This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Another Way to Invest in Twitter

NEW YORK (TheStreet) -- Want to get in on owning Twitter shares before its initial public offering? Good luck!

The possible Twitter IPO is anticipated to be a "hot deal." Only investors who have the best relationship with their brokers will get a chance at purchasing shares. If you can handle the risk of speculative IPO investing there is another way to get indirect access and exposure -- by way of publicly traded private equity funds such as GSV Capital (GSVC).

With Twitter recently announcing its IPO plans via a tweet, the media outlets have been having a field day discussing the biggest IPO since Facebook (FB). Twitter executives are looking to avoid the mess that surrounded the botched Facebook IPO. For starters, Twitter decided to pick a different lead investment bank in Goldman Sachs (GS). Also, unlike Facebook, it is keeping many of the details of the deal private and limiting the number of shares that will be available to the public.

At this point, the only way to personally grab Twitter shares is to become an approved investor through an interview process with Twitter executives.

Based in Woodside, Calif., GSV is a publicly traded fund that seeks to invest in high-growth, venture-backed, private companies and owns approximately $37 million of Twitter. In fact, the largest holding in GSV Capital's portfolio is Twitter, which makes up 15.1% of the fund. By buying shares of GSVC, you are, de facto, gaining exposure to shares of Twitter.

More important than the Twitter play, however, is that with GSV investors can also position themselves to capitalize, in similar fashion, on some of hottest upcoming IPOs, just like private equity investors -- but with liquidity thrown in for good measure.

That's because GSV Capital also owns stakes in Spotify, Coursera, Dropbox and Palantir. The company seems to have unusually clear foresight with early investments in companies such as Facebook and Zynga (ZNGA) that eventually went public. GSV still owns a position in Facebook but did sell half of its shares as GSV capitalized on the recent rebound in stock price.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs