Fintech Articles - Fundwisdom.com https://fundwisdom.com/articles en Invest before the IPO - Equity Portals https://fundwisdom.com/article/brian-thopsey/invest-ipo-equity-portals <span property="schema:name">Invest before the IPO - Equity Portals</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>With the influx of initial public offerings (IPOs) and the first day increase in price the question arises for many - How do you get in before, to capture that value creation? Investment banks, "Wall Street" have a monopoly over the IPO process. However, new technological advances are challenging the investment banks' control of the IPO market and could create new channels for investors to pick up shares through early stage financing.  </p> <p><img alt="3 People in front of City View" data-entity-type="" data-entity-uuid="" src="/sites/all/files/cfund//ipo.jpeg" style="float:right;margin:15px;" class="autofloat-odd " /></p> <h2>Initial Public Offerings</h2> <p>An initial public offering is when a private company decides to go public by selling shares of equity to outside investors. This gives companies a way to <a href="/raise-capital">raise money</a> without taking on more debt. When a company decides to go public, they can't just call up retail investors and offer to sell them some shares. The startup must go through several stages before their shares finally reach the public.</p> <p>First, the company needs to find an investment bank willing to set up an IPO. If a company looks extremely promising, big-name banks like JP Morgan, Goldman Sachs, etc., will compete for the opportunity to issue shares.</p> <p>Once an investment bank decides to take on the company, the investment bank splits the value of the company into shares and decides on a price per share in a process known as underwriting. Next, the investment bank divides the shares among a group of banks or other institutional investors to spread around the funding and the risk. Once the institutional investors have gotten their shares, the company's stock will finally go public and retail investors will be able to buy in. The whole IPO process is expensive and time-consuming as this "wedding day" approach can take as much as six months to complete.</p> <h4 dir="ltr">List of top IPOs</h4> <p>by Renaissance Capital<img alt="" data-entity-type="" data-entity-uuid="" src="/sites/fundwisdom.com/files/styles/300x300_fit/public/field/image/alibaba_group_headquarters.jpg" style="margin: 5px;float:right;width:200px;" class="autofloat-even " /><br /><a href="https://www.renaissancecapital.com/IPO-Center/Stats/Largest-Global-IPOs"><img alt="Top IPOs by Renaissance Capital" data-entity-type="file" data-entity-uuid="669e9a6f-fb75-4860-aaf5-b15deb4d05ef" src="/sites/fundwisdom.com/files/inline-images/top-IPOs.JPG" style="width:400px;" class="autofloat-odd " /></a></p> <p dir="ltr">Alibaba Group Holding Ltd. raised a record-breaking $21.8 billion in its IPO. Many investors were dismayed not being able to get the price they were hoping for on the offer. The next record-breaking start-up may already be seeking investment, which will allow investors to get ahead of the pack.</p> <p style="font-size:8pt">Advertisement<br /><a href="https://www.anrdoezrs.net/click-7643827-13557444" target="_top"><img alt="Zacks Trade" border="0" height="90" src="https://www.lduhtrp.net/image-7643827-13557444" width="728" class="autofloat-even " /></a></p> <h3>Marketing the Offering - The Road Show</h3> <p>Most companies will need to spend time promoting and marketing themselves before they'll track down an investment bank willing to issue an IPO.</p> <h2>High Cost</h2> <p>Although IPOs can be an attractive way to gain funding and increase exposure, the IPO process bears a high cost to retail investors and the company looking to list. When a company launches new shares on the stock market it can be a frustrating experience.</p> <p><img alt="" data-entity-type="" data-entity-uuid="" src="/sites/all/files/cfund//10467727_779326325433038_1237808063_n.jpg" style="float:right;width:400px;" class="autofloat-odd " />Since the investment banks allocate shares to other large financial institutions before releasing them to the public, regular investors don't have equal investment opportunities. IPOs regularly run out of shares at the initial price and retail investors can only buy in later at a higher market price.</p> <p>This distorts the market and creates unfair trading opportunities for the institutional investors. Henry Davis, an investor at Index Ventures, points out that "whoever gets shares in an offering is typically carefully selected by the syndicate banks - and who they choose to give shares to can have a meaningful impact on the share price after trading begins." This also <a href="/article/crowdfunding-and-financial-world">c</a>reates a conflict of interest for the banks because the way they decide on an allocation on shares might be more based on their trading profits rather than the best interest of the company going public.</p> <h3>Twitter Example</h3> <p>An example of the problem with unfair issuance happened when Twitter announced it was going public. Fidelity, a brokerage firm with a massive investor base, wanted 23 million shares of Twitter. They were instead only allotted 250,000. Fidelity, an active member in the debate against the IPO monopoly, expressed their frustration after receiving this low number of shares compared with the large demand from their customer-base of retail investors.</p> <p>Once Twitter's shares went on to be traded on public exchanges Fidelity investors eventually owned 22 million shares, but never got a chance to buy in at the price they wanted during the IPO. When major players in the industry are upset, changes have to be on the horizon. Head of equity origination at Fidelity Capital Markets, Hank Erbe, critiques that although technology within finance has flourished over the past decade, "nowhere has technology touched the IPO market. And that is the final frontier."</p> <p>Fidelity "fired warning shots at Wall Street" this June by pitching to venture capitalists and other investors about finding alternative methods to the traditional IPO. The IPO method can be old-fashioned because "Wall Street still has a lock on the way stock offerings work." William Hambrecht of WR Hambrecht was invited for his firms offering of "open IPOs,'' which provide open access to stocks that are going live to the public. Another way that both the individual investor and the entrepreneur can get greater transparency and lower costs is to raise capital through crowdfunding.</p> <p> </p> <h2>Get in before the IPOs</h2> <p><img alt="" data-entity-type="" data-entity-uuid="" src="/sites/all/files/cfund//10502660_903137629702408_1544029086_n.jpg" style="float:right;width:500px;" class="autofloat-even " /></p> <p>Equity Crowdfunding can be used to get a company off the ground in the early stages of its growth and provide retail investors access. IPOs typically come later in the company's evolution - often after early rounds of funding from family, friends, angels and/or venture capitalists. In an equity offering on digital portals, a young company can reach more investors online. Equity Crowdfunding can provide a process for access to shares on a first-come, first-serve basis rather than the predetermined allocation of an IPO. By using equity crowdfunding platforms, like those listed on Fund Wisdom, startups are able to quickly and inexpensively raise capital while small investors can buy into new companies while avoiding the hurdles of IPOs.</p> <p> </p> <p>(photocredit: <a href="http://instagram.com/andreyrus95">Andrey Kozlov</a>)</p> <h3>How it Started</h3> <p dir="ltr"><img alt="Obama Jobs Speech to Joint Session of Congress" data-entity-type="" data-entity-uuid="" src="/sites/all/files/cfund//obama_jobs_speech_to_joint_session_of_congress_0.jpg" style="margin: 10px;float:left;" class="autofloat-odd " /></p> <p dir="ltr"><a href="/about/jobs-act-title-iii">Title III of the Jumpstart Our Business Startups (JOBS) Act</a> was passed to help re-open US capital markets to emerging growth companies. This enabled non-accredited investors to invest and partake in investing in start-up businesses and private firms. This was intended to allow larger groups of people to invest smaller amounts of money, and accordingly, had the potential to enhance entrepreneurs' chances of success, improve economies, and increase job availability.</p> <p dir="ltr">Emerging growth companies (EGCs), which would benefit most from JOBS Act provisions. Firms with high proprietary disclosure costs, such as biotechnology and pharmaceutical firms, increased IPO activity the most. The belief was that these firms were likely to take advantage of the JOBS Act's de-risking provisions, allowing them test the waters before going public.</p> <h2>The Opportunity</h2> <p dir="ltr">Although the evidence presented in this study reveals that the JOBS Act has been successful in encouraging emerging high growth companies to go public, the author also points out that many small firms could still achieve greater operating profits through being acquired rather than depending on organic growth.</p> <p dir="ltr">If you are seeking to invest in businesses before the initial public offering in order to capitalize on high growth firms, you can view the current <a href="/investors">investment opportunities available now</a>. We offer solutions to help find and <a href="/analytics">analyze the next start-up investment</a>.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-11-15T12:00:50+00:00">Fri, 11/15/2019 - 07:00</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=312&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="5VrH6mX_IIDj038CnahNAy9tq0ZaR8LODnUj1-wz274"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/capital-types" hreflang="en">Capital Types</a>, <a href="/tags/raise-capital" hreflang="en">Raise Capital</a>, <a href="/tags/retail-investors" hreflang="en">Retail Investors</a>, <a href="/tags/investment-activity" hreflang="en">Investment Activity</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=312&amp;2=comment&amp;3=comment" token="3nGntmh127buFpYmOmT1TvIc-ruuo4A-H6teSLvP-6U"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Fri, 15 Nov 2019 12:00:50 +0000 Brian Thopsey 312 at https://fundwisdom.com 7 Tips for Raising Money via Equity Crowdfunding https://fundwisdom.com/article/brian-thopsey/7-tips-raising-money-equity-crowdfunding <span property="schema:name">7 Tips for Raising Money via Equity Crowdfunding</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Raising money for an idea is a challenge few succeed at. At Fund Wisdom our goal is to help both entrepreneurs and investors leverage innovative financial technologies to raise capital and improve returns. We interview founders to uncover tips in the process of raising capital using equity funding portals to help you select which platform to use, build your listing, gain further traction to achieve your funding goals, and avoid any pitfalls in the process. In this piece we focus on regulated non-accredited platforms. I connected to Max Weissberg in his outreach on our site regarding his listing. I go through 7 tips he shared from his journey and offer up some commentary on each.</p> <h2>The Listing</h2> <p><img alt="Karaganda on StartEngine" data-entity-type="file" data-entity-uuid="c668d6cf-71da-44b8-8cbf-4b64a7340049" src="/sites/fundwisdom.com/files/inline-images/karaganda%20StartEngine.JPG" style="width:700px;" class="autofloat-odd " /></p> <p>Max Weissberg is listing equity in a film<a href="/%20https%3A//www.startengine.com/karaganda">,</a> <a href="/%20https%3A//www.startengine.com/karaganda">Karaganda, on StartEngine</a>. The film is about Vladimir, a prisoner in a Soviet prison camp on a mission to rescue his wife, also imprisoned in the Karaganda region. The film has already won several awards and raised a round of funding. It was included in the 2014 AFI DGA showcase and won 5 festival awards. It raised <a href="https://www.kickstarter.com/projects/848540308/karaganda"><span class="money">$32,311</span> on Kickstarter</a> across 127 backers. Their listing on <a href="/platform/startengine">Start Engine</a> has raised $149,600 from 205 investors at the time of this being written. They still have 44 days left in the round, so we expect these numbers to grow. On top of building Luftmensch Films, a New York film and television company Max works full time at Viacom as a Producer and Editor. I respect the hustle. </p> <h2>1. Selecting a Platform</h2> <h3>Max</h3> <p>My team and I had never heard of Crowd Equity funding until Startngine reached out and pitched their services. Raising money online? It seemed hard to believe. Like an educated consumer, I researched the platform and others in order to make the best decision. I also spoke with other projects on Startengine. One factor that led us to ultimately to choose Startengine over the others was the fees associated with other platforms. Startengine has no required fees, but charges for rounds of compliance if they exceed three. Wefunder, like Startengine, also has no fees. Republic.co requires $1500 for the Form C compliance and another $1500 for an escrow agent. It turns out Republic didn’t want us anyway because we didn’t have enough of a following. After learning about another project’s problems installing their Facebook pixel on Wefunder, we ultimately went with Startengine.</p> <h3>Brian</h3> <p>An important consideration prior to listing is the type of security you offer whether it be <a href="/article/brian-thopsey/difference-between-debt-and-equity-based-financing-and-investment">debt or equity which we break out some of the pros and cons of each</a>. We focus on equity but our discussion with Max can apply to either.</p> <p>Max discusses fees being a driving factor in his selection. We share side by side view of <a href="/platform-fees">costs associated to entrepreneurs and investors</a>. He also covers a few <a href="/about/jobs-act-title-iii">regulatory requirements from the SEC which we help explain</a>. Each platform has a different vetting process to determine which companies they allow to list their offerings which we detail in each individual listing. We also offer an <a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">independent rating of platforms</a>.</p> <h2>2. Listing on the Platform</h2> <h3>Max</h3> <p>As a filmmaker, nothing I’ve encountered in my professional experience has taught me how to fill out financial forms. Thankfully Startengine has transformed the “Form C” (which is filed with the SEC to officially start a project) into a fill-in-the-text boilerplate. As part of our Form C requirements, we had to figure out what the potential risks were, what our company was worth before seeking funding, and what exactly the shareholders were getting when they invested. For a tech company this is easier to explain; for a film, less so. In some cases, we copied language word-for-word from another (approved) film project on Startengine, yet this wasn’t approved by Startengine’s compliance team. The SEC often changes its requirements, so I learned from Startengine, and we were back to figuring this out for ourselves. Somehow we managed.</p> <p>Crucial, of course, was keeping the costs down. Our expenses were for a CPA to do a required review ($1200) and for the SEC background checks (Total: ~$800). In total, we avoided all of our legal costs as one of our partners is a lawyer. For the most part, as long as one has well-written articles of incorporation for their company, it’s possible to bypass hiring a lawyer in order to launch a project.</p> <h3>Brian</h3> <p>This details some of the hidden costs associated with listing that are difficult to factor in from the outset. Max is lucky to have a team member with legal expertise as that would have added on. We <a href="/investors/services/top-legal-tax-equity-crowdfunding">list a few Legal and Tax experts</a> that specialize in equity funding portals.</p> <h2>3. Marketing the Offering</h2> <h3>Max</h3> <p>Within our first day, we had raised nearly $20k. But I quickly learned that finding investors was not easy. Most if not all of the campaigns use some combination of Facebook and Google ads. Startengine even supplied us with useful set of keywords for targeting on Facebook: “Angel Investors, Accredited Investors, Equity Crowdfunding, and Online Investing.” Also crucial was to have video ads with a “disruptor” – something to cause someone to slow down their scrolling to watch our video. In our case, our most successful disruptor was a mafioso pointing a gun directing at the screen. Unfortunately Facebook has not always approved this ad and others, so we are frequently left to their whims whether we can raise money or not.</p> <p>As it turns out, the SEC has regulations about advertising, namely not to mix financial specifics (115% re-coupment at $100 a share…) with general statements about why the project might be a good investment. At the end of the day, it’s really up to Facebook what gets seen and what doesn’t – for reasons that are seldom consistent.</p> <h3>Brian</h3> <p>Just because you had success with your listing on Kickstarter or have seen some positive initial traction does not guarantee that people will flock to your equity offering. It is helpful to establish a network of potential investors ahead of the listing as Max states <a href="/platform/republic">Republic</a> and others require this. Online advertisers like search engines (Google Max's example), and social platforms (Facebook and Twitter) offer great ways to target potential investors.</p> <h2>4. The Competition</h2> <h3>Max</h3> <p>Generally speaking, few companies are raising money on these platforms. Roughly 60-70 companies are live on Startengine. Currently 49 companies are live on Wefunder, and a few dozen more on the smaller platforms. If you peruse these sites you will inevitably start seeing ads for the campaigns in your Facebook feed. Surprisingly few films have decided to raise money through crowd equity. Based on my own experience, I don’t think many filmmakers know about raising money through crowd equity and are content to use platforms like Kickstarter and Indiegogo that rely on donations instead of investments. There is also the issue with paperwork, which Kickstarter does not require. To distinguish ourselves from the competition, we decided to allow people to see our budgets and script, which few projects, if any, provide.</p> <p>Personally, I think it’s only a matter of time until celebrities start raising money via portals like Startengine, just as celebrities have used Kickstarter to bring attention to their own projects. Thus, anyone who starts a project now will have an easier time than after word starts to spread.</p> <h3>Brian</h3> <p>Max browsed a few of the top regulated non-accredited platforms. We are <a href="/investors/platforms/equity-funding-dashboard">building a dashboard</a> to help you gain insight on that data.</p> <h2>5. Keeping the Energy Going</h2> <h3>Max</h3> <p>One of the hardest things for any campaign is keeping the energy up when little is happening day-to-day. Taking the advice of David Jay Willis, who successfully raised money on both Wefunder and Startengine for his Christmas movie project, we created a contest on Gleam. The prize is to be a an extra in the film and people must visit our startengine page (or follow our Twitter account) to enter. In addition to this, we are actively seeking coverage on influential blogs and beginning discussions with actors who may be in the film. Updates are essential, but because Startengine now reviews every update for compliance issues, it’s difficult to post regular updates that are delayed several days.</p> <h2>6. Hiring the Right Marketing Vendors</h2> <h3>Max</h3> <p>From the very beginning, we were approached by small companies willing to sell us investor lists or do a large email blast on behalf of our projects. Some quick research helped us decide this was not the correct approach. We also briefly hired a Facebook marketing firm that overcharged us and had issues running our ads with the subtitles. After seeing their many mistakes, we decided to fire them. A red flag – which I should have spotted – was the (first) company’s unwillingness to connect us to previous customers. Always do your research. At the moment we are about to hire a new marketing firm to help optimize our ads. </p> <h3>Brian</h3> <p>Finding the right marketing agency can be a challenge while trying to juggle everything else Max has on his plate. Since advertising an equity offering to non-accredited investors is somewhat new these challenges are not surprising. Have a good firm to share that specializes in this feel free to share in the comments.</p> <h2>7. What is on the Horizon</h2> <h3>Max</h3> <p>There’s no doubt that regulation crowd equity funding is here to stay. Startengine claims to have raised more than $100 million and funded more than 275 companies. Wefunder has also crossed the $100 million mark, having funded 312 startups. Despite the benefit the 2016 JOBS act has had on allowing companies like ours to raise money, many issues remain. One investor wanted to invest in our company outside our Startengine offering through a Reg D. But we were forced to reject the investment because he wasn’t an accredited investor, which the law requires, and had already exceeded his allowed investment based on net worth. Despite being a “free” country, our investments are still heavily regulated by the SEC. Thankfully we haven’t spent any money on lawyers to file our Form C and Reg D, but most entrepreneurs will likely not have the patience to sift through the SEC’s unfriendly website.</p> <h3>Brian</h3> <p>Data on the industry is challenging to qualify. I discuss some of the issues in our <a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">rating of top platforms</a> as we <a href="/investors/platforms/equity-funding-dashboard">build the dashboard</a>. I really appreciate Max sharing so much with us. I encourage you to check out his offering: <a href="/%20https%3A//www.startengine.com/karaganda">Karaganda, on StartEngine.</a></p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-11-09T11:23:12+00:00">Sat, 11/09/2019 - 06:23</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=9448&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="-itR0f4yPTtliKzzIN286LiOFqmrX9RAd_lD5d-jUzk"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/capital-types" hreflang="en">Capital Types</a>, <a href="/tags/raise-capital" hreflang="en">Raise Capital</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=9448&amp;2=comment&amp;3=comment" token="QXJEwmPUyXDA5kyUkKwPLUhhuJ9_l-tMYFCSQE5bQYM"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sat, 09 Nov 2019 11:23:12 +0000 Brian Thopsey 9448 at https://fundwisdom.com Crypto Hardware Wallet - Ledger Nano X Review https://fundwisdom.com/article/brian-thopsey/crypto-hardware-wallet-ledger-nano-x-review <span property="schema:name">Crypto Hardware Wallet - Ledger Nano X Review</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p><a href="https://shop.ledger.com/pages/ledger-nano-x?r=10988c46bbfd"><img alt="Ledger Nano X - The secure hardware wallet" src="https://www.ledgerwallet.com/images/promo/nano-s/ledger_nano-s_3-0-0x2-5-0.jpg" style="width:280px;float:right;margin:10px;" class="autofloat-odd " /></a>I’m not able to invest in many of the startup <a href="/investors/companies">offerings</a> we write about due to not being deemed worthy by the <a href="/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity">SEC based upon my income and net worth</a>. It's frustrating as I feel I know a decent amount about financial markets, the technology and strategies the companies employ but that is not what is assessed. So I have been spending more of my time researching cryptocurrency and the blockchain technologies they are built on. I do this as anyone can invest. As I invested time and money into new digital currency offerings I began learning of some of the challenges with this new market. I came across several horror stories of people getting hacked and losing everything from their wallet. So I began looking for a way to improve the safety around storing my digital tokens.</p> <p>After a ton of research I chose a crypto hardware wallet, the Ledger Nano X. I immediately signed up for their affiliate program at the same time as buying the device. Read more to see what is in the box, how to set it up, and some of the challenges I had to overcome to get going.</p> <h3>How do I keep my Cryptocurrency Secure</h3> <p><meta charset="utf-8" />Your US dollars, and many fiat currencies, have a well-established ecosystem to keep your money and wealth comfortable and secure. We have a (rather highly-regulated) banking system to store dollars and transfer them. We have federally-mandated programs like FDIC to insure your bank deposits. And we have technologically sophisticated private sector companies like Visa, Mastercard, and PayPal to facilitate payments with our dollars while countering fraud.</p> <p><meta charset="utf-8" />But this ecosystem has taken nearly a hundred years to achieve, and we find ourselves taking for granted the level of consumer protection we have reached.  The ecosystem is still not perfect, and with innovations in cryptocurrencies come challenges with security.