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How to Invest in Liquid Death: A Guide to Buying Pre-IPO Shares

By Linqto Team, Apr 22, 2024

Rows of red and gold Liquid Death canned drinks with ornate skull designs, on a seamless background

Ah, Liquid Death. The water company that’s been making waves (pun very much intended) in the beverage industry with its unconventional branding and eco-friendly aluminum cans. What started as an internet punchline has quickly turned into a $700 million business, attracting the attention of investors and consumers alike.

The Liquid Death Surge in the Beverage Industry

Liquid Death’s success can be attributed to its unique approach to marketing water. By packaging its product in eye-catching tallboy cans and embracing an edgy, punk-rock aesthetic, the company has managed to stand out in a crowded market and appeal to a diverse range of consumers, from straight-edge hardcore kids to soccer moms. But Liquid Death isn’t just a pretty can. The company has also made sustainability a core part of its mission, with a focus on reducing plastic pollution and waste.

Liquid Death’s appeal extends beyond its aesthetics; the company is deeply committed to sustainability. Its aluminum cans, touted as “infinitely recyclable,” offer an environmentally friendly alternative to the increasingly problematic plastic bottles. Liquid Death addresses a significant concern in the beverage industry by providing a solution that aligns with the growing consumer demand for products that are sustainable, health-conscious, and socially appealing. Their non-alcoholic beverage options cater to a trend towards mindful consumption, emphasizing the importance of environmental impact, personal health, and inclusivity in social settings.

Understanding Liquid Death Pre-IPO and Its Market Potential

For investors considering buying pre-IPO shares in Liquid Death, it’s important to understand the company’s market potential. The global non-alcoholic beverages market is expected to reach $1.9 trillion by 2030, growing at a CAGR of 8.56%, according to SkyQuest. With its innovative branding and commitment to sustainability, Liquid Death is well-positioned to capture a significant share of this market.

The company has already demonstrated impressive growth, expanding its distribution to over 113,000 retail outlets across the U.S. and U.K. and supplying demand for its products. In 2023, Liquid Death reportedly generated $263 million in retail sales (over 100% from 2022) according to Forbes, a testament to its ability to connect with consumers and drive revenue. For investors considering an investment in this brand, gaining knowledge about understanding how to buy pre-ipo stock could be essential for accessing potential growth opportunities as Liquid Death advances in the beverage industry.

Liquid Death’s impressive growth and market potential can be attributed to several factors. First, they’ve got a rockstar management team with serious industry chops. CEO Mike Cessario brings a marketing background from top agencies, while COO Joseph Lee has held supply chain leadership roles at major consumer packaged goods companies. And let’s not forget CCO Stephen Ballard, who helped quadruple sales at Mike’s Hard Lemonade. With a team like that, it’s no wonder Liquid Death is making waves. Plus, Liquid Death has attracted some heavy-hitting investors, including Live Nation Entertainment, Swedish House Mafia, Dwight Funding, and a whole roster of celebrity backers.

Pre-IPO Illiquidity: A Consideration for Long-Term Investors 

When considering an investment in Liquid death, it’s key to understand the unique characteristics of investing in a private company. Shares in a private entity like Liquid Death are not easily sold or converted into cash until the company transitions to being publicly traded. This requires investors to have a long-term commitment and an acceptance of illiquidity, similar to the scenario outlined earlier, where investors must be prepared to retain their shares for an extended period, possibly several years, until Liquid Death can successfully move to the public markets.

The illiquidity of investing in Liquid Death presents distinct challenges and opportunities. On one hand, investors have limited options to sell their shares or adjust their portfolios in response to market changes or personal financial requirements. On the other hand, this illiquidity prompts investors to adopt a long-term outlook and conduct comprehensive due diligence before committing their capital.

As Liquid Death continues to expand its distribution and meet consumer demand, investors may witness growth and an increase in the value of their holdings. It’s recommended that individual investors conduct comprehensive due diligence, mirroring the approach taken by institutional investors and venture capital firms. This process should include a detailed analysis of their financial goals, risk tolerance, and investment timeframes to confirm that their investment in Liquid Death is consistent with their broader investment strategy.

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Is Liquid Death Publicly Traded? Exploring Investment Options

Currently, Liquid Death is a privately-held company, which means its shares are not traded on public stock exchanges. Accredited investors interested in buying shares in Liquid Death may be able to do so through platforms that specialize in pre-IPO opportunities, such as Linqto.

How to Buy Liquid Death Stock: Options for Investors

For accredited investors eager to get a taste of Liquid Death’s potential success, there are several avenues to explore when it comes to buying pre-IPO shares. One such option is through investment platforms like Linqto, which specialize in connecting investors with promising private companies before they potentially go public.

To qualify as an accredited investor, an individual must meet certain financial criteria set forth by the SEC. This includes having a net worth exceeding $1 million, excluding their primary residence, or earn an annual income surpassing $200,000 (or $300,000 jointly with a spouse) for the last two years, with the expectation of the same or higher income in the current year. These platforms offer a gateway to private market investments, providing due diligence resources and a streamlined transaction process. While other investment options may exist through private placements or direct company investments, they often require higher capital commitments and are less accessible than pre-IPO platforms.

Liquid Death’s unique position in the beverage industry, with its standout branding and sustainability efforts, offers an attractive opportunity for accredited investors to engage with the company’s growth trajectory before it transitions to the public market. By utilizing platforms like Linqto, investors can perform comprehensive due diligence to ensure that their investment aligns with their financial goals and risk profile, positioning themselves to capitalize on Liquid Death’s potential future liquidity events, such as an IPO or acquisition.

Accredited Investor Guide to Buying Liquid Death Pre-IPO Shares

For accredited investors interested in purchasing Liquid Death stock, understanding the regulatory criteria is essential. These criteria, set by financial authorities, ensure that individuals have the necessary financial acumen and resources to handle the potential risks of investing in pre-IPO shares. Accredited investors typically must demonstrate an annual income exceeding $200,000 (or $300,000 for joint income) for the past two years or have a net worth exceeding $1 million, excluding their primary residence. These regulations are in place to protect investors and the integrity of the financial market.

Investing in Liquid Death stock through platforms like Linqto offers accredited investors a unique opportunity to buy into a company that’s innovating within the beverage industry, with a strong focus on sustainability and brand identity. Linqto streamlines the process of acquiring Liquid Death stock, providing a direct channel for investors to engage with and capitalize on Liquid Death’s market potential before it becomes a publicly traded company. By leveraging platforms like Linqto, accredited investors can efficiently access Liquid Death stock, aligning themselves with a company poised for growth in the eco-conscious consumer goods space.

Can Retail Investors Buy Liquid Death Company Stock?

If you’re a retail investor without accredited status, direct investment in Liquid Death’s pre-IPO shares isn’t currently an option. However, you can still support the company’s journey and look forward to the possibility of purchasing shares if they become publicly available.

In the meantime, retail investors interested in the beverage sector can explore indirect investment opportunities, such as mutual funds or ETFs that invest in a portfolio of consumer goods companies, including those like Liquid Death when they go public. This approach allows retail investors to potentially benefit from Liquid Death’s market performance and brand growth, albeit indirectly, until a direct opportunity to buy Liquid Death stock arises.

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The Benefits of Investing in Liquid Death Before Its IPO

So, why would you want to invest in Liquid Death before its potential IPO? For starters, getting in early could mean buying shares at a lower valuation, which could lead to some serious returns if the company continues to grow and eventually goes public. Plus, Liquid Death has already attracted some celebrity investors like Tony Hawk, Whitney Cummings, and Wiz Khalifa, which can help generate buzz and credibility for the brand.

Liquid Death has also managed to secure some seriously impressive distribution. Their products are available across 113,000 retailers, including heavy hitters like Amazon, Target, and Walmart. And they’re not just limited to grocery store aisles – you can find Liquid Death at events, bars, restaurants, and even conferences. Talk about being everywhere your target audience is.

And let’s not forget about Liquid Death’s massive social media following. With 5.1 million followers on TikTok and 3 million on Instagram, they’ve built a community of loyal fans who are all about the Liquid Death lifestyle. When you’ve got that kind of brand power, it’s no wonder investors are taking notice.

Navigating Legal Considerations for Liquid Death Investments

It’s also important to consider the legal and regulatory environment that impacts pre-IPO investments, particularly in a company like Liquid Death. This includes adherence to food and beverage safety standards, environmental regulations, and packaging laws. Engaging with seasoned professionals who can navigate the complexities of due diligence is essential to confirm compliance and maintain the integrity of your investment.

Liquid Death’s Road to an IPO: What Investors Should Know

So, what might Liquid Death’s path to an IPO look like? While there are no guarantees, investors can keep an eye out for key milestones that could signal the company’s readiness to go public. Things like increasing revenue, expanding distribution, and strategic partnerships could all be signs that Liquid Death is gearing up for the big leagues.

Of course, predicting the timing and outcome of an IPO is about as reliable as trying to guess the flavor of a mystery Liquid Death can. The road to going public is full of twists and turns, and there’s always the possibility that the company could pivot in a different direction or face unexpected challenges.

Linqto: Your Gateway to Investing in Liquid Death and Other Pre-IPO Tech Companies

Linqto provides a straightforward and user-friendly pathway for individuals interested in investing in Liquid Death and other distinguished pre-IPO companies, simplifying the process for those exploring early-stage tech investments. With Linqto, investors have the tools to conduct comprehensive due diligence, accessing in-depth insights and analyses that clarify the pre-IPO investment landscape. The process to begin is straightforward – sign up and register for an account, confirm your status as an accredited investor, and browse through a curated collection of groundbreaking companies.

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Conclusion: How to Buy Liquid Death IPO

Investing in Liquid Death offers a distinct opportunity to tap into the burgeoning market for sustainable and innovative beverages, highlighting the company’s growth potential and strong market presence. Platforms like Linqto are vital for investors seeking access to these opportunities, providing a seamless pathway to invest in Liquid Death’s IPO and capturing the value of its disruptive impact in the beverage industry.

While Liquid Death represents a forward-thinking choice in the consumer goods space, the broader investment landscape, including the blockchain industry, continues to offer a myriad of possibilities for investors. The potential for innovation and growth in these areas underscores the importance of platforms like Linqto, which enable investors to connect with pioneering companies and leverage the evolving dynamics of the global market.

This material, provided by Linqto, is for informational purposes only and is not intended as investment advice or any form of professional guidance. Before making any investment decision, especially in the dynamic field of private markets, it is recommended that you seek advice from professional advisors. The information contained herein does not imply endorsement of any third parties or investment opportunities mentioned. Our market views and investment insights are subject to change and may not always reflect the most current developments. No assumption should be made regarding the profitability of any securities, sectors, or markets discussed. Past performance is not indicative of future results, and investing in private markets involves unique risks, including the potential for loss. Historical and hypothetical performance figures are provided to illustrate possible market behaviors and should not be relied upon as predictions of future performance.