Fintech Articles - Fundwisdom.com https://www.fundwisdom.com/ en The Difference Between Debt & Equity Based Crowd Financing https://www.fundwisdom.com/article/brian-thopsey/difference-between-debt-equity-based-crowd-financing <span>The Difference Between Debt &amp; Equity Based Crowd Financing</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p> Are you considering raising money for your venture? Do you have an innovative idea you need some help building? Business founders have options as to how they get the money they need and pay back investors. Equity, debt, <a href="/investors/crypto">crypto</a>, or any combination of these can be used to raise funds to help you grow your organization. I will outline some of the differences to help you identify what may be best for your needs.</p> <div class="align-right"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/loan-image-dalle.png?itok=SIgELS5L 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2023-01/loan-image-dalle.png?itok=Ea2Es9KF 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2023-01/loan-image-dalle.png?itok=8SrzHDhV 1024w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/loan-image-dalle.png?itok=SIgELS5L" alt="Business Loan discussion, impressionist painting" /></div> </div> </div> <p>At Fund Wisdom we review innovative funding and investing platforms and the changing market dynamics that accompany them. These <a href="/investors/platforms">funding solutions</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. We step through what others are using to help you assess where to go.</p> <p>Below is a screenshot of our dashboard that provides a view into the financing types from our <a href="/about/database">database of equity crowdfunding offerings</a> to see the rate at which others are using each type.</p> <p><a href="/investors/platforms/dashboard/asset-types"></a></p> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/2022_reg-cf_asset_types.png?itok=oQm-wv3- 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2023-01/2022_reg-cf_asset_types.png?itok=1thas3OH 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2023-01/2022_reg-cf_asset_types.png?itok=H6xky6ir 1300w, /sites/fundwisdom.com/files/styles/max_2600x2600/public/2023-01/2022_reg-cf_asset_types.png?itok=MqInqhRZ 1605w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/2022_reg-cf_asset_types.png?itok=oQm-wv3-" alt="2022 Reg CF Asset Types Offered " /></div> </div> </div> <p><br /></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> <p>As seen from our data a few of the asset categories within equity are:</p> <ul><li>Common Stock <ul><li>Non-Voting</li> <li>Class B </li> <li>Class A </li> </ul></li> <li>Preferred Stock</li> <li>Simple Agreement for Future Equity (SAFE)</li> </ul><p>We will cover SAFEs in the convertible debt section as this is a method of raising money that straddles the line between debt and equity. This has also grown in popularity.  </p> <h3>What is Debt?</h3> <p>Money raised by a founder from an investor under the condition that it is to be paid back at a later date, most of the time with additional interest on top of the initial capital provided.</p> <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 business; 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><a href="/raise-capital/debt-funding"></a></p> <div class="align-right"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/debt-platforms-affiliates.png?itok=GzRQRMzk 286w, /sites/fundwisdom.com/files/styles/max_650x650/public/2023-01/debt-platforms-affiliates.png?itok=JozWnwQs 573w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2023-01/debt-platforms-affiliates.png?itok=jvpnnSf6 973w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/debt-platforms-affiliates.png?itok=GzRQRMzk" alt="Debt Funding Platforms" /></div> </div> </div> <p> </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 financing, 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> <h4>Convertible Debt</h4> <p>Convertible debt, or a convertible note, 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> <p>How do you measure a <a href="/crowdfunding-businesses">startup's </a>value? How do you know their idea or team has potential? It's hard for startups to answer questions like that without any form of established proof. But with convertible debt, startups do not have to answer those questions right away. Convertible debt is attractive because it allows startups to delay this issue.  </p> <p><strong>Convertible debt success: </strong></p> <p>With a goal of $600,00 on WeFunder, Camperoo reached 100% of its goal using convertible debt. Emmie Chang, CEO and Founder of Camperoo,  set out to create a company that helps  parents discover the best camps for their kids As Camperoo contunies to grow they hope to be the new marketplace for all child activities.</p> <p>Emmie Chang said she used convertible debt because "documentation is relatively simple and straightforward. We could also close each investor separately in a rolling close, with some flexibility in valuation caps (which increase over time). It also reduced legal fees and time to sign."</p> <p>Convertible debt is a type of security frequently used by startups when raising seed capital.<a href="/about"> Fund Wisdom</a> can help your startup raise money through our different <a href="/crowdfunding-investors/funds-being-raised-by-platform">aggregated crowdfunding platforms. </a>If you are an entrepreneur interesting in starting a <a href="/crowdfunding-businesses">startup</a> using convertible debt take a look at our startup page. If you are an investor and are interested in funding startups that use convertible debt, take a look at our<a href="/crowdfunding-investors"> investor </a>page and find the right startup for you.</p> <h3>What is a Cryptocurrency Security Token Offering</h3> <p>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> <p><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" src="https://www.youtube.com/embed/oHkspZEokY4" width="560" height="315" frameborder="0">undefined</iframe></p> <p>As seen from our data a few of the asset categories within equity are:</p> <ul><li>Token Debt Payable by Assets ("DPA")</li> <li>SAFT (Simple Agreement for Future Tokens)</li> </ul><p dir="ltr"><a href="/platform/coinlist">Coinlist</a> is a platform that specializes in these offerings built from the AngelList team is a great source to find these ICO investment offerings.</p> <h3>Which one should you use?</h3> <p>The Small Business Administration (SBA) is a government backed program that can help in the process to raise capital via equity or securing loans and is a great place to start. Hopefully an understanding of the offering types and those being used helps determine where to go. 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 the 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 style="opacity:0;" src="https://track.flexlinkspro.com/i.ashx?foid=1156697.137422288&amp;fot=9999&amp;foc=1&amp;fos=1" width="0" height="0" border="0" />. <a href="https://track.flexlinkspro.com/g.ashx?foid=24.215932.6036173&amp;trid=1156697.215932&amp;foc=16&amp;fot=9999&amp;fos=5">Supermoney</a> and <a href="https://track.flexlinkspro.com/g.ashx?foid=2.5212066.13727610&amp;trid=1156697.207368&amp;foc=16&amp;fot=9999&amp;fos=5">Kapitus</a> offer up competitive rates<img style="opacity:0;" src="https://track.flexlinkspro.com/i.ashx?foid=1156697.136643193&amp;fot=9999&amp;foc=2&amp;fos=1" width="0" height="0" border="0" />. We have affiliate relationships with both. As businesses grow they typically employ a blend of both equity and debt financing to meet their needs. Which method of raising funds works for you? Share in the comments below.</p> </div> <span><span>Brian Thopsey</span></span> <span>Sat, 01/14/2023 - 20:00</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/capital-types" hreflang="en">Capital Types</a>, <a href="/article/tag/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> Sun, 15 Jan 2023 01:00:49 +0000 Brian Thopsey 292 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/difference-between-debt-equity-based-crowd-financing#comments https://www.fundwisdom.com/article/brian-thopsey/difference-between-debt-equity-based-crowd-financing#comments Crypto Hardware Wallet - Ledger Nano X Review https://www.fundwisdom.com/article/brian-thopsey/crypto-hardware-wallet-ledger-nano-x-review <span>Crypto Hardware Wallet - Ledger Nano X Review</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Heard any horror stories of people losing all their cryptocurrency? Whether it be by getting your trading platform hacked or a disaster like FTX, security of your digital assets is important. </p> <p>Back in 2019 I began looking for a way to improve the safety around storing my digital tokens. After a ton of research I chose a crypto hardware wallet, the Ledger Nano X. I immediately signed up for their affiliate program. I will walk you through some of the secure storage options, how to set it up, and some of the challenges I faced actually using it.</p> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/portfolio_on_ledger_live_app_portfolio.jpg?itok=FW3NmfIP 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2023-01/portfolio_on_ledger_live_app_portfolio.jpg?itok=LOMW7SUf 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2023-01/portfolio_on_ledger_live_app_portfolio.jpg?itok=4as4vzyE 1300w, /sites/fundwisdom.com/files/styles/max_2600x2600/public/2023-01/portfolio_on_ledger_live_app_portfolio.jpg?itok=vslD6cfZ 2600w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/portfolio_on_ledger_live_app_portfolio.jpg?itok=FW3NmfIP" alt="Portfolio Ledger" /></div> </div> </div> <h3>Storage Security Concerns</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, but the cryptocurrency market has not been around anywhere near as long so with that, comes challenges we must face in securing our portfolio.</p> <p dir="ltr" id="docs-internal-guid-bab51e10-7fff-8533-b59c-042db2e2e816">Some challenges we face are identity theft and hacking attacks. Some have shared their experiences publicly with these challenges, like <a href="https://twitter.com/AmberBaldet/status/1060714102685863936">Mike Dudas and Ryan Selkis faced getting hacked via phone porting</a>. The ecosystem is still being developed, and risks are prevalent. In 2023 Chainanalysis reported <a href="https://blog.chainalysis.com/reports/2023-crypto-crime-report-introduction/">$20 billion in illicit trading in 2022</a>, of which they do not call out which specifically was due to hacking, but in October 2022 had <a href="https://twitter.com/chainalysis/status/1580312145451180032?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1580312145451180032%7Ctwgr%5E05cfcdace2b32567ab3633dbf068bcee1c28b8ea%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.cbsnews.com%2Fnews%2Fcryptocurrency-theft-hacker-chainalysis-blockchain-crime%2F">tweeted that number hit $3 Billion for that point in the year</a>.  Chainanalysis maintains a striking visual timeline of how this has increased over time. 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. So let's learn how to leverage new developments to ensure your investments are secure.</p> <p> </p> <h3>How do I keep my Cryptocurrency Secure</h3> <p dir="ltr" id="docs-internal-guid-81428664-7fff-227d-5417-a450c47fb1c7">Nobody 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 dir="ltr">Cryptocurrency is decentralized, as in it doesn’t rely on a bank as the central way to store the value. The entire network and ledger 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">In fiat banking you can login to see the money in your account. In the US regulated banks must follow a set of regulations that ensure the solvency of the assests you are storing. Cryptocurrency wallets aid in the security of the storage like the private key unlocking the right for you to buy, sell, or spend your currency. Though there are no regulations to ensure the safety yet of when you use the trading platform to store your tokens. </p> <h3>Growing Use of Cryptocurrency Wallets</h3> <p>Aditya Thakur and Rahul Verma wrote a paper on An Empirical Three Phase Analysis of Crypto Market in the <span>International Conference on Advanced Research in Management publication where they showcase the growth of wallet use in the crypto space. They provided a global view of data. </span></p> <p><a href="https://www.researchgate.net/publication/359218205_An_Empirical_Three_Phase_Analysis_of_Crypto_Market"></a></p> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/hardware_wallet_use.png?itok=XkCBwQd4 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2023-01/hardware_wallet_use.png?itok=Ax5FC40w 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2023-01/hardware_wallet_use.png?itok=Wn43lD7y 1300w, /sites/fundwisdom.com/files/styles/max_2600x2600/public/2023-01/hardware_wallet_use.png?itok=2BAdf84X 1394w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/hardware_wallet_use.png?itok=XkCBwQd4" alt="Hardware wallet use trendline" /></div> </div> </div> <p><br /></p><h2>The Best Crypto Wallets for 2023 </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. Many reviewers now break out cold wallets or those based around hardware, and hot wallets, or many that are software based. Below I’ve collected some of the better reviews and commentaries that survey your options:</p> <ul><li><meta charset="utf-8" /></li> <li><a href="https://www.nerdwallet.com/article/investing/best-bitcoin-cryptocurrency-wallet">NerdWallet</a></li> <li><a href="https://coindiligent.com/best-cryptocurrency-wallets"><span class="author vcard author-name" itemprop="name" itemscope="itemscope" itemtype="http://schema.org/Person">Pascal Thellmann</span> of Coindiligent rates Ledger #1</a> </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</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 </h2> <p>I chose to buy the Ledger Nano X 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> back in 2019. My 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> <div class="align-center"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/inline-images/ledger%20nano_0.PNG?itok=_alACBK_ 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/inline-images/ledger%20nano_0.PNG?itok=iSM6JEY8 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/inline-images/ledger%20nano_0.PNG?itok=z6Zkh9RN 1300w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/inline-images/ledger%20nano_0.PNG?itok=_alACBK_" alt="test" title="image" /></div> </div> </div> <p> </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 src="/sites/fundwisdom.com/files/inline-images/Ledger%20Nano%20X%20Fund%20Wisdom%20with%20box.jpg" data-entity-uuid="6784bdb4-2a0e-442e-bf37-2952bf5bb668" data-entity-type="file" alt="Unboxing Ledger Nano X: Packaging, USB, Keychain, user guide" width="500" /><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 style="float:right;margin:10px;" src="/sites/fundwisdom.com/files/inline-images/coinbasebanner1.jpg" data-entity-uuid="76eec8a2-b302-4fca-8d24-0c04fbf45230" data-entity-type="file" alt="Coinbase Buy and Sell Etherium, Lightcoin, Bitcoin, and other Cryptocurrencies" width="280" /></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 or via our contact form.</p> </div> <span><span>Brian Thopsey</span></span> <span>Thu, 01/12/2023 - 20:29</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/crypto" hreflang="en">Crypto</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 loading="lazy" src="/sites/fundwisdom.com/files/styles/thumbnail/public/default_images/person_8x10.png?itok=5xxcXpg4" width="80" height="100" alt="Profile picture for user Robert" /> </a> </div> </article></div> <div class="comment-info"> <div class="comment-author"> <span>Tony (not verified)</span> </div> <div class="comment-date"> Sun, 10/13/2019 - 04:20 </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 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 loading="lazy" src="/sites/fundwisdom.com/files/styles/thumbnail/public/pictures/me2.PNG?itok=qR2OZ0r7" width="76" height="100" alt="Profile picture for user Brian Thopsey" /> </a> </div> </article></div> <div class="comment-info"> <div class="comment-author"> <span>Brian Thopsey</span> </div> <div class="comment-date"> Mon, 10/21/2019 - 19:00 </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 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> Fri, 13 Jan 2023 01:29:09 +0000 Brian Thopsey 9254 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/crypto-hardware-wallet-ledger-nano-x-review#comments https://www.fundwisdom.com/article/brian-thopsey/crypto-hardware-wallet-ledger-nano-x-review#comments Equity Crowdfunding: Investment Insights for 2022 https://www.fundwisdom.com/article/brian-thopsey/equity-crowdfunding-investment-insights-2022 <span>Equity Crowdfunding: Investment Insights for 2022</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><div class="row flex flex--12 css-1v1axsl"> <div class="composite flex__item--md-12 flex__item--xs-12 css-8x0d4x"> <div class="inner-composite flex flex--12"> <div class="widget-column flex__item--md-12 flex__item--xs-12"> <div class="widget-row flex flex--12"> <div class="flex__item--md-12 flex__item--xs-12"> <div class="widget" data-widget-id="e824a689-1cdf-6f06-de16-e334499e31dd"> <div class="lp-text-react lp-headline-react" data-widget-type="LpTextReact"> <p class="text-align-left font-scale-7 line-height-scale-5"><em>Get the insider's scoop on the growing equity investing portal industry.</em></p> </div> </div> </div> </div> </div> </div> </div> </div> <div class="row flex flex--12 css-1v1axsl"> <div class="composite flex__item--md-12 flex__item--xs-12 css-8x0d4x"> <div class="inner-composite flex flex--12"> <div class="widget-column flex__item--md-12 flex__item--xs-12"> <div class="widget-row flex flex--12"> <div class="flex__item--md-12 flex__item--xs-12"> <div class="widget" data-widget-id="027bfc2a-a8e5-9e8c-ddef-8ce43e59f315"> <div class="lp-text-react lp-headline-react" data-widget-type="LpTextReact"> <p class="text-align-left font-scale-6 line-height-scale-5">Who are the major players? Which regions and platforms are performing best and growing? How much investment is pouring in under Regulation D, A+ and CF? We break down the data from 2021 and 2022 to help you improve your investment decision. We review deal sources, fees, and performance. This industry has re-define early-stage startup investing. Gain clarity as to what's happening in the industry to find where the future opportunity lies.</p> </div> </div> </div> </div> </div> </div> </div> </div> <h2>Startup Investing Potential</h2> <p>Capture the value before an IPO with high yielding startup investments. Venture Economics have provided average returns data for Angel Seed investing. This category averaged 20-25% according to Venture Economics and the <a href="http://www.angelcapitalassociation.org/data/Documents/Members%20Only/BestPractices/E3c%20-%20Best%20Practices/4%20BestPractices_PortfolioStrategy.pdf">Angel Capital Association</a> and Preqin put the overall VC category at about the <a href="https://www.preqin.com/insights/global-reports/2023-venture-capital">same for their 2023 report</a>. </p> <table><tbody><tr><td> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/angel-returns-kauffman.png?itok=Mb2yuMaW 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-12/angel-returns-kauffman.png?itok=bJgRSvYL 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-12/angel-returns-kauffman.png?itok=Wmpm-ty0 840w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/angel-returns-kauffman.png?itok=Mb2yuMaW" alt="Angel Returns Average from ACA And Kauffman" /></div> </div> </div> </td> <td> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/preqin-returns.png?itok=ctx_mIex 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2023-01/preqin-returns.png?itok=mKqnbsiH 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2023-01/preqin-returns.png?itok=uIZtJpnq 702w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2023-01/preqin-returns.png?itok=ctx_mIex" alt="Preqin Global Report 2023 Venture Capital Angel Returns" /></div> </div> </div> </td> </tr></tbody></table><p>If you are new to investing in companies offering equity at their seed stage a growing set of new investing portals have been created to help you access these returns. Note though that Angel investing is VERY risky. 1 or 2 of every 10 investments brings most of the returns while most of the other startups fail completely.</p> <h3>Non Accredited Equity Funding</h3> <p>If you are in the US you will fall into one of two categories, an accredited investor, or not. If you are <a href="/about/jobs-act-title-iii/#Restrictions">wealthy enough in the SEC's eyes</a>, or are able to pass new tests you can become accredited.</p> <p>If you are accredited you have don't have to worry about restrictions of non accredited investing. Non-accredited status has greater restrictions around what you can access.  