Investing in multiple company “funds”.

Within the crowdfunding community has emerged a trend to set up “funds” that invest in several startups and sell percentage shares of interest in the overall combined “fund”. You get a few sucessful VC’s or Angels who are well known and have done well putting together these funds an doing well as by investing in multiple pre-vetted startups along with these known investors you’re diversifying your investment not risking your total investment on one early venture “seed stage” startups which are riskier and have a very high fail rate. Here’s an example of a current one that’s doing very well on Funder’s Club.

CLICK HERE

Here’s a screenshot showing the three things to note;

  • Campaign is oversold 698% or $3,483,300 pledged so far based upon a $500,000 goal.
  • It’s Listed as a multi-company “fund”
  • It lists two successful VC’s as leading the “fund”

fundersclub

“Invest alongside angel investors Fabrice Grinda and Jose Marin. In past: $30.3M invested across 215 investments. 31 profitable exits; +5.82x multiple on realized investments (65), 5xcarrying value on unrealized investments (150)”

Here’s another excellent example on Angel List

Funds   AngelList

In a recent article in ForbesTanya Prive  wrote this about diversification:

“Instead of putting all your eggs in the same basket make multiple investments. This will increase your possibilities of success and will also help to reduce the risk involved. It will also increase your chances of getting your money back with some returns at a liquidity event such as a public offering or an acquisition by another company. In the end, these investments are for the long run so try to be patient.”

Adam Sharp wrote in his very detailed rundown on Angel List Funds:

“When it comes to early-stage investing, I’ve found there are generally two theories. They boil down to this:

  • Spread out your bets across many promising startups to maximize the chance of hitting a grand slam. Help companies when you can.
  • Focus your investments in a select few startups per year. Then help them succeed.

Billionaire Peter Thiel is a big proponent of the second option, a focused approach. And it’s worked well for the co-founder of Paypal. He sold his early $500,000 stake in Facebook for $1 billion in 2012. That one was good for 2,000 times his investment. He’s made many successful, highly focused investments since.

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Crowdfunding Cannabis: Marijuana Start-ups Get the Capital They Need – CannabisFN

The cannabis industry may be booming in terms of revenue, but marijuana start-ups looking to raise capital face a number of hurdles. The traditional banking sector has shunned the industry, despite the Obama Administration’s attempts to open up access. In 2013, Attorney General Eric Holder created a “reduced prosecution safe harbor” for commercial banks, but that’s a far cry from legalization. Banking executives were quick to point out that prosecutorial discretion only works as long as the administration in power supports non-enforcement – and elections are coming this year. Many venture capitalists and institutional investors have been equally reluctant to invest in the sector. MassRoots Inc.’s (OTCQB: MSRT) treatment at the Consumer Electronics Show (CES) and in previous years at Tech Crunch Disrupt is a sign of just how taboo cannabis start-ups remain in the general public. Of course, there are a few notable exceptions including Peter Thiel’s Founder’s Fund, which invested $75 million in Privateer Holdings. These dynamics forced many companies to pursue one of two options. First, companies can undergo an expensive and time-consuming process to try and raise angel investment rounds from high net worth individuals, but that’s difficult because there’s no good exit strategy without VC involvement. Second, companies can list their stock on over-the-counter exchanges, but that involves regulatory hurdles and high costs associated with auditing and making filings. Regulation A+ Crowdfunding Changes the Game For the past 80 years, only accredited investors that make over $200,000 per year or have at least $1 million in assets (excluding their personal residence) could invest in start-ups and the process was difficult, but the so-called Crowdfunding Act is quickly changing the rules. Title IV of the JOBS Act has opened the door for start-ups to raise up to $50 million from the general public under what is called Regulation A+ Tier 2, which was adopted by the SEC and went into effect in June 2015. While it still costs $50,000 to $100,000+ to audit financials and make regulatory filings, the process is far cheaper than the cost of a reverse merger, SB-1 transaction, or traditional IPO that can cost in the millions of dollars. The cost of remaining a publicly traded company are also much lower with Regulation A+ thanks to fewer mandated SEC audits, regulatory filings and other requirements. “The original Reg A had a state-by-state registration requirement and was prohibitively expensive for issuers,” says Darren Marble, CEO of CrowdfundX. “Reg A+ Tier 2 offerings pre-empt state securities registration, which reduces costs for issuers. More importantly, Reg A+ allows for both unaccredited and accredited investors to invest in private companies, and empowers those companies to market their offerings through the Internet.” Michael T. Williams, an SEC attorney with Williams Securities Law Firm, P.A. noted many other benefits of Regulation A+ compared to traditional S-1 offerings, including:

Continue Reading: Crowdfunding Cannabis: Marijuana Start-ups Get the Capital They Need – CannabisFN

Bay Street Cannabis Brings Equity Crowdfunding to the Cannabis Industry – Crowdfund Insider

