By: John S. Morlu II, CPA
By the Time Facebook Went Public, the Real Party Was Over
Ever wonder why your cousin’s friend’s barber retired at 35 and is now raising llamas in Peru while you’re still deciding if you can afford guac on your burrito?
Simple. He got in early. On what? No, not Bitcoin or Beanie Babies.
He invested in a company before everyone else knew it existed.
The Harsh Truth: You’re Too Late
When Facebook went public in 2012, people were lined up like it was a sneaker drop. But the people who made real money were sipping cocktails on private islands — they’d gotten in years earlier. When Facebook was just Mark Zuckerberg, a hoodie, and a Harvard dorm room.
The price? About $0.001 per share.
When it hit the public market? Around $38 a share.
That’s a 38,000% increase — basically, every dollar turned into a small fortune. But you had to get in early, when it was still just code and caffeine.
By the time it hit your Robinhood app, the rocket had already taken off, reached the moon, and was halfway to Mars.
So Who Got In Early?
- Peter Thiel (co-founder of PayPal) dropped $500,000 into Facebook in 2004.
- That became over $1 billion.
- That’s not an investment — that’s a magic trick.
The same thing happened with:
- Uber: Early investors saw up to 1,000x returns.
- Airbnb: Invest $5,000 early? Boom — $5 million back.
- Zoom: Early believers made so much money, they probably never have to attend another Zoom call again.
Why You Were Locked Out
Before 2012, U.S. law said only accredited investors could invest in early-stage startups.
That means you had to have:
- A $1 million net worth (not counting your house), OR
- Earn over $200,000 per year.
That’s like telling people, “You can only get rich… if you’re already rich.”
So you, with your 401(k), Roth IRA, and your dreams of beach retirement? You were politely told: “Stick with slow growth. Hope it compounds. Good luck.”
Meanwhile, early investors were playing Monopoly — except the money was real.
Obama’s Crowdfunding Plot Twist
Then came Barack Obama, armed with a pen and the JOBS Act in 2012.
He basically said, “Let’s give regular folks a shot.” The Act legalized equity crowdfunding — which is just a fancy way of saying: “Now YOU can invest in startups before they become household names.”
Today, platforms like:
- WeFunder
- Republic
- StartEngine
- SeedInvest
…allow you to invest in early-stage companies for as little as $100.
That’s the price of 10 lattes — or one overcooked steak in Manhattan.
But What About My 401(k)?
Here’s where it gets spicy:
Your 401(k) is great — for slow money. It’s designed to give you 6–8% returns a year, IF the market behaves.
But let’s compare:
Investment Type | Potential Return
—————-|——————
401(k) with index funds | 6–8% annually
Early Facebook investor | 38,000% total
Airbnb early backer | 100,000%+ total
Uber seed investor | 2,000–10,000%+
You see the difference? One buys you a decent retirement. The other buys you a yacht, an island, and your own theme song.
Small Business Owners, Lean In
You know risk. You live it daily. Inventory, staff, rent, taxes — running a small business is like juggling flaming swords blindfolded.
But what if you invested just $500 in five startups each year? That’s $2,500 annually — less than you might spend on Facebook ads that never convert.
Let’s say in five years, just one of those companies “makes it.” Suddenly, you’ve turned a few lattes and stress headaches into a six-figure bonus.
Real Talk: Investing vs. Speculating
Let’s clear something up.
Buying stock after a company goes public (on the secondary market) is like:
- Buying a house after a bidding war.
- Getting into a concert after the band’s last song.
- Investing in Blockbuster… in 2009.
It’s better than nothing. But the upside? Meh.
But if you get in before the IPO? That’s where fortunes are made.
Fun Fact Time
- If you invested $1,000 in Amazon in 1997? You’d have $1.6 million+ today.
- If you invested $10,000 in Google pre-IPO? That’s now worth over $2 million.
- Invested $5,000 in Netflix in 2002? You could now afford to buy Netflix subscriptions for your entire city.
Final Thought: Build Wealth Like the Wealthy
Wealthy people don’t just work hard. They let their money do push-ups while they sleep.
They get in early. They take smart risks. They multiply.
So next time you’re checking your 401(k), ask yourself:
“Is this slow drip enough to change my life?”
And if not, maybe it’s time to take a small risk with a smart bet.
One small check into the right startup can change everything. But who do you know that will offer you the opportunity to get in on the ground floor and invest early? You have to know someone and that person has to be willing to invite you in. Unfortunately many people that have serious financial connections so only 401k and Robinhood are your options.
But wait!!!
We’re remaking access to wealth — one early investor at a time.
Stay tuned:
Coming soon.
👉 www.FinovatePro.com
About the Author
John is an entrepreneur, strategist, and founder of JS Morlu, LLC, a Virginia based CPA firm with multiple software ventures including www.FinovatePro.com, www.Recksoft.com and www.Fixaars.com . With operations spanning multiple countries, John is on a mission to build global infrastructure that empowers small businesses, entrepreneurs, and professionals to thrive in an increasingly competitive world. He believes in hard truths, smart execution, and the relentless pursuit of excellence. When he’s not writing or building, he’s challenging someone to a productivity contest—or inventing software that automates it.
