Equity Crowdfunding / Startup Investing

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MachineGhost
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Re: Equity Crowdfunding / Startup Investing

Post by MachineGhost » Thu Aug 04, 2016 2:24 pm

I looked up the stats on angel investments the other day and as far as I can tell from 1990 to 2014, the CAGR stayed remarkably consistent and was almost 27% a year. VC's typically have to invest in later stages at higher prices so their net return suffers and is around the public market average in the long-term (10%). However, the VC world is a lot like hedge funds or smartphones... only a very elite few make all of the profits and all the rest are tertiery losers.

As far as the failure rate on private startups goes, it is 62% for seed/early stages and 52% for mid-to-late stages. But early stages have a 60% increased probability of hitting 10x gains than the later stages. I used to be in a late stage company fund but due to the yearly fees and lack of company interest in IPOing because of the Sarbanes–Oxley Act, I junked it.

Believe it or not, there were actually some 100x+ baggers in the recent past. Netflix is up 92x since it IPOed (no idea on the return pre-IPO, but use your imagination). Pandora went up 181x by the time it IPOed. And YouTube has gone up an amazing 14,000x (not a misprint) to date which may include Alphabet's valuation increase since it was bought out by them. You don't need such riduclous returns to come out ahead, of course, but spread your seeds widely if you want a chance at bagging one.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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MachineGhost
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Re: Equity Crowdfunding / Startup Investing

Post by MachineGhost » Thu Aug 11, 2016 9:28 am

Another no-brainer. Boring, piss water, commercial beer is dead. Millennials have no interest in that tasteless stuff.
Craft brewer BrewDog has raised $1m (£770,000) from US investors within the first three days of a new funding round, according to the company.

The Aberdeenshire-based company said there had been an "unprecedented response" to its Equity for Punks USA crowdfunding initiative.

BrewDog hopes to raise up to $50m within six months to help fund expansion in North America.

Plans include a new 100,000 sq ft brewery in Columbus, Ohio.

It is scheduled to open later this year.

Shares in the funding round cost $47.50 each, with a minimum investment of $95. According to BrewDog, more than 1,200 people have already signed up to the scheme.

On its website, the company said: "This unprecedented response to our first crowdfunding round in the States shows the demand for our beer in America, and sets us up with a community of like-minded individuals ready and waiting to help us make our US business an explosive success."

http://www.bbc.com/news/uk-scotland-sco ... s-37024028
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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MachineGhost
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Re: Equity Crowdfunding / Startup Investing

Post by MachineGhost » Tue Sep 20, 2016 9:01 pm

Ironically, Beta Bionics was the very first startup company to reach the $1 million raise limit (Title III aka Regulation CrowdFunding). I cancelled because it was aimed primarily at those with diabetes or family members with diabetes and not as a profit making venture, so they don't really have an exit plan per se. They got a lot of press so it was probably easy for them to reach the limit.

It's been interesting to observe what the market has been deciding is worthy and not worthy of meeting funding goals. Some better ideas have disappointingly attracted very little (Gigmore); some dumber ideas have disappointingly attracted a very lot (Elio Motors). There's been two withdrawals that I'm aware of, the West Virginian Moonshine (failure to meet goal) and the Rocketbook (no idea why but I suspect maybe they didn't want to be on the hook for delivering so many free Rocketbooks to investors).
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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MachineGhost
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Re: Equity Crowdfunding / Startup Investing

Post by MachineGhost » Thu Sep 22, 2016 9:55 pm

Image
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
petergrace
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Re: Equity Crowdfunding / Startup Investing

Post by petergrace » Thu Sep 29, 2016 7:16 am

If one is not earning well then still is it possible for the investors to get them declare as "accredited" investors? To the best of my point of view they can't. Investing in any field is once own right, how can other can interfere in it. Equity crowdfunding is simply a mechanism to enable the broad group of investors to fund start up companies and small businesses in return for equity. Investor simply gives money to a business and receive ownership of a small piece of that business. http://crowdfund.co/equity/
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MachineGhost
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Re: Equity Crowdfunding / Startup Investing

Post by MachineGhost » Thu Sep 29, 2016 11:15 am

petergrace wrote:If one is not earning well then still is it possible for the investors to get them declare as "accredited" investors? To the best of my point of view they can't. Investing in any field is once own right, how can other can interfere in it. Equity crowdfunding is simply a mechanism to enable the broad group of investors to fund start up companies and small businesses in return for equity. Investor simply gives money to a business and receive ownership of a small piece of that business. http://crowdfund.co/equity/
It depends on what kind of regulation a company is raising funds under. The three traditional Regulation D offerings (504,505,506) that have reigned for 80 years are based on self-accreditation and are typically offline opportunities. But the newer Regulation D 506(c) requires accredited verification via a third party. Regulation CrowdFunding and Regulation A+ don't require being accredited at all. These latter three are what dominate the online portals. The SEC may nicely put in a "sophisticated investor" exemption for po' people to take via proctored examinations, but it looks like its stalled.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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MachineGhost
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Re: Equity Crowdfunding / Startup Investing

Post by MachineGhost » Fri Sep 30, 2016 11:38 am

Image
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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