We all vote with our money.  Every dollar spent is a vote for this brand over another, this chain, this item, and it speaks volumes about how we think, what we value, and what we want to do. I often wonder if there’s anything I’d do differently if I thought about my ‘votes’ actively and continually.  What would I really want to vote for? This side of the transaction is never really explicit, or hasn’t been, and I think that the cognitive flip of this past decade towards conscientious purchasing is one of the things that originally drew me to equity crowdfunding.  Entrepreneurs can mobilize the crowd, ask them to “vote for me!”, and come out with the resources they need to grow.  That’s the very definition of empowering your audience. The Cannabis industry has a big, bright, and bold future, with legalization picking up steam in Canada, and the current party having been elected with a campaign promise to legalize recreational marijuana use. Stocks surged, testament to investor enthusiasm, and forecasts predicted a potential $5 Billion market. Canada’s Cannabis entrepreneurs are ready to scale up, and Bay Street Cannabis is here to help. So it’s clear that there is the will, interest, and capital available to help the Cannabis industry reach its potential.  Enter equity crowdfunding, and Bay Street Cannabis. Some 43% of Canadians aged 15 or older have used marijuana, according to Statistics Canada, and current use for medicinal reasons is almost an $100M industry on its own.  In essence, the potential for growth is huge, and new entrants into the market are inevitable.

Source: Bay Street Cannabis Brings Equity Crowdfunding to the Cannabis Industry – Crowdfund Insider

XTI Aircraft CEO on Expanding StartEngine Initiative: We Had Received 2,000 Expressions of Interest – Crowdfund Insider

Last month, Colorado-based XTI Aircraft Co. (XTI) announced it has extended its TriFan 600 campaign on StartEngine. This was after the company secured $20.6 million in non-binding expressions of interest. XTI has designed a 6 seater, vertical take-off and landing aircraft that has the potential to provide “unprecedented” air transportation on a personal level beyond anything available today. The TriFan 600 has impressive stats: 400 mph max cruise speed; range of 800 to 1200 miles; max altitude of over 30,000 ft. Sharing details about the extension, XTI founder and chairman David Brody stated: “We had received 2,000 expressions of interest totaling around $20 million when the funding window opened in late January. Many of these have been converted into shares and we now plan to close the first round of equity crowd funding in the middle of April.” Also speaking about XTI’s projects, Brody commented: “I am now focused on the TriFan 600 configuration. I am passionate about aircraft, science and technology. This is going to be a game-changing aircraft that combines the speed, range and comfort of a business jet with the ability to take-off and land like a helicopter.” Brody went on to add that in order to increase XTI’s appeal to investors, the company will offer stakeholders the opportunity to trade their shares on the second market as it expands:

Source: XTI Aircraft CEO on Expanding StartEngine Initiative: We Had Received 2,000 Expressions of Interest – Crowdfund Insider

Krowdster’s Custom Media Lists

Custom Crowdfunding Media Lists

Order custom made media lists tailored to your crowdfunding niche.

✓ Records included: Media lists comprise of 300-500 journalists and bloggers.
✓ Contact information: Outlet Name, First Name, Last Name, Role, Email, Phone, City, State.
✓ Delivery time: 2-3 Business days.
✓ Download format: Excel (.csv)

250X250-medialists

Patronomy – Crowdfunding for Business

consult2-300

With a slew of crowdfunding sites springing up, what makes us different?

With a slew of crowdfunding platforms springing up, what makes us different?

Any new business has to define itself and this applies as much to us as the projects we will host campaigns for.

We want your funding experience not only to succeed but to be as easy as possible.  Not only do we accept a wider range of projects than most sites, but we are flexible to listen to our customers’ requests and suggestions and to act on them as quickly as possible.

We offer a range of campaign types that can be tailored to your individual projects including royalty rewards, ongoing sales and subscription models.

The biggest problem that most campaigns face is building their audience.  We are enabling many thousands of affiliates to promote your projects to the widest possible audience, while giving you the tools to reach and incentivise your own network.

We can offer added value services, such as PR, product, financial and management consultancy, sourcing and logistics from our increasing pool of professional Mentors.

The bottom line is “We want to help you” and so we offer a FREE 2 hours of Consultation for every new project. Click the link below to get started.

More Info Here

Your data, my data, our data

Last Saturday, about an hour after this blog was sent out to readers, I received two strangely similar emails. The first was from CrunchBase and came into my inbox at 9:11am. The subject line read, “CrunchBase Needs What You Know.” The second email coming in only 25 minutes later at 9:36am was from CB Insights and carried the subject line, “top 10 most popular research briefs this week.” Here’s the copy that kicked off each message: From CrunchBase: “In case you didn’t know, you can add information and create profiles for people, startups, companies, investment firms, products, events and more. Crunchbase relies on people like you — more than 90,000 people contributed to CrunchBase in the past year — to keep the crowd-sourced Crunchbase dataset up-to-date.” From CB Insights: “VC firms can now edit their portfolio company data & board data with The Editor.” Both CrunchBase and CB Insights are well-respected financial database companies who know a thing or two about the value of information. And while CrunchBase relies much more heavily on crowdsourced content from users, both companies proactively gather content from the trove of unstructured data floating out on the Internet, compile it in their own databases, and make it useful. This is a kinder way of saying they “scrape the web.” (BTW, I’m not implying what they do isn’t kosher.) It’s pretty clear from their emails that they’d like to augment their web scraping efforts and enlist you to help them. Why? Well, it makes for a better, more valuable, and more defensible business if you happen to be in the business of information (like I am). It’s with this in mind that I decided to put together what I’m calling “The Hierarchy of Data Crappiness.” I have to give credit to Boris Wertz who got me thinking about this concept several weeks ago when I read his blog post on how companies can define their data strategy.

Continue Reading : Your data, my data, our data