</p> <p dir="ltr" id="docs-internal-guid-bab51e10-7fff-8533-b59c-042db2e2e816">Cryptocurrencies present safe storage challenges  in the form of identity theft and pilfered assets. Some individuals have shared their experiences with these challenges, like <a href="https://twitter.com/AmberBaldet/status/1060714102685863936">Mike Dudas, Ryan Selkis problems with hacks to identity via phone porting</a>. The ecosystem is still being developed, and risks are prevalent. As of 2019, <a href="https://discover.ledger.com/hackstimeline/">over one and half billion dollars worth of cryptocurrency have been hacked</a>. The Ledger Co., a leading manufacturer of cryptocurrency wallets, maintains a striking visual timeline of the major crypto-currency exchange hacks on its website. The escalation of attacks, and their increasing audacity, is all too clear.</p> <p><meta charset="utf-8" />Hacks, fraud, and scams are part of every new cultural and technological revolution. But digital currencies have changed and will continue to change the way we use money. The appropriate response to this change is not to avoid innovation, but to learn how to leverage new developments to ensure your investments are secure.</p> <h3>Cryptocurrency Wallets</h3> <p dir="ltr" id="docs-internal-guid-81428664-7fff-227d-5417-a450c47fb1c7">Nobody, not even Jeff Bezos, likes to lose money. So when you have something of value, like Bitcoin or Ethereum, where do you put it to keep safe? Enter the cryptocurrency wallet. It’s a secure way to store your cryptocurrency assets. If you want to buy and hold cryptocurrency, or use it as a currency to buy and sell products, you need an online wallet account.</p> <p><img alt="Statista Crypto Wallet Usage" data-entity-type="file" data-entity-uuid="6e2960e2-074e-4a27-a3ab-b7db7d7165ee" src="/sites/fundwisdom.com/files/inline-images/wallets%20statista.jpg" style="width:580px;" class="autofloat-even " /></p> <p>Source: Statista, via PC Magazine: <a href="https://www.pcmag.com/roundup/363529/the-best-cryptocurrency-wallets">https://www.pcmag.com/roundup/363529/the-best-cryptocurrency-wallets</a></p> <p dir="ltr">Like Bitcoin, cryptocurrency is decentralized, as in it doesn’t rely on a bank as the central way to store the value. The entire network of bitcoin allows for storage of assets; there is no longer a need for a single institution to be there to protect and oversee it. The benefit is that this helps drive the price down by reducing overhead.</p> <p dir="ltr"><meta charset="utf-8" /></p> <p dir="ltr" id="docs-internal-guid-238118bf-7fff-386f-1b46-571c6d3c9585">There are concerns arising over the storage of your crypto assets in digital wallets. One cannot go to someone for liability to recover stolen assets like you can when you store your money at a bank, so hardware wallets were developed as a measure of added security.</p> <p dir="ltr">When I explain cryptocurrency and blockchain many try to equate it to their banking experience. While in banking you can log in to see the money in your account, your bank account really isn’t anything more than a list of assets which you can control with your password. Cryptocurrency wallets are similar in that your private key unlocks the right for you to buy, sell, or spend your currency.</p> <p dir="ltr">Unlike traditional online banking, however, every transaction made is stored on the blockchain. For your online US dollar checking account, you need to protect your password and your phone.what you need to protect is your password and your phone. For your crypto wallet, you need to protect your password and the keys for your cryptocurrency account.</p> <h2>2019 Leading Wallets</h2> <p dir="ltr" id="docs-internal-guid-ed70a1cf-7fff-b1ac-3adf-e4f007c25455">As the cryptocurrency market has grown, so has the ecosystem around it. Today, there are a number of providers of digital wallets and manufactures of hardware wallets. Below I’ve collected some of the better reviews and commentaries that survey your options:</p> <ul><li><meta charset="utf-8" />Ledger <a href="/%20https%3A//ripplecoinnews.com/top-5-best-cryptocurrency-wallets">rated #1 by Ripplecoinnews</a> (June 2019)</li> <li><a href="https://www.pcmag.com/roundup/363529/the-best-cryptocurrency-wallets">Oliver Rist of PC Mag rates software based wallets</a> placing Coinbase on their list (September 2019)</li> <li><a href="https://coindiligent.com/best-cryptocurrency-wallets"><span class="author vcard" itemprop="author" itemscope="itemscope" itemtype="http://schema.org/Person"><span class="author-name" itemprop="name">Pascal Thellmann</span></span> of Coindiligent rates Ledger #1</a> (August 2019)</li> <li><a href="https://www.buybitcoinworldwide.com/wallets/"><span class="author-name">Jordan Tuwiner</span> of Buybitcoinworldwide writes a very elaborate piece on wallets</a>,  covering Ledger (June 2019)</li> <li><a href="https://www.thebalance.com/best-bitcoin-wallets-4160642">Eric Rosenberg of theBalance ranks Coinbase #1</a> with the only mention of a hardware wallet as Trezor (October 2019)</li> <li><a href="https://coinswitch.co/news/top-10-cryptocurrency-wallets-to-look-forward-to-2019">Anisa Batabyal of Coinswitch</a> ranks Ledger #1 .(August 2019)</li> </ul><h2>Digital vs Hardware Wallets</h2> <p><meta charset="utf-8" /></p> <p dir="ltr" id="docs-internal-guid-1c1ac5db-7fff-6d22-440f-33a52e994eee">A hardware wallet is a physical device that digitally stores your cryptocurrency. The primary reason that you’d have a hardware wallet is to keep your currency isolated so that it cannot be accessed without the physical device. Just like  the cash you hold in your leather wallet, your cryptocurrency cannot be taken from your hardware wallet unless someone physically acquires it, the keys, and your passwords. But unlike a leather wallet, which can simply be opened and your hard-earned bills removed, hardware wallets have a wide range of security features.</p> <p dir="ltr">Many people I’ve tried to explain the concept of a crypto hardware wallet to try to equate it to an Apple Wallet, in that you’re storing a means of payment on a physical device. Apple, Samsung, Google, and others have built mobile applications to store credit card and other payment data for shopping at retailers using your phone. Cryptocurrency hardware wallets instead store value through digital currency like Bitcoin while adding a layer of security to the storage.</p> <h2>Ledger Nano X</h2> <p>I chose to buy the Ledger Nano due to the top rating <a href="https://coinswitch.co/news/top-10-cryptocurrency-wallets-to-look-forward-to-2019">by Anisa Batabyal of Coinswitch</a> and a relationship I just opted into with Ledger to help sell the devices. I look to share both positive and negative experiences from my purchase.</p> <p>Our Review is focused on the Nano X, but I understand the device is very similar to the Nano S with the addition of Bluetooth capabilities.</p> <h2>Unboxing</h2> <p>The Ledger Nano X comes with the USB connector, a getting started booklet, the device itself, and a keychain.</p> <p><img alt="Unboxing Ledger Nano X: Packaging, USB, Keychain, user guide" data-entity-type="file" data-entity-uuid="6784bdb4-2a0e-442e-bf37-2952bf5bb668" src="/sites/fundwisdom.com/files/inline-images/Ledger%20Nano%20X%20Fund%20Wisdom%20with%20box.jpg" style="width:500px;" class="autofloat-odd " /><br />  </p> <p>I have no idea what to do with the keychain as it does not appear to fit well in the loop and I do not intend to carry it around everywhere I go... yet.</p> <p> </p> <h3>Setup</h3> <p>Upon taking the device out the first thing I wanted to do was begin to transfer my coins stored in my Coinbase wallets over to my fancy new hardware wallet. The getting started notebook helps walk you through initial software setup and secret key storage. Ledger provides a space in the getting started booklet to write down each of your secret keys or suggests storing the keys in cold storage. To achieve cold storage you can save txt files on your own external drives, not connected to the internet, or use services like Amazon Glacier and Google Coldline. Cold Storage means that the file is offline, physically separated from being connected to the Internet. The Ledger site offers more <a href="https://www.ledger.com/welcome-to-digital-asset-custody-a-city-of-trade-offs/">detailed instructions and background on this topic, digital asset custody</a>. </p> <p>You could just write the key combo on the notebook, Ledger provides, and store it somewhere safe in your home, which is what I did. Keeping your keys online, storing your password in a file on your laptop, or connected cloud service can be unsafe. Each way can be, and increasingly is, hacked.</p> <h3>Installing apps</h3> <p>In order to store or trade any cryptocurrency each token requires a different application to be downloaded and installed on the device. After installing Ledger Live I had to go through and install Bitcoin, Ethereum, Zcash, Stellar, and Tezos.</p> <p>This was when my experience began to fall apart. I multi-tasked while installing and connecting my accounts as there was a loading wait time through a few steps. This slowed everything down. When I would take my attention away, waiting for a download or install, I would need to re-enter the password into the ledger device every time. I am new to the whole process so likely there are better ways to manage, but it started to drive me crazy using the interface and the two small buttons to enter the 8 digit code every time I turned away.  </p> <h3>Buy &amp; Trade Cryptocurrencies</h3> <p>I prefer to leverage the Coinbase platform because of the Coinbase Earn program. You can <a href="https://www.coinbase.com/join/thopse_0">earn $10 by signing up</a> for an account, and in the Earn program you can collect well beyond the $10 by watching educational videos on new coin offerings.</p> <p><a href="https://www.coinbase.com/join/5c93d7f14a0e7f025ef2d57c"><img alt="Coinbase Buy and Sell Etherium, Lightcoin, Bitcoin, and other Cryptocurrencies" data-entity-type="file" data-entity-uuid="76eec8a2-b302-4fca-8d24-0c04fbf45230" src="/sites/fundwisdom.com/files/inline-images/coinbasebanner1.jpg" style="width:280px;float:right;margin:10px;" class="autofloat-even " /></a></p> <h3>Trade offs: Cost, convenience</h3> <p dir="ltr" id="docs-internal-guid-bfdc2c44-7fff-b1c9-6486-9347c19c0b47">I’ll be honest - it was a pain to have to continually enter the codes. Plus, there is a transaction cost to move from your trading platform wallet, like Coinbase Wallet, to the ledger wallet address.</p> <p dir="ltr" id="docs-internal-guid-110951f3-7fff-3acf-6444-4d7ead7bef73">I haven’t had to engage with Customer Support at all yet, but I did end up crashing the device, which required a repair.</p> <h2>Conclusion</h2> <p><meta charset="utf-8" /></p> <p dir="ltr">The independent ratings, security, broad range of currencies available, simplicity, comfort of going with an established company, and my relationship with Ledger, allow me to recommend the Nano X. I would just qualify my recommendation by factoring in the total amount and number of currencies being stored.</p> <p dir="ltr">3 independent authors that rate Ledger number 1 wallet, so it is not just my opinion. If you <a href="https://shop.ledger.com/pages/ledger-nano-x?r=10988c46bbfd">Buy a Ledger Nano</a> we look forward to hearing about your experience in the comments below.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-11-06T23:29:09+00:00">Wed, 11/06/2019 - 18:29</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=9254&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="5rQZ9MxXhOG6t-CDTfSTK8vYBU0S-fAD5D7oX0ynXm0"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/blockchain" hreflang="en">Blockchain</a></div> </div> <div id="comment-section"> <div class="comment-number post-section-title"> <span> Comments</span> </div> <div class="title-line"></div> <div id="comment-container"> <div> <article class="comment byuser comment-author-admin bypostauthor even thread-even depth-1" id="li-comment-10"> <div class="comment-entry" > <div class="comment-avatar"> <article class="simpnews-user-info"> <div class="field field--name-user-picture field--type-image field--label-hidden field__item"> <a href="/user/0" hreflang="und"><img src="/sites/fundwisdom.com/files/styles/thumbnail/public/default_images/person_8x10.png?itok=5xxcXpg4" width="80" height="100" alt="Profile picture for user Ernest O&#039;Malley" typeof="foaf:Image" /> </a> </div> </article></div> <div class="comment-info"> <div class="comment-author"> <span rel="schema:author"><span lang="" typeof="schema:Person" property="schema:name" datatype="">Tony (not verified)</span></span> </div> <div class="comment-date"> Sun, 10/13/2019 - 04:20 <span property="schema:dateCreated" content="2019-10-13T08:20:14+00:00" class="hidden"></span> </div> <span class="comment-reply"> <drupal-render-placeholder callback="comment.lazy_builders:renderLinks" arguments="0=133&amp;1=default&amp;2=en&amp;3=" token="w2cn2KemNXbKcbluYKDf4AYeksbKx43Mch6xxCgT4c4"></drupal-render-placeholder> </span> <span class="comment-content"> </span> <div class="comment-content content"> <div property="schema:text" class="field field--name-comment-body field--type-text-long field--label-hidden field__item"><p>I find it hard to pick a winner of the best crypto hardware wallets. I do like Trezor which I started out with. But moved to Ledger when the S came out. Like this review says it is hard to make out just one winner <a href="https://gocryptowise.com/5-of-the-best-crypto-hardware-wallets/">https://gocryptowise.com/5-of-the-best-crypto-hardware-wallets/</a>. Can you own several hardware wallets or is that just stupid?</p> </div> </div> </div> <div class="cleared"></div> </div> <!-- End Comment entry--> </article> <div class="indented"><article class="comment byuser comment-author-admin bypostauthor even thread-even depth-1" id="li-comment-10"> <div class="comment-entry" > <div class="comment-avatar"> <article class="simpnews-user-info"> <div class="field field--name-user-picture field--type-image field--label-hidden field__item"> <a href="/users/brian-thopsey" hreflang="en"><img src="/sites/fundwisdom.com/files/styles/thumbnail/public/pictures/me2.PNG?itok=qR2OZ0r7" width="76" height="100" alt="Profile picture for user Brian Thopsey" typeof="foaf:Image" /> </a> </div> </article></div> <div class="comment-info"> <div class="comment-author"> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> </div> <div class="comment-date"> Mon, 10/21/2019 - 19:00 <span property="schema:dateCreated" content="2019-10-21T23:00:22+00:00" class="hidden"></span> </div> <span class="comment-reply"> <drupal-render-placeholder callback="comment.lazy_builders:renderLinks" arguments="0=134&amp;1=default&amp;2=en&amp;3=" token="b8Gdy_Xu6C-VHVNbAGigBASjYnCZ5UfRMAMIkeeUsFg"></drupal-render-placeholder> </span> <span class="comment-content"> </span> <div class="comment-content content"> <div property="schema:text" class="field field--name-comment-body field--type-text-long field--label-hidden field__item"><p>Feels like overkill to own several.</p> </div> </div> </div> <div class="cleared"></div> </div> <!-- End Comment entry--> </article> </div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=9254&amp;2=comment&amp;3=comment" token="qOCem9hhrNAM-GSc7GuGyQ1IFFkyLcY9yE97o-J3-gE"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Wed, 06 Nov 2019 23:29:09 +0000 Brian Thopsey 9254 at https://fundwisdom.com Institutional Investors in Equity CrowdFunding Portals https://fundwisdom.com/article/brian-thopsey/institutional-investors-equity-crowdfunding-portals <span property="schema:name">Institutional Investors in Equity CrowdFunding Portals</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The world of equity funding portals and online marketplace lending continues to attract the attention of institutional investors, and their involvement in the industry appears poised to grow. I review market insights, venture and enterprise adoption, and how it affects everyday retail investors to provide insight to what large institutions think about the burgeoning sector, and where we are headed.</p> <p><img alt="London Skyscraper" height="400" src="/sites/all/files/cfund//london_0.jpg" style=" margin:10px" width="600" class="autofloat-odd " /></p> <h2>Market Insights</h2> <p>According to <a href="/investors/innovative-venture-reports/university-cambridge">University of Cambridge &amp; Chicago Booth School with KPMG &amp; CME Group</a> 21 percent of Equity Crowdfunding comes from institutional investors. This report was published in 2019.  The authors state, "institutional funders continue to drive alternative finance volume throughout the industry – and this is especially true in debt models. 88% of overall funding generated in the USA came from institutional funding – accounting for $37.6 billion." Equity is much smaller percentage compared to other alternative financial sectors that are more mature.</p> <p><img alt="Alternative investing table - Proportion of Funding from Institutional Investors, 2015-2017" data-entity-type="file" data-entity-uuid="2639afe2-6d16-47d5-9309-22aeed1117ac" src="/sites/fundwisdom.com/files/inline-images/15-to-17-data-ucambridge.JPG" width="600" class="autofloat-even " /></p> <p dir="ltr">Richards Kipped &amp; Orbe LLP and Wharton FinTech have <a href="http://www.rkollp.com/newsroom-publications-389.html">released</a> their 2016 Survey of US Marketplace Lending, which surveyed more than 300 institutional investors. Optimism abounds for the future of marketplace lending, with more than 80% of those surveyed believing that a bright future lies ahead. Those surveyed did express some concern about the future of the regulatory environment, and a good majority of respondents believe that a round of consolidation is likely on the horizon. I was not able to find an updated version of the report for 2018.</p> <p dir="ltr">“The unchecked optimism toward this industry, combined with the fact that it is still maturing, makes it an interesting one to watch, particularly for institutional investors that sense opportunity,” <a href="http://www.rkollp.com/newsroom-publications-389.html">said the Wharton Fintech President</a>, Uday Seth.</p> <p dir="ltr">While the report points to a prevailing sense of opportunity amongst the institutional investor crowd, not all professional investors are fully on board. A recent post on the <a href="http://www.forbes.com/sites/martinzwilling/2016/05/18/professional-investors-qualms-about-crowdfunding/#36da5b985423">Forbes</a> website outlined some of the concerns from the ‘I’m smarter than you’ crowd, which included the inexperience of crowdfunding investors, as well as the increased risk of startup investing.</p> <h3>Wall Street</h3> <p>Several <a href="https://next.ft.com/content/9df0f2a0-8fa3-11e5-a549-b89a1dfede9b">former big players</a> on Wall Street have have left their posts to focus on Fintech investments. Included among the old guard that have a newfound interest in the financial technology sector are former Citigoup CEO Vikram Pandit, and John Mack, the former CEO of Morgan Stanley. Both of the former Wall Street heads have made substantial investments in the sector, which points us to the potential that the emerging industry presents. <img alt="" height="272" src="/sites/all/files/cfund//cbinsights_fintech_investment.png" style="float: right; margin: 10px;" width="301" class="autofloat-odd " /></p> <p>Vikram Pandit invested in TransferWise, the cross-border payments company,  CommonBond, an online provider of student loans, and PeerIQ the credit risk assesment firm. He was among a group of investors, including former Goldman Sachs co-president Jon Winkelried, who put $2.7m into Orchard, a data and infrastructure provider for the marketplace lending sector. He also invested in MMKT Exchange, which is developing technology to improve liquidity in the secondary market for loans. He is now investing through the Atairos Group and The Orogen Group, independent private companies focused on supporting growth-oriented businesses. Atairos was launched in 2016 with more than $4 billion in committed capital. John Mack has invested and is on the board of LendingClub which he owns 2.4 million shares of and took part in a $10M funding round for credit rating startup New England Funding Technologes (NEFT). He is also an investor in Orchard along side Pandit. He invested in Dataminr, which analyses social media to create alerts for traders.</p> <h3>Venture Capital Firms</h3> <p>AngelList Syndicates are attracting top tier venture capital firms Sequioa (Lifx), Andreessen Horowitz (uBiome), Khosla Ventures (OpenDoor), Accel Partners (Gametime). These firms are qualified as top firms <a href="https://www.cbinsights.com/blog/venture-capital-peer-rankings/" target="_blank">according to CBInsights report</a> of General Partners ranking one another. Syndicates employ a market design feature that divides labor among participants. Lead investors conduct due diligence and monitor progress on behalf of those backing the syndicate. The lead investors and entrepreneuers endure  reputation and financial penalties for poor performance and enjoy rewards for positive performance. As Christian Cailini of MIT states, this aligns the incentives of leads, backers and entrepreneurs in a manner that directly addresses information asymmetry problems.</p> <h3>AngelList Syndicates</h3> <p><a href="https://csc-upshot.vc/">CSC Upshot Ventures</a> based in Palo Alto, CA. managed by <a href="http://honecap.com/">Hone Capital</a> (a subsidiary of the CSC Group) and Upshot Ventures, is a premier early stage venture fund concentrating on offering seed capital to tech companies at scale. The CSC Group, the fund’s largest investor is one of China’s top private equity firms committing a generous investment of $400M for startups on AngelList (2015). The first $100M was deployed through the VC fund CSC Upshot. In close partnership with AngelList the two subsidiaries have forged a new model of venture investing based on the needs of founders, investors and startup communities. Several AngelList officers also advise this fund.</p> <p>Maiden Lane based in San Francisco has worked with over 125 individual angel investors and invested in 300 startups since launching in 2014. The Funds investors include Top Tier Capital and Makena. In partnership with AngelList and Accomplice they launched <a href="https://angle.co/">Angel Funds</a>. Maiden Lane invests $35M from their Limited Partner commitment.</p> <p><a href="https://angel.co/e-merge">E-Merge</a>: a 3 partner Angel Fund based in Brussels. The company was founded in 1998, E-Merge has made 40 plus direct early stage investments mostly as lead investors (25+ in the EU &amp; 15+ in the US) and 200+ investments through AngelList Syndicates. The companies preferred business models are SaaS and Marketplaces. Their main areas of interest are E-Commerce Infrastructure &amp; Internet Infrastructure (with a special focus on payment systems), SMB services, Autonomous Vehicles (especially flying ones), and NewSpace opportunities (CubeSats services). Since 2016 E-Merge invests exclusively through via the AngelList Platform.</p> <p><a href="https://zpx.io/fund/zpx_ka_fund?ui_action=newsletter">ZPX KiloAngel</a>: is a premium Silicon Valley (SV) seed fund opportunity that ZPX is collaborating on with AngelList and Kilowatt Capital, a leading SFO-based proprietary investment firm. KiloAngel has been invited to become an Angellist platform seat-holder, which guarantees KiloAngel access to all deals, pro rata allocations, and data, as well as to operational, administrative, and advisory services. This allows KiloAngel to use AL’s proprietary data filters, syndicate lead system and compliance services to scale investments across a large number of start-ups in an efficient manner.</p> <p><a href="https://angel.co/funds">AngelList</a> and Access Funds: one investment grants an investor access to 200 startups. Investors receive exposure to multiple sectors, stages and geographies. Several funds under $15M, raised from investors on AngelList and managed by AngelList Advisors. Funds invest in deals negotiated and led by a select group of angels and venture capitalist firms.</p> <h3>Enterprise Adoption</h3> <p>Some large global businesses have tried the equity crowdfunding model. Indiegogo launched an equity based portion of their crowdfunding platform in partnership with <a href="/platform/microventures">Microventures</a> in November 2016. They were offering Title III investments to non accredited investors at as little as $100. After a few years Indiegogo ended up shutting the partnership down. Digital Federal Credit Union (DCU) opened up their own platform, <a href="/platform/growthfountain">Growth Fountain</a>. DCU is the 14th largest Credit Union in the US according to MX.</p> <p><img src="/sites/fundwisdom.com/files/field/image/NYC.jpg" style="width:600px;" class="autofloat-even " /></p> <h3>Retail and Non Accredited Investors Learn from Professionals</h3> <p>While institutional investors have some concerns about the future of the regulatory environment and the risks associated with crowdfunding, we’ve gained a little bit of clarity on how things will start to play out on the individual investor side. Title III of the Jobs Act <a href="http://fortune.com/2016/05/16/title-iii-jobs-act/">came into effect</a>, and with that comes the removal of the handcuffs from individual investors.</p> <p>Previously, accredited investors had the pick of the litter when it came to investing in the next big thing, while the little guy was forced to sit on the sidelines and patiently wait for an IPO that would likely be out of his reach. With the new rules, individuals can invest up to $2,000 in exchange for equity. Startups will also benefit from the new rules, to the tune of now being allowed to raise up to $1 million per year via crowdfunding. For those itching to get in the game and ready to put their $2,000 to work for them.</p> <p>Sifting through offerings and information available in this alternative financial technology market can be time consuming, and sometimes leave you walking away even more confused. At FundWisdom we make it easy to navigate the various <a href="/platform">platforms, costs, </a>and <a href="/platform">trends</a>. </p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-11-06T04:22:57+00:00">Tue, 11/05/2019 - 23:22</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=5673&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="NyLGISgUz8ics1chBe4GkhxKH2LoDBBEte3KfcyOTvI"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/analytics" hreflang="en">Analytics</a>, <a href="/tags/retail-investors" hreflang="en">Retail Investors</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=5673&amp;2=comment&amp;3=comment" token="Obuxi1n9fV2rasAXlP8ggNF2LXqK4EdVyUqRDoa4TkI"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Wed, 06 Nov 2019 04:22:57 +0000 Brian Thopsey 5673 at https://fundwisdom.com The Top 10 Equity Crowdfunding Portals 2019 https://fundwisdom.com/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019 <span property="schema:name">The Top 10 Equity Crowdfunding Portals 2019 </span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>"<em>You're not going to get rich renting out your time. You must own equity - a piece of a business - to gain your financial freedom." </em><span style="font-size:9.0pt">Naval Ravikant</span></p> <p>For most of us investing in startup companies presents a challenge. The <a href="/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity">JOBS Act </a>didn’t democratize access to these exciting investments as promised. Several platforms have been built and are slowly improving access, but the overall market is tiny and challenges are abundant. Our research to rank the platforms may surprise you. </p> <p>At Fund Wisdom, we provide market insights so that investors, fund managers, entrepreneurs, and analysts can make informed decisions, accessing the best opportunities available. We have found that collecting and analyzing data in this space presents some unique challenges, unlike public equities that have solutions like Bloomberg, <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.41904108&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" tabindex="-1" target="_blank">MarketXLS</a> and independent analysis like <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.141863100&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" tabindex="-1" target="_blank">Motley Fool</a>. My goal is to share the research and data behind our ranking system of top equity <a href="/investors/platforms/equity-crowdfunding-investing-portals">funding portals</a> on a regular basis. Any feedback in the comments or direct <a href="/contact">contact</a> will go into the next ranked list we produce to continually improve.</p> <h2>Equity Investing Portal Market</h2> <p><a href="https://pitchbook.com/media/press-releases/us-venture-capital-investment-reached-1309-billion-in-2018-surpassing-dot-com-era">According to research from PitchBook</a>, in 2018 US Venture Capital reached $130.9 billion, and <a href="https://pitchbook.com/media/press-releases/record-unicorn-financings-drove-2017-total-venture-capital-investments-to-84-billion-the-largest-amount-since-dot-com-era">2017 was $84 billion</a>. While in all of the Americas equity crowdfunding is only 0.3 percent of that number according to the University of Cambridge’s Center for Alternate Finance. The Center produces a report on equity based funding and shares in <a href="/investors/platforms/equity-crowdfunding-investing-portals"> </a><a href="/investors/innovative-venture-reports/university-cambridge">2017 $260.9 million was funded</a> in the Americas.</p> <h2>Accredited Investing Portals and “Equity Crowdfunding”</h2> <p>If you’re one of the 92 percent of the US population that is not an “<a href="/investors/types/accredited-qualified-purchaser-investing">accredited investor</a>” and you look to invest in exciting new companies it may not be clear where to start and how to get involved. In a world of swirling stories of spectacular successes (and failures), a myriad of new investing portals, and a constantly changing landscape, it’s not always clear where to go and who to trust.</p> <p>Investing portals started out by serving only accredited investors. <a href="/platform/equitynet">Equitynet </a>was founded in 2005 and not long after rewards-based crowdfunding grew in popularity. Kickstarter was founded in 2009 and not long after dozens of equity-focused investing platforms started to appear. <a href="/platform/angellist">AngelList</a> was founded in 2010 and <a href="/platform/wefunder">Wefunder</a> in 2011, as a few examples. The creation of <a href="/about/jobs-act-title-iii">Title III in the JOBS Act</a>, in 2016, helped to provide access for non-accredited individuals to invest in a small set of offerings. The list of unaccredited portals and listings has since grown, so we break out our rank for accredited investing portals and non accredited regulated equity crowdfunding portals.</p> <h2>How We Built the List</h2> <p>The <a href="https://www.sec.gov/dera/data/crowdfunding-offerings-data-sets">US SEC EDGAR</a> database provides a centralized resource for public filing information. It provides transparency but the data is not quality controlled or organized, and no public government-funded reporting system currently exists. <meta charset="utf-8" />We built a database and identified others that provide information on how much money is moving through today’s equity portals.</p> <p>Different vendors, portals, analysts, and academics provide excellent insights and reports to compare our findings. Organizations such as <a href="https://www.crowditz.com">Crowditz</a>, <a href="https://www.startengine.com/blog/category/equity-crowdfunding-index/">StartEngine Index</a> and academic efforts such as the <a href="/investors/innovative-venture-reports/university-cambridge">University of Cambridge’s Center for Alternate Finance</a> were integral in performing this analysis.</p> <p>We're focused on equity crowdfunding and have excluded portals focused on debt (loans), real estate, and reward-based crowdfunding (like Kickstarter). Put simply, we're looking for the <meta charset="utf-8" />opportunities available to anyone to buy shares of a company, just like buying stock on an established exchange. We built a <a href="/investors/platforms/equity-funding-dashboard">dashboard to showcase our live data</a>.</p> <p dir="ltr" id="docs-internal-guid-2524bbb8-7fff-fa2c-cb7d-44d2bb90ae08">Additionally, we’re focused on opportunities in the United States. There is a large and growing equity crowdfunding market in the UK and Europe, Asia, and Latin America, and while we’re not there yet, we’re looking to eventually broaden our scope into these markets.</p> <h2>Top 10</h2> <p>We break our ranking out into 2 sections those focused on wealthy, accredited investors, and those that are focused on average retail investors that are not wealthy enough  to qualify as an “<a href="/investors/types/accredited-qualified-purchaser-investing">accredited investor</a>.” We look to rank based upon data in order to be less subjective than the other lists we have read. We will continue to add factors to this list as we test input and feedback like our 5 star system.</p> <h3>Unaccredited Equity Crowdfunding Portals</h3> <p><meta charset="utf-8" />What are the largest equity portals based on actually funded campaigns and equity crowdfunding statistics in 2018? The table below ranks the top 10 unaccredited equity crowdfunding portals based on campaigns funded in 2018.</p> <p> </p> <p><a href="/investors/platforms/equity-funding-dashboard"><img alt="2018 Top Equity Crowdfunding Sites, Platforms, Portals, Investing Engines" data-entity-type="file" data-entity-uuid="e0a4d26a-95f8-4e9d-9a8a-98d912f44def" src="/sites/fundwisdom.com/files/inline-images/2018-funding-ecf.PNG" style="width:600px;" class="autofloat-odd " /></a></p> <p> </p> <table align="left" class="Table" style="width:182.0pt; border-collapse:collapse; margin-left:6.75pt; margin-right:6.75pt; border:none" width="243"><tbody><tr style="height:16.0pt"><td nowrap="nowrap" style="border:none; border-bottom:solid windowtext 1.0pt; width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b>Portal</b></span></span></p> </td> <td nowrap="nowrap" style="border:none; border-bottom:solid windowtext 1.0pt; width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b>2018 Funded</b></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/wefunder"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Wefunder</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$25,800,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/startengine"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">StartEngine</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$17,900,000 </span></span></p> </td> </tr><tr style="height:4.5pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:4.5pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/seedinvest"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">SeedInvest</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:4.5pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$13,900,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/republic"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Republic</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$8,100,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/nextseed"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">NextSeed</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$4,900,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/microventures"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Microventures</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$4,400,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/netcapital"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">NetCapital</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$2,900,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/fundanna"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Fundanna</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$2,300,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/trucrowd"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">TruCrowd</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$500,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/growthfountain"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Growth Fountain</span></span></a></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">$300,000 </span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:121.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="162"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b>Total:</b></span></span></p> </td> <td nowrap="nowrap" style="width:60.5pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="81"> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b>$81,000,000 </b></span></span></p> </td> </tr></tbody></table><p><meta charset="utf-8" /></p> <p dir="ltr" id="docs-internal-guid-0e8a5603-7fff-6ddc-4dc0-d36173c83508">In 2018, the top three portals combined for 71 percent of the total funded by all portals, with Wefunder and StartEngine combined for just over half (at 54 percent) of the total, and Wefunder alone responsible for 32 percent of the market.</p> <p dir="ltr"> </p> <p dir="ltr">Note that the total amount raised ($81 million) in 2018 is close to the estimate provided by StartEngine in their publications about industry volumes, and it also corresponds to the industry data publicized by Crowdfund Capital Advisors. The commonality between the three sources gives us confidence that our data is, at least, roughly accurate. Also, for those wondering why some large and well-known portals like Fundable (which claims to have raised just over $500 million since they launched) are absent from this list, we remind you that we’re focused on the non-accredited market, and Fundable admits only accredited investors.</p> <p dir="ltr">Some portals hold funds in escrow during the funding process and may ultimately return funds to investors for several reasons. For this analysis, we look at assets raised for funded projects through online portals available to all investors.</p> <p dir="ltr" id="docs-internal-guid-ea2d30fa-7fff-30ff-e061-78061cfad0db">Sherwood Neiss of Crowd Capital Advisors did a great review mid-way through <a href="https://venturebeat.com/2018/06/09/todays-best-crowdfunding-platforms-by-the-numbers/">2018 of the industry and top providers along with Venture Beat</a>. This is particularly useful as he breaks down the number of deals funded and the success rate.</p> <h4>2019</h4> <table align="left" class="Table" style="width:164.6pt; border-collapse:collapse; margin-left:6.75pt; margin-right:6.75pt; border:none" width="219"><tbody><tr style="height:16.0pt"><td nowrap="nowrap" style="border:none; border-bottom:solid windowtext 1.0pt; width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p align="center" style="text-align:center; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b><span style="color:black">Portal</span></b></span></span></p> </td> <td nowrap="nowrap" style="border:none; border-bottom:solid windowtext 1.0pt; width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="center" style="text-align:center; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b><span style="color:black">2019 Funded</span></b></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/wefunder"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Wefunder</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$9,900,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/startengine"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">StartEngine</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$5,600,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/republic"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Republic</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$3,100,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/netcapital"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">NetCapital</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$2,200,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/seedinvest"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">SeedInvest</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$1,700,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/microventures"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Microventures</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$800,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/nextseed"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">NextSeed</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$400,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/trucrowd"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">TruCrowd</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$300,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/fundanna"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Fundanna</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$200,000 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p style="margin:0in 0in 0.0001pt"><a href="/platform/growthfountain"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Growth Fountain</span></span></a></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><span style="color:black">$0 </span></span></span></p> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> </td> </tr><tr style="height:16.0pt"><td nowrap="nowrap" style="width:84.6pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="113"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b><span style="color:black">Total:</span></b></span></span></p> </td> <td nowrap="nowrap" style="width:80.0pt; padding:0in 5.4pt 0in 5.4pt; height:16.0pt" valign="bottom" width="107"> <p align="right" style="text-align:right; margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif"><b><span style="color:black">$24,200,000 </span></b></span></span></p> </td> </tr></tbody></table><p> </p> <p>The first three months of 2019 have a similar ranking, with Wefunder and StartEngine in the top two slots, but Republic has risen to third while SeedInvest has fallen to 5th. Volumes are up year-on-year however, with a little over $21 million raised in the first quarter of 2018 versus just over $24million in 2019. Should the higher volumes continue, 2019 could see non-accredited equity investment top $100million. We are building a <a href="/investors/platforms/equity-funding-dashboard">dashboard to view this analysis on a quarterly basis</a> and review further break outs of information we collect.</p> <p> </p> <p> </p> <p> </p> <h3> </h3> <h2> </h2> <h3>Accredited Equity Investing Portals</h3> <h4>2019</h4> <p>It is no longer possible to publicly access accredited investing offerings through portals as was historically possible. We were able to collect data across a broad set of platforms when this was the case so ranking these objectively becomes a challenge.</p> <p> </p> <p><a href="/investors/platforms/accredited"><img alt="Accredited top 10" data-entity-type="file" data-entity-uuid="ce08610a-622d-4a5b-9876-99a27c9c7165" src="/sites/fundwisdom.com/files/inline-images/accredited%20top10.JPG" style="width:300px;" class="autofloat-even " /></a></p> <p><a href="/investors/platforms/accredited">View our current list</a></p> <h4>Historical</h4> <p>Below is a table we built in 2015 to review accredited only funding portals, prior to Title III of the JOBS Act getting passed. Note though that this data is guiding but cannot be relied upon due to issues we detail in the report.</p> <p><img alt="" src="/sites/all/files/cfund//screen_shot_2015-02-04_at_10.04.29_am.png" width="400" class="autofloat-odd " /></p> <h2><a href="/article/brian-thopsey/online-venture-investing-data-and-analytics-2014-2015"><strong><img alt="" src="/sites/all/files/cfund//platforms_by_market_share.jpg" width="500" class="autofloat-even " /></strong></a></h2> <p>We share this <a href="/article/brian-thopsey/online-venture-investing-data-and-analytics-2014-2015">detailed analysis from 2014 - 2015</a> because at the time the information on funding rounds was much easier to gather as it was mostly public. We collected performance data across accredited focused portals.</p> <p dir="ltr" id="docs-internal-guid-4a2d208b-7fff-46e6-a5c4-a4792c087ce5">There are a number of challenges we faced trying to summarize funds raised by accredited equity portals. For example, money can be raised outside of the portal, but over time many portals referenced the entire round raised by the business, not just what was transacted online through the platform. We look to measure the impact the platform has on the investment process and separate that from traditional funding channels. We showcase a few examples below from our dashboard:</p> <p><a href="/investors/companies/old"><img alt="Companies Funded screenshot accredited" data-entity-type="file" data-entity-uuid="6acf6f0a-7cb1-42fc-b3fc-c7c324f844d2" src="/sites/fundwisdom.com/files/inline-images/old%20listings.PNG" style="width:500px;" class="autofloat-odd " /></a></p> <p><strong>External Ranks Referenced</strong></p> <ul><li><a href="https://www.thebalancesmb.com/top-biggest-equity-crowdfunding-sites-985234">The Balance's rank of top Equity Crowdfunding sites</a></li> <li><a href="https://www.moneycrashers.com/equity-crowdfunding-sites-investors-entrepreneurs/">Brian Martucci of MoneyCrashers top 10</a></li> <li><a href="https://www.merchantmaverick.com/the-7-best-equity-crowdfunding-sites-for-businesses-and-entrepreneurs/">Merchant Maverick's top 7 Equity Funding sites for Businesses</a></li> </ul><p><meta charset="utf-8" />Another area we’re providing further insights into is the investment funds or syndicates established by portals and the effects they have on the market. We’re working to uncover additional data to improve <a href="/investors/platforms">our accredited investment portal rank </a>soon.</p> <p> </p> <h2>Evolution of the Rankings</h2> <p style="margin:0in 0in 0.0001pt"><span style="font-size:12pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">I</span></span>n the chart below, we plotted the percent market share that each platform held each month for the last 15 months (the 12 months of 2018 and the first three months of 2019).</p> <p><img alt="Equity Crowdfunding over time" data-entity-type="file" data-entity-uuid="b5beed52-5e49-4d7f-b827-a98cb3d867ed" src="/sites/fundwisdom.com/files/inline-images/equity-crowdfunding-overtime.png" style="width:800px;" class="autofloat-even " /></p> <p>Wefunder maintained a commanding lead, only raising less than StartEngine in November and January of 2018. Wefunder commands a large presence in the market. SeedInvest looks to have steadily lost market share, beginning in the second half of 2018. That share seems to have been taken up by StartEngine and, to a lesser extent, by Republic.</p> <p>Perhaps the anticipation of the merger of SeedInvest and Circle is responsible for Seedinvest's lost market share. Circle is one of the leading cryptocurrency firms. There is a possibility that once merged, the combined entities will have greater reach in both of their specialties, creating a true synergy. That has yet to be realized. Reportedly, SeedInvest will remain (at least for the time being) a separate entity focused on raising capital, presumably adding opportunities in the cryptocurrency space in time. However, mergers often have unexpected consequences, both good and bad.</p> <p>The equity crowdfunding market has been, and remains, dominated by Wefunder, StartEngine, and SeedInvest, with the three combining for just over 70 percent of the market in both 2018 and the first quarter of 2019. For non-accredited investors looking to buy equity, these are the portals with the volume, but that doesn't necessarily mean value.</p> <h2>Innovative Startup Investing 2019 and Beyond</h2> <p><em>“Three things cannot long be hidden: the sun, the moon, the truth” </em><span style="font-size:9.0pt">Paraphrasing of Buddha (Gradual Sayings, Volume I)</span></p> <p>In the US the <a href="/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity">JOBS Act</a> fell short of democratizing access to startup investments, but it created opportunities for a small set of individuals looking to capitalize on the potential startup companies can unlock. The creation of <a href="/investors/crypto">cryptocurrency </a>and companies that are building a network through blockchain technology offering a form of equity in coins have seen a far greater flow of capital. Many of the equity focused portals are offering crypto and several, like <a href="/platform/coinlist">Coinlist</a>, are specializing in Security Token Offerings. While the set of investments for non-accredited investors is currently small.</p> <p>We'll keep you updated on both the evolution of the overall equity crowdfunding market and our work to improve the data, find insights, and make startup equity investing more accessible. In the meantime let us know what you think in the comments below or <a href="/contact/">contact us direct</a>.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-11-03T21:52:19+00:00">Sun, 11/03/2019 - 16:52</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=8642&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="FNfOnKV6Ca4-LgLJpr2ived5m22QBIKqAoHoFf4DGaU"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/retail-investors" hreflang="en">Retail Investors</a>, <a href="/tags/legal" hreflang="en">Legal</a>, <a href="/tags/platforms" hreflang="en">Platforms</a>, <a href="/tags/investment-activity" hreflang="en">Investment Activity</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=8642&amp;2=comment&amp;3=comment" token="FGNMdgeNur6h039e3kJEjT6JqqKyD27ueovvfkz7bwk"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sun, 03 Nov 2019 21:52:19 +0000 Brian Thopsey 8642 at https://fundwisdom.com Global Equity Crowdfunding Platforms https://fundwisdom.com/article/brian-thopsey/global-equity-crowdfunding-platforms <span property="schema:name">Global Equity Crowdfunding Platforms</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p><img alt="" src="/sites/all/files/cfund//science-world-210775_640.jpg" class="autofloat-odd " /></p> <p>This is an update from Jinjing's original post in 2015.</p> <p>As global investing regulations have changed opening up access to equity offerings has created a fragmented market of platforms. Equity crowdfunding platforms are being created at a rapid rate making it challenging to build a resource to capture every single one. We built a comprehensive list of platforms, websites, digital properties, apps from all over the world below.</p> <p>We invite you to suggest platforms if we are missing any on the list in the comments below or <a href="/contact/">contacting us direct</a>. We also recognize several platforms have shut down since we first ran this list in 2015 and have created a separate listing for <a href="/investors/platforms/folded">those that have ceased operating</a>.</p> <h2>Americas Ratings, Data, and Research</h2> <p>At Fund Wisdom our focus is on Americas based funding platforms or portals. We review each portal we add into our database. We interview entrepreneurs and investors as we begin to partner with each. We detail some of the <a href="/article/naomi-garlick/equity-crowdfunding-risks-and-rewards">risks associated with platforms and the industry and why we do this</a>.</p> <ul><li><a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">Full List of Americas based vetted platforms</a></li> <li><a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">Rating of top 10 platforms</a></li> <li><a href="/investors/companies">Find and search companies raising money across platforms </a></li> </ul><h2> </h2> <h2>Global Research</h2> <p>The Judge Business School at the University of Cambridge in the UK produces regular <a href="/investors/innovative-venture-reports/university-cambridge">reports on the alternative financial markets with a global view</a>.  Even though the report is wide ranging from the securities they cover, we regularly reference their equity focused insights. We understand much of the data is self reported by the platforms themselves. While the breadth of securities and process to collect is not fool proof presents a challenge to report on the entire equity funding industry, it is still one of the most comprehensive sources for this analysis.</p> <h2> </h2> <h2>Global Regulations</h2> <p>The regulatory framework is vastly different for each country resulting in varied market dynamics and platform operations by geography. We cover Americas based regulation that govern the platforms like <a href="/about/jobs-act-title-iii">Title III of the JOBS Act and the SEC</a>.</p> <p> </p> <h2>List of Global Platforms</h2> <p>Below is a list of equity crowdfunding portals from across the globe, primarily those that are not listed on our <a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">database of Americas based platforms.</a></p> <table border="1" cellpadding="0" cellspacing="0" dir="ltr"><colgroup><col /><col /><col /><col /></colgroup><tbody><tr><td>afexios.com</td> <td> </td> <td>General</td> <td>France</td> </tr><tr><td>Angel.me</td> <td> </td> <td>Startups</td> <td>Belgium</td> </tr><tr><td>assob.com.au</td> <td> </td> <td>General</td> <td>Australia</td> </tr><tr><td>banktothefuture.com</td> <td> </td> <td>General</td> <td>United Kingdom</td> </tr><tr><td>broota.com/</td> <td> </td> <td>Startups</td> <td>Chile</td> </tr><tr><td>c-crowd.com</td> <td> </td> <td>General</td> <td>Switzerland</td> </tr><tr><td>CircleUp</td> <td>506B</td> <td> </td> <td>United States</td> </tr><tr><td>cloudfunded.com</td> <td> </td> <td>Small Businesses</td> <td>Delaware</td> </tr><tr><td>companisto.de</td> <td> </td> <td>Startups</td> <td>Germany</td> </tr><tr><td>craftfund</td> <td> </td> <td>Niche/Beer</td> <td>United States</td> </tr><tr><td>crowd2ipo.com</td> <td> </td> <td>General</td> <td>United Kingdom</td> </tr><tr><td>crowdahouse.com</td> <td> </td> <td>Niche/Real Estate</td> <td>United Kingdom</td> </tr><tr><td>Crowdbaron.com</td> <td> </td> <td>Niche/Real Estate</td> <td>Hong Kong</td> </tr><tr><td>crowdbite.co</td> <td>Real Estate</td> <td> </td> <td> </td> </tr><tr><td>Crowdbnk.com</td> <td> </td> <td>Startups</td> <td>United Kingdom</td> </tr><tr><td>crowdcapital.ca</td> <td> </td> <td>General</td> <td>Canada</td> </tr><tr><td>crowdinvest.co.za</td> <td> </td> <td>General</td> <td>South Africa</td> </tr><tr><td>crowdmii.com</td> <td> </td> <td>Startups</td> <td>Israel</td> </tr><tr><td>CrowdMission.com</td> <td> </td> <td>Niche/Social</td> <td>United Kingdom</td> </tr><tr><td>crowdmurex</td> <td> </td> <td>Niche/Real Estate</td> <td>Germany</td> </tr><tr><td>eureeca.com</td> <td> </td> <td>General</td> <td>United Arab Emirates</td> </tr><tr><td>FundARealty.com</td> <td> </td> <td>Niche/Real Estate</td> <td>United States</td> </tr><tr><td>fundedbyme.com</td> <td> </td> <td>General</td> <td>Sweden</td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>fundinglaunchpad.com</td> <td> </td> <td>Startups</td> <td>United States</td> </tr><tr><td>fundrise.com</td> <td> </td> <td>Niche/Real Estate</td> <td>United States</td> </tr><tr><td>fundroom.com</td> <td> </td> <td>General</td> <td>United States</td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>fundthegap.com</td> <td> </td> <td>General</td> <td>United Kingdom</td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>fundyd.com</td> <td> </td> <td>General</td> <td>Netherlands</td> </tr><tr><td>gambitious.com</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>gamcrowd.com/</td> <td> </td> <td> </td> <td>International</td> </tr><tr><td>globevestor.com/</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td>go4funding.com</td> <td> </td> <td>Startups</td> <td>United States</td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>growthfunders</td> <td> </td> <td> </td> <td>International</td> </tr><tr><td>Gust.com</td> <td>506B</td> <td> </td> <td>United States</td> </tr><tr><td>healthfundr.com/contact</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td>healthios -</td> <td>506B</td> <td> </td> <td> </td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>healthtechhatch.com</td> <td> </td> <td>Niche/Medical</td> <td>United States</td> </tr><tr><td>hyperfund.com/</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td>ibankers.com/</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td>ifunding.co</td> <td> </td> <td>Niche/Real Estate</td> <td>United States</td> </tr><tr><td>impacttrader.com</td> <td> </td> <td>Niche/Social</td> <td>United States</td> </tr><tr><td>implementix.com</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>innovestment.de</td> <td> </td> <td>General</td> <td>Germany</td> </tr><tr><td>innovocracy.org/</td> <td> </td> <td>Niche/Innovation</td> <td>United States</td> </tr><tr><td>invertual.com</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>invesdor.com</td> <td>506C</td> <td>General</td> <td>Finland</td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>investedin.com/</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>investfashion.com</td> <td> </td> <td>Niche/Fashion</td> <td>United States</td> </tr><tr><td>Investiere.ch</td> <td> </td> <td>Startups</td> <td>Switzerland</td> </tr><tr><td>investingzone.com/pitches</td> <td> </td> <td> </td> <td>UK</td> </tr><tr><td>ipovillage.com</td> <td> </td> <td>General</td> <td>United States</td> </tr><tr><td>iravest.com</td> <td> </td> <td>General</td> <td>United States</td> </tr><tr><td>jct.com/</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td>Joinvestor -</td> <td>Funds</td> <td> </td> <td> </td> </tr><tr><td>jumpstartfund</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>localstake.com</td> <td>506 C</td> <td>Small Businesses</td> <td>United States</td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>lookandfin.com</td> <td> </td> <td>General</td> <td>Belgium</td> </tr><tr><td>maidenlane.com/</td> <td>Funds</td> <td> </td> <td> </td> </tr><tr><td>mashup-finance.de</td> <td> </td> <td>Startups</td> <td>Germany</td> </tr><tr><td>microventures.com/portfolio</td> <td>511 C</td> <td> </td> <td>United States</td> </tr><tr><td>movies-angels.com</td> <td> </td> <td>Niche/Film</td> <td>France</td> </tr><tr><td>mycofolio.com</td> <td> </td> <td>Small Businesses</td> <td>United States</td> </tr><tr><td>nxgencapital</td> <td>Real Estate</td> <td> </td> <td> </td> </tr><tr><td>OpenRound</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>openround.cloudapp.net/</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td>optimizecapitalmarkets</td> <td> </td> <td> </td> <td>Canada</td> </tr><tr><td>OurCrowd</td> <td>506B</td> <td> </td> <td>United States</td> </tr><tr><td>peoplesvc.com</td> <td> </td> <td>General</td> <td>United States</td> </tr><tr><td>pinkstart.me</td> <td> </td> <td>LGBT</td> <td> </td> </tr><tr><td>podiumfunds.com</td> <td> </td> <td>Private</td> <td>Canada</td> </tr><tr><td>Poliwogg</td> <td>506B</td> <td> </td> <td> </td> </tr><tr><td>portfolia.com/</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>pushfunder.com</td> <td> </td> <td>General</td> <td>United States</td> </tr><tr><td>realtymogul.com</td> <td> </td> <td>Niche/Real Estate</td> <td>United States</td> </tr><tr><td>realtyshares.com</td> <td> </td> <td>Niche/Real Estate</td> <td>United States</td> </tr><tr><td>repse</td> <td>Real Estate</td> <td> </td> <td> </td> </tr><tr><td>rockthepost.com</td> <td> </td> <td>Startups</td> <td>United States</td> </tr><tr><td>SecondMarket</td> <td>Funds</td> <td> </td> <td> </td> </tr><tr><td>seedmatch.de</td> <td> </td> <td>Startups</td> <td>Germany</td> </tr><tr><td>seedrs.com</td> <td>506C</td> <td> </td> <td>International</td> </tr><tr><td>seeds.nl</td> <td> </td> <td>Startups</td> <td>Netherlands</td> </tr><tr><td>seedups.com</td> <td> </td> <td>Startups</td> <td>United States</td> </tr><tr><td>Sharepost</td> <td>Funds</td> <td> </td> <td> </td> </tr><tr><td>siamosoci.com/</td> <td> </td> <td>Startups</td> <td>Italy</td> </tr><tr><td>signup.crowdismo.com</td> <td> </td> <td>Niche/Ethnicity</td> <td>United States</td> </tr><tr><td>slated.com</td> <td> </td> <td>Niche/Film</td> <td>United States</td> </tr><tr><td>smartmarket.net</td> <td> </td> <td>Startups</td> <td>Russia</td> </tr><tr><td>sociosinversores.es</td> <td> </td> <td>Startups</td> <td>Spain</td> </tr><tr><td>solomoncrowd.com/</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>sprowd.com</td> <td> </td> <td>Startups</td> <td>Netherlands</td> </tr><tr><td>startjoin.com</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td>startupaddict.com</td> <td> </td> <td>Startups</td> <td>United States</td> </tr><tr><td>startupvalley.com</td> <td>506B</td> <td> </td> <td> </td> </tr><tr><td>sterlingfunder.com/</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>swarmcorp.com/</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>symbid.com</td> <td> </td> <td>Startups</td> <td>Netherlands</td> </tr><tr><td>syndicateroom.com/</td> <td> </td> <td> </td> <td>UK</td> </tr><tr><td>thechangexchange.org</td> <td> </td> <td>Small Businesses</td> <td>United States</td> </tr><tr><td>thecrowdangel.com</td> <td> </td> <td>Startups</td> <td>Spain</td> </tr><tr><td>thefoundersmarket.com/</td> <td>506 C</td> <td> </td> <td> </td> </tr><tr><td> </td> <td> </td> <td> </td> <td> </td> </tr><tr><td>thefundersclub.com</td> <td> </td> <td>Startups</td> <td>United States</td> </tr><tr><td>thehotstart.com/</td> <td> </td> <td> </td> <td>International</td> </tr><tr><td>thrillcapital.com</td> <td> </td> <td>Niche/Sports</td> <td>New Zealand</td> </tr><tr><td>trucrowd.com/</td> <td> </td> <td> </td> <td> </td> </tr><tr><td>uinvest.com</td> <td> </td> <td>Startups</td> <td>United States</td> </tr><tr><td>united-equity.de</td> <td> </td> <td>Startups</td> <td>Germany</td> </tr><tr><td>upandfunding.com</td> <td> </td> <td>Small Businesses</td> <td>United Kingdom</td> </tr><tr><td>venovate.com/</td> <td>506B</td> <td> </td> <td> </td> </tr><tr><td>venturebonsai.com</td> <td> </td> <td>Startups</td> <td>Finland</td> </tr><tr><td>wesparkt.com</td> <td> </td> <td>Niche/Social</td> <td>United States</td> </tr><tr><td>wiseed.fr</td> <td> </td> <td>Startups</td> <td>France</td> </tr><tr><td>wlcm.in</td> <td> </td> <td>Niche/Social</td> <td>Germany</td> </tr></tbody></table><p>Sources we want to thank:<br /> Jonathan Sandlund of <a href="http://www.thecrowdcafe.com/crowdfunding-platforms/database" target="_blank">CrowdCafe</a> and Alex Feldman of Crowdsunite (appears to have closed down)</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-11-01T00:22:29+00:00">Thu, 10/31/2019 - 20:22</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=1824&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="XZEVtKrVVbSl2A4bumZwKAOM2JC-yVpMaXgAGsHf4C8"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/platforms" hreflang="en">Platforms</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=1824&amp;2=comment&amp;3=comment" token="1uNHa9t-X6_hhNemedXoj57cizS15ffLO7VRmtl25qk"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Fri, 01 Nov 2019 00:22:29 +0000 Brian Thopsey 1824 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/global-equity-crowdfunding-platforms#comments https://fundwisdom.com/article/brian-thopsey/global-equity-crowdfunding-platforms#comments Equity Funding Portals Risks and Rewards https://fundwisdom.com/article/brian-thopsey/equity-funding-portals-risks-and-rewards <span property="schema:name">Equity Funding Portals Risks and Rewards</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>This is an update to an article originally published by Naomi Garlick in 2015.</p> <p>Equity crowdfunding started as an exciting development for opening access to invest in high growth startup companies with the potential for large returns. With the large returns come equal high risks. Risks are shared between the investors as well as the entrepreneurs. Small businesses now have an additional source of capital through the creation of <a href="/investors/platforms">online portals</a>, but challenges arise with selecting the right one. Investors continue to face the same risk of any venture investment with the high chance of total failure and losing everything. Services have been created to address each of these which we review in detail.<br />  </p> <p><img alt="Equity CrowdFunding Tag Cloud, startups, investors" src="/sites/all/files/cfund//crowdfunding_cloud_0.png" class="autofloat-odd " /></p> <h2>Overall Crowdfunding</h2> <p>Individuals can raise money through crowdfunding within several categories, the two most popular are donation and rewards based crowdfunding. Equity-based crowdfunding is lesser known but poses the greatest potential return to the investor. Donation and rewards based funding facilitate money movement from anyone, no matter who they are or how much money they make. However with equity-based crowdfunding, only accredited investors are allowed to invest in most equity offerings. <a href="/crowdfunding-investors/crowdfunding-investor-types">Accredited investors</a> are wealthy, or high net-worth, individuals who the Securities and Exchange Commission (SEC) deem capable to invest.</p> <h3>Equity Funding Portal Growth</h3> <p>Today anyone is able to invest a percentage of their income in exchange for a stake in the company. Equity Crowdfunding provides an opportunity for startups to raise capital while gaining insightful advisors. The portals help facilitate the startup's equity offerings to broader groups of investors. The Jumpstart Our Business (JOBS) Act, Title III was built to "bring Wall Street to Main Street" by allowing individuals to invest in private companies in exchange for equity. The law was believed to democratize the capital markets by creating a populist investing pool, but limitations in the US resulted in this dream falling short <a href="/article/brian-thopsey/global-equity-crowdfunding-platforms">compared to other countries</a>.</p> <p>Since the JOBS Act have been passed allowing for general solicitation of qualified offerings, Equity Crowdfunding has experienced growth, but not to the extent some believed, including myself. When compared with rewards-based or donation-based, equity-based Crowdfunding raises the most funds per project.</p> <p>President Barack Obama signed the JOBS Act into law in April 2012, and in 2016 title III was implemented. It has driven <a href="/investors/innovative-venture-reports/university-cambridge">$260.9 million in funding</a> in the Americas to help get startup companies off the ground by end of 2017. This is based on data from the University of Cambridge’s Center for Alternate Finance. <a href="https://pitchbook.com/media/press-releases/us-venture-capital-investment-reached-1309-billion-in-2018-surpassing-dot-com-era"> According to research from PitchBook</a>, in 2018 US Venture Capital reached $130.9 billion, and <a href="https://pitchbook.com/media/press-releases/record-unicorn-financings-drove-2017-total-venture-capital-investments-to-84-billion-the-largest-amount-since-dot-com-era">2017 was $84 billion</a>. That results in the Americas equity crowdfunding only totaling 0.3 percent of the overall venture funding space.</p> <h2>Rewards</h2> <p>The most obvious reward of using equity funding portals would be the greater access to capital it provides entrepreneurs and greater access to investors. AOL co-founder Steve Case recently sat down with Fox News and shared some of his thoughts on the future for entrepreneurs and the equity crowdfunding phenomenon. <a>Case told Fox News</a> that "we're beginning to see the benefits of crowdfunding as a means of leveling the playing field, so anybody with any idea, irrespective of where they are, have more of a shot. The seed capital to get started will increasingly come from these crowdfunding platforms, and then as entrepreneurs achieve some momentum, they can more readily connect with institutional investors to get expansion capital."</p> <h2>Risks</h2> <p>Risks regarding Equity Crowdfunding platforms will always exist. Many Equity Crowdfunding platforms themselves perform their own due diligence officiating those that list on their sites. Entrepreneurs can list their equity offering on the platform and, in exchange, the platform receives compensation either in up front fees or fees structured to the deal itself. When posting an equity offering, the entrepreneur must determine that both the platform and the investors are legitimate. Likewise when investing in an equity offering, the accredited investor must determine that both the startup company and the platform are legitimate. </p> <p>Online investment platforms have regulatory obligations to perform due diligence on the companies they allow to raise money.  This process to review the firms requesting access to capital can shield the portals from potential liabilities. </p> <h3>Risk Reduction Offerings</h3> <p>We at Fund Wisdom review platforms prior to adding them on our database while also partnering with a number of services to address these risks.</p> <p><a href="http://www.crowdcheck.com/" target="_blank">CrowdCheck</a> is a due diligence and disclosure company for online offerings providing transparency and investor protection to platforms, investors and entrepreneurs. Sara Hanks, Founder and CEO of the firm recently shared with us, "We help to make sure the investor has the tools to make an informed investment decision. We thus protect the issuer, the investor and the intermediary."</p> <p>At Fund Wisdom we review platforms prior to working with them. We have chosen not to work with a few platforms due to their standards of vetting. We have chosen to not include Angel Investment Network, a UK-based platform that states they have "the largest database of investors worldwide" with "3,500 angel investors from the US and the remaining amount are spread across 22 other countries." This is due to the quality of offerings and compensation structure. Entrepreneurs report that upon creating a company profile they receive an email notification from AIN that a number of investors were interested in their equity offering. However, in order to be further connected with these investors, the entrepreneur must pay $99 to the platform, known as a "pay-to-pitch" policy. </p> <h3>For Entrepreneurs</h3> <p>Entrepreneurs must either rely upon services or perform their own due diligence on both the investing portals and individual investors before signing any legal agreements. Bill Southworth, CEO of the renewable energy startup company Elecyr, used EquityNet for one of his earliest funding rounds. He has reported that one of the investors had gone so far as to steal the identity of a genuine angel investor. Once Southworth made this discovery he immediately took down his listing on EquityNet. <a href="http://thefunded.com/" target="_blank">The Funded</a> the "Yelp of Venture Capital" was created to allow portfolio companies to rate their investors.</p> <h3>Regulatory</h3> <p>Since online financing platforms provide limited information about the people involved in an investment deal, government agencies like the SEC, and FINRA, along with other service providers are working to eliminate these risks from the Crowdfunding world by providing transparency and security to both investors and entrepreneurs.</p> <h2>Conclusion</h2> <p>Online investing via Equity Crowdfunding is an exciting opportunity for both businesses and investors. While investors and entrepreneurs need to be aware of the risks involved in this new market, this form of financing creates the potential for huge rewards. It has and will continue to create opportunities for individuals to participate in a team of passionate and hardworking entrepreneurs. Equity Crowdfunding spurs economic expansion and job creation.</p> <p>If you have any service providers or stories to share we are interested to hear. Please feel free to share in the comments below or <a href="/contact/">contact us</a>.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-10-03T21:45:37+00:00">Thu, 10/03/2019 - 17:45</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=352&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="O9qCs5NU8UTMFVgI7sRzSV-Dg3z_LYswEcfR7yhfqXo"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/legal" hreflang="en">Legal</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=352&amp;2=comment&amp;3=comment" token="StziL-ugXZ6gdYTeA_5J8WuVZDKM3k8UNqyCDO41UsY"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Thu, 03 Oct 2019 21:45:37 +0000 Brian Thopsey 352 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/equity-funding-portals-risks-and-rewards#comments https://fundwisdom.com/article/brian-thopsey/equity-funding-portals-risks-and-rewards#comments Equity Crowdfunding Analysis H1 2019 https://fundwisdom.com/article/brian-thopsey/equity-crowdfunding-analysis-h1-2019 <span property="schema:name">Equity Crowdfunding Analysis H1 2019</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>At Fund Wisdom we believe in the opportunity <a href="/investors/platforms">equity funding platforms</a> create by providing access to capital, investment opportunities, and transparency to previously opaque markets. We are building a <a href="/investors/platforms/equity-funding-dashboard">dashboard</a> for analyzing our database of investment offerings and in the process have discovered some interesting information.</p> <p>We review 2019 Equity Crowdfunding performance across Q1, Q2, then make comparisons to years past. This analysis involves internal data, external data, and reports. It encompasses both regulated public offerings and private offerings listed on American platforms. We also have a separate section that <a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">ranks top 10 portals</a>.</p> <p>Since 2014 Fund Wisdom has been recording public offerings on platforms. To obtain this data, we manually reviewed info from public webpages on the equity crowdfunding <a href="/investors/platforms" tabindex="-1">platforms</a>. Then we recorded each listing in our own private database and ran regular updates. Findings were compiled into a detailed report: <a href="/article/brian-thopsey/online-venture-investing-data-and-analytics-2014-2015">We provide a summary</a> and a <a href="/sites/fundwisdom.com/files/fundwisdom2014dealreport.pdf">full PDF</a>.</p> <h3>Alternatives - Equity Crowdfunding</h3> <p>If you’re starting a business, often to get the business going, you need money upfront. Traditionally, the way to do this was to go to a bank, venture capital firms, or use your own money. When websites gained popularity, people started to use them to advertise their business needs, and ultimately get investment. What started as individuals aiming to get assistance to start their business, expanded so that individuals could also sell shares of their business. A term to help classify this industry developed, Equity Crowdfunding. There’s two major types of Equity Crowdfunding, accredited and non-accredited. Non-accredited is also known as Regulated Equity Crowdfunding. Only accredited investors were able to invest in businesses offering shares at an early stage, which limited opportunities for those who were not wealthy enough to qualify. Hence the term "private" equity within the alternative investment category.</p> <p> </p> <p><a href="https://www.ey.com/Publication/vwLUAssets/ey-2018-global-alternative-fund-survey/$File/ey-2018-global-alternative-fund-survey.pdf"><img alt="EY Investor allocations to alternatives" data-entity-type="file" data-entity-uuid="e90aec05-4394-49bc-bef2-f0c3f38de913" src="/sites/fundwisdom.com/files/inline-images/Alternative%20Investment%20Analysis.JPG" style="width:500px;" class="autofloat-odd " /></a></p> <p>Ernst &amp; Young (EY) <a href="https://www.ey.com/Publication/vwLUAssets/ey-2018-global-alternative-fund-survey/$File/ey-2018-global-alternative-fund-survey.pdf">surveyed more than 200 fund managers and 60 investors</a> to uncover the points of view of both hedge fund and private equity managers, as well as institutional investors who allocate to both asset classes as well as broadly across alternatives. Within the broader financial market Equity Crowdfunding represents a very small fraction of overall investment today.</p> <p>It wasn’t until 2016 that investment in small-business opportunities to generate capital were made available to unaccredited investors. This occurred with the JOBS Act, which is regulated and enforced by the Security and Exchange Commission (SEC). Now, when a small business or company wants non-accredited investment (or non-wealthy individual investors), they need to complete a form through the SEC. The information on that form goes into a database which the SEC oversees. Rather than pull manually from websites, Fund Wisdom “cleans” then analyzes the SEC data to look for various things like investment opportunities, and geographic variability of investments. Part of Fund Wisdom’s mission is to provide the data and analysis to investors, entrepreneurs, financial firms (with specialties in equity analysis), and more.</p> <h3>Improved Data</h3> <p>The <a href="https://www.sec.gov/dera/data/crowdfunding-offerings-data-sets">SEC filing data</a> presents a challenge to analyze due to the forms companies fill out consisting of free form entries. This results in challenges and discrepancies in available reports. So, we at Fund Wisdom built a process to standardize each listing to improve analysis. Our goal is to create more accurate reports for improving analysis and investment decisions.</p> <h3>Regulated Equity Crowdfunding</h3> <h4>2019 Regulated Crowdfunding Q1, Q2</h4> <p> </p> <p><a href="/investors/platforms/equity-funding-dashboard"><img alt="Regulated Equity Crowdfunding over time 2019 Monthly" data-entity-type="file" data-entity-uuid="5f367cbd-cd62-46e6-8893-e906274a9772" src="/sites/fundwisdom.com/files/inline-images/2019-ECF-chart.JPG" style="width:700px;" class="autofloat-even " /></a></p> <p> </p> <p><a href="/investors/platforms/equity-funding-dashboard/2019-offering-details"><img alt="2019 Equity Crowdfunding Comparison of Platforms" data-entity-type="file" data-entity-uuid="c097bf60-8f81-4c4b-a972-0b4316cf7ae0" src="/sites/fundwisdom.com/files/inline-images/2019-dataRECF_0.JPG" style="width:700px;" class="autofloat-odd " /></a></p> <p> </p> <p>StartEngine, WeFunder, and CrowdCaptial Advisors have written detailed reports on regulated equity crowdfunding data. The time intervals 2019 reports on the market make a side by side comparison more challenging than the analysis of historical reporting below. StartEngine provides monthly findings whereas Wefunder’s report was cumulative to April.</p> <h4>Historical 2016 to 2018</h4> <p>This chart highlights some of the side by side discrepancies we found and look to better understand.</p> <p><img alt="Equity Crowdfunding Analysis comparison of reports between Wefunder, StartEngine, CrowdCapital Advisors" data-entity-type="file" data-entity-uuid="ef9d7a4f-d25c-4ccc-b1db-2fef83a5c6a7" src="/sites/fundwisdom.com/files/inline-images/ECF-data-analysis.JPG" style="width:700px;" class="autofloat-even " /></p> <h4><a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019%3Cbr%20/%3E%26#10;"><img alt="2018 Equity Crowdfunding Comparison of Platforms" data-entity-type="file" data-entity-uuid="c097bf60-8f81-4c4b-a972-0b4316cf7ae0" src="/sites/fundwisdom.com/files/inline-images/2018-funding-ecf.PNG" style="width:500px;" class="autofloat-odd " /></a></h4> <h4>CrowdCapital Advisors</h4> <p>Sherwood Neiss is a partner at <a href="http://crowdfundcapitaladvisors.com/">Crowdfund Capital Advisors </a>and has published several detailed reports. The team there are also building a private beta dashboard to view their data. This visualization appears to be the best method of conducting detailed analysis to date but access is currently limited. Sherwood wrote a <a href="https://venturebeat.com/2019/01/30/regulation-crowdfunding-performed-solidly-in-2018-heres-the-data/">VentureBeat article</a> January 2019 to showcase some of the great work they are doing. He has been a lead advocate for the industry as a whole, and in the article he writes: "Not only does it engage local communities to become investors in local businesses, but it provides a viable alternative to traditional finance (i.e. credit card, bank loans and/or venture capital) that may not be available to these firms." He goes on to suggest a path forward, "The potential for Regulation Crowdfunding may be realized sooner if the <a href="https://venturebeat.com/2017/12/10/10-reasons-the-1-million-crowdfunding-cap-should-be-raised-to-20-million/">$1.07 million cap</a> were to be increased as well as certain recommendations implemented per <a href="https://www.crowdfundinsider.com/2018/07/136823-prominent-group-of-fintech-leaders-send-letter-to-sec-chair-jay-clayton-demanding-an-increase-in-regulation-crowdfunding-to-20-million/">an industry letter to the SEC</a>." I admire what the team has built and recommend signing up.</p> <h4>Wefunder</h4> <p>Jonny Price of Wefunder posted a detailed review and analysis on <a href="https://medium.com/@jonnyprice/regulation-crowdfunding-three-years-in-29766d0b80a2">Medium.com titled, Regulation Crowdfunding, Three Years In</a>. He goes into great detail of Wefunder performance, and starts with an industry overview. He shares cumulative investment in regulated offerings hit $207.6 Million, by April 2019, with Wefunder making up $70.5M of that. He also breaks down Wefunder specific data like industry, security type, and company performance.</p> <p>An important stat for entrepreneurs considering listing with platforms he mentions, typical founding teams raise 50% through the platform and the other half through direct relationships.</p> <h4>Crowditz</h4> <p>Crowditz provides a live stream of the latest regulated equity funding offerings. They also published an <a href="https://www.crowditz.com/category/funding-reports/">analysis every few weeks of industry performance</a>. I have not been able to find any data visualizations but assume they are soon to come.</p> <h4>StartEngine</h4> <p>Max Crawford of StartEngine releases a monthly report analyzing industry performance via <a href="https://www.startengine.com/blog/equity-crowdfunding-in-review-july-2019/">Crawford's July data</a> as well as <a href="https://www.startengine.com/blog/equity-crowdfunding-2018-review/">a yearly review</a>.</p> <h2> </h2> <h3>Accredited Equity Funding</h3> <p><img src="/sites/all/files/cfund//2014_investment_trends.jpg" style="width:700px" class="autofloat-even " /></p> <p><img alt="2014 Pie Chart of Regulated Equity Funding Portals break out" data-entity-type="file" data-entity-uuid="02a64b59-224a-4deb-89a3-7bb7c02824cf" src="/sites/all/files/cfund//platforms_by_market_share.jpg" style="width:700px;" class="autofloat-odd " /></p> <p>We built a <a href="/article/brian-thopsey/online-venture-investing-data-and-analytics-2014-2015">detailed report of data back in 2015</a>. The report provided a detailed view of the how the industry began prior to the addition of non-accredited investing. We are still working on providing access to this data with the dashboard, but the offerings can be seen in the <a href="/investors/companies">unfiltered table of offerings</a>. Around the 2016 time frame the accredited focused platforms began moving their equity listings that had been public behind a login which requires accredited investor verification. We therefor made the switch over to pulling in regulated SEC filing data.</p> <h4>University of Cambridge</h4> <p>The Judge Business School at University of Cambridge has been collecting <a href="/investors/innovative-venture-reports/university-cambridge">self reported figures direct from regulated and non regulated platforms</a>. On their latest report for 2017 (they are still working on 2018 data) they cover platforms like, <a href="/platform/fundable">Fundable</a>, <a href="/platform/circleup">CircleUp</a>, <a href="/platform/nextseed">NextSeed</a>, PeerStreet, <a href="/platform/republic">Republic</a>, <a href="/platform/seedinvest">Seedinvest</a>, <a href="/platform/startengine">StartEngine</a>, <a href="/platform/trucrowd">TruCrowd</a>, and <a href="/platform/wefunder">Wefunder</a>.</p> <div>The report covers the entire range of alternative finance. Focusing on Equity-based Crowdfunding platforms only, 2017 accounted for $260.9 million, down 54% from $569.5 million in 2016. Of that 21% was institutional funding. Of the platforms they surveyed 22% say they have data exchange agreements.</div> <p>We had a chance to connect with the team on their ambitious goal of becoming the data depository and hub of academic activity in the field of alternative finance. They look to cover online markets such as equity and reward-based crowdfunding, peer-to-peer consumer/business lending, and third-party payment platforms.</p> <p> </p> <h2>Conclusion</h2> <p>I don't believe the differences in reporting is intentional, but represents challenges with the sources. of SEC filing data described earlier. At the end of the day each team reaches the same conclusion, there is growth in the overall market. If proposals presented by the Crowd Capital Advisors team and others are implemented further growth is still to come. Several other countries including the UK implemented less regulatory restrictions that have allowed for greater investment activity.</p> <p>Opportunities to invest in firms and funds online are abundant, and the number will increase as solutions continue to be developed to improve the investment process across early stage and late stage initial public offerings. Title III of the Jump-start Our Business Startups (JOBS) Act has increased the amount of capital invested in equity online, but not the extent in the USA many believed, including myself. A majority of the population that is not able to invest now can but with serious restrictions. What are your thoughts on the industry, comment below or <a href="/contact/" tabindex="-1">contact us</a> direct.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-08-27T23:36:15+00:00">Tue, 08/27/2019 - 19:36</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=9176&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="6ltoVIUE0XUfKQ2Li8hLwglCt5VyI0uSDZ0PTUMID6s"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/analytics" hreflang="en">Analytics</a>, <a href="/tags/platforms" hreflang="en">Platforms</a>, <a href="/tags/investment-activity" hreflang="en">Investment Activity</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=9176&amp;2=comment&amp;3=comment" token="LwIts2uZpBBpkRde3Qi6iVfv69wn7siAUortDKMolj0"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Tue, 27 Aug 2019 23:36:15 +0000 Brian Thopsey 9176 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/equity-crowdfunding-analysis-h1-2019#comments https://fundwisdom.com/article/brian-thopsey/equity-crowdfunding-analysis-h1-2019#comments Exchange Traded Crypto funds https://fundwisdom.com/article/brian-thopsey/exchange-traded-crypto-funds <span property="schema:name">Exchange Traded Crypto funds</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>There are three types of funds available for investors interested in investing in cryptocurrency funds: Exchange-traded Funds, Private Investment Funds, and Hedge Funds. In this section we look at Exchange Traded Funds, where CoinShares dominates the market.</p> <h3>Exchange Traded Products</h3> <p>Exchange traded products are securities that are bought and sold on an established exchange. Exchange traded products can be either Exchange traded Funds (ETFs) or Exchange traded Notes (ETNs). ETFs are backed by the securities they hold (think of them like a mutual fund, which is just a structure to hold individual assets like stocks or currencies) while ETNs are notes issued by a company that uses the money raised to buy securities, in this case cryptocurrencies.</p> <p>ETNs have an additional layer of risk over ETFs because they are essentially loans to the issuer. And issuers running into trouble is not unprecedented: XBT Provider, the original issuer of cryptocurrency ETNs, had financial trouble, but luckily was bought up by Global Advisors and both firms were rebranded as CoinShares.</p> <h3>Lack of US Access</h3> <p>As of May 2019 there are no Exchange traded crypto focused products available in the United States. In August of 2018, the U.S. Securities and Exchange Commission (SEC) rejected nine bitcoin ETF proposals from large, firms like ProShares, Direxion, and others. The stated reason was because the SEC was unconvinced that the exchanges could prevent fraud or manipulative acts.</p> <p>As recently as May 20th of 2019 the SEC rejected the application of the VanEck/SolidX Bitcoin ETF. With this rejection, it seems unlikely there will be an SEC approved ETF available to U.S. investors anytime in 2019. Even more discouraging, the VanEck/SolidX proposal, in an attempt to reassure the SEC, set a minimum share price of $200,000 to discourage retail investors and attract more institutional funds. Unaccredited investors may have an even longer wait for an SEC-approved fund.</p> <h3>Global Crypto - Exchange Access Outside North America</h3> <p>U.S. citizens can invest in Exchange traded Products listed in non-U.S. exchanges. CoinShares lists their products on the Swedish exchange which can be accessed through a broker connected to Nasdaq Stockholm or the Nordic Growth Market. For experienced investors comfortable using an online broker and accessing foreign exchanges <a href="https://www.interactivebrokers.com/en/home.php">Interactive Brokers</a> offers an option to allow access to invest.</p> <p>We offer a <a href="/investors/funds/types/crypto">list of funds including CoinShares that provide access to this asset type.</a></p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-05-28T13:24:45+00:00">Tue, 05/28/2019 - 09:24</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=8974&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="pjy2_YcmD80kzYfxPDgoTML3AQ0zoX3f-6QFQd2NL1I"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/blockchain" hreflang="en">Blockchain</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=8974&amp;2=comment&amp;3=comment" token="2cXimgCzyTiUScH57qh4cy_K4jPmE4b60Mf8M5N24bk"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Tue, 28 May 2019 13:24:45 +0000 Brian Thopsey 8974 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/exchange-traded-crypto-funds#comments https://fundwisdom.com/article/brian-thopsey/exchange-traded-crypto-funds#comments Financial Advisory - Startup & Crypto: Limitations & Innovations https://fundwisdom.com/article/brian-thopsey/financial-advisory-startup-crypto-limitations-innovations <span property="schema:name">Financial Advisory - Startup &amp; Crypto: Limitations &amp; Innovations</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Interested in investing a portion of your long term savings or retirement into high growth startup companies at early stages? Several solutions have emerged to help provide access to these alternative assets, making it easier to invest, but working through existing financial relationships may prove challenging for some. </p> <p>Equity funding regulation and the rise of cryptocurrency held promise for open startup investment opportunities to all, no matter economic status. However, most who want to work with a professional financial expert to get help in selecting and managing a portfolio of early stage companies, or alternative investments, options are limited. Innovative investment platforms and funds are the first place to look for access.</p> <h2 style="line-height: 20.0063037872314px;"><img alt="" src="/sites/all/files/cfund//sea-67911_640.jpg" style="margin: 10px;" width="400" class="autofloat-odd " /></h2> <h3>Financial Advice Limitations</h3> <p>Most investment firms that have experience with alternative investments require you to be an <a href="/investors/types/accredited-qualified-purchaser-investing">accredited investor (wealthy as defined by the SEC)</a>, and there are few that will actively assist you in selecting individual investments unless the amount you have to invest far exceeds even the SEC standards.</p> <h4>Broker-Dealers:</h4> <p>Traditional investment brokers like Scottrade, TD Ameritrade, <a href="http://www.kqzyfj.com/click-7643827-13718994" target="_top">Mintbroker</a><img border="0" src="https://www.tqlkg.com/image-7643827-13718994" class="autofloat-even " />, Charles Schwab, Vanguard, and E-trade provide access to public equity, debt, and funds that include mostly mature large companies. Access to higher risk alternative assets like early stage companies are limited through these channels so we explore other avenues. </p> <h4>Registered Investment Advisors</h4> <p><a href="https://www.financial-planning.com/news/few-financial-planners-see-cryptocurrencies-as-a-viable-investment-option-fpa-survey">Ravie Lakshmanan of FinancialPlanning.com writes </a>RIAs: “a mere 2% of financial planners view cryptocurrencies as a viable investment option.”</p> <p>Merrill Lynch and Morgan Stanley have “banned their brokers from recommending bitcoin and refuse to trade the instrument.”<a href="http://www.financialadvisoriq.com/c/2021393/236283/many_rias_refuse_anywhere_near_bitcoin"> according to Financial Advisor IQ author Bruce Love</a>. He goes on to write, “Most RIAs won’t let their clients anywhere near cryptocurrencies. And there’s a crucial legal reason why RIAs would be hard-pressed to let their clients invest in bitcoin: It might not be fiduciarily responsible. Under their fiduciary duty, putting their client’s best interests first, many RIAs think cryptocurrencies are far too risky for most retail investors.”  SEC Chairman Jay Clayton told CNBC the U.S. regulator would not be defining cryptocurrencies as securities anytime soon – a move which would allow RIAs to actively trade the instruments.</p> <h3>Robo Advisors</h3> <p>If you are looking for ways to automate your investing and re-balancing process robo advisors offer an option with the benefit of often times lower fees. Many offer tax-loss harvesting, and access to financial planners and advisors. There are companies that solely offer robo advisory and many of the dealers above have started adding this as a service to their broad portfolio. <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.138832797&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank">Wealthsimple </a>is a robo advisor based in Canada<a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.138832797&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank">.</a> They offer <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.138832797&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank">low fees, and automated investing</a>. Most though still do not offer access to early stage startup equity.</p> <h3>Fees</h3> <p>Economics of advisory is a likely cause for so few certified professionals dedicated to startup equity investing. Advisors are typically paid an annual fee based on total assets invested. With a 0.5% (50 bps) fee, a $50 million client will make the advisor around $250,000 a year, while a $500,000 client will make the advisor $2,500. At $2,500 revenue per client, It would take 40 clients to earn $100,000 in revenue. One good financial advisor might be able to advise and manage 40 clients, but assuming overhead costs are at least 50%, that leaves $50,000 per year to pay the advisors salary.</p> <p>Portfolio management theory is just as important as the reality of fees. Registered investment advisors (RIAs) have a fiduciary responsibility to their clients. They cannot allow the investor to be overly concentrated in one investment, particularly risky ones. Thus, they follow the traditional theory which says that any allocation to “alternative investments” must be small, say a maximum of 10% of a client’s investable assets. An unaccredited investor has a legal cap to the amount they can invest in alternatives per year.</p> <p>Considering the mechanics above and specialty expertise required to provide professional advice we believe it these factors drastically reduce the number of alternative specialists. We look to showcase specialists covering startup equity and cryptocurrencies so appreciate any suggestions or feedback in the comments.</p> <h2>Going It Alone</h2> <p>The economics of asset management explained above reveal why even accredited investors will often have to go it alone when it comes to choosing alternative investments. Assuming you are going to have to go at this alone we have compiled a list of portals and funds to review.</p> <p> </p> <h3 style="line-height: 20.0063px;">Funding Portals &amp; Funds</h3> <p>We list, rank, analyze, and review <a href="/investors/platforms">innovative startup equity and crypto investing portals</a> and <a href="/investors/funds">funds.</a></p> <p>There are three types of funds available for investors interested in investing in alternative funds: Exchange-traded Funds, Private Investment Funds, and Hedge Funds. We highlight some of the most well-known, experienced, and professional providers. Of note, buying a fund puts the responsibility for managing the investments on the fund manager. It also makes the fund manager responsible for all transaction costs and custodial costs.</p> <p> </p> <h3>Tax Incentives</h3> <h4>Self-directed Retirement Plans:</h4> <p>In order to gain tax efficiency with your investments retirement accounts are a great resource and self directed plans are a great resource for going it alone and gaining access to these high risks investments. SEC and IRS rules govern what can go into an Individual Retirement Accounts (IRA), and most IRA managers want, or require, you to invest in their own products. For example, an account managed by Vanguard will allow you to allocate your retirement savings into Vanguard funds. A self directed IRA can allow you control, because you take the fiduciary responsibility away from the manager — you are the manager.</p> <p>There are numerous organizations, typically Trust companies, that manage the mechanics of investment accounts on behalf of others. While traditional Registered Investment Advisors (RIAs) can make money off the fees charged by the assets they manage, the fee structure in a self directed account without and advisor are different.</p> <p>Goldstar offers self-directed tax incentivized accounts. Companies that provide self-directed RIAs are usually experts in managing the account itself. Additionally, management of custodial services required for the assets you hold and assistance with choosing among possible investments may be covered in self-directed RIAs.</p> <p>We spoke with <a href="http://www.goldstartrust.com/About.aspx" target="_blank">Josh Duckworth the </a><a href="http://www.goldstartrust.com/About.aspx" target="_blank">Director of Marketing at </a><a href="http://www.goldstartrust.com/About.aspx" target="_blank">GoldStar Trust</a> about how to do this. GoldStar Trust is paving the way for individuals to invest in startups through these investment vehicles through self-directed IRA accounts that allow for investing in debt and equity through online portals. They have created accounts to help facilitate these transactions. Gold Star Trust charges 25$ to create an IRA account and $65 per year to maintain the account. In addition to self-directed IRAs, Gold Star Trust offers a solution for escrow and payment services with fees starting at $500 per deal. Their recent launch of <a href="http://www.crowdpay.com/" target="_blank">CrowdPay</a>, escrow, payments, custody and tax reporting services can be done via API (Application Programming Interface).</p> <p> </p> <h2>Startup &amp; Crypto Innovations</h2> <p>I hope you find our list of <a href="/investors/platforms">innovative startup equity and crypto investing portals</a> and <a href="/investors/funds">funds</a> helpful. While there are limitations to accessing financial advice in this risky space, there are continual changes and improvements through technology that we look to showcase. We appreciate any feedback and input in the comments below.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-05-27T15:32:07+00:00">Mon, 05/27/2019 - 11:32</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=5515&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="YXYmBK3gnEPKXuLnNLDrzcxtTDuRtgoWMU2yygWExMs"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/blockchain" hreflang="en">Blockchain</a>, <a href="/tags/tax" hreflang="en">Tax</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=5515&amp;2=comment&amp;3=comment" token="rD2U3cjd_MW8ABmQldVvupXV8vUniYedOx8cQEaqj7A"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Mon, 27 May 2019 15:32:07 +0000 Brian Thopsey 5515 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/financial-advisory-startup-crypto-limitations-innovations#comments https://fundwisdom.com/article/brian-thopsey/financial-advisory-startup-crypto-limitations-innovations#comments Analytics Solutions- Adobe vs Google https://fundwisdom.com/article/brian-thopsey/analytics-solutions-adobe-vs-google <span property="schema:name">Analytics Solutions- Adobe vs Google </span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>This article was originally written several years back when I was working between Marketing and Technology departments at companies large and small. At that time I was either using both solutions, or at one firm was brought in to help assess which solution to go with. I had an independent, unbiased view at that time.</p> <p>I have now been working at Adobe for several years so I have updated the references and variables, not changing my conclusions at the end. I am not a Specialist in the Analytics Solution, but cover the entire Experience Cloud so recognize the brevity of the comparison. I try to focus more on the strategy and team dynamics.</p> <p>I maintain this blog and write these articles to better understand the financial technology market and attain feedback outside of my day to day. I appreciate any feedback in the comments.</p> <p> </p> <table border="0" cellpadding="10" style="border-collapse: separate;"><tbody><tr><td> </td> <td style="width: 35%;">Google Analytics</td> <td>Adobe Analytics</td> </tr><tr><td align="left" valign="top"><strong>Customer<br /> Support</strong></td> <td align="left" valign="top">Free Version: Reliance upon Communities <p>Premium version: provides access to staff and account management</p> </td> <td align="left" valign="top"> <p>24/7 Support network</p> <p>Dedicated Account manager</p> <p>Communities, Forums</p> </td> </tr><tr><td align="left" valign="top"><strong>User Interface</strong></td> <td valign="top"> <p>Intuitive, easy for new users</p> </td> <td valign="top"> <p>Advanced and Customizable but takes some training</p> </td> </tr><tr><td align="left" valign="top"><strong>Campaign Tracking</strong></td> <td valign="top"> <p>4 UTM variables</p> </td> <td valign="top"> <p>A relational table with limitless variables that can be used for categorizing</p> </td> </tr><tr><td align="left" valign="top"><strong>Data Ownership</strong></td> <td align="left" valign="top">Google owns the data</td> <td align="left" valign="top">Data belongs to you</td> </tr><tr><td align="left" valign="top"><strong>Cookies</strong></td> <td align="left" valign="top">Customizable, <a href="http://code.google.com/apis/analytics/docs/concepts/gaConceptsCookies.html">First party cookie</a></td> <td align="left" valign="top">Customizable, First and Third Party cookie</td> </tr><tr><td align="left" valign="top"><strong>Events</strong></td> <td valign="top"> <p><a href="http://conversionroom.blogspot.com/2009/10/google-analytics-now-more-powerful.html">20 (last I checked) events</a></p> <p><a href="http://getdelve.com/2011/07/omniture-vs-google-analytics-custom-events/" target="_blank">more info on comparison</a></p> </td> <td valign="top"> <p>200 Custom events baseline option to purchase more</p> <p><a href="http://getdelve.com/2011/07/omniture-vs-google-analytics-custom-events/" target="_blank">more info on comparison</a></p> </td> </tr><tr><td><strong>Custom Variables</strong></td> <td><a href="http://getdelve.com/2012/01/omniture-sitecatalyst-evars-vs-google-analytics-custom-variables/" target="_blank">more info on comparison</a></td> <td> <p>75 baseline with option to purchase more</p> <p><a href="http://getdelve.com/2012/01/omniture-sitecatalyst-evars-vs-google-analytics-custom-variables/" target="_blank">more info on comparison</a></p> </td> </tr><tr><td align="left" valign="top"><strong>Unique Visitor, People Metric</strong></td> <td valign="top"> <p>Absolute Unique<br /><a href="http://analytics.blogspot.com/2007/01/absolute-unique-visitors-versus-new.html">Calculatation technique of uniques</a></p> </td> <td valign="top"> <p>Hourly, Daily, Weekly, Monthly, Quarterly, Yearly<br /><a href="http://blogs.omniture.com/2006/04/08/15-reasons-why-all-unique-visitors-are-not-created-equal/">Calculatation technique of uniques</a>,<span> <a href="http://blogs.omniture.com/2006/03/24/unique-visitors-or-visits-which-metric-should-you-use/">2nd article</a></span></p> <p><span>Co-op and Device Graph to build a People Metric</span></p> </td> </tr><tr><td align="left" valign="top"><strong>Data Integration</strong></td> <td align="left" valign="top">API</td> <td align="left" valign="top">API<span> <br /> Open Data Sources architecture for importing offline metrics</span></td> </tr><tr><td align="left" valign="top"><strong>Excel Integration</strong></td> <td align="left" valign="top">Reporting</td> <td align="left" valign="top">Reporting<br /> Excel Client- allows manipulation and interaction with data in Excel</td> </tr><tr><td align="left" valign="top"><strong>SEM Integration</strong></td> <td valign="top"> <p>Adwords reporting integration<br /> Automated Adwords bidding</p> </td> <td valign="top"> <p>Automation through<span> <a href="http://microsite.omniture.com/t2/webhelp/en/channel/marketing_channel_report.htm" target="_blank">Marketing Channel report</a><br /> (Keyword granular reporting automation through Ad Cloud product at additional cost) </span></p> </td> </tr><tr><td align="left" valign="top"><strong>Dashboards</strong></td> <td valign="top"> <p>Customizable dashboard not quite as robust</p> </td> <td valign="top"> <p>Many Customizable dashboard options<br /> User control and sharing</p> </td> </tr></tbody></table><p>One of my old colleagues Andrey Osadchuk created this great 2 part video in 2018. He has become a top contributor to the Adobe forum and goes into detail on Adobe's Analysis workspace.</p> <p><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/QsiuTFsW4e0" width="560"></iframe></p> <p> </p> <p>Google Analytics and Adobe Analytics (previously Omniture SiteCatalyst) are both distinguished solutions for digital analytics insight.  They can provide business intelligence to determine return on investment and the ability to employ powerful optimization strategies.  Each solution has strengths and weaknesses. I now work for Adobe so know much more about the Adobe offering than Google. </p> <p>This article was originally written to address Google Analytics' free version, but Google has since produced a premium version that requires varying levels of payment.  The Adobe Analytics (SiteCatalyst) solution has also gone through changes with the acquisition by tech giant Adobe.  </p> <h2>Expert Analysts and Product Leads</h2> <p>I read experts like Avinash Kaushik and Justin Cutroni for information on Google. I now have greater access to the Adobe product team, whereas before I was dependent on my yearly trip to the Adobe (Omniture) Summit. If you have budget vendors like Forrester and Gartner can provide much further detailed product information.  </p> <p>Google's Premium product offering brought the two closer for comparison purposes.  GA has an intuitive user interface, instant segmentation, and out of the box SEM integration.  Those that are new to analytics can easily begin using the platform. It is apparent much attention is paid to user interface (UI) and user experience (UX). </p> <p>Adobe Analytics (Omniture) excels with customization, data classification, and integration.  Rich customization, designed to fit any set of requirements, allow AA (SiteCatalyst) to achieve superior levels of robust functionality.  <a href="http://blogs.omniture.com/2008/09/10/classifications-aka-saint-inside-omniture-sitecatalyst/">Classifications</a> allow relational data points for exponential reporting options that can be changed retroactively.  Data manipulation through excel client, access to raw data through Data Warehouse (additional cost), and importing data through Data sources allow for immense integration abilities. There are also numerous companies that offer integrations.</p> <p><strong>Conclusion</strong></p> <p>Before making a choice of analytics software offerings it is important to assess your team. Team members need to have dedicated time for analysis, driving optimization, and development cycles should be committed for tag management code updates on a recurring basis. Requirements aligning key business objectives with key performance indicators should be well defined up front and maintained. This is where I have seen waste from underutilized resources.</p> <p>Some teams I have seen staff lightly and rely on external contractors or agencies. I have had the luck to work with some great agencies at a few different firms.  The team and the optimization strategy are what drive true success. Let us know your opinion in the comments below.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-04-28T03:47:48+00:00">Sat, 04/27/2019 - 23:47</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=6840&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="224-wuuL93-hWU2Oq1uskdSExlGdVyDr5ob_InBLKg4"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/analytics" hreflang="en">Analytics</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=6840&amp;2=comment&amp;3=comment" token="IHYYOLBBS7cUacJTmgKQJYa3lciKxgzBkdzzIGgKjgU"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sun, 28 Apr 2019 03:47:48 +0000 Brian Thopsey 6840 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/analytics-solutions-adobe-vs-google#comments https://fundwisdom.com/article/brian-thopsey/analytics-solutions-adobe-vs-google#comments Top 10 Venture Capitalists and Syndicates 2019 https://fundwisdom.com/article/brian-thopsey/top-10-venture-capitalists-and-syndicates-2019 <span property="schema:name">Top 10 Venture Capitalists and Syndicates 2019</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Looking to find the best technology investor and venture capital firm to invest alongside? Ranking venture capital fund managers is a challenge due to the lack of transparency of private company financial performance. I worked with Financial Poise, a top alternative investing publication, to publish some research on how data providers rank, building our own list. </p> <p>We explore the inputs data providers use for building their models and algorithms to rank top venture capital fund managers. Below is a summary of the results across angel investors, syndicates, fund managers, and the VC firms. View the detailed list, research, and <a href="https://www.financialpoise.com/the-top-angel-investors-and-venture-capital-fund-managers-2019/">original piece on the Financial Poise site</a>.</p> <p>We look to keep this list up to date and draw connections to financial funding portals that are disrupting the space with our <a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">top 10 funding portals article</a>.</p> <p> </p> <p><a href="https://www.financialpoise.com/accreditedinvestormarkets/article/ranking-top-angel-and-vc-fund-managers-part-1/"><img alt="Financial Poise" data-entity-type="file" data-entity-uuid="03f9be6a-7c5e-41f2-957f-15996d08bd97" src="/sites/fundwisdom.com/files/inline-images/financialpoise2.PNG" width="338" class="autofloat-odd " /></a><span>​</span></p> <p> </p> <p> </p> <p><a href="https://www.financialpoise.com/the-top-angel-investors-and-venture-capital-fund-managers-2019/"><img alt="Top Angel &amp; VC Firms" data-entity-type="file" data-entity-uuid="bb77088b-71f7-4d2a-935b-4263a417431b" src="/sites/fundwisdom.com/files/inline-images/top%20Angel%20%26%20VC.PNG" width="1000" class="autofloat-even " /></a></p> <p> Let us know what you think in the comments below.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-04-11T22:19:20+00:00">Thu, 04/11/2019 - 18:19</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=8649&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="tWjkvhqPyzvEhyFnJUiZrwQPztqZZ50BRqJxYsMr8kE"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/retail-investors" hreflang="en">Retail Investors</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=8649&amp;2=comment&amp;3=comment" token="YZlIH-n5p_dkYu9MJwa0c9Jinm1K5jMX_G60J2uH8k8"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Thu, 11 Apr 2019 22:19:20 +0000 Brian Thopsey 8649 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/top-10-venture-capitalists-and-syndicates-2019#comments https://fundwisdom.com/article/brian-thopsey/top-10-venture-capitalists-and-syndicates-2019#comments The Difference Between Debt and Equity Based Financing and Investment https://fundwisdom.com/article/brian-thopsey/difference-between-debt-and-equity-based-financing-and-investment <span property="schema:name">The Difference Between Debt and Equity Based Financing and Investment</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p><img alt="" src="/sites/all/files/cfund//debt__1.jpg" style="width:800px" class="autofloat-odd " /></p> <p>This is an update to an article originally written in 2014 by Kimberly Dodson.</p> <p>When an entrepreneur comes up with an innovative idea that requires financial resources greater than what they have they will <a href="/raise-capital">need to raise capital for their business</a>. Business leaders and founders can use equity, debt, convertible debt, build via blockchain and offer <a href="/investors/crypto">crypto tokens</a>, or any combination of these to raise funds to help with the growth of the business.</p> <p>At Fund Wisdom we review innovative funding and investing options and the changing market dynamics that accompany them. These <a href="/investors/platforms">funding platforms</a> are creating greater transparency and market insight on what businesses and investors are using for funding sources and how successful they are. Depending on the entrepreneur and your vision for the business, certain methods of capital will be more appropriate than others.</p> <h3>What is Debt?</h3> <p>Debt through bonds or notes can be acquired through loans. Debt requires fixed or monthly payments (including interest) to the investor, and provide a preference for payment in case the business files for bankruptcy. Loans can be difficult to attain or may come with very high-interest rates, as a new business has little to no credit history. In the US a government program called the <a href="http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans" target="_blank">Small Business Administration (SBA) can help secure loans</a>.</p> <ul><li>Yalber offers business funding up to $500K within 48 hours <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.140595974&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank"> with this application</a><img border="0" height="0" src="https://track.flexlinkspro.com/i.ashx?foid=1156697.140595974&amp;fot=9999&amp;foc=1&amp;fos=1" style="opacity: 0;" width="0" class="autofloat-even " /></li> <li>Lending Club offers businesses peer-to-peer lending <a alt="Other" href="https://track.flexlinkspro.com/a.ashx?foid=1156697.136643193&amp;foc=2&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank" title="LC_SB_125x125_CMR">apply for a lower rate</a><img border="0" height="0" src="https://track.flexlinkspro.com/i.ashx?foid=1156697.136643193&amp;fot=9999&amp;foc=2&amp;fos=1" style="opacity: 0;" width="0" class="autofloat-odd " /></li> </ul><p> </p> <h3>What is Equity?</h3> <p>Equity offerings provide business capital with no immediate need to pay back investors. Equity investments are securities that provide a stake in the company. Shareholders are rewarded through the retained earnings of the firm and have a claim on the assets of the corporation after the debt holders.</p> <h3>What is Convertible Debt?</h3> <p>Convertible debt is a loan that can convert into equity. The holder of the debt can convert the notes into a specified number of shares of common stock in the issuing company or cash of equal value. It's a hybrid security with debt and equity-like features.</p> <h3>What is a Cryptocurrency Security Token Offering</h3> <p><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/oHkspZEokY4" width="560"></iframe></p> <p><meta charset="utf-8" /></p> <p dir="ltr" id="docs-internal-guid-ffb59fe9-7fff-a351-cf22-419855397d42">A Security Token Offering (STO) is a form of initial coin offering (ICO, or initial currency offering). It’s a type of funding using cryptocurrencies in a regulated fashion. In an STO, cryptocurrency is sold in the form of "tokens" or "coins" to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin, Ethereum, etc. The tokens sold are promoted as future functional units of currency and are done so following SEC-mandated rules. An ICO can be a source of capital for startup companies. Traditional paper-backed assets like equity shares or debts in a business present some transaction and liquidity issues. This type of business funding event in the form of a token can address some of these problems.</p> <h3>How are they different?</h3> <p>Debt investments tend to be less risky than equity investments, but with lower and more consistent returns. Debt financing allows you to retain control of your <a href="/crowfunding-businesses/business-and-market-assessment">business</a>; entrepreneurs do not lose creative or strategic control of their startups. Startups may have to back up a loan with collateral, which means that if the startup defaults, it could lose certain tangible assets. Convertible debt delays the need to <a href="/crowdfunding-businesses/business-valuation">perform a valuation</a> as a startup, but it still provides the investors with potential impressive returns as well as an alignment of incentives.</p> <p>Equity investments involve higher risk, but with higher potential rewards. With equity financing you issue shares of common stock to an investor base and the number of shares offered dictates the investor's ownership percentage. Unlike with debt <a href="/content/equity-based-crowdfunding-platform-costs-and-fee-structures">financing</a>, you do not have to consistently allocate profits to loan repayments. There is no requirement to pay back the investment if the business fails with a loan.</p> <h3>Which one should you use?</h3> <p>Careful analysis of offerings can be performed with data <a href="/investors/analytics">market data insights solutions.</a> These products can be used to help analyze performance on either side of the market, investor or business owner. Equity and debt investing platforms are lowering fees providing better rates online, lower fund management fees and transaction costs. When selecting a path to raise funds consider they type of business you are in, your current and future cash flows, profits, expansionary needs, and the creditworthiness of your founding team.</p> <p>If you are considering debt financing a good place to start is with a <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.137422288&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank">business credit score</a><img border="0" height="0" src="https://track.flexlinkspro.com/i.ashx?foid=1156697.137422288&amp;fot=9999&amp;foc=1&amp;fos=1" style="opacity: 0;" width="0" class="autofloat-even " />. Yalber offers <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.140707417&amp;foc=1&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank">up to $500k in 48 hours</a> and <a alt="Other" href="https://track.flexlinkspro.com/a.ashx?foid=1156697.136643193&amp;foc=2&amp;fot=9999&amp;fos=1" rel="nofollow" target="_blank" title="LC_SB_125x125_CMR">Lending Club offers some of the lowest rates</a><img border="0" height="0" src="https://track.flexlinkspro.com/i.ashx?foid=1156697.136643193&amp;fot=9999&amp;foc=2&amp;fos=1" style="opacity: 0;" width="0" class="autofloat-odd " />. If you are considering debt financing and have issues with your personal debt check out these <a href="https://learnvest.com/debt/improving-your-credit">tips by LearnVest. </a>As businesses grow they typically employ a blend of both equity and debt financing to meet their needs when raising money. Which method of raising funds works for you? Share in the comments below.</p> <p> </p> <p style="margin-bottom: 7.5pt; line-height: 18.75pt; background: white;"><a href="https://www.flickr.com/photos/52278955@N03/" style="font-size: small; line-height: 20.0063037872314px;">Photo credited: Anna Dziubinska</a></p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-03-30T16:00:49+00:00">Sat, 03/30/2019 - 12:00</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=292&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="swebwVcRtuTx6koY5wCxqT88bkG14psYbAwnRvFB_yY"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/capital-types" hreflang="en">Capital Types</a>, <a href="/tags/raise-capital" hreflang="en">Raise Capital</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=292&amp;2=comment&amp;3=comment" token="rd7Kixai5Y7_CtLTiVvVSzK46mg2k__2a1f2lSxDUEI"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sat, 30 Mar 2019 16:00:49 +0000 Brian Thopsey 292 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/difference-between-debt-and-equity-based-financing-and-investment#comments https://fundwisdom.com/article/brian-thopsey/difference-between-debt-and-equity-based-financing-and-investment#comments Non-Accredited Investors Capitalize on Access to Private Equity https://fundwisdom.com/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity <span property="schema:name">Non-Accredited Investors Capitalize on Access to Private Equity</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>At Fund Wisdom, <a href="/about">we believe innovative wealth-building investments</a> should be accessed by all, and we look to empower the democratization of private equity. Overarching returns for alternative assets like private equity have outperformed the stock market through the <a href="/article/brian-thopsey/equity-crowdfunding-risks-and-rewards">greater risk profile</a>. Below we showcase investment opportunities in early-stage companies with the goal to help you produce higher returns, lower fees, and reduced risk. Review our curated list of <a href="/investors/platforms">leading-edge alternative investment platforms</a> and <a href="/investors/companies">companies listing</a> across each platform and let us know about your experience.</p> <h2>Accredited Hurdle</h2> <p>In the United States, you must be wealthy in order to invest in most startup offerings. This is where the term "private" in private equity comes from. The measure of wealth is defined by the Securities and Exchange Commission (SEC) as a net worth of $1 million excluding a primary residence.  Their other measure of wealth <meta charset="utf-8" />is an annual income of $200,000 for the past two years (if single, for married couples it’s $300,000). <meta charset="utf-8" /> If you hit one of these thresholds you would qualify as an accredited investor. More detail on accredited investors can be found on our <a href="/investors/non-accredited-unaccredited-investors">Investor Type section</a>.</p> <p><meta charset="utf-8" />Several regulatory and market changes allow for greater access to these historically private offerings. As alternative assets become increasingly democratized, non-accredited investors can capitalize on access to private equity. The Jumpstart Our Business Start-ups <a href="/about/jobs-act-title-iii">(JOBS) Act’s Title III and IV</a> requirements enable non-accredited investors to purchase shares in private companies through<a href="/investors/platforms"> equity funding portals</a>.</p> <p>These laws were drafted with access in mind, but have been implemented with too many restrictive limitations. <meta charset="utf-8" />Major market innovations like blockchain and cryptocurrencies have filled the resulting gaps.</p> <h2>Venture Investing for All</h2> <p><img alt="Jobs Act" data-entity-type="file" data-entity-uuid="8de8b32f-4ab6-4fce-8580-a2d7c396982d" src="/sites/fundwisdom.com/files/inline-images/barack-obama.PNG" style="width: 300px; margin: 10px;float:right;" class="autofloat-odd " /></p> <p>Non-accredited offerings must adhere to SEC legislation including Regulation D which restricts private securities deals. Below are the different options founders can chose from in structuring their offering:<b> </b></p> <ul dir="ltr"><li>506b private placement <ul><li><b id="docs-internal-guid-8ffc9d9a-7fff-5024-0d35-980688b25f5e" style="font-weight:normal;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">forbidden from advertising (</span></b>no general solicitation)</li> <li>cap at a maximum of 35 non-accredited investors</li> </ul></li> <li>506c <ul><li>allows for advertising, (general solicitation)</li> <li>no non-accredited investors</li> </ul></li> <li>504 <ul><li>advertising (general solicitation) allowed if restricting to accredited investors only</li> <li>caps at $5 mil in 12 months</li> </ul></li> <li>505 <ul><li>5 mil cap 12 month</li> <li>35 non accredited ok but phased out and made part of 504</li> </ul></li> </ul><p>SEC regulation states that if non-accredited investors have an annual income/net worth less than $100,000, they retain the ability to invest over $2,000 or 5 percent of lesser their annual income/net worth. Yet if investors receive over $100,000, they can invest 10 percent of lesser of their annual income/net worth.</p> <p>It’s clear that the barriers to entry are decreasing, providing access to less-affluent individual investors. An assortment of <a href="/investors/platforms">online platforms</a> <meta charset="utf-8" />have been developed to attract investors that cannot hit the requisites for accreditation. These platforms provide end-to-end digital solutions, offer an array of alternative investments across the liquidity sphere, and leverage relationships with sophisticated institutions such as sovereign wealth funds, pension funds, insurance companies, and endowments. They also offer investors exposure to private funds that lower minimum investments. These platforms can seamlessly incorporate with <a href="/investors/portfolio-system">client portfolios</a> and help qualified registered investment advisors collate smaller pools of money.</p> <h2>Conclusion</h2> <p dir="ltr" id="docs-internal-guid-362969f5-7fff-0a6a-84aa-5bc967e14f85"><meta charset="utf-8" /><meta charset="utf-8" />The proliferation of financial technology is contributing to the extinction of inefficient marketing practices, excessive distribution pricing, and archaic information delivery. Non-accredited investors can efficiently and cost-effectively access curated leading-edge alternative <a href="/investors/platforms">investment liquidity</a>. There are a lot of online platforms, and at Fund Wisdom we’ll help you take advantage of this paradigm shift. If you decide to participate in the market let us know in the comments below or <a href="/contact/">reach out</a> as we look to share experiences whether they are good or bad.