to make.

Many of them have spotted a niche or unexploited gap of a particular market and have created something to fill it. By opening up to investors, they are letting strangers earn money from something revolutionary they have brought into being.

However, the relationship is symbiotic. The injection of capital from these new investors and shareholders allows these companies to grow. This new money funds expansion into new markets, tech upgrades and research into how the company can grow further.

And by being part of this growth, the shareholder is often amply rewarded. For the moment, many of these companies are not profitable, so don’t expect huge dividend payments, but being part of the growth story can see a massive difference in what a company is bought and sold for over time.

Facebook, which listed in 2012, sold its first shares at around $38 each. Despite some rough, recent setbacks, they are trading today around $165.

Ocado listed at around £1.60 a share in 2010, but sees its stock selling for around £13 now.

Even if we don’t have the ideas to create life-changing companies ourselves, with our investments, we still have the opportunity to fund and grow with them.

Your capital is at risk.

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