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-03-24T15:15:01+00:00">Sun, 03/24/2019 - 11:15</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=6772&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="2jMsp_pmTGuxzD8Oco3-1fJ6MeWyvq0rrP50E0Q8YFg"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/capital-types" hreflang="en">Capital Types</a>, <a href="/tags/retail-investors" hreflang="en">Retail Investors</a>, <a href="/tags/legal" hreflang="en">Legal</a>, <a href="/tags/platforms" hreflang="en">Platforms</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=6772&amp;2=comment&amp;3=comment" token="eBPbB1URxgWZ08XETLzBOR7WVKIngf32mRaYNCGZV6g"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sun, 24 Mar 2019 15:15:01 +0000 Brian Thopsey 6772 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity#comments https://fundwisdom.com/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity#comments Venture & Angel Investing Insights https://fundwisdom.com/article/brian-thopsey/venture-angel-investing-insights <span property="schema:name">Venture &amp; Angel Investing Insights</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>With the rise of <a href="/investors/platforms">venture funding platforms</a> has come an increase in insight to venture investing, a previously opaque market. We explore some solutions that can be used to help with the investment process.</p> <p>We use B2B as an example investment category interest for this break down.   </p> <h2>Angel &amp; Syndicates - Seed</h2> <p>Investing portals like AngelList and WeFunder are great resource for investors willing to write checks to companies at very early stages.</p> <p><img alt="AngelList" height="48" src="/sites/all/files/cfund//angellist-logo.png" style="float: left; margin: 10px;" width="176" class="autofloat-odd " />A <a href="https://angel.co/b2b/investors">search of the Angel and Venture Investors</a> produces a list of all registered investors that have invested into companies in this category. This list can then be sorted by number of investments as seen below, or it is possible to view the companies via the tab at the top of the page.</p> <p><img alt="AngelList b2b" data-entity-type="file" data-entity-uuid="33ed5587-9f46-4f38-a6ca-85a82dc874e7" src="/sites/fundwisdom.com/files/inline-images/angel-list-b2b.PNG" style="width:500px;" class="autofloat-even " />\</p> <p> </p> <p>Wefunder offers a similar category search where at the time of writing this article there are <a href="https://wefunder.com/explore/b2b">9 B2B companies raising money</a>.</p> <p><img alt="WeFunder B2B" data-entity-type="file" data-entity-uuid="694ce157-3afe-41a1-8fcb-9c9fc36eadac" src="/sites/fundwisdom.com/files/inline-images/WeFunder_0.PNG" style="width:500px;" class="autofloat-odd " /></p> <p style="line-height: 20.0063037872314px;"><span style="line-height: 1.538em;">WeFunder shares who invests when the round completes if you select investors at the top of a company that has been funded like Newchip, the information can be found as seen below:</span></p> <p dir="ltr"><img alt="WeFunder Investors" data-entity-type="file" data-entity-uuid="9471a7c5-170d-4c09-9acb-766cafe976e7" src="/sites/fundwisdom.com/files/inline-images/We%20funders.PNG" style="width:500px;" class="autofloat-even " /></p> <p dir="ltr"> </p> <p dir="ltr">For additional insight on leads to co-invest with, <a href="http://thefunded.com/funds/">TheFunded.com</a> has a rating system that let entrepreneurs rate their investors.  The interface is not great, and is missing smaller players, but the data is robust on the larger funds.<a href="http://www.seed-db.com/investorgraph">  Seed-DB has a graph comparing Seed Investors</a> and is completely free.</p> <h2>Valuation or Comparable Analysis</h2> <p><span style="line-height: 1.538em;"><a href="/investors/innovative-venture-reports/cbinsights" target="_blank">CB Insights</a> can be used to identify investors and funding in a category with much greater detail on performance. It is possible to search for comparable companies and from there it is possible to identify who is funding. We are working with Financial Poise to release the latest review of top venture fund performers which will be updated here shortly.</span></p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-03-23T23:13:09+00:00">Sat, 03/23/2019 - 19:13</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=1432&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="WfC-I9Y7WgB1zas1LfaiTmJnJZ8B5u9gtw0zS88RG-I"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/retail-investors" hreflang="en">Retail Investors</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=1432&amp;2=comment&amp;3=comment" token="wsZLx-s4hJVXJXLiSMb9sJ3geGDo5f26WluVGbCZGL0"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sat, 23 Mar 2019 23:13:09 +0000 Brian Thopsey 1432 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/venture-angel-investing-insights#comments https://fundwisdom.com/article/brian-thopsey/venture-angel-investing-insights#comments Top 8 Investing Books - Authors with Proven Track Records https://fundwisdom.com/article/brian-thopsey/top-8-investing-books-all-time <span property="schema:name">Top 8 Investing Books - Authors with Proven Track Records</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p class="normal"><span lang="EN" xml:lang="EN">Do you want to know the secret to investors success that continue to beat the market? Warren Buffet’s success as an investor has made him the <a href="https://en.wikipedia.org/wiki/The_World%27s_Billionaires">third richest man in the world with a net worth of $82.5 billion at the end of 2018</a>. The secret Warren Buffet shares in his documentary, ‘Becoming Warren Buffet’, is that he is a voracious reader, pointing out that he spends more than 5 hours a day reading. The same holds true of his protege Charlie Munger and his teacher Benjamin Graham.</span></p> <p class="normal"><span lang="EN" xml:lang="EN">We identified the below books as some of the most referenced for investing intelligently with a value approach by money managers with proven long term track records. We follow that list up with the top books aimed to help finding investment opportunities through equity funding portals. </span></p> <h2 style="text-align:justify"><span lang="EN" xml:lang="EN">Top Value Investing Books</span></h2> <h3 style="text-align: justify;"><span lang="EN" xml:lang="EN">Authors with Long Term Success</span></h3> <h3 style="text-align: justify;"><a name="_rya6mkicdxno" id="_rya6mkicdxno"></a><span lang="EN" xml:lang="EN">1<span style="mso-spacerun:yes">   </span>The Intelligent Investor by Benjamin Graham</span></h3> <p class="normal"><span lang="EN" xml:lang="EN"><a href="https://www.amazon.com/gp/product/0060555661/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0060555661&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=64864ceb6eaaace0d4e83930ebfbb65a"><span style="color:#1155CC">The Intelligent Investor</span></a> is a centerpiece for value investors. There is a reason Benjamin Graham is known as the ‘Godfather of Value Investing’ and even Warren Buffet has based his investing strategy based on his principles.</span></p> <h3 style="text-align:justify"><a name="_3tq8q2e2gcyv" id="_3tq8q2e2gcyv"></a><span lang="EN" xml:lang="EN">2    Margin of Safety by Seth Klarman</span></h3> <p><a href="https://www.amazon.com/gp/product/0887305105/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0887305105&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=c6d5a39f8f524f8d556d63f4024f7e6f"><img alt="Margin of Safety" data-entity-type="file" data-entity-uuid="bbd020f1-faa3-4ae9-a430-b6c35e58eafc" src="/sites/fundwisdom.com/files/inline-images/margin-of-safety.PNG" style="width: 200px;" class="autofloat-odd " /></a></p> <p><a href="https://www.amazon.com/gp/product/0887305105/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0887305105&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=c6d5a39f8f524f8d556d63f4024f7e6f"><span lang="EN" xml:lang="EN">Seth Klarman </span></a>published the book in 1991. <a href="https://www.amazon.com/gp/product/0887305105/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0887305105&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=c6d5a39f8f524f8d556d63f4024f7e6f"><span lang="EN" xml:lang="EN">Margin of Safety's </span></a>retail price on Amazon was $2500 and is now out-of-print. It is a value investing book so coveted on Wall Street that used copies still sell for thousands of dollars. Seth Klarman is the founder of Baupost Group, a Boston-based hedge fund whose long-term track record is among the best in the industry.</p> <h3 style="text-align:justify"><span lang="EN" xml:lang="EN">3<span style="mso-spacerun:yes">   </span>Principles by Ray Dalio</span></h3> <p class="normal" style="text-align:justify"><span lang="EN" xml:lang="EN"><a href="https://www.amazon.com/gp/product/1501124021/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=1501124021&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=303743895f555a3c3def5ca34c606fe1"><span style="color:#1155CC">Principles</span></a> by Ray Dalio is as much about investing as it is life. A legendary hedge fund manager Ray Dalio attributes his success to the unconventional principles mentioned in this book that helped him achieve superlative results in life and business.</span></p> <h3 style="text-align:justify"><a name="_khmz2j5g1ofj" id="_khmz2j5g1ofj"></a><span lang="EN" xml:lang="EN">4<span style="mso-spacerun:yes">   </span>The Essays of Warren Buffet by Warren Buffet</span></h3> <p class="normal" style="text-align:justify"><span lang="EN" xml:lang="EN">If you want to learn from the Oracle of Omaha, <a href="https://www.amazon.com/gp/product/1611637589/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=1611637589&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=755b8bf648cc52fbde22364cfc030d4d" target="_blank">The Essays of Warren Buffett: Lessons for Corporate America</a><img alt="" border="0" height="1" src="//ir-na.amazon-adsystem.com/e/ir?t=fundwisdom06-20&amp;l=am2&amp;o=1&amp;a=1611637589" style="border:none !important; margin:0px !important;" width="1" class="autofloat-even " /> is the next best thing to direct mentoring. It is an accumulation of 50 years of his wealth of experience on investing and business. Combined with his razor-sharp intellect and his down-to-earth charm, it forms for a very interesting read.</span></p> <h3 style="text-align:justify"><a name="_4sx74ebr0abn" id="_4sx74ebr0abn"></a><span lang="EN" xml:lang="EN">5<span style="mso-spacerun:yes">   </span>One Up on Wall Street by Peter Lynch</span></h3> <p class="normal" style="text-align:justify"><span lang="EN" xml:lang="EN">Peter Lynch is one of the most successful investors of Wall Street who achieved a 29.2% compounded annual return for his Magellan Fund. In <a href="https://www.amazon.com/gp/product/0743200403/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0743200403&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=6dd99fef4f73bf2c692ad7d7413685b7" target="_blank">One Up On Wall Street: How To Use What You Already Know To Make Money In The Market</a><img alt="" border="0" height="1" src="//ir-na.amazon-adsystem.com/e/ir?t=fundwisdom06-20&amp;l=am2&amp;o=1&amp;a=0743200403" style="border:none !important; margin:0px !important;" width="1" class="autofloat-odd " />, he talks about making superior gains by investing in companies whose products you know for example Amazon, Netflix, Apple.</span></p> <h3 style="text-align:justify"><a name="_at37ehiivvjj" id="_at37ehiivvjj"></a><span lang="EN" xml:lang="EN">6<span style="mso-spacerun:yes">   </span>Stock Market Wizards by Jack D. Schwager</span></h3> <p class="normal" style="text-align:justify"><span lang="EN" xml:lang="EN">Jack D. Schwager is known for his famous Market Wizards series in which he interviews famous traders and identifies the common rules and strategies which everyone can use. Being a successful trader himself, in <a href="https://www.amazon.com/gp/product/1118273052/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=1118273052&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=e6be31e2e3bf166d8092652774696bb3" target="_blank">Market Wizards, Updated: Interviews with Top Traders</a><img alt="" border="0" height="1" src="//ir-na.amazon-adsystem.com/e/ir?t=fundwisdom06-20&amp;l=am2&amp;o=1&amp;a=1118273052" style="border:none !important; margin:0px !important;" width="1" class="autofloat-even " /> Schwager is able to cut through the fog of common axioms and bring out the real strategies pursued by traders who significantly outperformed the stock market.</span></p> <h3 style="text-align:justify"><a name="_lwld96l62cbq" id="_lwld96l62cbq"></a><span lang="EN" xml:lang="EN">7<span style="mso-spacerun:yes">   </span>Reminiscences of a Stock Operator by Edwin Lefevre</span></h3> <p class="normal" style="text-align:justify"><span lang="EN" xml:lang="EN">First published in 1923, <a href="https://www.amazon.com/gp/product/0471770884/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0471770884&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=4b89b45bb1d3c71ea974a29947963588" target="_blank">Reminiscences of a Stock Operator</a><img alt="" border="0" height="1" src="//ir-na.amazon-adsystem.com/e/ir?t=fundwisdom06-20&amp;l=am2&amp;o=1&amp;a=0471770884" style="border:none !important; margin:0px !important;" width="1" class="autofloat-odd " /> is known as the most entertaining book on investing. It contains a fictionalized account of the Jesse Livermore, a prolific securities trader and offers great insights into market timing and crowd psychology.</span></p> <h3 style="text-align:justify"><a name="_8vzsqynimrrp" id="_8vzsqynimrrp"></a><span lang="EN" xml:lang="EN">8<span style="mso-spacerun:yes">   </span>The Little Book of Common Sense Investing by John C. Bogle</span></h3> <p class="normal" style="text-align:justify"><span lang="EN" xml:lang="EN">John C. Bogle is the founder of the Vanguard group and is credited with creating the first index fund. He is also known as the father of mutual fund investing. In the <a href="https://www.amazon.com/gp/product/1119404509/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=1119404509&amp;linkCode=as2&amp;tag=fundwisdom06-20&amp;linkId=8befb76f1cc294269c0a437933a51f75" target="_blank">The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)</a><img alt="" border="0" height="1" src="//ir-na.amazon-adsystem.com/e/ir?t=fundwisdom06-20&amp;l=am2&amp;o=1&amp;a=1119404509" style="border:none !important; margin:0px !important;" width="1" class="autofloat-even " />, Bogle talks about using common sense in investing and simply hold a diversified portfolio of stocks for a long term to win the investing game.</span></p> <p class="normal" style="text-align:justify"> </p> <h2>Top Equity Crowdfunding Books</h2> <h3>1 <span class="a-list-item">Equity Crowdfunding for Investors: A Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Terms by </span> David M. Freedman and Matthew R. Nutting</h3> <p><iframe frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="//ws-na.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&amp;OneJS=1&amp;Operation=GetAdHtml&amp;MarketPlace=US&amp;source=ac&amp;ref=qf_sp_asin_til&amp;ad_type=product_link&amp;tracking_id=fundwisdom06-20&amp;marketplace=amazon&amp;region=US&amp;placement=1118853563&amp;asins=1118853563&amp;linkId=0fc6649ac9f129a24f3e0eb245b24fce&amp;show_border=false&amp;link_opens_in_new_window=false&amp;price_color=333333&amp;title_color=0066c0&amp;bg_color=ffffff" style="width:120px;height:240px;"></iframe></p> <p> </p> <h3>2   Equity Crowdfunding Explained by Sal Briggman</h3> <p><iframe frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="//ws-na.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&amp;OneJS=1&amp;Operation=GetAdHtml&amp;MarketPlace=US&amp;source=ac&amp;ref=qf_sp_asin_til&amp;ad_type=product_link&amp;tracking_id=fundwisdom06-20&amp;marketplace=amazon&amp;region=US&amp;placement=B07C2FQ1WV&amp;asins=B07C2FQ1WV&amp;linkId=934279db5becd2c27b503006da96b189&amp;show_border=false&amp;link_opens_in_new_window=false&amp;price_color=333333&amp;title_color=0066c0&amp;bg_color=ffffff" style="width:120px;height:240px;"></iframe></p> <p> </p> <h3>3 <span class="a-list-item">Peer-to-Peer Lending and Equity Crowdfunding: A Guide to the New Capital Markets for Job Creators, Investors, and Entrepreneurs </span> by Kim Wales</h3> <p><iframe frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="//ws-na.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&amp;OneJS=1&amp;Operation=GetAdHtml&amp;MarketPlace=US&amp;source=ac&amp;ref=qf_sp_asin_til&amp;ad_type=product_link&amp;tracking_id=fundwisdom06-20&amp;marketplace=amazon&amp;region=US&amp;placement=144085534X&amp;asins=144085534X&amp;linkId=de111b52d28639789f493ade4948b5e2&amp;show_border=false&amp;link_opens_in_new_window=false&amp;price_color=333333&amp;title_color=0066c0&amp;bg_color=ffffff" style="width:120px;height:240px;"></iframe></p> <p> </p> <p>Another great source of education and information for venture investing can be found via audio with <a href="/investors/venture-investing-blogs-podcasts">podcasts</a>. <a href="/investors/venture-investing-blogs-podcasts">We list our top picks</a> to add to your arsenal.</p> <p>Let us know what you think about the list in the comments below.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-03-16T18:24:55+00:00">Sat, 03/16/2019 - 14:24</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=6773&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="5bsl8-o7tN-pDSLA-Y96-ecsKMi3njejD-Pp_273Hf8"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/retail-investors" hreflang="en">Retail Investors</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=6773&amp;2=comment&amp;3=comment" token="-7iN4ZswM1Ea4P_hnFudKpDd4w8pHYaflQP3tWvEDE0"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> <div class="field field--name-field-sidebar field--type-list-string field--label-above"> <div class="field__label">Sidebar:</div> <div class="field__item">Rigth</div> </div> <div class="field field--name-field-blog-categories field--type-entity-reference field--label-hidden field__item"><a href="/blog-categories/inspiration" hreflang="en">Inspiration</a></div> <div class="field field--name-field-blog-tags field--type-entity-reference field--label-hidden field__item"><a href="/tags/retail-investors" hreflang="en">Retail Investors</a></div> Sat, 16 Mar 2019 18:24:55 +0000 Brian Thopsey 6773 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/top-8-investing-books-all-time#comments https://fundwisdom.com/article/brian-thopsey/top-8-investing-books-all-time#comments Real Estate Investing Online and Crowdfunding https://fundwisdom.com/article/brian-thopsey/real-estate-investing-online-and-crowdfunding <span property="schema:name">Real Estate Investing Online and Crowdfunding</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Real estate investing platforms have created increased access to real estate investment opportunities much the way <a href="/investors/platforms">business focused investing portals </a>have done the same for access to high growth startups. The Real-Estate Crowdfunding Review lists it's rating of the the <a href="https://www.therealestatecrowdfundingreview.com/top-100-sites-ranked-and-reviewed">top platforms for accredited investors for 2019</a> and a <a href="https://www.therealestatecrowdfundingreview.com/top-14-nonaccredited-realestate">separate listing for those that do not meet this wealth requirement</a>. The top rated is <a href="http://www.kqzyfj.com/click-7643827-12960644">Peer Street</a><img border="0" height="1" src="https://www.ftjcfx.com/image-7643827-12960644" width="1" class="autofloat-odd " />. Which was rated on the following factors:</p> <ul><li>Functional sign-up: site requires password and verifies email address.</li> <li>Focuses just on real estate crowdfunding and not just a broker</li> <li>All available investments are online, and provides all information on them necessary to invest online (including all due diligence documents, such as leases, appraisals etc.).</li> <li>Location: All investments U.S.-based available to investors in all U.S. states.</li> <li>Transparency: allows investors to fully share and critique information on investments</li> <li>Deal Flow: at least three available investments in a month.</li> </ul><p dir="ltr"><img alt="" src="/sites/all/files/cfund//23a1489.jpg" style="float:right;" class="autofloat-even " />In order to help investors better understand these new solutions and strategies we have spoke with Brock Murray, the CEO of JOI Media Inc. chairman of <a href="http://www.katipult.com/" target="_blank">Katipult</a> platform and also board member of National Crowdfunding Association of Canada, to provide insight into real estate funding online regarding his article-<a href="http://www.banklesstimes.com/2014/12/02/the-well-kept-secret-of-high-returns-in-real-estate-investment/">The Well-kept secret of high returns in real estate investment.</a></p> <p dir="ltr">Brock said: "the customers of Katipult have performed dozens of deals. The entire industry is shifting online."  It seems to be consistent with the studies from Massolution, which reports that there was $1 billion injected into the U.S real estate market by crowdfunding investors in 2014, and the number would climb to $2.5 billion by the end of 2015. We have not been able to find updates to this data for 2018 in review.</p> <p dir="ltr">Brock describes Katipult as, "a software infrastructure that allows issuers to launch an online syndication or crowdfunding platform for equity and debt private placements".</p> <p dir="ltr">Q: What's the advantage going online to raise funds in the real estate industry?  </p> <p>A: Access to capital is strained in many cases so groups are looking to diversify their investor pools. The logistics, distribution, and exposure of crowdfunding is very scalable when compared with traditional methods.</p> <p dir="ltr"> Q: Why are investing startup equity growing so fast?</p> <p dir="ltr">A: Investments in startup businesses dominate a lot of crowdfunding conversations, particularly with regulators (compliance, investor protection, etc). While that is a very important aspect of the industry for new businesses having access to capital, real estate crowdfunding provides a much safer investment to the average investor and their is a clear exit strategy (often with interest payments while you wait) so it would be ideal regulators addressed this asset class separately within the rules.</p> <h2>Debt vs. Equity Offerings</h2> <p><a href="/investors/platforms">Funding platforms</a> offer, and focus on, different investment classes like debt and equity. Debt investors are lenders, and have different ownership rights in the property than equity holders. Equity investing provides ownership or shareholding rights of a property, but holding periods can be shorter for debt. Shareholders can be rewarded through retained earnings with a downside of a risk of default by the team raising the money. An equity investment has a claim on the assets of the fund after the debt holders. Convertible debt is a loan that can convert to equity under certain conditions. It's a hybrid security with debt and equity-like features.</p> <p><a href="http://www.kqzyfj.com/click-7643827-12960644">Peer Street </a> is a marketplace that provides unprecedented access to high quality real estate loan, or debt investments, top rated by Real-Estate Crowdfunding Review. We have a relationship with the team and are happy to help with further analysis and encourage you to share experiences in the comments section.</p> <p dir="ltr">We continue to see <a href="/search/node?keys=real%20estate&amp;f%5B0%5D=type%3Acompany&amp;advanced-form=1">equity offerings for real estate on the equity funding focused platforms we cover</a>. Due to rapid development of of these funding portals and technology shifts we expect to see greater investment in real estate offerings over high growth business equity offerings, which we focus on.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-03-16T15:01:10+00:00">Sat, 03/16/2019 - 11:01</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=5514&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="2i5T0HsCwjyDpekXtmjH_PuLrF9VRp3nrfk1Q3_Idvc"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/capital-types" hreflang="en">Capital Types</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=5514&amp;2=comment&amp;3=comment" token="Y0zHJLJhZsRPDP33R1277nUGjTZvHALYHVS5pdJp0B4"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sat, 16 Mar 2019 15:01:10 +0000 Brian Thopsey 5514 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/real-estate-investing-online-and-crowdfunding#comments https://fundwisdom.com/article/brian-thopsey/real-estate-investing-online-and-crowdfunding#comments Cloud Hosting & Experience Management for Investment Managers https://fundwisdom.com/article/brian-thopsey/cloud-hosting-experience-management-investment-managers <span property="schema:name">Cloud Hosting &amp; Experience Management for Investment Managers</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>If you are running the website and hosting for your investment firm selecting software and service providers can be a challenge. I cover a few resources I have found helpful to make the process to find hosting and back end infrastructure fast and easy.</p> <p>Many firms are moving to infrastructure as a service. I have seen this shift first hand at companies large and small, from startups to Fortune 500 enterprises. Cloud hosting provides scalability, lower cost, processing, and distribution efficiencies. You can achieve significant cost savings by moving to these technologies. I walk through the process to find solutions to keep overhead low in order to grow fast and maintain focus.</p> <h2>Making a Selection - Side by Side</h2> <p><a href="http://www.cloudsizer.com/csreg.aspx"><img alt="" data-entity-type="" data-entity-uuid="" height="82" src="/sites/fundwisdom.com/files/cloudsizer-logo-portrait.png" style="margin: 2px 10px;float:right" width="130" class="autofloat-odd " /></a>Ideas International released a tool to help with competitive pricing of cloud solutions, CloudSizer that was purchased by Gartner. The solution allowed you to perform a direct comparison of providers side by side in a slick format which now requires you to have a Gartner account. We have since found HR Rank to provide this comparison of free and lower cost offerings. You can compare metrics like price and performance.</p> <p><a href="https://www.gartner.com/reviews/market/public-cloud-iaas">Gartner Reviews</a><br /><a href="https://www.vpsbenchmarks.com/">VPS Benchmarks</a><br /><a data-saferedirecturl="https://www.google.com/url?q=https://www.hrank.com/&amp;source=gmail&amp;ust=1553691500450000&amp;usg=AFQjCNHUTjkYi-7hmPm0xP7cjMwEq4U8WA" href="https://www.hrank.com/" target="_blank">HRank - Shared Hosting Providers Rating by Uptime</a></p> <p> </p> <h3>Providers:</h3> <ul><li><a href="/aws.amazon.com/">Amazon Web Services</a><img alt="Amazon Web Services" data-entity-type="" data-entity-uuid="" height="60" src="/sites/fundwisdom.com/files/logo_aws.gif" style="margin: 10px 20px;float:right" width="164" class="autofloat-even " /></li> <li><a href="http://www.rackspacecloud.com/">RackSpace Cloud</a> </li> <li><a href="http://www.gogrid.com/">GoGrid</a></li> <li><a href="http://www.rightscale.com/">RightScale</a> - Amazon Reseller designed for large online applications</li> <li><a href="http://www.etelos.com/" target="_blank">Etelos</a></li> <li><a href="http://www.3tera.com/" target="_blank">3tera</a></li> <li><a href="http://www.hosting.com/cloudhosting/">Hosting.com</a></li> <li><a href="http://dedicatedserver.com/solutions/ntt_america_cloud.cfm">NTT Communications</a></li> <li><a href="http://www.vps.net/" target="_blank">VPS Net</a></li> <li><a href="http://www.reliacloud.com/">Relia Cloud</a></li> <li><a href="http://www.webhostingsecretrevealed.com/netdepot-cloud.php" target="_blank">NetDepot</a></li> </ul><h3><img alt="Amazon Web Services Conference 2011" data-entity-type="" data-entity-uuid="" height="224" src="/sites/fundwisdom.com/files/IMG_0426.png" style="margin: 20px 30px;float:right;" width="300" class="autofloat-odd " />Making the Move</h3> <p>The challenge that stops many is the transition process can be arduous. The most compelling story of such a transition is Amazon Retail.  John Jenkins(JJ) from the Retail division frequently shares that Amazon Web Services was not a result of Amazon.com's infrastructure needs.  Instead the retailer slowly migrated their infrastructure over to AWS. Vadim Jelezniakov, Director of Infrastructure Engineering at The New York Times, shared several large scale implementation success stories across several projects. Outages are always a cause for concern, but with the growth of server monitoring like <a href="https://www.cloudkick.com/">Cloudkick</a> Dynatrace, Nagios, New Relic, and <a href="https://istheservicedown.com/problems/amazon-web-services-aws/history">IsTheService down for AWS</a> along with comparison tools above have allowed cloud infrastructure to become prevalent. There is also the option to mitigate issues through hybrid environments, mixing cloud services and managed on premise hosting.</p> <p>(Image: Alcatel, NY Times on the AWS Implementation Panel)   </p> <h3>Domain Name</h3> <p>Tools to help identify available domains, like, <a href="http://www.bustaname.com/" target="_blank">Bust A Name</a> or <a href="http://www.shareasale.com/r.cfm?b=439123&amp;u=1064275&amp;m=44876&amp;urllink=&amp;afftrack=">Flippa</a> can help you find domains that are actively being sold. The service helps buyers connect and place offers for current owners of the domains.</p> <h3>Experience Management</h3> <div>One of the best resources for assessing and selecting experience management, or content management (CMS) are independent analyst companies like Forrester and Gartner. Forrester produces <a href="https://www.forrester.com/Enterprise-Content-Management-%28ECM%29">quarterly reports on Enterprise Content Management</a> while Gartner produces a <a href="https://www.gartner.com/doc/3884563/magic-quadrant-web-content-management">Magic Quandrant</a>. These reports are written with a broad view and not industry specific. Luke Hinchliffe of <a href="https://blog.kurtosys.com/choosing-a-cms-for-your-investment-website-9-considerations/">Kurtosys writes of the 9 considerations</a> for investment managers in selecting a content management solution. He discusses cost, functionality, performance, implementation time, integration, scalability, security, compliance, and futureproofing.</div> <div> <p>The method for choosing the right fit comes down to requirements and resources. Open Source solutions, like Wordpress, Drupal, and Magento, may not cost money up front but require an investment in time that should be a major factor in assessment. As Luke concludes his piece it is important that the actual users are committed to leveraging the solution, and ready to maximize the potential.</p> <h4>Open Source<img alt="Drupal" data-entity-type="" data-entity-uuid="" height="103" src="/sites/fundwisdom.com/files/drupal_0.gif" style="margin: 10px;float:right;" width="90" class="autofloat-even " /></h4> <p>For those with server administration expertise that are looking for a more affordable solution open source is a great way to go. If the team does not have this expertise or plan to build it, hosted providers are the way to go. The founder of Drupal, <a href="https://dri.es/">Dries</a> co-founded a service company, <a href="http://acquia.com/products-services/acquia-hosting">Acquia</a> to serve this need.</p> <p>At Fund Wisdom we chose to use Drupal. This decision was based on all the factors Luke describes. The cost was $0 for the software itself, but hidden costs have arisen from time spent customizing through modules, themes, views, and more. It also helps we are in Boston which is the same city Acquia is based.</p> </div> <h3>Conclusion</h3> <p>When considering a hosting provider be sure to check out <a href="https://www.gartner.com/reviews/market/public-cloud-iaas">Gartner Reviews</a>, <a href="https://www.vpsbenchmarks.com/">VPS Benchmarks</a>, and <a data-saferedirecturl="https://www.google.com/url?q=https://www.hrank.com/&amp;source=gmail&amp;ust=1553691500450000&amp;usg=AFQjCNHUTjkYi-7hmPm0xP7cjMwEq4U8WA" href="https://www.hrank.com/" target="_blank">HRank</a> to help with the decision. We leverage A2 Hosting, Dreamhost, and have historically used AWS and Rackspace. Much of our decision was based off the high level of resources required to run the set of modules in Drupal. We look forward to reading your thoughts and feedback in the comments below.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-03-10T21:52:39+00:00">Sun, 03/10/2019 - 17:52</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=6837&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="dFbEa8X2j2ZykYVHKm8eFHk2lx4od7_jBkzGetIRdk0"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/content-management" hreflang="en">Content Management</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=6837&amp;2=comment&amp;3=comment" token="QsiLqex7T33ScyHeL4bw3lXyG5-aKgGzQm0QG_4sza4"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sun, 10 Mar 2019 21:52:39 +0000 Brian Thopsey 6837 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/cloud-hosting-experience-management-investment-managers#comments https://fundwisdom.com/article/brian-thopsey/cloud-hosting-experience-management-investment-managers#comments Saving Money with Improved Valuations https://fundwisdom.com/article/brian-thopsey/saving-money-improved-valuations <span property="schema:name">Saving Money with Improved Valuations</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The process to assess the value of a company, particularly at an early stage can be challenging and costly in the long run. Startup equity investing <a href="/crowdfunding-businesses/equity-based-crowdfunding-platform-costs-and-fee-structures">platforms</a> opportunities enable people from all over the world to invest in fast growing businesses. Assessing the value and risk of the investment is a difficult task and considerably more difficult if the founding team and investors are not in the same region.</p> <p>Now in a social media age, the rumors start on news feeds, move to Facebook, and within 24 hours a company that exists as little more than a sassy name on a domain name can quadruple in value and just as quickly vanish. Sometimes purely depending on who’s the big name that’s lent their reputation to it.</p> <p dir="ltr">In 2017 an eccentric British journalist called Oobah Butler, started up one of London’s most popular restaurants. Except he didn’t, he just took some photos of food, plates of food, and began writing reviews on Yelp and other such sites under pseudonyms. Soon other posters joined in, believing they were supporting the newest and most exciting restaurant in London, in England, nay the world. Nobody wants to admit they couldn’t get reservations because this restaurant, of course, didn’t exist.</p> <p dir="ltr">By the time Ooba came clean about his prank there a lot of red faces, but not many red bank balances. But a poorly valued startup can lead to quite the opposite. So how do you work out the value and risk in an investment when crunched for time?</p> <p>Use services to help with the valuation process.  The significance of having investments verified by a third-party evaluation service has grown meaningfully over the last few years. Gaining in piece of mind accountability but also having a third-party vet critical investment decision. A critical aspect of overcoming knowledge gaps is using the advice of subject matter experts to weigh in on an investment.</p> <p> Fortunately we know some people who can help. Expert friends with years of experience valuing startups. <a href="http://www.valueanalyticsanddesign.com/">Value Analytics</a> or <a href="http://www.algovalue.com/">AlgoValue</a>. Try them out and you may well find yourself celebrating in the best restaurant in town. Just make sure it exists, and Oobah Butler isn’t the head chef.</p> <h2>Providing Transparent, Independent and Credible Valuations</h2> <p>These third-party valuations companies emanate from the need to provide the added value of investment transparency which ultimately boosts investor comfort tremendously. Moreover, these independent valuations also provide a considerable degree of robustness to the decision-making process by encouraging consistent analysis and ensuring constant monitoring and facilitation of the audit process.</p> <h3>AlgoValue</h3> <p><img alt="AlgoValue" data-entity-type="file" data-entity-uuid="1e54d79b-6139-4684-b53a-ad97ac09c4a3" src="/sites/fundwisdom.com/files/inline-images/algovalue.jpg" class="autofloat-odd " /></p> <p><a href="http://www.algovalue.com/">AlgoValue</a> is the only software company that designs its products specifically around creating value for business valuations firms. The offering addresses concerns such as data privacy, accuracy of information as well as loss of human agility and perception by offering full transparency to results with graphs and formulas.</p> <p>The 409A business market is changing rapidly right along with the advances in technology tools. These tools have improved workflows, decreased time spent on audit reporting and enhanced the ability to continuously stay competitive. AlgoValue brings new and innovative valuation tools such as their <a href="http://www.algovalue.com/times-changin-even-409a-business/">AlgoValue 409A Wizard</a> to market allowing business valuation professionals, the end users, with the expertise to correctly interpret and enter the data, and build rational and plausible assumptions.</p> <p>AlgoValue also provides free technical support whenever professional questions come up.  </p> <p>AlgoValue helps investors and entrepreneurs appreciate the true benefits and risks of their investments. Providing a renowned online 409A /ASC 820 compliance, enterprise valuation and cap table/ term sheet analysis platform, AlgoValue delivers indispensable equity management tools designed for meaningful, efficient and sustained productivity. Their software-as-a-service model offers valuation tools – as opposed to simulation tools – setting AlgoValue ahead of other similar online valuation platforms.  AlgoValue’s term sheet analyzer allows users to perform a range of “probability scenarios”, effectively eliminating time-consuming bookkeeping and complex calculations allowing you to make more empowering equity choices. </p> <p>“AlgoValue is a powerful and accurate solution for running simulations for primary and secondary investments in private venture-backed companies. It facilitates and substantiates investors’ processes of quantitative decision making and sensitivity analysis” -Yoni Levy, Principal, Vintage Investment Partner</p> <p>Another option to strongly consider if you are more interested in working with a premium consultancy company that will work meticulously to create deep understanding and value through a handcrafted scientific approach– value + realism + deep understanding = effective decision support –to power your company’s future innovation and design is <a href="http://www.valueanalyticsanddesign.com/index.html">Value Analytics &amp; Design</a>.</p> <p><a href="http://www.valueanalyticsanddesign.com/upload/files/cherry_tree_model.pdf">The Model</a></p> <p>Value: accurate understanding of the value the entity, project, or asset has and will create.</p> <p>Realism: decision making is multi-dimensional, complex and dynamic.</p> <p>Deep understanding: the power of understanding the inner workings of human nature.</p> <p> </p> <h3>Value Analytics &amp; Design</h3> <p><a href="http://www.valueanalyticsanddesign.com/">Value Analytics &amp; Design</a> provides valuation advisory services. And though the specialize in early stage, high-growth hard to value, complex structure, businesses they take on businesses and projects of all sizes, operating in any industry. As independent, third-party, valuation experts they leverage a sophisticated blend of customized research, progressive mathematics, best practices and common sense to derive each estimate for value.</p> <p><a href="http://www.valueanalyticsanddesign.com/vad-profile.html">“Value Analytics &amp; Design’s mission is to facilitate effective business decisions through a unique fusion of value + realism + deep understanding.” </a></p> <p>Value Analytics &amp; Design offers financial modeling, strategic finance and <a href="http://www.valueanalyticsanddesign.com/upload/files/map_of_valuation_advisory_services.pdf">valuation advisory services</a>. They also help their client companies and advisors understand, in advance, the value implications complicit within the project(s) such as:</p> <ul><li>A proposed liquidity event, stock option grant or other transaction;</li> <li>Intangible assets and intellectual property stratagems;</li> <li>Operating choices whether contemplative or actual design and development;</li> <li>Owners succession planning and wealth preservation strategies.</li> </ul><p>There are a lot of fundamental reasons why Value Analytics &amp; Design stands out as an independent valuation company of choice. Possibly one of the most interesting explanations can be found in their approach to solving equity and value proposition problems. The company stands behind a holistic equity model that firmly embraces their intersecting habits of valuation, analytics and design which enforce, inform and nourish one another; the fecundity propagates a reciprocally beneficial ecosystem. </p> <p>As a client you can expect Value Analytics &amp; Design to treat you with individual excellence and a design mentality. Their professional SME community is dedicated to active listening, responsiveness and out-of-the-box problem solving combined with objective and defensible best practices and tried-and-true theories and methods.</p> <p>Each member of the Value Analytics &amp; Design community can approach each value problem with superb technical capabilities and by thinking proactively and creatively they are able to challenge the status quo as appropriate. The community is made up of masters in their respective fields of expertise; they know business from having started, run, invested in and advise them.</p> <p>Remaining rooted in excellence means being agile and responsive supporting client decisions and operating processes; they are more than comfortable with paradigm shifts. They are willing to precipitate change if it benefits the client’s best interests and is demanded by the situation.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-03-03T02:18:35+00:00">Sat, 03/02/2019 - 21:18</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=6775&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="fiuxxGNNwfId6-aAmH61XQ-XF7zTHLaCl-dPUHYBsGQ"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/analytics" hreflang="en">Analytics</a></div> </div> <div id="comment-section"> <div class="title-line"></div> <div id="comment-container"> <div> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=6775&amp;2=comment&amp;3=comment" token="xzqkRzRDoeLVKIw6iiBqfj--C762VkA0Mor1MS11Ev4"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sun, 03 Mar 2019 02:18:35 +0000 Brian Thopsey 6775 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/saving-money-improved-valuations#comments https://fundwisdom.com/article/brian-thopsey/saving-money-improved-valuations#comments Angel Portfolio Management https://fundwisdom.com/article/brian-thopsey/angel-portfolio-management <span property="schema:name">Angel Portfolio Management</span> <div property="schema:text" class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Many early stage investors start tracking in spreadsheets or accounting systems, but these often fall short for providing real time actionable insight. Complexity has increased as asset structures have evolved making these systems antiquated. Fintech firms like Personal Capital, Addepar, Mint have grown in popularity helping individuals manage their portfolio of investments. These solutions simplify portfolio performance and personal finance. The world of alternative investing in private equity has seen a growing number of companies applying these same principles.</p> <p>Investment management platform <a href="https://www.addepar.com/">Addepar</a> was started with the goal of providing clarity into investment options along with an actionable interface. A New York Times <a href="http://www.nytimes.com/2014/08/04/technology/wealth-managers-enlist-spy-tools-to-map-portfolios.html?_r=1">article</a> points out, this company is doing its part to help wealth managers weave through the complex web of big data to analyze their portfolios. Addepar offers investors and advisors a way to quickly and accurately get a snapshot of their holdings, while funds and fund administrators can seamlessly tailor their analysis and reporting.</p> <p>Addepar was founded by two former employees of Palantir Technologies, a firm that helps military and intelligence agencies sort through complex data. While the big data involved in the world of investing is different from matters of national or international security, parallels can be drawn. Much in the way data can help security experts prepare for disaster scenarios, Addepar can do the same for portfolio's and throw up red flags if a portfolio appears headed for doomsday. Eric Poirier, Addepar's CEO, explained to the New York Times some of the problems confronting today's wealth managers and investors. "One of the most fundamental questions in finance is 'What do I own, and what is all of this worth?' 'What is my risk?' turns out to be an almost intractable problem," Poirier <a href="http://www.nytimes.com/2014/08/04/technology/wealth-managers-enlist-spy-tools-to-map-portfolios.html?_r=1">said</a>.</p> <p><a href="https://seraf-investor.com"><img alt="" data-entity-type="" data-entity-uuid="" height="327" src="/sites/all/files/cfund//seraf_investing.jpg" style="margin: 10px 20px;" width="407" class="autofloat-odd " /></a></p> <p><a href="https://seraf-investor.com">Seraf Investor</a> was built by Co-Founders Ham Lord &amp; Christopher Mirabile Co-Managing Directors of Launchpad Venture Group. Christopher is the Chair of the Angel Capital Association. This makes the pair incredibly well suited to tackle the problem angel investors, and early stage investment managers face with managing their portfolio. As an angel investors portfolio grows so do investor reports, follow-ons, note conversions, warrants, and tax deadlines. Many view diversification into a large number of companies as key to success, so as one quickly outgrows basic tools like spreadsheets and email folders Seraf is the place to turn. The solution is still fairly new so pricing is reasonable starting at $10 a month.</p> <p>At Fund Wisdom we review new offerings to help the early stage seed investment process. We look forward to learning about your experience with these offerings and if there are others we should cover in our comment section below.</p> </div> <span rel="schema:author"><a title="View user profile." href="/users/brian-thopsey" lang="" about="/users/brian-thopsey" typeof="schema:Person" property="schema:name" datatype="">Brian Thopsey</a></span> <span property="schema:dateCreated" content="2019-02-16T11:38:08+00:00">Sat, 02/16/2019 - 06:38</span> <div class="field field--name-field-rate-articles field--type-voting-api-field field--label-above"> <div class="field__label">How Helpful was This Article:</div> <div class="field__item"><drupal-render-placeholder callback="voting_api.lazy_loader:buildForm" arguments="0=fivestar&amp;1=node&amp;2=article&amp;3=5674&amp;4=vote&amp;5=field_rate_articles&amp;6=a%3A5%3A%7Bs%3A5%3A%22style%22%3Bs%3A7%3A%22default%22%3Bs%3A12%3A%22show_results%22%3Bs%3A1%3A%221%22%3Bs%3A8%3A%22readonly%22%3Bi%3A0%3Bs%3A13%3A%22show_own_vote%22%3Bi%3A0%3Bs%3A6%3A%22values%22%3Ba%3A0%3A%7B%7D%7D" token="y10kHOTXEkV3LllIOmzJH0CuZbdPbpprdBUijFmHpVQ"></drupal-render-placeholder></div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div property="schema:about" class="field__item"><a href="/tags/retail-investors" hreflang="en">Retail Investors</a></div> </div> <div id="comment-section"> <div class="comment-number post-section-title"> <span> Comments</span> </div> <div class="title-line"></div> <div id="comment-container"> <div> <article class="comment byuser comment-author-admin bypostauthor even thread-even depth-1" id="li-comment-10"> <div class="comment-entry" > <div class="comment-avatar"> <article class="simpnews-user-info"> <div class="field field--name-user-picture field--type-image field--label-hidden field__item"> <a href="/user/0" hreflang="und"><img src="/sites/fundwisdom.com/files/styles/thumbnail/public/default_images/person_8x10.png?itok=5xxcXpg4" width="80" height="100" alt="Profile picture for user Ernest O&#039;Malley" typeof="foaf:Image" /> </a> </div> </article></div> <div class="comment-info"> <div class="comment-author"> <span rel="schema:author"><span lang="" typeof="schema:Person" property="schema:name" datatype="">Jhonson (not verified)</span></span> </div> <div class="comment-date"> Mon, 04/30/2018 - 23:10 <span property="schema:dateCreated" content="2018-05-01T03:10:55+00:00" class="hidden"></span> </div> <span class="comment-reply"> <drupal-render-placeholder callback="comment.lazy_builders:renderLinks" arguments="0=72&amp;1=default&amp;2=en&amp;3=" token="T7rH6NOavD19jtoL8OxTKnLzc-usUssVXQIllUuLmCM"></drupal-render-placeholder> </span> <span class="comment-content"> </span> <div class="comment-content content"> <div property="schema:text" class="field field--name-comment-body field--type-text-long field--label-hidden field__item"><p>It sounds good to read :)</p> </div> </div> </div> <div class="cleared"></div> </div> <!-- End Comment entry--> </article> </div> </div> <div class="cleared"></div> </div> <div id="comment-form" class="content"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span class="title_reply_label">Leave Your Comment</span><span class="title-line"></span> </h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=5674&amp;2=comment&amp;3=comment" token="kE6vsVfgZU5Pr0UHNOMgnjU5skbkjirl_e30Le1THcA"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sat, 16 Feb 2019 11:38:08 +0000 Brian Thopsey 5674 at https://fundwisdom.com https://fundwisdom.com/article/brian-thopsey/angel-portfolio-management#comments https://fundwisdom.com/article/brian-thopsey/angel-portfolio-management#comments