The fact that you have access at all is somewhat of a recent change brought by <a href="/about/jobs-act-title-iii" about="" jobs-act-title-iii="" tabindex="-1">Title III of the Jobs Act (aka Reg CF)</a>. Access to startup businesses offering shares at an early stage was limited to friends and family or accredited investors only. Now you can invest in these high growth startups, whether or not you have a personal relationship with the founder.</p> <p> </p> <h2>Market Size</h2> <div class="align-left"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/equitymultiple-caia-alt-market.png?itok=0umQAttL 279w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-10/equitymultiple-caia-alt-market.png?itok=5RHgtviY 558w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-10/equitymultiple-caia-alt-market.png?itok=_t7W-4N1 1072w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/equitymultiple-caia-alt-market.png?itok=0umQAttL" alt="EquityMultiple CAIA Alternative Market Report 2020" /></div> </div> </div> <p>At Fund Wisdom the data and insights we focus on is this non-accredited regulated space. In order to understand the market size of this growing market let's put it into context with the broader categories of investing it fits within.</p> <h3>Alternatives - Private Equity (PE)</h3> <p>Most people are familiar with public equity and debt, stock and bond investing. Assets that don't fit these are often categorized as alternative investments. EquityMultiple put out <a href="https://www.equitymultiple.com/wp-content/uploads/2022/08/WHITEPAPER_Alternative-Assets_Market_Upheaval_2022.pdf?utm_source=int&amp;utm_medium=email&amp;utm_campaign=email-one-off-update&amp;utm_content=alt-assets-whitepaper-22">a report in 2022</a> showcasing insights on the entire alternative market from 2020. They cite <span>Chartered Alternative Investment Analyst </span>(CAIA) &amp; Preqin data suggesting Private Equity totaled $6.5 Trillion in assets.</p> <div class="align-right"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/equitymultiple-individuals-vs-institutional.png?itok=SNqDk1-l 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-10/equitymultiple-individuals-vs-institutional.png?itok=mlcNU6ER 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-10/equitymultiple-individuals-vs-institutional.png?itok=IR3Dh_r5 1300w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/equitymultiple-individuals-vs-institutional.png?itok=SNqDk1-l" alt="EquityMultiple individuals vs institutional" /></div> </div> </div> <p>The report brought light to the fact that the alternative markets are dominated by institutional investors and not individuals. I believe that will continue to shift as platforms like EquityMultiple, Wefunder, AngelList, etc. will balance this mix giving more individuals like me and you improved access.</p> <p> </p> <h3>Venture Capital (VC)</h3> <p>With Private Equity at $6.5 Trillion in 2020, of that how much was just Venture Investing? <a href="https://nvca.org/pressreleases/u-s-venture-capital-soars-to-new-highs-in-2021/">According to Pitchbook and the National Venture Capital Association (NVCA)</a> deal value exceeded $300 Billion and fundraising topped $100 Billion, for 2021 year end. While <a href="https://www.preqin.com/insights/research/reports/alternatives-in-2021">Preqin reports in 2020 VC had $297 Bil invested and $121 Bil raised across 732 funds (pg 9)</a>. Preqin reported a <a href="https://www.preqin.com/insights/global-reports/2023-venture-capital">total of Assets Under Management (AUM) at around $2.2 Trillion</a> for 2021.  </p> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/nvca-vc-stages.png?itok=KxL_aQNK 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-12/nvca-vc-stages.png?itok=Mpj6Few5 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-12/nvca-vc-stages.png?itok=qKrsWTbG 1300w, /sites/fundwisdom.com/files/styles/max_2600x2600/public/2022-12/nvca-vc-stages.png?itok=Lnxptg60 1659w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/nvca-vc-stages.png?itok=KxL_aQNK" alt="NVCA 2022 Venture Capital Investing Stages" /></div> </div> </div> <h3>Angel &amp; Seed</h3> <p>So out of the $300 Billion in venture capital how much was seed stage? The <a href="https://nvcalegacyprod.wpengine.com/research/nvca-yearbook/">NVCA yearly report</a> breaks down funding stages, stating seed makes up 6,181 deals at $18.4 Billion.</p> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/nvca-vc-stage-size.png?itok=d0EYDfG0 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-12/nvca-vc-stage-size.png?itok=eptEfK6I 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-12/nvca-vc-stage-size.png?itok=OS_I1gGk 1199w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/nvca-vc-stage-size.png?itok=d0EYDfG0" alt="NVCA US VC Deal Value by stage 2021" /></div> </div> </div> <h3>Regulated Equity Crowdfunding (Reg-CF)</h3> <div class="align-right"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/alts-growth-ucambridge.png?itok=Oj8U3Qj9 183w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-12/alts-growth-ucambridge.png?itok=wnCD1Erz 322w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/alts-growth-ucambridge.png?itok=Oj8U3Qj9" alt="uCambridge Alternative Investment growth " /></div> </div> </div> <p>2021 <a href="https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/the-2nd-global-alternative-finance-market-benchmarking-report/">Global Alternative Finance Market Benchmarking Report by the University of Cambridge (UK) Judge Business School</a> states the US saw $332 million in Equity Based Regulated Crowdfunding (Reg-CF) market in 2020. The Judge Business School's team categorizes "Alternative Assets" different from Preqin and Pitchbook.</p> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/equity-crowdfunding-alts2.png?itok=no9lzkVj 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-12/equity-crowdfunding-alts2.png?itok=Tg4rM14H 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-12/equity-crowdfunding-alts2.png?itok=UFeZkoTI 1300w, /sites/fundwisdom.com/files/styles/max_2600x2600/public/2022-12/equity-crowdfunding-alts2.png?itok=GSru7QYM 1406w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-12/equity-crowdfunding-alts2.png?itok=no9lzkVj" alt="U Cambridge Equity Funding Models" /></div> </div> </div> <p> </p> <p> </p> <h2>Fund Wisdom Data </h2> <p>At Fund Wisdom we have followed and collected Regulated Equity Crowdfunding (Reg-CF) data from 2014. For this article we review data from the start of 2022. At this time we have data from Q1 and 2. I will update this article to include the Q3 data shortly. Q4 data is delayed by a few months so likely won't be able to complete the full year in review until March, 2023.</p> <h3>Top Platforms</h3> <p>StartEngine appears to be leading the race in total number of offerings, at 348, with Wefunder not far behind.</p> <div> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/2022-h1-ecfbar.png?itok=F9T6hj1V 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-10/2022-h1-ecfbar.png?itok=u0_FmUAt 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-10/2022-h1-ecfbar.png?itok=rhHyqs2H 1300w, /sites/fundwisdom.com/files/styles/max_2600x2600/public/2022-10/2022-h1-ecfbar.png?itok=CsYWIRrF 2198w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/2022-h1-ecfbar.png?itok=F9T6hj1V" alt="1st half 2022 Top Platforms" /></div> </div> </div> <p> </p> <h3 style="clear:both;">Who is Achieving Success</h3> <p>We are looking into the Other classification of Asset type founders are using to raise money. Convertible notes I believe fall in this category for now.</p> <div class="align-right"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/asset_type-2022-1h.png?itok=N0HrVvb6 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-10/asset_type-2022-1h.png?itok=ZpwWsiZJ 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-10/asset_type-2022-1h.png?itok=ZT_1ZaA3 914w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/asset_type-2022-1h.png?itok=N0HrVvb6" alt="Asset types 2022 1h" /></div> </div> </div> <h3>Top States</h3> <p>Not surprising California has seen the most startups raising capital on platforms. Though Florida and Texas outpacing MA differs from traditional VC rankings by state.</p> <div class="align-center"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/top_states_2022_1h.png?itok=pLyO0c5f 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-10/top_states_2022_1h.png?itok=KoDjrbW5 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-10/top_states_2022_1h.png?itok=Ih3j4sII 1220w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/top_states_2022_1h.png?itok=pLyO0c5f" alt="Top States Funding 2022 1H" /></div> </div> </div> <h3>Top Cities</h3> <p>Though California is the top state, I believe due to the spread of commercial real estate across all Silicon Valley San Fran comes in second. New York taking the top spot and my native Boston coming in at the 7th spot for most companies to start raising capital.</p> <div class="align-center"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/top-cities-2022-1h.png?itok=pS5jePNG 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2022-10/top-cities-2022-1h.png?itok=PGj2jLBj 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2022-10/top-cities-2022-1h.png?itok=LZhqSVTI 1300w, /sites/fundwisdom.com/files/styles/max_2600x2600/public/2022-10/top-cities-2022-1h.png?itok=d4skwEBp 1400w" sizes="(min-width: 1290px) 1290px, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2022-10/top-cities-2022-1h.png?itok=pS5jePNG" alt="Top Cities 2022 1H" /></div> </div> </div> <p> </p> <p>This is an ongoing series of articles. Previous reviews from years: <a href="/article/brian-thopsey/equity-crowdfunding-analysis-h1-2019" tabindex="-1">2019</a>, <a href="/node/9693/" tabindex="-1">2020</a></p> <h2>Capitalize</h2> <p>In order to stay up to date with the latest data you can review the <a href="/investors/platforms/dashboard">the live Dashboard</a> that will be available for free for a limited period as we continue to build something you may find helpful. I welcome feedback and guidance as to what would be most valuable to you. If you are willing to take the time to write in I am happy to grandfather you into the GA launch, providing future access after the product is officially released.</p> <p> </p> </div> <span><span>Brian Thopsey</span></span> <span>Sun, 01/01/2023 - 10:20</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/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=36503&amp;2=comment&amp;3=comment" token="9t9-WHckCTCx-f9U5UgktCIk38spUPN_ws7rarQJduw"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sun, 01 Jan 2023 15:20:03 +0000 Brian Thopsey 36503 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/equity-crowdfunding-investment-insights-2022#comments https://www.fundwisdom.com/article/brian-thopsey/equity-crowdfunding-investment-insights-2022#comments A List of Top Crypto BlockChain Investor Fund Managers https://www.fundwisdom.com/article/brian-thopsey/list-top-crypto-blockchain-investor-fund-managers <span>A List of Top Crypto BlockChain Investor Fund Managers</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p><span style="display:none;" id="cke_bm_312S"> </span>Wondering who the top cryptocurrency fund managers are, specifically those that have been achieving the highest returns over a multi-year period with the challenging current market?</p> <p>Crypto shares similar excitement to startup investing, but instead of equity as the asset you have a token. I get excited when placing a trade, in an individual firm's equity in it's infancy. Crypto has given me that same excitement about potential returns and value the network could bring.</p> <p>I can relate to not having enough time to properly research every individual investment pick I want to make. There’s only so much time in the day. I enjoy the due diligence process, analyzing, then making a commitment. But sometimes I rely on a fund manager to make sure I properly diversify. I started this list of blockchain angel investors and fund managers with the intent to get feedback to grow it. I start with the Syndicates of founders of crypto investing portals, move to larger funds with higher minimum investments, then review my selection process.</p> <h3>Invest Direct - STO/ICO Investing Portals</h3> <p>Investing during the private stage can lead to a discount to the listing price. If you're familiar with an IPO or Initial Public Offering and the benefits to getting access early before the public can have a material impact. Initial Coin Offerings or ICOs can have a similar outcome for you so if you are looking to invest direct into initial coin offerings in their earliest stages, and avoid the fees of funds, I wrote another <a href="/article/brian-thopsey/investing-next-bitcoin-day-launch">piece detailing how to invest direct into a single cryptocurrency through a platforms focused on initial coin offerings</a>. Some of the founders of these portals run their own funds or Syndicates, so we start with them.</p> <h4>CoinList/Republic Team</h4> <div class="align-left"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/coinlist.png?itok=a11rHwP7 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/coinlist.png?itok=8o2KnMqa 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/coinlist.png?itok=mmprnRI7 1024w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/coinlist.png?itok=a11rHwP7" alt="image" title="image" /></div> </div> </div> <p><a href="https://angel.co/bt/syndicate">Brian Tubergen</a> Chief Product Officer and Co-Founder of <a href="/platform/coinlist" target="_blank" title="CoinList">@CoinList</a>. He Built AngelList's online fundraising product and Co-founded CoinList with Graham Jenkin - COO, Joshua Slayton (no title on LinkedIn besides Founder &amp; previous founding CTO at AngelList), and Paul Menchov CTO. His Syndicate does not focus on just Crypto focused companies. <a href="https://angel.co/bt/syndicate">Check out his Syndicate &gt;</a></p> <p><a href="https://angel.co/paul-menchov/syndicate">Paul Menchov</a> Co-Founded <a href="/platform/republic" target="_blank" title="Republic">@Republic</a> as well as <a href="/platform/coinlist" target="_blank" title="CoinList">@CoinList</a> where he now acts as CTO teaming with Brian. He also had a hand helping to build AngelList and Zynga after he studied Computer Science at Cornell. Paul appears to be less active than Brian in running his syndicate with only 2 deals per year and no detail on typical LP investments. <a href="https://angel.co/paul-menchov/syndicate">Check out his Syndicate &gt;</a></p> <h4>SeedInvest / Circle Team</h4> <div class="align-left"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/circle-seedinvest.png?itok=3rjCPLjD 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/circle-seedinvest.png?itok=Yk_Ea18D 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/circle-seedinvest.png?itok=hKWVNBqw 1200w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/circle-seedinvest.png?itok=3rjCPLjD" alt="SeedInvest" title="image" /></div> </div> </div> <p>SeedInvest offers <a href="/investors/funds/seedinvest">a few funds that blend access to some crypto as well as startups</a>. Ryan Feit and Brad Harrison. Ryan Feit is the CEO and Co-Founder of SeedInvest, which was acquired by Circle as they went deeper into the Crypto market. Brad Harrison focused on the <a href="/investors/funds/seedinvest">Funds starting with Scout Ventures</a>.</p> <p> </p> <h3>Hedge Funds &amp; Venture Leaders</h3> <p style="margin:0in 0in 8pt;">We start with a list of those managers noted for their innovative approaches to sourcing investment opportunities and structure of fund.</p> <p style="margin:0in 0in 8pt;">Maybe you are not a geek like myself and are willing to rely on someone else that may have more expertise. If that is the case and you're willing to pay more for someone else to build and maintain your portfolio of crypto.</p> <p>Below are the fund managers based in the USA focused on blockchain and cryptocurrency. Ordered by size of fund managed, starting with the largest funds, by Assets Under Management (AUM). As you provide feedback we will continue to make updates to the list.</p> <p><a href="/investors/crypto"><img src="/sites/fundwisdom.com/files/styles/max_650x650/public/2022-09/crypto-fund-managers.png" width="710" /></a></p> <div class="c-cvFzHD"> <ul><li>$50 Bil <a href="/investors/funds/grayscale">Barry Silbert is the founder of Grayscale, now Digital Currency Group (DCG)</a>.  He is a pioneer in the space. With a background in finance and a fruitful career as an investment banker in New York. In 2013, he started a Bitcoin investment fund, seeded with $2 Mil from SecondMarket, a investment technology firm he founded and later sold to Nasdaq. Based in Stamford, CT. They built <span class="mw-headline" id="Genesis_Global_Trading">Genesis Global Trading </span>a crypto trading, lending, and asset custody platform, targeting institutional clients.</li> <li><a href="https://a16zcrypto.com/">7.6 Bil</a>  <a href="/investors/funds/a16z-crypto">Chris Dixon runs A16Zs Crypto Operations</a>. <a href="https://a16z.com/2021/06/24/crypto-fund-iii/">$2.2 Bil in Fund III</a> and $4.5 Bil in their latest fund. They have a Long-term focus able to hold investments for 10+ years. planning to invest consistently over time, regardless of market conditions. They have an 80+ person a16z <a href="https://a16z.com/about/team/" rel="noopener" target="_blank">operating teams</a>. The operating teams have deep expertise in executive and technical recruiting, regulatory affairs, communications and marketing, and general startup management. They focus on governance of companies and the networks. He is previously cofounder of Founder Collective, SiteAdvisor, and Hunch.  He holds a BA and MA in Philosophy from Columbia and an MBA from Harvard.</li> <li><a href="https://aum13f.com/firm/polychain-capital-lp">6.6 Bil</a> <a href="https://angel.co/olafcw">Olaf Carlson-Wee of PolyChain Capital</a>. Olaf is the founder and Chief Investment Officer of Polychain Capital. He is the former Head of Risk at Coinbase, the largest bitcoin company in the world, where he was the first employee. He received a BA in Sociology from Vassar College after completing his thesis on distributed networking and financial cryptography.</li> <li>$4.5 Bil <a href="https://panteracapital.com/">Joey Krug at Patnera Capital</a>: An investment firm focused exclusively on ventures, tokens, and projects related to blockchain tech, cryptocurrency, and crypto assets. Joey co-managed the Pantera ICO and Digital Asset funds and decentralizing prediction markets via Augur to make the best possible forecasting + derivatives tool. Pantera offers exposure to new, efficient, and scalable protocols.</li> <li><a href="https://bitwiseinvestments.com/about">$1.3 Bil (2021 end</a>) <a href="/investors/funds/bitwise">Hunter Horsley CEO, Board Director of Bitwise</a>. Bitwise provides regular industry commentary on their website, monthly updates on re-balancing of the Bitwise 10 index, and longer thoughtful, well-researched, reports such as “The Case for Crypto In An Institutional Portfolio” published in May 2018. Hunter was previously Product Manager on monetization at Facebook and Instagram. Received his BS in Economics from the Wharton School of the University of Pennsylvania.</li> <li><a href="https://aum13f.com/firm/consilium-investment-management-llc">$542 Mil</a> Charles Cassel and Jonathan Binder founders of <a href="https://www.coinsilium.com/">Coinsilium Group</a> – Provides seed capital to developers for blockchain technology and fintech businesses. They support early-stage blockchain technology companies and the digital token economy; they were the first global blockchain accelerator to IPO in 2015. Based in Florida</li> <li><a href="https://coinshares.com/investor-relations/reports-portal/annual-reports#2021-annual-report">$230 Mil (2021 year end</a>) <a href="/investors/funds/coinshares">Ryan Radloff, CEO of Coinshares</a>, previously Global Advisors. Coinshares claims to be the largest issuer of cryptocurrency Exchange Traded Notes ETNs, and to have launched the first bitcoin (BTC) based securities. They made an <a href="https://coinshares.com/news/coinshares-celebrates-5-billion-aum">announcement of crossing $5bil AUM April 2021</a> but year end statement seems to imply major net outflows.</li> </ul></div> <p>Blockchain technology innovation is rapidly proliferating across the financial industry and fund manager classes. The technology is playing an impressive role in both front office and investment functions such as in the securing of crypto assets, considering the trading infrastructure and high demand.</p> <h2>Selecting a Fund</h2> <p>When I decide on using a fund, I still do my research to pick the best one. Here are the main things I look at:</p> <h3>Lower Fees</h3> <p>I will try to pay the lowest fees I can. A common fee structure is 2 and 20. The fund charges 2% of invested assets and also takes 20% of the investment returns earn above a certain benchmark. If you are going to pay a fee we want it to be worth it with someone who runs a portfolio that outperforms the market over years and years.</p> <p>Newer funds, which tend to be more innovative and are interested in attracting investors, tend to charge less. So, I would probably go to the newer fund. Some funds charge smaller fees when people invest more. So, I look closely at fee tables. Often times the fees can be challenging to understand. Fees are a significant consideration for me, because the way they compound eating away at my money, or returns.</p> <h3 style="margin-bottom:11px;text-align:start;">Assets Under Management (AUM)</h3> <p>I don’t put much importance into whether a fund is popular at a given time, because I don’t want to invest my money by following the herd. There was a period of high speculation in crypto, so some of the funds are shrinking in size.</p> <h3 style="margin-bottom:11px;text-align:start;">Returns / Track Record</h3> <p style="margin-bottom:11px;text-align:start;">Finding the performance history of private funds can be challenging. I suggest reviewing <a href="/investors/analytics">financial analytics offerings</a> for you to analyze the fund performance and returns on each. They may offer their services free for a limited period, but the typical subscription can be pricey so may be prohibitive to retail individual investors. I am sure you already realize, but past performance is no guarantee of future results.</p> <h3>Structure of the Fund</h3> <p>Funds often come with restrictions about how its investors participate, so I have to find one that is consistent with my needs. I make sure to understand things like the minimum investment requirements, the minimum holding time, redemption restrictions and other stipulations that kick in.</p> <h3 style="margin-bottom:11px;text-align:start;">Community Impact</h3> <p>How ingrained in the ecosystem is the fund manager and what did they do prior to the fund? The power of a community is better knowledge and wisdom, as well as direct access to those who are building new entities. Their direct experience and relationships have valuable.</p> <h2>What is Next?</h2> <p>Work with your individual Financial Advisor to ensure your investment process and decisions are sound. When you have ran through your process and decided on a fund there are some additional areas you can achieve greater returns through tax savings.</p> <h3>Save with Tax Advantaged Accounts</h3> <p><img class="autofloat-odd " src="https://fundwisdom.com/sites/fundwisdom.com/files/styles/max_325x325/public/2020-03/rocketdollar.PNG?itok=wCeIkyCL" alt="Rocketdollar invest" srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2020-03/rocketdollar.PNG?itok=wCeIkyCL%20325w%2C%20/sites/fundwisdom.com/files/styles/max_650x650/public/2020-03/rocketdollar.PNG%3Fitok%3DfbmAoJsH%20650w%2C%20/sites/fundwisdom.com/files/styles/max_1300x1300/public/2020-03/rocketdollar.PNG%3Fitok%3DRZwDumgf%201300w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" typeof="foaf:Image" /></p> <p>Individual Retirement Accounts (IRAs) let you invest in an account setup to lower your overall tax burden. A new set of IRA organizations are making it possible to place investments in startup equity, coin offerings, and crypto funds. When the returns are outsized from these risky asset classes like crypto and venture this can be a material amount saved. <span class="hs_cos_wrapper hs_cos_wrapper_widget_container hs_cos_wrapper_type_widget_container" data-hs-cos-general-type="widget_container" data-hs-cos-type="widget_container" id="hs_cos_wrapper_module_1550611252307123">With this type of account you can make contributions and your investment earnings grow tax deferred until retirement.</span> You can improve the overall return if you are willing to wait for retirement, with time and compounding on your side you can watch your investment grow along side your traditional accounts that do not have this benefit.</p> <p>We started to partner with <a href="http://www.rocketdollar.com?utm_campaign=Fund%20Wisdom&amp;utm_source=Fund%20Wisdom&amp;utm_medium=Affiliates">RocketDollar via their Self Directed IRA and 401k product offerings</a>. <span class="hs_cos_wrapper hs_cos_wrapper_widget_container hs_cos_wrapper_type_widget_container" data-hs-cos-general-type="widget_container" data-hs-cos-type="widget_container" id="hs_cos_wrapper_module_140190329510711990">With their solution you can can invest in any asset class allowed by the IRS which includes startup equity and crypto.</span></p> <p>Anyone missing? Who do you think should be on this list? Let us know in the comments below or feel free to <a href="https://fundwisdom.com/contact">Contact us.</a></p> </div> <span><span>Brian Thopsey</span></span> <span>Tue, 09/13/2022 - 07:20</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/fund-manager" hreflang="en">Fund Manager</a>, <a href="/article/tag/crypto" hreflang="en">Crypto</a>, <a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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=5741&amp;2=comment&amp;3=comment" token="RNCp4-cidwYYFb4_-SwCbnRR9AR-sEirVm0LaemHn9Q"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Tue, 13 Sep 2022 11:20:36 +0000 Brian Thopsey 5741 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/list-top-crypto-blockchain-investor-fund-managers#comments https://www.fundwisdom.com/article/brian-thopsey/list-top-crypto-blockchain-investor-fund-managers#comments Non-Accredited Investors Capitalize on Access to Private Equity https://www.fundwisdom.com/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity <span>Non-Accredited Investors Capitalize on Access to Private Equity</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Want to invest in a startup but having trouble getting access? At Fund Wisdom, <a href="/about">we believe innovative wealth-building investments</a> should be accessed by all. Returns for alternative assets like equity ownership in startups have outperformed the stock market through the <a href="/article/brian-thopsey/equity-crowdfunding-risks-and-rewards">greater risk profile</a>. 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>Getting past the Accredited Hurdle</h2> <p><img style="margin:10px;" src="/sites/fundwisdom.com/files/inline-images/barack-obama.PNG" data-entity-uuid="8de8b32f-4ab6-4fce-8580-a2d7c396982d" data-entity-type="file" alt="Jobs Act" width="300" class="align-right" /></p> <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 is an annual income of $200,000 for the past two years (if single, for married couples it’s $300,000). 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>Times are changing with the democratization of private equity. Several regulatory and market changes now allow for greater access to these historically private offerings. The Jumpstart Our Business Start-ups <a href="/about/jobs-act-title-iii">(JOBS) Act’s Title III and IV</a> enable non-accredited investors to purchase shares in private companies through<a href="/investors/platforms"> equity funding portals</a>.</p> <p> </p> <h2>Find a Startup Right for You</h2> <div style="float:left;width:49%;"> <p><a href="/investors/platforms">Equity Funding Portals</a></p> <p><a href="/investors/platforms"><img src="/sites/fundwisdom.com/files/styles/max_650x650/public/2022-09/top-3-nonaccredited-platforms.png" alt="" width="280" /></a></p> </div> <div style="float:right;width:49%;"> <p><a href="/investors/companies">Companies</a></p> <p><a href="/investors/companies"><img src="/sites/fundwisdom.com/files/styles/max_650x650/public/2022-09/recent_companies_raising.png?itok=qJHFnFme" alt="" width="350" /></a></p> </div> <p style="clear:both;">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> have been developed to attract investors that cannot hit the requisites for accreditation. These platforms provide end-to-end digital solutions, providing an array of alternative investments across the liquidity sphere. They also offer 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>Limitations</h2> <p>&gt;The laws that govern the startup investing access you can get were drafted with access in mind, but have been implemented with too many restrictive limitations. As an example 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% of lesser their annual income/net worth, Yet if over $100,000, that moves to 10%. These limitations will continue to lessen, but in my opinion major market innovations like <a href="/investors/crypto">blockchain and cryptocurrencies</a> have filled the resulting gaps.</p> <h3>Deal Structures</h3> <p>Non-accredited offerings must adhere to SEC legislation like Regulation D and A which restricts private securities deals. Below are a few of the different classifications founders can chose from in structuring their offering and you to be aware of:</p> <ul> <li>Type     Advertising (general solicitation)      Cap non-accredited investors</li> <li>506b     Forbidden                                         max 35</li> <li>506c     Allowed                                             none</li> <li>504       Allowed (if restricting to accredited only.)  Caps at $5 mil in 12 months</li> </ul> <h2>Share your Experiences</h2> <p dir="ltr">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><span>Brian Thopsey</span></span> <span>Thu, 09/08/2022 - 11:15</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/capital-types" hreflang="en">Capital Types</a>, <a href="/article/tag/legal" hreflang="en">Legal</a>, <a href="/article/tag/platforms" hreflang="en">Platforms</a>, <a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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> Thu, 08 Sep 2022 15:15:01 +0000 Brian Thopsey 6772 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity#comments https://www.fundwisdom.com/article/brian-thopsey/non-accredited-investors-capitalize-access-private-equity#comments Find New Blockchain or Cryptocurrency Investments https://www.fundwisdom.com/article/brian-thopsey/find-new-blockchain-or-cryptocurrency-investments <span>Find New Blockchain or Cryptocurrency Investments</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Interested in finding new cryptocurrency offerings before the masses have invested? At Fund Wisdom we focus on innovative <a href="/investors/companies">investment offerings</a> and <a href="/investors/platforms">portals</a> that help with the sourcing process. At the time of writing there has been 6800+ Initial Coin Offerings (ICOs) or Secure Token Offerings (STOs) in 2022 <a href="https://cryptototem.com/ico-list/">according to Cryptotem</a>.</p> <p>Are you looking to get a piece of the action? Sure, buying Bitcoin on a platform like Coinbase or Circle is a start, but what about new blockchain projects just starting out? In this article we review innovative and new offerings as well as how to invest.</p> <h2>What is Blockchain and Cryptocurrency</h2> <p>If you don't have an understanding of blockchain technology or cryptocurrency check out <a href="https://blockgeeks.com/guides/what-is-blockchain-technology/">BlockGeek</a>. The most common form of data stored on a blockchain are ledgers for transactions, as explained by Investopedia with their <a href="https://www.investopedia.com/terms/b/blockchain.asp">guide to Blockchain</a>. The&nbsp; decentralized approach ensures that no single person has control, distributing it amongst the participants and creating a unique approach to ownership.</p> <h3>Initial Coin Offerings</h3> <p>An initial coin offering (ICO) is a path for a group of people, or company, to gain funding. There are some similarities to an initial public offering for large corporations. According to Harvard Business Review ‘blockchain startups <a href="https://hbr.org/2018/11/the-hidden-costs-of-initial-coin-offerings">raised over $5 billion in 2017 through ICOs</a> and over $12 billion through the first three quarters of 2018. Several itererations of this fundraising process have been built out, from Secure Token Offerings (STO) and Initial Exchange Offering (IEO). IEOs are<a href="https://cryptoadventure.org/latest-trends-of-funding-cryptocurrency-and-blockchain-projects/"> very similar to an ICO in almost every way</a>, the major difference being investors who can participate in the sale are limited to users on the associated exchange.</p> <h2>New Cryptocurrency or Startup Equity?</h2> <p>Do you invest in a high growth company's equity or a coin tied to a new blockchain project? Each options has seen life changing returns for a select few.&nbsp; When comparing the two, it’s important to distinguish a few key differences. First up, volatility. Any crypto investor is aware of the sudden spikes and drops a cryptocurrency can experience within a matter of minutes. What’s more, in the stock market the SEC provides assurances to investors that they should have access to a fair bid and offer price across exchanges they regulate. That’s not the case for crypto, where investors have to hunt for the best bid themselves.</p> <p>Whether a company is raising money through coin offerings or equity, this capital can provide&nbsp; strong network effects to enable first mover advantages. and generating publicity in order to gain some feedback on early stage products. These investments all come with inherent risk, not due to poor execution but simply the fact that startup failure is a natural part of the economy. Cryptocurrencies offer liquidity makes it easy to buy and sell, something certain equities, particularly startup investing through venture capital might not be able to provide at all times.</p> <p>When it comes to setting my investment strategy and which way I go I consider a few factors. I look at my appetite for risk at this moment in my life and when I may need the money. There is the potential to lose everything we put in in these very high risk asset classes. I also factor market conditions, how long I intend to hold the investment. It also is smart to speak with your registered investment advisor.</p> <h2>The Figures</h2> <p>Seemingly more banks and institutions are backing cryptocurrencies, despite it’s notoriously volatile nature. A few key studies to point out found that <a href="https://www2.deloitte.com/content/dam/Deloitte/se/Documents/risk/DI_2019-global-blockchain-survey.pdf">74% of tech-savvy executive teams surveyed by Deloitte said they believe there’s huge business potential in blockchain technology</a>, suggesting the technology is gaining traction amongst key company authorities. What’s more, a study by Reuters stated that Blockchain could <a href="https://www.reuters.com/article/us-banks-blockchain-accenture-idUSKBN1511OU">help banks save up to $12 billion per year</a>. Not only this, but so called financial market experts like Bill Miller who served as chairman of Legg Capital Management spoke of crypto currencies in a positive light, claiming that the currency will only get stronger. Clearly, blockchain and cryptocurrency is going to become a large part of the global economy, it’s merely a matter of when. I wrote another piece on a list of <a href="/article/brian-thopsey/list-top-crypto-blockchain-investor-fund-managers">Blockchain Funds</a> and my process to selecting the fund that is right for me.</p> <h2>Securing your Coins</h2> <p>A method of increasing the security of the storage of your crypto is a hardware wallet. Similar in concept to a physical wallet for cash, several companies like produce these connected devices. There are many wallets on the market currently, here at Fundwisdom we opted for <a href="https://shop.ledger.com/pages/ledger-nano-x?r=10988c46bbfd" tabindex="-1">a Ledger</a> and <a href="/article/brian-thopsey/crypto-hardware-wallet-ledger-nano-x-review">wrote a review of our experience and relationship.</a> The process is simple, you buy the hardware set up the account, access your wallet and place your cryptocurrency in for safe keeping.</p> <p><span style="font-size:11pt; font-variant:normal; white-space:pre-wrap"><span style="font-family:Arial"><span style="color:#000000"><span style="font-weight:400"><span style="font-style:normal"><span style="text-decoration:none">We have a similar partnership with</span></span></span></span></span></span><a href="https://binance.pxf.io/c/2240068/1402596/12872" style="text-decoration:none"><span style="font-size:11pt; font-variant:normal; white-space:pre-wrap"><span style="font-family:Arial"><span style="color:#000000"><span style="font-weight:400"><span style="font-style:normal"><span style="text-decoration:none"> </span></span></span></span></span></span><span style="font-size:11pt; font-variant:normal; white-space:pre-wrap"><span style="font-family:Arial"><span style="color:#1155cc"><span style="font-weight:400"><span style="font-style:normal"><span style="text-decoration:underline"><span style="-webkit-text-decoration-skip:none"><span style="text-decoration-skip-ink:none">Binance if you are looking to actively trade crypto</span></span></span></span></span></span></span></span></a><span style="font-size:11pt; font-variant:normal; white-space:pre-wrap"><span style="font-family:Arial"><span style="color:#000000"><span style="font-weight:400"><span style="font-style:normal"><span style="text-decoration:none"> and dont care about the ICO.</span></span></span></span></span></span></p> <p>&nbsp;</p> </div> <span><span>Brian Thopsey</span></span> <span>Fri, 09/02/2022 - 20:10</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/crypto" hreflang="en">Crypto</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=26572&amp;2=comment&amp;3=comment" token="sypbxBRD5suSbOV83BW5Ae47TLRmxcEZ-LkscZrRX4U"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sat, 03 Sep 2022 00:10:33 +0000 Brian Thopsey 26572 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/find-new-blockchain-or-cryptocurrency-investments#comments https://www.fundwisdom.com/article/brian-thopsey/find-new-blockchain-or-cryptocurrency-investments#comments Investing in the Next Bitcoin on the Day of Launch https://www.fundwisdom.com/article/brian-thopsey/investing-next-bitcoin-day-launch <span>Investing in the Next Bitcoin on the Day of Launch</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Do you remember when Bitcoin was priced under $70 and you bought some beer and pizza instead? I do. But as good as the artisanal cheese and pepperoni tasted at that moment, I would prefer the $43,193 that one coin is worth today (March 1, 2022).</p> <p><img alt="Bitcoin Historical Pricing" data-entity-type="file" data-entity-uuid="b966b2b2-c460-401b-861c-c87c140115d8" src="/sites/fundwisdom.com/files/inline-images/bitcoing-price.png" style="width:500px;float:right" /></p> <p>It was a scorching summer day in 2013, when my co-worker, Mike and I went across the street to grab a cold beer and pizza. We talked about the Tableau initial public offering and the frustration we felt from not being able invest before its value rose to $31 in the IPO. As our ice cold beers arrived, our thoughts turned to the the Satoshi whitepaper and the potential of Bitcoin and applications of blockchain technology. We were excited about the benefits we were seeing from international transactions and hedging against national monetary policy. Mike shared that he had purchased Bitcoin, and was reeling from the volatility and losses he was dealing with. At that time he was on the verge of selling. By the time we finished our fancy pizza I had decided the stress this caused him was enough to keep me from making an investment myself.</p> <h3>Finding the next Bitcoin</h3> <p>While hindsight is always 20/20, hope is not lost. New coins are being launched through secure token&nbsp; offerings (STOs) for us to get in early, before the pop. I want to find the next Bitcoin on the day it launches and ride the crest to pay my kids' college tuition. Maybe it will work out, and maybe not. I know I will learn a think or two along the way and hopefully have a good story to tell later.</p> <p>My go to place to find cryptocurrencies as they launch is CoinList. As the founder of Fund Wisdom, I have researched where companies are launching and offering their equity for sale typically in their seed stages, years before they IPO. The team and I review funding rounds on <a href="/investors/platforms">platforms</a> like AngelList. As AngelList grew one of their early employees broke off to create CoinList. It was first marketed as the place to go for STOs to help with the regulatory burden. So I will walk you through my use of CoinList to buy a coin.</p> <h3>How to make the investment</h3> <p>The first step is to create an account on CoinList.com. Then find the Token Sale section in the main navigation. I first want to review what is available to find that diamond in the rough. New crypto offerings appear to launch on an hourly basis. You can see the <a href="https://coinmarketcap.com/new/">list of thousands on CoinMarketCap</a>. The volume of offerings can feel overwhelming. Instead of needing to go through each I like CoinList because they curate who they work with and have a solid footprint in the crypto community. They vet and accept a small list of teams to help launch via <a href="https://blog.coinlist.co/introducing-coinlist-seed/">their Seed program</a>, with demo days and hackathons. <a> </a></p> <p><img alt="CoinList Dashboard Token Sales" data-entity-type="file" data-entity-uuid="3ca48257-4492-4a02-8b0e-30175ec01700" src="/sites/fundwisdom.com/files/inline-images/CoinList%20dashboard.png" style="width:700px;" /></p> <p>As I write this in early March 2022, CoinList shows nothing available in the initial launch stage. The NYM token sale is all sold out. Rally and Casper appear to be a year past launch. If I try to click to "Learn more" about each I am greeted with an error message: "Sorry, this content is not available in your location."</p> <h3>Due Diligence</h3> <p>Undeterred, I run a web search for "Rally token." Results show that it was created to allow non-technical creators to launch their own digital economies, or tokens.</p> <p>Most people I talk to view cryptocurrencies as place to trade with short term windows as to the potential gains the volatility brings. There are cryptocurrencies that are expanding use cases to many different sectors, adding value and innovation. When I assess the potential value of a token investment I dive into the details of the project plan, the team, and the use case, or market.</p> <p>After reviewing the details, I think Rally looks legit, so I decide to invest. When I realize that Coinlist requires a $10 fee to withdraw my money I re-think where I am going to actually execute the trade. I already have a Coinbase account. I run another web search on "Coinbase fees" and find they are known to have high fees as well. I choose to use Coinbase because most of my other previous crypto purchases were made there. My investment had a $2.99 trade fee to buy $100 of Rally tokens.</p> <h3>Securing the investment</h3> <p>I keep my cryptocurrency secure with a hardware wallet. Most trading platforms offer digital wallets as storage, but to increase security and lower the potential of theft, I bought the <a href="/article/brian-thopsey/crypto-hardware-wallet-ledger-nano-x-review">Ledger Nano X hardware wallet. I wrote a separate article on it</a>.</p> <h3>Can't pick one? Try a fund</h3> <p>If you don't feel like you can pick a winner, or don't want to do the research, but want exposure to the asset class, funds can provide a great alternative. We have been following a <a href="/article/brian-thopsey/top-funds-blockchain-technology-and-cryptocurrencies">few funds that focus on crypto for your consideration.</a> I have yet to invest in one of these myself yet as I prefer to go direct, to avoid any fees the fund may carry.</p> <h3>Let’s learn from each other</h3> <p>Do you want to put your lunch money toward an investment instead? If so, you can follow the steps I took or go your own route and make your own picks. If you end up investing, tell me your story in the comments section below.</p> <p>I am not a registered financial advisor, so consult with one.</p> </div> <span><span>Brian Thopsey</span></span> <span>Sun, 03/06/2022 - 19:48</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/crypto" hreflang="en">Crypto</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=27774&amp;2=comment&amp;3=comment" token="kuonFE66c0gkfCqyInVnmX129Coam0DQ9pJlKamsvNE"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Mon, 07 Mar 2022 00:48:11 +0000 Brian Thopsey 27774 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/investing-next-bitcoin-day-launch#comments https://www.fundwisdom.com/article/brian-thopsey/investing-next-bitcoin-day-launch#comments Avoid investing in the next Theranos with these tools https://www.fundwisdom.com/article/brian-thopsey/reducing-risk-equity-investing-portals <span>Avoid investing in the next Theranos with these tools</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Wish you could have invested in Facebook/Meta when Mark was skipping classes at Harvard? Now you can. Changes in regulations have opened up access in the US, UK and several other countries. But, how do you avoid falling for the Elizabeth Holmes of the world, losing your retirement savings, and needing to work until your 85? Curious? Read on.</p> <div style="float:right;width:420px;font-size:Small"><img alt="Elizabeth Holmes" data-entity-type="file" data-entity-uuid="449404f7-fb83-49a2-8685-3e59cf23e237" src="/sites/fundwisdom.com/files/inline-images/Elizbeth%20Holmes.png" style="margin:10px;width:400px;" /><br /> Photo by Steve Jennings/Getty Images for TechCrunch</div> <p><a href="/platform">Investment platforms</a> have been created to make sourcing the next unicorn possible, but not many people are in the know. I'll break down options you have to help perform due diligence and achieve diversification.</p> <p>Investing in early stage startups was limited to <a href="https://fundwisdom.com/crowdfunding-investors/crowdfunding-investor-types" tabindex="-1">Accredited investors</a> or financial pros sitting in a smoky boardroom. Think Bobby Axelrod from Billions from Wall Street. Now, however, the regular guys like you and me can invest in the next Zoom while the founding team is still tinkering in a garage.</p> <h3>Do you have the faith to be an angel investor?</h3> <p>Investing in companies that are still wet behind the ears takes a lot of faith. Then after you have found the perfect investment - ideally something that you are passionate about - you have to face up to the risk. All the while you'll want to keep a level head.</p> <p>Otherwise, who knows: One day you hear that deep voice of Elizabeth Holmes finding yourself all-in, you blink to find out you lost it all through a newscast. We'll never be able to see into the future and not all of our picks will be perfect, but there are tools that can help us find some of the turds. Let's dive into some of the options we have.&nbsp;</p> <h3>Jump in with these platforms</h3> <p>Ready to invest your money? Access equity in a startup on an number of <a href="/investors/platforms">platforms</a>. The platform often charges fees which sometimes help to cover due diligence. There are regulatory obligations and potential liabilities for these investing portals, but each offer a varying degree of review. We have provided some transparency by <a href="/investors/platforms">collecting what we could find on each to help compare</a>.</p> <p><a href="/investors/platforms"><img alt="Platform Due Diligence" data-entity-type="file" data-entity-uuid="dde7c6ef-ecfb-4233-9566-f72c53a29afa" src="/sites/fundwisdom.com/files/inline-images/Platforms-duedil.png" style="width:800px;" /></a></p> <p>&nbsp;</p> <h3>How much is a startup worth?</h3> <p>Nearly 95% of angel investors use third-party expert evaluation services according to a survey by <a href="https://blog.propelx.com/unfollow-leader-angel/">Propel(x)</a>.&nbsp; At Fund Wisdom we have had the chance to work with <a href="https://fundwisdom.com/crowdfunding-businesses/business-valuation/valuation-software-and-service-providers">third-party valuation expert </a>Value Analytics &amp; Design.</p> <p>&nbsp;</p> <h3>Get help in the background check</h3> <p><img alt="CrowdCheck" class="autofloat-odd " data-entity-type="" data-entity-uuid="" height="94" src="https://fundwisdom.com/sites/all/files/cfund//crowdcheck_logo_200.png" width="200" /></p> <p>CrowdCheck offers a due diligence and disclosure platform for online investment offerings. They create greater transparency and investor protection to platforms, investors and entrepreneurs. Sara Hanks, Founder and CEO of the firm recently has shared, "We help to make sure the investor has the tools to make an informed investment decision. We thus protect the issue, the investor and the intermediary."</p> <p><a href="http://www.crowdcheck.com/">CrowdCheck</a>, takes the hassle out of the due diligence process, and has partnered with some of the leading online investment <a href="/investors/equity-funding-platform-costs-fee-structures">platforms </a>such as <a href="https://www.seedinvest.com/">SeedInvest</a> and <a href="https://www.wealthforge.com/">WealthForge</a>. CrowdCheck helps people on both sides of the ledger. For investors, the company provides them with a tool to combat against potential fraud, and presents the due diligence check investors are looking for in a simplified manner. Entrepreneurs seeking funding also benefit from the service, vetting potential investors.</p> <p>&nbsp;</p> <h3>Reporting Fraud</h3> <p>If you feel you have found fraudulent activities you can report it to the platform, but what happens if they don't respond or if they are at fault? In the USA you can reach out to the SEC or FINRA with the below contact info:</p> <ul> <li>U.S. Securities and Exchange Commission (SEC) <ul> <li><a href="https://www.sec.gov/oiea">Office of Investor Education and Advocacy</a> Telephone: (800) 732-0330</li> </ul> </li> <li>US Financial Industry Regulatory Authority (FINRA) <ul> <li><a href="http://www.finra.org/industry/file-tip">Complaints and Tips</a>&nbsp;&nbsp; Telephone: (301) 590-6500</li> </ul> </li> </ul> <h3>What has your experience been?</h3> <p>Now that we have let you in on the investing secret what do you think? The risks involved in this emerging market are high, but so too are the rewards. Finding something you are passionate about and getting involved with a team that is ready to disrupt an industry can be incredibly rewarding. Your opportunity to join a team of passionate and hardworking entrepreneurs in their journey awaits. We want to know how it's going. If you've had a chance to invest let us know how it went in the comments below.</p> </div> <span><span>Brian Thopsey</span></span> <span>Sun, 02/06/2022 - 09:57</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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=5676&amp;2=comment&amp;3=comment" token="PXHtiVHrOhXcmK6BhgVvrr7hSSH_48V9xW-3sUw9B64"></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> Sun, 06 Feb 2022 14:57:13 +0000 Brian Thopsey 5676 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/reducing-risk-equity-investing-portals#comments https://www.fundwisdom.com/article/brian-thopsey/reducing-risk-equity-investing-portals#comments Analytics Solutions- Adobe vs Google https://www.fundwisdom.com/article/brian-thopsey/analytics-solutions-adobe-vs-google <span>Analytics Solutions- Adobe vs Google </span> <div 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 a startup needing to recreate what I had built with Adobe Analytics at a Fortune 1000 firm. At that time I was using both. I had ran procurement processing and reviews with Forrester to help justify budgeting to help assess which solutions to go with. I had an independent, somewhat unbiased view at that time.</p> <p>I have now been working at Adobe for 7+ years so I have updated the table to reflect the latest. I have been working in the client relationship covering the entire Experience Cloud. I try to focus more on the strategy and team dynamics.</p> <p>Google Analytics 4 has been released so I am still working through how everything will change from the years on Universal Analytics. At Adobe the same structural changes in data storing is happening with the Customer Data Platform (CDP) Real Time Experience Platform.</p> <p>I maintain this blog and write these articles to better understand the financial technology market and attain feedback from fund managers and those pushing the envelope with these technologies. I appreciate any feedback in the comments.</p> <p>&nbsp;</p> <table border="0" cellpadding="10" style="border-collapse: separate;"> <tbody> <tr> <td>&nbsp;</td> <td style="width: 35%;">Google Analytics 4 (Prev Universal 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> <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&nbsp;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>&nbsp;<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>&nbsp;<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>&nbsp;<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)&nbsp;</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 previous colleagues from Kaspersky, 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>&nbsp;</p> <p>Google Analytics and Adobe Analytics (previously Omniture SiteCatalyst) are both distinguished solutions for digital analytics insight.&nbsp; They can provide business intelligence to determine return on investment and the ability to employ powerful optimization strategies. &nbsp;Each solution has strengths and weaknesses. I now work for Adobe so know much more about the Adobe offering than Google.&nbsp;</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.&nbsp; The Adobe Analytics (SiteCatalyst) solution has also gone through changes with the acquisition by tech giant Adobe.&nbsp;&nbsp;</p> <h2>Expert Analysts and Product Leads</h2> <p>I try to 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 for vendors like Forrester and Gartner, they can provide detailed product reviews and comparisons. &nbsp;</p> <p>Google's Premium, paid for version is a better solution to compare as Adobe does not offer a free version for comparison purposes. &nbsp;GA has an intuitive user interface, instant segmentation, and out of the box search engine integration for Google.&nbsp; Those that are new to analytics can easily begin using the platform. It is clear Google has tremendous user interface (UI) and user experience (UX) expertise.&nbsp;</p> <p>Adobe Analytics (previously Omniture SiteCatalyst) purpose built for large enterprise excels with customization, dynamic classification, and deep integrations. Rich customization, designed to fit any set of requirements, allow Adobe to achieve superior levels of functionality.&nbsp; <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. &nbsp;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.&nbsp; The team and the optimization strategy are what drive true success, less the technology solution. Let us know your opinion in the comments below.</p> </div> <span><span>Brian Thopsey</span></span> <span>Wed, 01/05/2022 - 23:47</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/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> Thu, 06 Jan 2022 04:47:48 +0000 Brian Thopsey 6840 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/analytics-solutions-adobe-vs-google#comments https://www.fundwisdom.com/article/brian-thopsey/analytics-solutions-adobe-vs-google#comments Find Global Equity Investing Platforms https://www.fundwisdom.com/article/brian-thopsey/find-global-equity-investing-platforms <span>Find Global Equity Investing Platforms</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Looking to find a list of equity funding portals across the globe? As investing regulations have changed in countries throughout the world, this has opened up access to invest in early stage startup companies, that was previously private. Our goal at Fund Wisdom is to help you source deals by understanding the investing portal market to transact through.<br /> <img alt="" src="/sites/all/files/cfund//science-world-210775_640.jpg" style="margin:10px;" /><br /> We have observed years of growth in the market, with new funding portals being created regularly in the United States of America. The steady rate of Equity crowdfunding platforms getting built presents a challenge to presenting a comprehensive list. Our focus has been those portals that have targeted US investors so taking a global approach makes that even more challenging. I hope to help you identify the investing portal that is right for you and balance your review of them at a global level.&nbsp;</p> <p>&nbsp;</p> <h2>Americas</h2> <p>At Fund Wisdom our focus is on Americas based funding platforms or portals. We will review each portal as we add them into our database. We look to interview entrepreneurs along with investors to help in this review process. At the time of writing this we have 38 investing platforms reviewed and another 57 that have listed with the US SEC but have not seen enough investment offerings to yet warrant our review.</p> <p><a href="/investors/platforms"><img alt="Equity Investing Portals Reviewed" data-entity-type="file" data-entity-uuid="fca94258-3f08-444f-bccf-b679b92e2a20" src="/sites/fundwisdom.com/files/inline-images/portals-reviewed.JPG" style="margin:10px;width:340px" /></a><a href="/investors/companies/missing-platform/all"><img alt="not yet reviewed portals" data-entity-type="file" data-entity-uuid="49d92830-523c-4a19-a45d-2e4500e04029" src="/sites/fundwisdom.com/files/inline-images/not-yet-reviewed-portals.JPG" style="margin:10px;width:300px" /></a></p> <p>This represents what I consider to be a fairly fragmented market, which I expect to be consolidated over time. We have already observed several platforms in the US go through M&amp;A activity like Seedinvest being acquired by Circle, Nextseed and Republic, Netcapital and ValueSetters.</p> <p><a href="/investors/platforms/folded"><img alt="Equity Investing platforms folded" data-entity-type="file" data-entity-uuid="ff5e8ef2-2c11-4dcb-82ea-17f3313f3e7a" src="/sites/fundwisdom.com/files/inline-images/folded%20platforms.JPG" style="margin:10px;width:340px;float:right" /></a> Note that several platforms have shut down since we first started collecting data and building reviews in 2014. As of writing 6 we had reviewed <a href="/investors/platforms/folded">ceased operating</a>.</p> <p style="clear:both;">We have reviewed <a href="/article/brian-thopsey/top-real-estate-investing-portals">real estate investing portals</a> and the correlations to the equity startup investing marketplace.</p> <p><a href="/article/brian-thopsey/top-real-estate-investing-portals"><img alt="Real Estate Platforms" data-entity-type="file" data-entity-uuid="2d9b0e93-1499-4c17-9fdc-7d0988bc442c" src="/sites/fundwisdom.com/files/inline-images/real-estate-platforms.JPG" style="margin:10px;width:340px;float:right" /></a></p> <h4 style="clear:both;">Ratings</h4> <p>Out of the platforms we review we provide ranks based upon performance data and research.</p> <ul> <li>Rating of top 10 platforms<a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019"> 2019</a>&nbsp; &amp;&nbsp; <a href="/article/brian-thopsey/2020-equity-crowdfunding-numbers">2020</a></li> <li><a href="/investors/companies">Find and search companies raising money across platforms </a></li> <li>For a wide range with detailed reviews <a href="https://yieldtalk.com/crowdfunding-investment-websites">YieldTalk is another great source</a>.</li> </ul> <h2>&nbsp;</h2> <p><a href="/investors/innovative-venture-reports/university-cambridge"><img src="/sites/fundwisdom.com/files/styles/large/public/Global-alt-finance-Cambridge-2020.JPG" style="width:300px;margin:10px;float:right;" /></a></p> <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>.&nbsp; 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>&nbsp;</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>&nbsp;</p> <h2>List of Global Platforms</h2> <p>Below the comments is a list of equity crowdfunding portals, platforms, websites, digital properties, and apps from all over the world, outside the US. We do not yet have the ability to go as deep as we would like with each platform and achieve a global perspective so we recommend <a href="https://p2pmarketdata.com/p2p-equity-platforms-of-the-world/">P2P Market Data</a> for a more comprehensive list.</p> </div> <span><span>Brian Thopsey</span></span> <span>Fri, 03/19/2021 - 20:22</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/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> Sat, 20 Mar 2021 00:22:29 +0000 Brian Thopsey 1824 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/find-global-equity-investing-platforms#comments https://www.fundwisdom.com/article/brian-thopsey/find-global-equity-investing-platforms#comments Capitalize on Real Estate Investing Platforms https://www.fundwisdom.com/article/brian-thopsey/capitalize-real-estate-investing-platforms <span>Capitalize on Real Estate Investing Platforms</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>This is a 2 part series, <a href="/article/brian-thopsey/top-real-estate-investing-portals">Jump to the 2nd part &gt;</a><br /> Many savvy real estate investors are turning to online real estate platforms. Online portals offer a lucrative alternative to owning a piece of real estate through a plethora of investing options which range from commercial sites to single-family houses and land ownership. Many of these investing options can be lucrative, but they were previously inaccessible to the average investor.</p> <p>Real estate investors can avoid the costs of hiring an agent, working with a broker, and dealing with property management, not to mention the potential hazards of being responsible for physical real estate (i.e. landlord-tenant issues, property damage, and criminal activity).</p> <div style="float:right;width:320px;"> <p><a href="/investors/companies/industry"><img alt="Real Estate Chart on Funding Portals" data-entity-type="file" data-entity-uuid="ac94db53-ceea-41df-ae48-0cf11f2a9d08" src="/sites/fundwisdom.com/files/inline-images/real-estate.JPG" style="width:300px;" /></a></p> </div> <p>At Fund Wisdom we have focused on <a href="/investors/platforms">funding portals that focus on equity in startup companies,</a> but there is a much larger market of portals that just focus on real estate. We have observed similarities between startup and real estate focused investing portals. Each type of platform looks to aid their investor base in achieving positive returns via innovative offerings. As the startup equity crowdfunding industry has grown over the past several years we've observed a commensurate growth in <a href="/investors/companies/industry/real-estate">offerings for companies that are focused on real estate</a>. In this article we discuss platforms that focus just on real estate to explore some of the overlap and strategies to help you capitalize on these investment opportunities.</p> <h2>Crowdfunding Real Estate Innovation</h2> <div style="float:left;width:320px;"><img src="/sites/fundwisdom.com/files/styles/max_1300x1300/public/2020-03/jorge-vasconez-buYlndcNnjM-unsplash%281%29.jpg" style="float:right;margin:10px;width:300px;" /></div> <p>Real estate crowdfunding has disrupted the property investment landscape by radically increasing levels of access to deals that were once out of reach for the average investor. A comparatively new concept, innovative technology has been applied to the financial and legal aspects of the transaction. Capital raised through platforms can go toward a number of initiatives like acquisitions used to develop or refurbish a real estate asset with the aim of subsequent use. Due to the nature of the crowdfunding mechanism, users can diversify their portfolios by investing in a variety of properties generally through a low minimum investment amount required.</p> <h3>Overall Real Estate Market Size (2020)</h3> <table border="1" bordercolor="#00000a" cellpadding="7" cellspacing="0" width="623"> <colgroup> <col width="193" /> <col width="194" /> <col width="193" /> </colgroup> <tbody> <tr valign="TOP"> <td width="193"> <p style="margin-bottom: 0in">2020 Total Market Value *</p> <p><b>$33.6 T</b></p> </td> <td width="194"> <p style="margin-bottom: 0in">1 Year Change</p> <p><b>$1.1 T (3.4%)</b></p> </td> <td width="193"> <p style="margin-bottom: 0in">10 Year Change</p> <p><b>$11.2 T (51%)</b></p> </td> </tr> </tbody> </table> <p>* Market data above presented by <a href="https://www.zillow.com/research/us-total-housing-value-2019-26369/">Zillow Research in their January 2020 article</a>. At the end of the piece they share their take on value creation: "There are generally two ways in which total housing value can grow: Appreciation among existing homes, and/or additions to the local housing stock itself. Roughly 86%, or $9.7 trillion, of the growth in value of the U.S. housing stock over the past decade can be attributed to the simple, steady appreciation of existing homes over this period. The remainder can be chalked up to builders adding value to the housing stock through newly built homes. In almost every individual market, a similar pattern holds true – the majority of overall housing value growth can be attributed to appreciation." Appreciation is an increase in the value of an asset over time driven by demand, weakening supply, inflation or interest rates and the reason to invest in the asset class.</p> <h3>Crowdfunding Market Size &amp; Growth</h3> <p><img src="/sites/fundwisdom.com/files/styles/max_1300x1300/public/2020-04/EY-Real-estate-CF.JPG" style="float:left;margin:10px;width:300px;" /></p> <p>According to <a href="https://www.ey.com/Publication/vwLUAssets/Real_Estate_Crowdfunding/$FILE/EY-Real%20Estate%20Crowdfunding-March%202019.pdf">research by Ernest and Young</a>, "The global crowdfunding market is worth $84 billion in 2018 and forecast to reach $ 114 billion by 2021, meaning an expected CAGR (2016-2022) of approximately 17%." They go on to share, "Americas account in 2018 for, approximately, 50% of the global market share, meaning $42 billion, 85% of which is represented by US ($ 33 billion).&nbsp; "Equity crowdfunding is the fastest-growing segment with a CAGR (2016-2021) of 33.9% in contrast with 10.9% performed by lending crowdfunding." They then state real estate crowdfunding, "is one of the fastest-growing segments for crowdfunding.It guarantees to the investors high returns on investments, in the order of 10%-15% on average. In 2016 this segment amounted for $ 4 bn. By 2021, it will probably reach $9 bn, with a CAGR of 19%."</p> <p><a href="https://www.pwc.com/gx/en/industries/financial-services/assets/pwc-etre-global-outlook-2019.pdf">Competing firm PWC Global put out a report, Emerging Trends in Real Estate</a> stating, “Assets will need to be adapted to meet the needs of the people using them more effectively or converted to entirely new uses. Real estate owners will need to become operational businesses and learn very different skills than they required even five years ago. At the heart of this will be understanding what the person using a building wants and delivering it seamlessly.”</p> <p>According to <a href="https://www.absolutemarketsinsights.com/reports/Real-Estate-Crowdfunding-Market-2019-2027-358">Absolute Markets Insights </a>Industrial buildings, or commercial property, are poised to see an expected CAGR of plus 60 percent during the forecast period, according to a report distributed by .</p> <p>Online real estate portals vary widely in their prospective offerings and reach. But in general, as has been the way across the "net," investors leverage massive amounts of real estate data through online real estate online portals. The information available to potential homeowners and real estate investors includes but isn't limited to:</p> <table border="1" bordercolor="#00000a" cellpadding="7" cellspacing="0"> <colgroup> <col /> <col /> <col /> <col /> </colgroup> <tbody> <tr> <td> <p>Homes for sale</p> </td> <td> <p>Coming soon</p> </td> <td> <p>Buyers agents</p> </td> <td> <p>Rental guides</p> </td> </tr> <tr> <td> <p>Foreclosures</p> </td> <td> <p>New construction</p> </td> <td> <p>Real estate apps</p> </td> <td> <p>Rental listings</p> </td> </tr> <tr> <td> <p>For sale by owner</p> </td> <td> <p>Recent home sales</p> </td> <td> <p>Demographics</p> </td> <td> <p>Homes estimations</p> </td> </tr> <tr> <td> <p>Open house</p> </td> <td> <p>Buyers guides</p> </td> <td> <p>Rental buildings</p> </td> <td> <p>Sellers guide</p> </td> </tr> <tr> <td> <p>Sellers agents</p> </td> <td> <p>Sale by owners</p> </td> <td> <p>Valuations</p> </td> <td> <p>Mortgage lenders</p> </td> </tr> <tr> <td> <p>HELOC lenders</p> </td> <td> <p>Mortgage rates</p> </td> <td> <p>Refinance rates</p> </td> <td> <p>Mortgage calculators</p> </td> </tr> <tr> <td> <p>Amortization calculators</p> </td> <td> <p>Affordability calculator</p> </td> <td> <p>Mortgage learner centers</p> </td> <td> <p>Lender resource centers</p> </td> </tr> <tr> <td> <p>Property managers</p> </td> <td> <p>Real estate agents</p> </td> <td> <p>Home inspectors</p> </td> <td> <p>Sales representatives</p> </td> </tr> </tbody> </table> <p>Real estate equity crowdfunding provides an attractive asset class for diversification. They provide investors with a unique opportunity to invest in a specific area and property type.</p> <h2>Structure</h2> <p>Pooled investments via cash from stakeholders are earned through the platform’s ability to stimulate investor interest.</p> <p><strong>Equity investments</strong> are typically longer-term, offering a higher risk/reward profile than debt. They give investors (stakeholders) an equity stake in the commercial or residential property. Dividends generally consist of rental income from the property where the investor will receive revenue following the sale of the property.</p> <p>At Fund Wisdom we focus on angel or venture capital equity investing, where the investor seeks a return based on an increase in valuation of the business. This asset type typically contains an even higher risk and reward profile than property.</p> <p><strong>Debt investments</strong> allow the investor to become a lender for the property. Investors receive a fixed rate of return based on the interest rate of the owner’s mortgage loan, as well as the amount invested. Payments or dividends are delivered on a monthly or quarterly basis and investors maintain priority during payout. It's also worth noting that investors don’t own a proportional share of any property.&nbsp; Profits are realized in one of two ways: An increase in cost is achieved and paid at the time of sale; or through collection of regular interest payments from debt issued to borrowers through a loan instrument.</p> <p>Investors should always perform their due diligence assessments. Leveraging an evaluation process is a critical step in managing risk effectively. A general criterion for evaluation can include but is not limited to the following; the platform:</p> <ul> <li>Does it have a robust financial position and available capital?</li> <li>Do you have a strategy for insolvency, recouping losses, and managing risk?</li> <li>What are the associated fees&nbsp;(opportunity cost)?</li> <li>Is there an ongoing management fee?</li> <li>Is the shareholder paying a percentage based on yields or total portfolio size?</li> <li>What is the developer’s business plan?</li> <li>What are the expected cash flows, expenditures and projected returns?</li> <li>What is the loan-to-value before repairs and after repairs?</li> <li>Are investors in a first-lien position or second?</li> </ul> <h2>Who</h2> <p>Who can participate in these offerings? Your eligibility for certain offerings is defined by the Securities and Exchange Commission (SEC). They make the rules that govern what you can invest in with categorization of <a href="/about/jobs-act-title-iii">accredited investor and not accredited</a>. Keep an eye on which class of investor the platform is targeting. Each real estate, debt, or other securities may be registered with the SEC and exemptions may be filed. Brew Johnson, the CEO of PeerStreet, wrote a Forbes <a href="https://www.forbes.com/sites/forbesrealestatecouncil/2019/08/13/its-time-for-regulators-to-expand-opportunities-for-smaller-investors/#185644124a35">article</a>. He favors allowing non-accredited investors to invest in secured real estate debt.</p> <h2>Where to Invest</h2> <p>In the second part of this article series we cover <a href="/article/brian-thopsey/top-real-estate-investing-portals">top platforms to place a real estate investment</a>.</p> </div> <span><span>Brian Thopsey</span></span> <span>Wed, 03/03/2021 - 20:39</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/real-estate" hreflang="en">Real Estate</a>, <a href="/article/tag/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=9691&amp;2=comment&amp;3=comment" token="woCjsRUDNep9g7TQc_di8LvardRbBKZNHai4OU7SvCk"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Thu, 04 Mar 2021 01:39:14 +0000 Brian Thopsey 9691 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/capitalize-real-estate-investing-platforms#comments https://www.fundwisdom.com/article/brian-thopsey/capitalize-real-estate-investing-platforms#comments How Crypto-Positive Legislation Could Change the Way Investors Make Decisions https://www.fundwisdom.com/article/brian-thopsey/how-crypto-positive-legislation-could-change-way-investors-make-decisions <span>How Crypto-Positive Legislation Could Change the Way Investors Make Decisions</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><div style="width:420px;float:right;"><img alt="Capital" data-entity-type="file" data-entity-uuid="c85632ff-111d-4441-91c0-67e5543d1101" src="/sites/fundwisdom.com/files/inline-images/pexels-pixabay-62318.jpg" style="width:400px;margin:10px;" /><br /> Photo by <a href="https://www.pexels.com/@pixabay?utm_content=attributionCopyText&amp;utm_medium=referral&amp;utm_source=pexels">Pixabay</a></div> <p>I would argue cryptocurrency has reached the point of becoming mainstream. As the uses and impacts to daily life continue to grow, regulators are finally catching up, and more crypto-positive legislation is helping to change the way retail and institutional investors view cryptocurrency.</p> <p>Despite outliers such as India, most governments are accepting that cryptocurrency is here to stay and have been doing the work to build legislation accordingly. This framework is helping to provide investor confidence with many beginning to approach cryptocurrency differently. However, the <a href="https://commodity.com/cryptocurrency/">crypto ecosystem</a> is growing rapidly and there are concerns that it is outstripping governments' abilities to understand it and to approach regulation in a just way.</p> <h2>Is Crypto a Currency, Security, or a Commodity?</h2> <p>In the US, one of the big questions surrounding cryptocurrency is its status. Legislators have differing views on how exactly cryptocurrency should be treated. The importance of this, is that it affects the outcome of the investment as the application applies to tax implications.</p> <p>The main argument for the moment rests on whether they are securities or commodities. The challenge for regulators is that cryptocurrencies are highly diverse, and this means one-size-fits-all legislation is unlikely to be effective.</p> <h3>Bitcoin and Ether vs. XRP</h3> <p>Take the Securities and Exchange Commision (SEC), for example. While they have stated that they do not view Bitcoin (BTC) or Ethereum (ETH) as a security, they have recently begun a <a href="https://www.sec.gov/news/press-release/2020-338">high-profile investigation into Ripple (XRP)</a>.</p> <p>The SEC contends that XRP is an unregistered security.</p> <ul> <li> <p>The SEC views XRP differently than Bitcoin and Ether because the latter two digital assets are not produced or controlled by a single individual or entity.</p> </li> <li> <p>By contrast, the SEC contends that Ripple Labs, Inc., a private company, “<a href="https://www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf">initiated a large scale distribution</a>” of over 14 billion units of XRP.</p> </li> </ul> <h3>Futures Trading</h3> <p>Bitcoin and Ether have benefited from the SEC not viewing them as securities. For example, the Commodity Futures Trading Commission (CFTC) has decided that Ether, the token for Ethereum, should be <a href="https://finance.yahoo.com/news/cftc-says-cryptocurrency-ether-is-a-commodity-and-is-open-to-ether-derivatives-133455545.html">considered a commodity</a>. The CFTC has made a similar claim on jurisdiction over Bitcoin.</p> <p>Now both <a href="https://www.cmegroup.com/trading/ether-futures.html">Ether futures</a> and <a href="https://www.cmegroup.com/trading/equity-index/us-index/bitcoin.html">Bitcoin futures</a> are traded as cash-settled derivatives on the Chicago Mercantile Exchange (CME), which is regulated by the CFTC. Investors also have a choice of trading options on these futures.</p> <p>The opportunity to trade cash-settled crypto futures on a platform regulated by the CFTC is attracting institutional investors, like billionaire Paul Tudor Jones. In 2020 Jones stated he was allocating 1%-2% of his fund to Bitcoin futures traded on the CME.</p> <h2>Why Does the Legal Status of Crypto Matter?</h2> <p>The legal classification of cryptocurrency is important because it will influence adoption and use, including among institutional investors. For example, if a cryptocurrency is considered a security, as Ripple is, this means it must comply with strict SEC regulations designed to protect investors. On the other hand, if a cryptocurrency is considered a commodity then it is an asset to be traded. This gives it a lot more freedom in regulatory terms and opens the door for futures markets, which can add more trading options.</p> <p>The final reason that status matters is stability. As the cryptocurrency markets make inroads in being approved by regulators, they continue to attract increasing interest from <a href="https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/institutional-investors-digital-asset-survey.pdf">institutional investors</a>, particularly in Europe. For example, Microstrategy was able to grow its stock price from just $125 at the beginning of 2020, to <a href="https://financial-news-now.com/why-bitcoin-btc-is-becoming-an-institutional-investors-game-and-how-you-can-benefit/">more than $1,000</a> in February 2021 via Bitcoin investments. They have since been followed by bigger names, including that of Tesla’s Elon Musk.</p> <h2>Regulations Vary Widely, By Country</h2> <p>While the US appears to be embracing cryptocurrency, other nations are less positive. India has taken a hard stance against cryptocurrency. Its Government has made another attempt to ban cryptocurrency outright, citing money laundering concerns. The move is <a href="https://www.forbesindia.com/article/take-one-big-story-of-the-day/dont-ban-bitcoin-its-good-for-the-economy/66335/1">deeply unpopular</a> and threatens to damage India’s small yet thriving crypto industry.</p> <p>Other countries, including China and Nigeria, have made attempts to curtail crypto trading. But Their efforts haven't worked well. P2P exchanges simply send the crypto trade underground, and governments lose access to capital they could have otherwise taxed.</p> <p>Another area of contention is the downstream crypto derivatives market that targets retail consumers. This market includes instruments like contracts-for-difference (CFDs) that reflect the movement of crypto prices. While this type of trading is popular, the UK’s Financial Conduct Authority (FCA) recently banned <a href="https://www.fca.org.uk/news/press-releases/fca-bans-sale-crypto-derivatives-retail-consumers">the sale</a> of such derivatives citing among their concerns the difficulty that retail consumers may have in understanding the crypto markets and the potential for significant financial losses.</p> <h2>Legislation May Become Irrelevant Anyway</h2> <p>Decentralized cryptocurrencies, particularly the recent slew of DeFi apps, appear to be thriving regardless of the prevailing attitude to cryptocurrency. They are not held to the same Know Your Customer (KYC) standards as centralized exchanges and this significantly lowers the barrier to entry.</p> <p>For example, many people in Africa and South America have turned to cryptocurrency. In fact, Africa is one of the few places where cryptocurrency is actively <a href="https://www.dw.com/en/africas-quiet-cryptocurrency-revolution/a-55199637">used as a currency</a>.</p> <p>These developments represent a significant change from how cryptocurrency has operated in the past. Rather than a series of speculative assets, or small idealistic projects, a crypto community separate from government legislation is beginning to be built. This could pose an opportunity for significant growth, but it may also render government legislation impotent in the process.</p> <p>We suggest you work with a legal professional. We have <a href="/investors/services/top-legal-tax-equity-crowdfunding">identified a few that specialize in this budding industry</a>, but feel free to suggest others you have had positive experiences with in the comments below.</p> <p>This article was written in collaboration with the team at Commodities.com.</p> </div> <span><span>Brian Thopsey</span></span> <span>Wed, 02/24/2021 - 19:15</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/crypto" hreflang="en">Crypto</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=26573&amp;2=comment&amp;3=comment" token="0q8SLVJWuiqYMR6uw-QtMmtld_cO3fX11Akj5gS0W0w"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Thu, 25 Feb 2021 00:15:05 +0000 Brian Thopsey 26573 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/how-crypto-positive-legislation-could-change-way-investors-make-decisions#comments https://www.fundwisdom.com/article/brian-thopsey/how-crypto-positive-legislation-could-change-way-investors-make-decisions#comments 2020 Equity Crowdfunding by the Numbers https://www.fundwisdom.com/article/brian-thopsey/2020-equity-crowdfunding-numbers <span>2020 Equity Crowdfunding by the Numbers</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>This is an ongoing series of reviews. Reviews from years: <a href="/article/brian-thopsey/equity-crowdfunding-analysis-h1-2019">2019</a>, <a href="/node/36503/">2022</a></p> <p>Are you looking to select the right equity funding platform to raise money for your idea or business, or are you looking to invest? I will run through the data and insights on the overall market to help you maximize your ability to secure funding or find the right investment portal for you. Many of us believed we would see explosive growth in equity crowdfunding. At Fund Wisdom our thesis was built on the belief that there was pent up demand for access to high yielding startup investments. I break down the market, how the industry has re-define early-stage startup investing and funding. and where future opportunity lies.</p> <p><a href="https://www.equitytrack.co/proposal-to-raise-reg-cf-cap/">Many had proposed raising</a> the cap the SEC placed on businesses raising money through regulation crowdfunding to above the <a href="https://www.sec.gov/smallbusiness/exemptofferings/regcrowdfunding">maximum of $1,070,000</a> and the call has been answered. <a href="https://www.sec.gov/news/press-release/2020-55">The SEC Proposed Rule Changes to Harmonize, Simplify and Improve the Exempt Offering Framework</a> across each of the major regulated categories with regulation CF to $5 million, A to $22.5 million, Reg D 504 to $10 million.</p> <div style="float:left;margin:20px;width:400px;"><img src="/sites/fundwisdom.com/files/field/image/man-suit-walking.jpg" width="370" /><br /><span style="font-size:9pt;">Photo by </span><a href="https://unsplash.com/@jeff_tumale?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"><span style="font-size:9pt;">Jeff Tumale</span></a><span style="font-size:9pt;"> on </span><a href="https://unsplash.com/s/photos/men-in-suit?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"><span style="font-size:9pt;">Unsplash</span></a></div> <p> </p> <div class="_1l8RX _1ByhS"> </div> <h2>Defining the Equity Crowdfunding Market</h2> <p>If you’re starting a business and need money upfront the traditional way to do this was to go to a bank, venture capital firms, or use your own money. Websites and digital platforms help facilitate the transactions now. Equity Crowdfunding in the US can be separated into two major types accredited and non-accredited.</p> <p>Non-accredited is also known as Regulated Equity Crowdfunding, campaigns that were launched under new regulations like <a href="/href%3D" about="" jobs-act-title-iii="">Title III of the Jobs Act (aka Reg CF)</a>. Historically only <a href="/href%3D" about="" jobs-act-title-iii="">accredited investors, or wealthy people defined by the SEC</a> were able to invest in businesses offering shares at an early stage, outside of friends and family. This limited opportunities for those who were not wealthy enough to qualify. </p> <p> </p> <h2>Market Size</h2> <p><a href="https://pitchbook.com/media/press-releases/us-venture-capital-investment-reached-1309-billion-in-2018-surpassing-dot-com-era" target="_blank">According to research from PitchBook</a>, in 2018 US Venture Capital reached $130.9 billion whereas non-accredited Regulated Equity Crowdfunding is only 0.08 percent of that at $109.3 million according to <a href="https://venturebeat.com/2019/01/30/regulation-crowdfunding-performed-solidly-in-2018-heres-the-data/" target="_blank">CrowdFund Capital Advisors via VentureBeat</a>. The accredited portal market is much more challenging to put a broad number to due to the listings no longer being publicly accessible they were back in 2014. <a afqjcnhvqakue9lxmiv9vdkvhhbrinvcva="">The University of Cambridge’s Center for Alternative Finance</a> publishes a report stating about 0.3 percent of VC was funded through portals in <a href="/href%3D" innovative-venture-reports="" investors="" university-cambridge="">2017 at $260.9 million</a>. They do not break out the two types via accredited and non, and rely upon self reporting by the platforms.       </p> <p>At Fund Wisdom we have been working on <a href="/href%3D" investment-activity="" tags="">Research</a> on investment insights across accredited and non accredited data, we have used this to build our <a href="/href%3D" article="" brian-thopsey="" top-10-equity-crowdfunding-portals-2019="">rank for the top 10 portals</a>, and <a href="/href%3D" equity-funding-dashboard="" investors="" platforms="">our Dashboard</a> in its early stages. We have been focused on the Americas thus far but have compiled a list of <a href="/href%3D" article="" brian-thopsey="" global-equity-crowdfunding-platforms="">platforms across the globe</a>. </p> <h3>Regulated Non Accredited Equity Funding</h3> <div class="align-left"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2020-04/RegCF%20OfferingsperYear.png?itok=S2QVVaVz 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2020-04/RegCF%20OfferingsperYear.png?itok=gQyJehBa 645w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2020-04/RegCF%20OfferingsperYear.png?itok=S2QVVaVz" alt="Regulation Crowdfunding Offerings per Year" /></div> </div> </div> <div class="align-center"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2020-04/RegCFDollarsperyear.png?itok=tStB2m-d 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2020-04/RegCFDollarsperyear.png?itok=Pw08oe3t 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2020-04/RegCFDollarsperyear.png?itok=xRaFlC2g 723w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2020-04/RegCFDollarsperyear.png?itok=tStB2m-d" alt="Regulation Crowdfunding Dollars per Year" /></div> </div> </div> <p> </p> <p><a href="http://crowdfundcapitaladvisors.com/regulation-crowdfunding-performed-solidly-in-2018-heres-the-data/" target="_blank">CrowdFund Capital Advisors</a> have been publishing the most comprehensive reviews I have found of the Americas regulated market, with the <a href="https://venturebeat.com/2019/01/30/regulation-crowdfunding-performed-solidly-in-2018-heres-the-data/" target="_blank">VentureBeat</a> article being a great example. </p> <p> </p> <p>We have observed some discrepancies in every report we have found for the same time frames. For instance StartEngine regularly provides reviews of the industry and their performance. In this case <a href="https://www.startengine.com/blog/equity-crowdfunding-2018-review/" target="_blank">2018 data</a> listed was at $75.8 million total differs from CrowdCapital team of $109 mil. This is likely due to the quality of data coming from the SEC posing challenges. We showcase a breakdown of a few sources we have found.</p> <div class="align-center"> <div class="field field--name-field-media-image field--type-image field--label-visually_hidden"> <div class="field__label visually-hidden">Image:</div> <div class="field__item"> <img srcset="/sites/fundwisdom.com/files/styles/max_325x325/public/2020-04/FundWisdom%20Custom%20Table%20RCF%20Data.png?itok=tFr-Z_nO 325w, /sites/fundwisdom.com/files/styles/max_650x650/public/2020-04/FundWisdom%20Custom%20Table%20RCF%20Data.png?itok=ozJuUSin 650w, /sites/fundwisdom.com/files/styles/max_1300x1300/public/2020-04/FundWisdom%20Custom%20Table%20RCF%20Data.png?itok=lksCq3M4 1300w" sizes="(min-width: 1290px) 325px, (min-width: 851px) 25vw, (min-width: 560px) 50vw, 100vw" src="/sites/fundwisdom.com/files/styles/max_325x325/public/2020-04/FundWisdom%20Custom%20Table%20RCF%20Data.png?itok=tFr-Z_nO" alt="FundWisdom Comparison of Regulation Crowdfunding Data" /></div> </div> </div> <p>The US SEC has added Equity Funding Portal filings to the EDGAR online filing database. The SEC site now has section built for equity funding portals and different Regulation funding offerings like D and A+.</p> <p style="line-height:1.38;"> </p> <h3>Accredited Investor Portals</h3> <p><img src="/sites/all/files/cfund//platforms_by_market_share.jpg" width="700" /></p> <p>Most Accredited portals do not provide public listings as they once did so gathering this data has become very challenging. We built a<a href="https://fundwisdom.com/article/brian-thopsey/online-venture-investing-data-and-analytics-2014-2015"> detailed report of data back in 2015</a> that provided a detailed view of the how the industry began prior to non-accredited investing being possible. Around the time frame we released the report the accredited focused platforms began moving their equity listings, that had been public, behind a login. The login requires accredited investor verification. <a href="http://tydanco.com/2011/08/08/the-big-four-benefits-of-angellist-for-investors/">Ty Danco' wrote a piece on the Benefits to using AngelList.</a></p> <p> </p> <h3>Who is Achieving Success </h3> <p>Sherwood Neiss of CrowdCapital Advisors states “Unlike venture capital, where less than 6.5 percent of startups successfully raise funds, the success rate in Regulation Crowdfunding hovers around an impressive 60 percent.” </p> <h4>Industries </h4> <p>Some sectors have been greater affected by these financial innovations. The real estate and restaurant industries have seen some great success raising capital. CrowdCapital Advisors team <a href="http://crowdfundcapitaladvisors.com/industry-reports/">put a great report on the restaurants</a>.</p> <h2>Entrepreneurs Raise Capital</h2> <p>At Fund Wisdom we have focused our efforts on the investor side of the equity funding portal industry while <a href="https://www.crowdcrux.com/">Crowdcrux </a>has focused on helping entrepreneurs raise funds. Crowdrux produces powerful material to those looking for funding across the various types of crowdfunding like rewards based sites like Kickstarter, not just equity. The total number of people raising money via equity portals is dwarfed by the other categories, but it unlocks the greatest potential for both sides of the market, the funder and the inventor. Below are a few resources to help in this process:</p> <ul><li>Kendall Alemerico's<a href="http://www.entrepreneur.com/article/237678"> 10 tips for Startup Equity Investing via Entrepreneur</a></li> <li>Master<a href="https://www.equitycrowdfundingmasterclass.com/">Class For raising funds for Filmmakers </a></li> </ul><h2>Capitalize</h2> <p>We have observed continual growth in the US Equity Crowdfunding market. This has allowed for entrepreneurs to more easily get funding, and investors to gain access to new ventures that were previously off limits. The recent adjustment of raising the cap for Reg CF to $5 million from $1 million will definitely help with that. Opportunities will increase as regulation continues to open. More investing portals will be built and ancillary services will continue to be developed to improve the fund raising process.  </p> <p>Have you been able to invest or raise money through these portals? Let us know what you think in the comments below.</p> </div> <span><span>Brian Thopsey</span></span> <span>Tue, 02/09/2021 - 05:19</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/analytics" hreflang="en">Analytics</a>, <a href="/article/tag/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=9693&amp;2=comment&amp;3=comment" token="33-uBYONyeqzxvYB9DU6026O0MuDyWUSL3cRVM7pbJE"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Tue, 09 Feb 2021 10:19:03 +0000 Brian Thopsey 9693 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/2020-equity-crowdfunding-numbers#comments https://www.fundwisdom.com/article/brian-thopsey/2020-equity-crowdfunding-numbers#comments The Top 10 Equity Crowdfunding Portals 2020 https://www.fundwisdom.com/article/brian-thopsey/top-10-equity-crowdfunding-portals-2020 <span>The Top 10 Equity Crowdfunding Portals 2020</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>This is a yearly update from our <a href="/article/brian-thopsey/top-10-equity-crowdfunding-portals-2019">last review in 2019 which covers how we build our ranking</a>. We break up our list to Accredited focused top 10 and regulation crowdfunding, non accredited focused portals.</p> <h3>Non Accredited Top 10</h3> <p><a href="/investors/platforms/equity-funding-dashboard"><img alt="2020 top 10 " data-entity-type="file" data-entity-uuid="15d9b3e2-501f-4e02-ad9d-ba46b3f52468" src="/sites/fundwisdom.com/files/inline-images/2020%20performance.JPG" style="width:300px;" /></a><img alt="Top 10 Non Accredited" data-entity-type="file" data-entity-uuid="553be76a-ec62-4f39-9dcb-e4d97d2ca420" src="/sites/fundwisdom.com/files/inline-images/top-10-nonaccredited.JPG" style="width:300px;" /></p> <h3>Accredited Top 10</h3> <p>We had previously been able to attain data on funding volumes, but that has changed years ago now, so our ability to properly rank is not an option. We have a list of investing portals and look for feedback on how to best take the factors we measure.</p> <p><img alt="Accredited Top 10" data-entity-type="file" data-entity-uuid="a1c40846-2902-4ed6-847d-81fc11e5347d" src="/sites/fundwisdom.com/files/inline-images/accredited%20top%2010.JPG" style="width:300px;" /></p> <p>&nbsp;</p> <h3>Regulation Changes Helps Grow Market for 2020</h3> <ul> <li>Regulation CrowdFunding (Reg CF) maximum amount a company can raise was increased from $1M per year to $5M for startups.</li> <li>Compliance review of the business can now be completed just before closing of the funding round, which will reduce up front time for entrepreneurs.&nbsp;</li> <li>Becoming an <a href="/investors/types/non-accredited-unaccredited-investors">accredited investor</a> can now be accomplished through taking tests, adding to the existing wealth requirements that had already been in place.</li> <li>The cap on the amount an individual can invest for Reg CF offerings is capped for non accredited investors. This cap previously applied to accredited investors as well, but has since been lifted.</li> </ul> <p>These changes have helped to create healthy growth for several platforms. We have observed investing portals close shop over the years, but an increase in consolidation and acquisition has accelerated.</p> <p>&nbsp;</p> <h3>Wefunder</h3> <p>Wefunder's Nick Tommarello announced their <a href="https://wefunder.com/updates/135066">#1 spot in market share via their year end review</a>. They credit the sharp increase in growth to the custodian structure to investments they rolled out in Q2. This groups all investors as a single entity to simplify the cap table and paperwork processing. This is appealing to both entrepreneurs and investors.</p> <p><img alt="Wefunder 2020 Review" data-entity-type="file" data-entity-uuid="d70b790c-7e28-45df-9fb6-b1741a54b39c" src="/sites/fundwisdom.com/files/inline-images/wefunder-review.JPG" style="width:700px;" /></p> <p>They set a goal to increase market share past 50% in 2021. They achieved close to $5 million in revenue for 2020 running at a "small" net loss. Though they are a B Corp so income level is not the focal metric.</p> <ul> <li>538 startups raised money since inception</li> <li>$87.2 million raised in 2020</li> <li>$204 million raised since inception</li> <li>$5 million revenue for 2020 prior to full GAAP review, growth resulting in $8 Mil run rate</li> <li>$4 Billion in follow on investments by institutional investors</li> <li>25&nbsp;full-time salaried employees</li> <li>iPhone app created December</li> </ul> <p>Only a few days after the post there are dozens of comments on the announcement including praise, discussion on investing support, and suggestions for improvements with customer engagement.&nbsp; I agree with Nick in not thinking it would take so long for the regulations to get rolled out as they are today, but join in the congratulations for growth and results achieved.</p> <h3>StartEngine</h3> <p>Max Crawford authors regular updates on the overall industry and StartEngine performance and he released the 2020 <a href="https://www.startengine.com/blog/startengines-2020-in-review/">StartEngine's Review.</a></p> <ul> <li>150 companies raised money in 2020</li> <li>$250 million raised since inception</li> <li>$137.9 mil raised in 2020</li> <li>$24.3 mil in money raised for StartEngine across&nbsp;16,682 individual investors&nbsp;</li> <li>49 full time employees</li> </ul> <h3>&nbsp;</h3> </div> <span><span>Brian Thopsey</span></span> <span>Sun, 01/03/2021 - 21:15</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/analytics" hreflang="en">Analytics</a>, <a href="/article/tag/investment-activity" hreflang="en">Investment Activity</a>, <a href="/article/tag/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=20626&amp;2=comment&amp;3=comment" token="I65afAOlvfi8j8cVzvjxDPY8RD0Pdtpu-yAHGDyDBoA"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Mon, 04 Jan 2021 02:15:50 +0000 Brian Thopsey 20626 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/top-10-equity-crowdfunding-portals-2020#comments https://www.fundwisdom.com/article/brian-thopsey/top-10-equity-crowdfunding-portals-2020#comments The Impact of Covid-19 on Startup Investing in Funding Portals https://www.fundwisdom.com/article/brian-thopsey/impact-covid-19-startup-investing-funding-portals <span>The Impact of Covid-19 on Startup Investing in Funding Portals</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The Covid-19 (Coronavirus) created a wave that shocked the world, wreaking havoc on so many, but for a lucky few can result in opportunity. Jobs were lost, businesses continue to shut down and a shudder of uncertainty continues for so many, yet the US stock market continues to climb higher since the brief March correction. We look to make sense of it by sharing data and strategies from professional investors that have continued to come out on top in times of uncertainty in both public and private markets.<br /> <img alt="S&amp;P 500 Market performance 2020" data-entity-type="file" data-entity-uuid="3b772609-37a5-4ca8-9b90-e48f71f8850e" src="/sites/fundwisdom.com/files/inline-images/stockmarket2020.JPG" style="margin:10px;" /></p> <h3>How will Covid-19 Continue to Impact My Portfolio?</h3> <p>Many average individual investors are spending their extra time, from not being able to go places, investing and trading, riding a bull run from the March dip. I am amazed at the growing places I am hearing stock tips. If you're portfolio contains heavily weighted public equities in the US stock market, it’s likely you’ve seen the value of your pot tumble from news of the pandemic spread, but then recover, hopefully ending the 2020 year ahead.</p> <p>While many suffer, I feel lucky to be healthy, with a steady income, looking to assess ways to tackle this storm to ensure a continued financial stability. I look to find opportunities of value in times of market dips and uncertainty. Over the years I have worked with public companies on their digital transformation, but have focused my equity analysis on private equity at Fund Wisdom. I aim to draw connections with the macro economic challenges more readily observable in public markets to the private startup space.</p> <p>After reviewing the overall market performance from an index of the S&amp;P I look to understand how the uncertainty may be measured. We can get a gauge on this through the CBOE Volatility Index (VIX).</p> <p><img alt="VIX 2020" data-entity-type="file" data-entity-uuid="968525b5-eb6e-49da-909e-cef2877be8ec" src="/sites/fundwisdom.com/files/inline-images/VIX%202020.JPG" /></p> <p style="margin-bottom: 0in; background: #ffffff; border: none; padding: 0in">Increasing US Federal debt, uncertainty on vaccination schedules are major factors in the spikes that can be seen in the chart for the year. As a result, there has been a significant reduction in the liquidity in certain asset classes and overall lending. <a href="https://www.bain.com/insights/the-impact-of-covid-19-on-private-equity/">Research by Bain and Company</a> discussed Covid-19 and its market implications, stating ‘the impact will not be known for several quarters. The challenge arises knowing where and when to invest. Investing with a short term focus in a highly volatile market increases risk, however investing for the long term allows you to pick up some bargain investments if you are able and willing to hold over the next 3-10 years. This will hold true for both public and private markets. Being familiar with geographical approaches to the pandemic and how specific governments/central banks are navigating tax, monetary policy and the like can also be beneficial for minimizing risk in your portfolio, particularly if certain areas are heavily reliant on one particular industry.</p> <p style="margin-bottom: 0in; background: #ffffff; border: none; padding: 0in; page-break-before: always">Many industry professionals have commented on the implications of Covid-19 for the average investor. Conor Moore, Partner at KPMG Private Enterprise discussed the new business opportunities that are beginning to arise out of the Covid-19 gloom. For example, business to business (B2B) companies <a href="https://home.kpmg/xx/en/blogs/home/posts/2020/04/venture-capital-response-to-covid-19.html">‘developing more robust communications software systems’</a> to tackle the new remote working environment. Further professionals such as the <a href="https://a16z.com/2020/07/30/fintech-newsletter-july-2020/">Fintech Team at Andreessen Horowitz </a>looked into the impact of Covid-19 through the Banks, finding the general sentiment to be ‘oddly optimistic’, with Banks being better prepared for the financial repercussions of Covid-19 (perhaps learning from the troublesome 2008 period) and also finding largely positive consumer behavior with ‘no drastic change in consumers ability to pay off their loans’. The question arises as to whether government stimulus programs are the underlying backbone behind this consumer tendency and what exactly will happen when it all dries up...</p> <h2>Opportunity</h2> <p>It’s evident that the pandemic has had a devastating impact on small businesses worldwide, although investing in large public companies is effective for a long term, lower risk portfolio, many individuals are still seeking innovative companies able to come out at the forefront of the pandemic.</p> <p>Some industries and businesses have been hit hard, but the fundamentals of the business is still strong with cash on hand to weather the storm and recover, creating a great value buy. News of the vaccine rolling out globally provides some hope, but how this will impact in the short and long term is not certain. Almost all industries have seen some kind of turmoil during the crises, turning this into your time to buy when others don't recognize the long term value is a winning strategy.</p> <p>We look to find and share resources to gain an edge on the market. I have seen several advertisements by <a alt="Leaderboard" href="https://track.flexlinkspro.com/a.ashx?foid=1156697.140930743.I4282627&amp;foc=2&amp;fot=9999&amp;fos=1" rel="nofollow" tabindex="-1" target="_blank" title="Motley Fool Premium Services">The Motley Fool offering research and tips </a> for investors. We have partnered with them via an affiliate relationship because of how helpful many of the forum and message board discussions have been for me. We are interested in your opinion on the&nbsp;public market stock advisor tool. It offers 2 new stocks each month, leveraging the active community that originally attracted me to the site. They discuss reviewing various asset classes, focusing on both beginner and advanced investors, but seems to be focused primarily on public markets.&nbsp;</p> <h3>Value: Travel, Hospitality, &amp; Retail</h3> <p>Research by <a href="https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-business#">Mckinsey </a>showed that revenues in the fashion industry will ‘likely fall by 27 to 30 percent from the year before’. A nightmare for some investors with a heavily weighted portfolio towards this industry that may need to liquidate, but an opportunity for you.</p> <p>Statista is a useful resource when it comes to accessing Covid-19 statistics which showcased <a href="https://www.statista.com/statistics/1104316/coronavirus-month-over-month-retail-sales-development-by-sector-us/">monthly changes in retail sales across various industries in the United States</a>. They provide useful insights into how various sectors are developing post pandemic. Resources like this can allow you to navigate different industries and uncover value investments in public and private.</p> <p><a href="/investors/platforms">Non Accredited Investing Portals</a> like <a href="https://www.startengine.com/explore">StartEngine offer 9 retail focused startups raising capital</a>.</p> <p>&nbsp;</p> <p><a href="https://www.startengine.com/explore"><img alt="Retail Investments StartEngine" data-entity-type="file" data-entity-uuid="848d6958-b9d8-4eb9-80b1-c2c27b654f5f" src="/sites/fundwisdom.com/files/inline-images/retail-%20startengine.JPG" /></a></p> <h3>Bubble?</h3> <p>Despite the many losers to the Coronavirus, it’s evident some industries have been thriving. The "work from home" WFH, culture has led to a spike in online shopping and hence many E-commerce focused companies have seen a spike in earnings. A survey by <a href="https://searchengineland.com/covid-consumers-pessimistic-but-spending-more-online-331519">Engine</a> found that on average people are spending 10-30% more online. A further survey conducted by <a href="https://www.valassis.com/">Valassis</a> of 1000 US adults found that 42% said they were spending more online and only 8% stating they were spending less. The challenge as we see it is trying to understand what the inevitable drop in spending in these areas will be when brick and mortar purchasing resumes. Many companies are frantically fighting to transition to this digital focused way of life. We have observed digital natives like E-commerce giants Amazon and Ebay spike as can be see in the chart below. The question is if too much growth is now baked into the current market price and we are seeing a bubble?&nbsp;</p> <p><img alt="e-commerce bubble" data-entity-type="file" data-entity-uuid="203f3478-12fc-4d1d-b258-68e7763f3027" src="/sites/fundwisdom.com/files/inline-images/e-commerce.JPG" /></p> <p>While it is possible public companies may be selling at a high price to value ratio in the e-commerce space private markets may hold further potential from the limited access. Wefunder currently lists <a href="https://wefunder.com/explore/ecommerce">17 companies listing their shares for sale</a> in the sector and <a href="https://www.startengine.com/explore">StartEngine offers 13</a>.</p> <p><a href="https://wefunder.com/explore/ecommerce"><img alt="Wefunder e-commerce" data-entity-type="file" data-entity-uuid="624381a8-8be4-4a96-afa4-7fb6f28b82be" src="/sites/fundwisdom.com/files/inline-images/wefunder-commerce.JPG" style="width:500px;" /></a></p> <p> Food and beverage sales are up, although with a different buying psychology. People are not able to eat at restaurants as much, causing grocery purchasing to increase. Research by <a href="https://www.shipbob.com/">Shipbob</a> (a shipping and fulfillment partner for e-commerce stores) found that the month over month increase in online sales for food and beverage is 18.8%.</p> <h2>Getting to grips with Covid-19</h2> <p>The impact from Covid-19 will continue for the foreseeable future. It’s important to stay up to date with the changes and impacts this can have on your portfolio. Knowing when to stay out of the market and manage your risk, or buy in times of uncertainty is what will distinguish those that are able to achieve long term results, even during turmoil.</p> </div> <span><span>Brian Thopsey</span></span> <span>Fri, 01/01/2021 - 14:32</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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=20625&amp;2=comment&amp;3=comment" token="aeaGE4vJjwAifEk1R9HRgMiPi6Np7HCDkFyqE2aTmS4"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Fri, 01 Jan 2021 19:32:17 +0000 Brian Thopsey 20625 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/impact-covid-19-startup-investing-funding-portals#comments https://www.fundwisdom.com/article/brian-thopsey/impact-covid-19-startup-investing-funding-portals#comments Find Financial Advisors Focusing on Startups https://www.fundwisdom.com/article/brian-thopsey/find-financial-advisors-focusing-startups <span>Find Financial Advisors Focusing on Startups</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p style="margin-bottom: 0in">Finding advisors focused on startups can seem like a challenge to many investors including myself. Where do you even begin looking? How do I know the advisor is the real deal? What startups or resources should I focus on? These are just a few of the many questions that come up trying to locate someone with a specialization in this budding market.</p> <div style="float:right;"><img alt="Financial Advisors Office" data-entity-type="file" data-entity-uuid="096d876f-aaa2-4cdf-9918-eafcbfb915f5" src="/sites/fundwisdom.com/files/inline-images/pexels-curtis-adams-3958959.jpg" style="width:500px;margin:10px;" /></div> <p style="margin-bottom: 0in; background: #ffffff; border: none; padding: 0in">In this article, we’ll pull in the facts and figures to help you make well rounded decisions about your financial future. You will also find a list of professionals that can help with financial planning. We believe when it comes to startup investing, a foundational level of knowledge around the sector and who are the leaders can make the difference between losses and gains.</p> <p>&nbsp;</p> <h2 class="western">Why Startups?</h2> <p>Startups offer investors great growth potential and the ability to follow a small company along it’s journey to industry success. <a href="https://admiralmarkets.com/education/articles/general-trading/investing-in-startups?regulator=fca">Admiral Markets</a>, a reputable startup investing firm describes the 4 characteristics of the modern startup as being based on innovation, having growth as the main objective, using external financing and comprising of a small team of highly skilled individuals.</p> <p>The Motley Fool also highlights <a href="https://www.fool.co.uk/mywallethero/your-money/learn/why-and-how-to-invest-in-startups/">many of the positives to startup investing</a>. Unique opportunities, low investment limits and exclusive perks not available through investments in large cap equities all go into making the startup realm a very lucrative place to put your money.</p> <p>&nbsp;</p> <h2>Where to find Startup Investment Opportunities</h2> <p>Investment opportunities are everywhere, the biggest challenge is figuring out how you can get a piece of the pie for yourself. Publications such as Fundwisdom (among others) can be very beneficial in your decision making.</p> <p>Crowdfunding websites offer investors the ability to buy ownership in a company, more often than not at a much lower cost than it would with a venture capital or similar fund. For a roundup of some of the best, modern crowdfunding sites we recommend <a href="https://www.thebalancesmb.com/best-crowdfunding-sites-4580494">an article from the balance small business</a> providing an overview of many crowdfunding sites, their fees and how they work.</p> <p>Your local chamber of commerce is another resource in your arsenal when it comes to finding startup investing opportunities. A simple google search and scroll through a local directory can provide you with insightful information on the different startups in your area, some with investment opportunities just waiting to be seized. Many startup investment platforms have very small minimum investment requirements and present a wide array of investment opportunities spanning across many exciting industries.</p> <p>As of writing this, the world is plagued with coronavirus and the physical networking ability blocked for many individuals. LinkedIn is a great platform fledgling venture capitalists can use for networking with startup owners and taking the proactive approach to finding investment opportunities.</p> <p>&nbsp;</p> <h2>Save $ in Taxes Investing Startups</h2> <p>When it comes to investing in startups, a ‘self directed IRA’ as described by Startup knowledge center <a href="https://knowledge.ourcrowd.com/invest-in-venture-capital-with-a-self-directed-ira">OurCrowdKnowledge</a> is a great option due to its tax advantages. These returns can thus be held in a retirement account and will be tax deferred. What’s more, these investment alternatives have a low correlation with other asset classes, therefore may allow investors to hedge their investments during times of market volatility in stocks and bonds.</p> <p>&nbsp;</p> <h2>The Figures</h2> <p>When addressing any potential investment fund opportunity, you need to understand the data. For example, <a href="https://www.barrons.com/report/top-financial-advisors/100/2018">Barron’s has some useful information on the top financial advisors each year</a>, these figures can be used as a benchmark for performance and a way to select top firms. Barron's reviews client's average net worth, total assets, location and more. Knowing a fund manager's track record gives you insight into historical returns but cannot guarantee future performance.</p> <p>Barron’s also possess a range of economic data on various <a href="https://www.barrons.com/market-data?mod=BOL_TOPNAV">investment opportunities </a>allowing you to make sound decisions on when and where to invest your capital. For example, the ‘stock movers’ section lists various equities showing the most movement within a certain period. Although these may not always be the most sensible investments.</p> <p>A fund's past performance can often give a good indication into the future, however research and careful consideration of many variables is required to ensure a certain investment is right for you. Cryptocurrencies for example, can offer the possibility for high return yet also bear a lot of risk.</p> <p style="margin-bottom: 0in">&nbsp;</p> <h2 class="western">Top Advisors</h2> <p style="margin-bottom: 0in; background: #ffffff; border: none; padding: 0in">There are advisors for each and every asset class, helping you work towards reaching your wealth goals whilst accounting for your desired level of risk. Most easiest to find are those that have expertise in public equities and debt. Barron’s showcases the track records and information on what they deem top financial advisors. We have not been able to locate any of these with expertise in startup offerings on the portals we cover.</p> <p>An innovative tool known as <a href="https://www.riamatch.com/">RIA Match</a> allows you the ability to connect with financial advisors quickly and easily, matching your financial goals and requirements to their listings of advisors. <a href="https://successionlink.com/">Successionlink</a> is another tool offering a similar service and those in need of a service. LinkedIn can be used to locate advisors.</p> <h3>Assess Your Current Advisor</h3> <p>Reviewing advisor performance can often be a challenge. <a href="#54b43e5c49a0">Ken Schapiro</a> of Condor Capital Management built <a href="https://www.backendbenchmarking.com/">Backend Benchmarking, </a>a tool designed to help you better manage your portfolio. Using this platform can cut through the clutter of biased reporting, allowing you to make an informed decision on the current performance of your money.</p> <p style="margin-bottom: 0in">&nbsp;</p> <h2 class="western" style="background: #ffffff; border: none; padding: 0in">Should you give Startups a go?</h2> <p style="margin-bottom: 0in; background: #ffffff; border: none; padding: 0in">All in all, an up and coming startup can be exciting for many (particularly new) investors. Although the returns can be vast, due diligence is required around the company to ensure the investment meets your risk appetite. Comparing the startup investment opportunity with other alternative investments may give you an accurate depiction of how one opportunity fares against another.</p> <p style="margin-bottom: 0in; background: #ffffff; border: none; padding: 0in">&nbsp;</p> <p style="margin-bottom: 0in; background: #ffffff; border: none; padding: 0in">This article is written in collaboration with <a href="/users/callum">Callum Lepley.</a></p> </div> <span><span>Brian Thopsey</span></span> <span>Thu, 08/27/2020 - 08:58</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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=9956&amp;2=comment&amp;3=comment" token="YcD1BrKIx0lszgGKIjJ07k9e3jOQI9MCIISMn4TDjmA"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Thu, 27 Aug 2020 12:58:29 +0000 Brian Thopsey 9956 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/find-financial-advisors-focusing-startups#comments https://www.fundwisdom.com/article/brian-thopsey/find-financial-advisors-focusing-startups#comments Event: Panel on Alternatives to Diversify your Portfolio https://www.fundwisdom.com/article/brian-thopsey/event-panel-alternatives-diversify-your-portfolio <span>Event: Panel on Alternatives to Diversify your Portfolio</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Looking to explore innovative ways to grow your wealth?</p> <p><a href="https://www.eventbrite.com/e/alternative-investing-virtual-meetup-tickets-115999432425?aff=FundWisdom"><img alt="Event Banner Alternative Investing panel" data-entity-type="file" data-entity-uuid="01938423-12aa-45b8-bf9f-862c4b27cebc" src="/sites/fundwisdom.com/files/inline-images/AltFi%20Conf%20Eventbrite%20Banner%20%281%29%281%29_0.png" style="width:600px;" /></a></p> <h2>Attend our Panel Event</h2> <div style="float:right"> <table id="m_-6682442498691132156calendarContainer" style="color:#222222; font-family:Roboto, RobotoDraft, Helvetica, Arial, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; white-space:normal; text-decoration-style:initial; text-decoration-color:initial; width:150px; background:white; border-collapse:collapse; border:none" width="0"> <tbody> <tr> <td style="border-bottom:none; padding:3px; background-color:#efefef; border-top:6px solid white; border-right:6px solid white; border-left:6px solid white" valign="top"> <div> <p align="center" style="text-align:center"><span style="font-family:Roboto,RobotoDraft,Helvetica,Arial,sans-serif"><span style="line-height:19.5px"><b><span style="font-size:10.5pt"><span style="line-height:21px"><span style="font-family:Helvetica, sans-serif"><span style="color:#303030">September 2020</span></span></span></span></b></span></span></p> </div> </td> </tr> <tr> <td id="m_-6682442498691132156dayContainer" style="border-bottom:6px solid white; padding:3px; background-color:white; border-top:none; border-right:6px solid white; border-left:6px solid white" valign="top"> <div> <p align="center" style="text-align:center"><span style="font-family:Roboto,RobotoDraft,Helvetica,Arial,sans-serif"><b><span style="font-size:54pt"><span style="font-family:Helvetica, sans-serif"><span style="color:#303030">17</span></span></span></b></span></p> </div> </td> </tr> </tbody> </table> </div> <p><style type="text/css"><!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> </style><p>Join us to explore novel ways to invest in something new. By being a part of this event, you’ll have learning opportunities and help from experts on approaching your high-growth investments, providing more potential at success each step along your journey. It’s a great way to earn, learn, and invest all in one spot. Seize your moment as a high investor by joining our event today! discuss their paths to helping people access these previously private markets.</p> <p> Expect to learn about alternative virtual Investments - looking beyond the norm at innovative online portal strategies. Our panelists will share unique strategies to structure investments in equity of startups, real estate, wine, and more. By joining us, you’re earning learning opportunities along with possibilities abound from the huge investment returns from our event.</p> <p>&nbsp;</p> <p><a href="https://www.eventbrite.com/e/alternative-investing-virtual-meetup-tickets-115999432425?aff=FundWisdom">Register with EventBrite</a></p> <p>&nbsp;</p> <p style="text-align:start; margin-bottom:10px">Panelists and what I am excited to learn more about from each</p> <ul data-key="76" data-slate-fragment="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"> <li data-key="77"><span data-key="78"><span data-offset-key="78:0">Moderator: Andrew Savikas, Founder </span></span><a data-key="79" href="https://yieldtalk.com"><span data-key="80"><span data-offset-key="80:0">YieldTalk</span></span></a><span data-key="81"><span data-offset-key="81:0"> </span></span></li> <li data-key="82"><span data-key="83"><span data-offset-key="83:0">Chuck Pettid, CEO of </span></span><a data-key="84" href="https://republic.co"><span data-key="85"><span data-offset-key="85:0">Republic Crowdfunding Portal</span></span></a> <ul> <li data-key="86">Republic's recent release of their&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://fundwisdom.us3.list-manage.com/track/click?u%3D0dad474b0bacb25172ab9a735%26id%3D75289891f7%26e%3D5d6619dbe5&amp;source=gmail&amp;ust=1598547107099000&amp;usg=AFQjCNGWiFEOSwkGpOsaiHPXHzlnsrZdEA" href="https://fundwisdom.us3.list-manage.com/track/click?u=0dad474b0bacb25172ab9a735&amp;id=75289891f7&amp;e=5d6619dbe5" target="_blank">investable Note</a>, which I&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://fundwisdom.us3.list-manage.com/track/click?u%3D0dad474b0bacb25172ab9a735%26id%3D0b91b0e7a1%26e%3D5d6619dbe5&amp;source=gmail&amp;ust=1598547107099000&amp;usg=AFQjCNG4CKct4c6E27rNpGVDLIocCbbdBQ" href="https://fundwisdom.us3.list-manage.com/track/click?u=0dad474b0bacb25172ab9a735&amp;id=0b91b0e7a1&amp;e=5d6619dbe5" target="_blank">co-wrote an article with Brian of CrowdWise&nbsp;on funds which touches&nbsp;on the&nbsp;launch</a>.&nbsp;</li> </ul> </li> <li data-key="86"><span data-key="87"><span data-offset-key="87:0">Anthony Zhang, CEO of </span></span><a data-key="88" href="https://yieldtalk.com/go/vinovest/"><span data-key="89"><span data-offset-key="89:0">Vinovest</span></span></a> <ul> <li data-key="86">what operating&nbsp;without the same regulatory hurdles (since it is wine and not an investment security) enables.&nbsp;To learn more about Anthony check out&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://fundwisdom.us3.list-manage.com/track/click?u%3D0dad474b0bacb25172ab9a735%26id%3Db57e265951%26e%3D5d6619dbe5&amp;source=gmail&amp;ust=1598547107099000&amp;usg=AFQjCNFGMGfQIIqpGk7DRYbly6my9xp1rw" href="https://fundwisdom.us3.list-manage.com/track/click?u=0dad474b0bacb25172ab9a735&amp;id=b57e265951&amp;e=5d6619dbe5" target="_blank">Andrew of YieldTalk's interview</a></li> </ul> </li> <li data-key="90"><span data-key="91"><span data-offset-key="91:0">Charles Clinton, CEO of </span></span><a data-key="92" href="https://yieldtalk.com/go/equitymultiple/"><span data-key="93"><span data-offset-key="93:0">EquityMultiple</span></span></a><span data-key="94"><span data-offset-key="94:0"> </span></span> <ul> <li data-key="90">Understanding more about how they are competing against&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://fundwisdom.us3.list-manage.com/track/click?u%3D0dad474b0bacb25172ab9a735%26id%3Daae2816e94%26e%3D5d6619dbe5&amp;source=gmail&amp;ust=1598547107099000&amp;usg=AFQjCNFoLg7C9LwsCTH_idHPswgq3Da_2w" href="https://fundwisdom.us3.list-manage.com/track/click?u=0dad474b0bacb25172ab9a735&amp;id=aae2816e94&amp;e=5d6619dbe5" target="_blank">other Real Estate Investing Portals</a> and how this correlates to what we are seeing in equity.</li> </ul> </li> </ul> <p>&nbsp;</p> <h3>How this was Created</h3> <p>I have been collaborating with Brian Belley of CrowdWise and Andrew Savikas of YieldTalk for a few months now. We share a passion for the alternative investing market and decided to build this event to learn more about the investing portals and hear directly from the operators. We are paying for Remo.co to offer a premium virtual experience attempting to mimic a real world conference setup with tables to network along with a panel broadcast mode.</p> <p>&nbsp;</p> <p><em>We are currently seeking sponsors that share these passions. </em><a href="/contact">Contact us if interested</a>. We look forward to seeing you there.</p> <p>&nbsp;</p> <p><a href="https://www.eventbrite.com/e/alternative-investing-virtual-meetup-tickets-115999432425?aff=FundWisdom">Register Now</a></p> </div> <span><span>Brian Thopsey</span></span> <span>Tue, 08/25/2020 - 21:40</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/real-estate" hreflang="en">Real Estate</a>, <a href="/article/tag/platforms" hreflang="en">Platforms</a>, <a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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=9955&amp;2=comment&amp;3=comment" token="BuUG1ClMt4J7_tYbT8RzfiPi753xCRK7OltRDAvHZIE"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Wed, 26 Aug 2020 01:40:02 +0000 Brian Thopsey 9955 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/event-panel-alternatives-diversify-your-portfolio#comments https://www.fundwisdom.com/article/brian-thopsey/event-panel-alternatives-diversify-your-portfolio#comments Reduce Fees Investing in Startups - Insight on 16 platforms https://www.fundwisdom.com/article/brian-thopsey/reduce-fees-investing-startups-insight-16-platforms <span>Reduce Fees Investing in Startups - Insight on 16 platforms</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p><img alt="Pinnacle of investing" src="/sites/fundwisdom.com/files/inline-images/pexels-stijn-dijkstra-2659475.jpg" style="float:right;margin:10px;width:300px;" />Fees can be a hidden nightmare, lurking in all corners of the investment landscape. When I put my hardearned money into an investment, my goal is to maximize the return and minimize the fees that eat away at those returns. Many don't know (or realize) all the hidden fees you're slapped with, whether it's in more transparent public markets or in opaque, previously private markets. We’ll dive into the fees we've uncovered in each of the startup equity investing platforms and strategies you can take to reduce them.</p> <p>You should more typically expect to pay a management fee for the administrative costs than a percentage on each transaction. As <a href="https://www.investopedia.com/articles/investing/092815/how-optimize-your-portfolio-and-reduce-fees.asp">an example</a>, a $100,000 portfolio paying 1% in fees annually over 20 years would equate to you shelling out $30,000, whereas reducing those fees to 0.5% would result in $10,000. Now that we’ve done the math, it's clear that ignoring fees can cause the demise of your investing journey.</p> <p>It's not just average investors that need to factor this analysis into their strategy. It affects professional investors as well. Fees are viewed as the most important factor when making fund commitments, <a href="https://pitchbook.com/news/reports/2018-annual-institutional-investors-survey">Pitchbook's annual institutional investor survey finds</a>.</p> <h2>Public Market Fees</h2> <p>Factors like who you choose for a trading platform or broker are usually the leading driver for fees paid. Brokers have been finding ways to drop upfront fees and profit from new hidden areas. <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.139959643.I3740237&amp;foc=2&amp;fot=9999&amp;fos=1">Personal Capital charges 0.89%</a>, <a href="https://track.flexlinkspro.com/a.ashx?foid=1156697.138832797&amp;foc=1&amp;fot=9999&amp;fos=1">WealthSimple charges 0.25%</a>, and <a href="https://m1finance.8bxp97.net/c/2240068/721137/10646">M1 charges 0</a> but <a href="https://fundwisdom.com/affiliate/m1-finance">makes interest in a few different forms</a>. In an effort to compete for your wallet, Fidelity and other larger players have dropped their upfront fee as M1 and Robinhood have.&nbsp;</p> <h2>Fees are Under Pressure</h2> <p>Increasing competition and choice in the market are making platforms ever more competitive. Not only were fees ‘viewed as the most important decision when making a fund commitment, they're also the area with the worst alignment with general partners, <a href="https://pitchbook.com/news/reports/2018-annual-institutional-investors-survey">according to a 2018 Pitchbook survey</a>. And with funding portals improving and evolving, it’s no mystery that the state of fees is coming into question.</p> <h2>Comparing Brokers and Platforms</h2> <p>No doubt broker fees can add up. With each broker offering different rates, services, and support. It’s important to weigh the pros and cons of each. Brian Belley at Crowdwise helps break down the <a href="https://crowdwise.org/funding-portals/crowdfunding-intermediaries-funding-portals-vs-broker-dealers/">difference between a broker-dealer and a funding portal</a>.</p> <p>Funding Portals Improving Economics of Venture Finance - Syndicates -</p> <p>&nbsp;</p> <p><a href="/platform-fees"><img alt="screenshot of fees for platforms" data-entity-type="file" data-entity-uuid="8e10e01e-e904-45aa-9aeb-f8c45d05e277" src="/sites/fundwisdom.com/files/inline-images/fee-screenshot.JPG" /></a></p> <h2>Keeping up with Changing Fees</h2> <p>The latest offerings from platforms and changes in fee structures are constantly fluctuating as these companies compete for your business. Percentage-wise, a larger investment results in a lower fee. So, reducing the number of trades and increasing the amount in the transaction being invested, is a sound strategy. <a href="https://wefunder.com/post/46-new-policy-0-carried-interest-for-25k-investments">Wefunder</a> makes it advantageous to invest larger amounts. As an example of a recent change they're offering <a href="https://wefunder.com/post/46-new-policy-0-carried-interest-for-25k-investments">a new policy with ‘0% carried interest for $25k+ investments’</a>.</p> <p>&nbsp;</p> <h2>Develop a Passive Portfolio with Funds</h2> <p>Regardless of which startup platform you invest through,<a href="/investors/funds"> actively managed funds</a> will always demand a higher fee than passive funds like an index tracker. So pour yourself a hot cup of coffee and settle in to browse around various funds to find a percentage fee you’re comfortable paying.</p> <p>One issue with employing a fund manager is incentive alignment - are the people managing your money seeking the best return for you or themselves? Fortunately, <a href="https://pitchbook.com/news/reports/2018-annual-institutional-investors-survey">only 9.8% are seeing ‘poor alignment’ according to the Pitchbook survey</a>. However, there is still room for ‘alignment improvement’ which we are seeing investing portals help to chip away at.</p> <p><a href="https://www.angelcapitalassociation.org/blog/understanding-an-online-funding-platform-angellist-syndicates/">The Angel Capital Association helps to break down how to leverage AngelList Syndicates</a>, so make the most of this resource. For startup investing, many platforms are offering <a href="/platform-fees">transparency about each fee entrepreneurs and investors must pay which we built a table to help showcase</a>. Platforms such as AngelList are offering back office services to fund managers and angels such as their syndicate platform, whereby <a href="https://techcrunch.com/2013/07/27/angellist-syndicates-lets-angels-get-carry-for-helping-a-startup-raise-money/">AngelList takes 5%</a>.</p> <p><a href="/investors/funds"><img alt="Fund Fees" data-entity-type="file" data-entity-uuid="4d99cb4c-4f58-4123-a841-5d5916c17dfc" src="/sites/fundwisdom.com/files/inline-images/fund-fees.JPG" /></a></p> <h2>Take Note of ‘Hidden Fees’</h2> <p>Some brokers will slap you with a fee for inactivity or simply for using the platform on a yearly basis. Sneaky huh? Knowing these rates can save you from a world of unnecessary expenses.</p> <p>&nbsp;</p> <h2>So Can I Avoid Fees?</h2> <p>The short answer is no. We’ve shared strategies to reduce fees, but unfortunately, they’ll always be in place to allow the portals, brokers, platforms, etc. to operate their businesses making markets. So my advice to friends, and those that reach out interested in this market, is to educate yourself, understand where the fees may be hiding and their impact to navigate the investment landscape and maximize your returns.</p> </div> <span><span>Brian Thopsey</span></span> <span>Sun, 08/16/2020 - 19:46</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/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=9946&amp;2=comment&amp;3=comment" token="aFBCo9_w4M0R0Hj3om2NXx8Wr0OkVzT0pAqgqMhhWtE"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sun, 16 Aug 2020 23:46:15 +0000 Brian Thopsey 9946 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/reduce-fees-investing-startups-insight-16-platforms#comments https://www.fundwisdom.com/article/brian-thopsey/reduce-fees-investing-startups-insight-16-platforms#comments Reg CF Fund Analysis via CrowdWise Guest Post https://www.fundwisdom.com/article/brian-thopsey/reg-cf-fund-analysis-crowdwise-guest-post <span>Reg CF Fund Analysis via CrowdWise Guest Post</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>I worked closely with CrowdWise founder, Brian Belley, to co-author a piece on startup funds available to non-accredited investors. We have been keeping <a href="/investors/funds">a list of funds and intelligence</a> on each, across alternative investing asset classes.</p> <p><a href="https://crowdwise.org/investing-basics/how-to-invest-in-equity-crowdfunding-funds-in-2020/"><img alt="CrowdWise Article screenshot" data-entity-type="file" data-entity-uuid="33805bf7-71b7-4cab-98b7-103ca34b2d49" src="/sites/fundwisdom.com/files/inline-images/CrowdWise%20Article%20screenshot.JPG" /></a></p> <p>I look forward to reading your comments on the original piece or below.</p> </div> <span><span>Brian Thopsey</span></span> <span>Sun, 08/16/2020 - 22:24</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/fund-manager" hreflang="en">Fund Manager</a>, <a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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=9951&amp;2=comment&amp;3=comment" token="nTMmWe0kzrOKhJ88f1-3O0yCq1sryp2QgUY1SMIX9jU"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Mon, 17 Aug 2020 02:24:13 +0000 Brian Thopsey 9951 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/reg-cf-fund-analysis-crowdwise-guest-post#comments https://www.fundwisdom.com/article/brian-thopsey/reg-cf-fund-analysis-crowdwise-guest-post#comments Why Invest in Startups with Equity Funding Portals https://www.fundwisdom.com/article/brian-thopsey/why-invest-startups-equity-funding-portals <span>Why Invest in Startups with Equity Funding Portals</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Let’s begin by addressing the why behind investing in your future. Your why is truly important when it comes to setting financial goals and making quantifiable investment targets. To many, that ‘why’ is to build a nest egg for retirement, or perhaps funding a child's college education (good luck!), but this is different for everyone. Take a few minutes to think about why you want to invest in the first place and the level or risk you are looking to take.</p> <h2>Private/Public Equity</h2> <p>What comes to mind when you think of professional investors? Is it a silver haired white man smoking a cigar in a high rise Wall Street office? If so, I can’t say I blame you; the media has blinded you with this toxic vision. We’re here to show you how equity crowdfunding is providing access to a much more diverse set of investors and entrepreneurs.</p> <p>Many businesses require money, or cash, to grow. This is the basic premise of companies offering up equity ownership at different points in time during the growth and scale. In return for that money, founders are willing to provide an equity stake (i.e a piece of the company). With me so far?</p> <p><img src="/sites/fundwisdom.com/files/styles/max_1300x1300/public/2020-07/woman%20invest%20think.jpeg" style="float:right;margin:10px;width:350px;" />Now how that money is spent, whether it be on new technology, an employee training scheme, or simply a new coffee machine to replace the one Susan from the Sales team can’t stop using, the hope is, we are able to see a whopping return on our investment.&nbsp;&nbsp;</p> <p>The funding we provide as investors give startups&nbsp; access to cash, or liquidity, they need to gain market share. This money can be used to finance new growth strategies and ultimately take them from 0 to hero real quick. It’s clear how valuable your investment can be.</p> <h2><span style="font-size: medium;">Investing in Alternatives</span></h2> <p>An alternative investment is an investment in asset classes other than stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, art, or antiques&nbsp;as well as&nbsp;financial assets such as a real estate funds, commodities, private equity, hedge funds, venture capital, film production, and financial derivatives. These alternative investment assets&nbsp;have traditionally been&nbsp;held mostly by institutional investors or <a href="/investors/accredited-qualified-purchaser-investing" target="_blank">accredited</a>, high-net-worth individuals because of the complex nature and relative lack of liquidity.</p> <p>No doubt alternative investments can be a risky path to follow, especially if you don’t know what you’re doing. There’s a sea of <a href="/investors/platforms">platforms</a> setting out in the alternative investment space. Long gone are the days where only large scale institutions have access to this market.&nbsp;</p> <h2><span style="font-size: medium;">Advantages</span></h2> <p>Higher returns: Alternative investments can achieve a higher return than traditional investments alone. A key lesson when it comes to startup investing comes from the fact that the vast majority of your returns will be generated by a very few number of companies in your portfolio as <a href="https://www.toptal.com/finance/venture-capital-consultants/venture-capital-portfolio-strategy">Alex Graham shares on Toptal</a>. Seek out these winners. Simple, right? So, move past your failures to improve your process to seek out the home runs.</p> <p>Diversification:&nbsp;Investors can lower risk and control the correlation between investments&nbsp;by allocating funds across asset classes. With alternative investments a portfolio can lower dependency on the overall stock market's performance.</p> <h2><span style="font-size: medium;">Disadvantages</span></h2> <p>Accessibility: Historically only the wealthy had access and even as that changes there are restrictions if you do not reach the SEC's bar for wealth.&nbsp;</p> <p>Liquidity: Typically you lock your money up longer with many alternatives particularly private equity in startup companies. This may mean you have to wait years before you can cash out the investment. This is also changing as more secondary markets are opening.</p> <p>Fees: Alternative investments often have high minimum investments and <a href="/crowdfunding-investors/funds-being-raised-by-platform" target="_blank">fee structures</a> compared to mutual funds and ETFs.</p> <p>Transparency: There is much less opportunity to find and publish <a href="/analytics">verifiable performance data</a>.</p> <h2><span style="font-size: medium;">JOBS Act makes Alternative Investments more accessible</span></h2> <p>While most of the alternative investment types have been familiar&nbsp;to the investment community for a long time, one alternative investment solution, equity crowdfunding,&nbsp;is quite new. The Jumpstart Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of United States small businesses by easing various securities regulations. President Barack Obama signed it into law on April 5, 2012, and the rulings of Title III of the act will likely come into effect in late 2014. Then, the JOBS Act will enable non-accredited investors to invest in start-up businesses and private firms.</p> <p><span style="line-height: 1.538em;">Accordingly, equity crowdfunding is likely a great solution for any investors interested in alternative investments.&nbsp;</span>The benefits of diversification and higher returns from equity crowdfunding can boost the value of your investment portfolio.&nbsp;Furthermore, accessibility may also be improved since businesses offering equity will often include additional information about&nbsp;what is&nbsp;required in Regulation D filings.</p> <p>To find information on the latest alternative investment offerings or private equity offerings you can visit the <a href="/crowdfunding-investors">Fund Wisdom Offerings section</a>. If you are looking to further assess these investments or gain further insight into the market, <a href="/crowdfunding-investors/premium-equity-investment-intelligence">we provide solutions to help</a>.</p> <p>&nbsp;</p> <h2>5 Tips How to Get Started</h2> <p>Now your why is locked in. How do you go about finding opportunities to invest in?&nbsp; Well, begin by​ mapping out your objectives, followed by industries you’d be comfortable investing in ​ . Usually these industries are those you have previous knowledge in or a prior background in. If you don’t understand a business model, it may not be the most viable investment.</p> <p>There are many ways you can begin as a retail investor. Perhaps your friend Paul from down the street has an idea he needs money for and you happen to have a spare $5000 at your disposal. Now we’re not saying to simply invest in an idea on a pot of luck because your friend has a passion and is rather persuasive. ​It’s vital you do your due diligence.&nbsp;</p> <p>Once you have a foundational idea in place, it’s all about ​access. Having access to a network of founders willing to part with some of their company in exchange for your hard earned money.&nbsp;&nbsp;</p> <p>&nbsp;Alongside simply tapping into that local network of yours. Friends or former colleagues on ​LinkedIn ​ who work in their own start-up can provide a handful of great, investment opportunities.&nbsp; Building a local network can bring a flow of future opportunities and open doors to new connections when you least expect them.&nbsp;&nbsp;</p> <p>&nbsp;So, now you get the gist of it, perhaps revamp your LinkedIn profile, begin sharing content and build a brand around your name. Yes, we know how much you love sharing funny videos on Facebook but i’m sure you can take a minute to tell people about your new investing journey.&nbsp; Who knows where it might lead.</p> <p>Many&nbsp;factors should be considered to ensure above market returns when investing in risky startups. Risk is increased when accessing the equity security in the early stage firms raising capital online. We offer a 5 tips to improve access and performance.</p> <h3>1. Determine whether you should invest</h3> <p>Before planning to invest online, it is important to understand the inherent risk of investing in equity online.</p> <p>The Financial Industry Regulatory Authority <a href="http://www.finra.org/Investors/SmartInvesting/Retirement/Smart401kInvesting/investing/">(FINRA) offers advice on investing retirement assets like 401ks</a>. FINRA is dedicated to protecting investors and safeguarding market integrity in a manner that facilitates vibrant capital markets. USwitch also offers a similar guide to general investing via an article on <a href="https://www.uswitch.com/investments/best-investment/">10 steps to choosing the best investment</a>.</p> <p>Most offerings are currently from companies in their early stages, or <a href="https://fundwisdom.com/crowdfunding-businesses/feature-your-startup">startups</a>. These types of firms have potential for incredibly high returns, but with that comes risk. Many of these companies do not make it past their first few years of existence.</p> <p>Every investor has a different risk tolerance and every investor has a different objective. You need to be familiar with how to structure your portfolio in a way that puts you at the highest chance of reaching these goals and “landing on a unicorn” as Alex Graham of Toptal writes. Of course, this really all comes down to the number of companies you intend to invest in, however as pointed out in the aforementioned article, there “is a trade off between portfolio size and quality.”</p> <h3>2. Duration and Longevity</h3> <p>The duration&nbsp;you are&nbsp;willing to part with&nbsp;your hard earned cash and the amount you can put in should be considered prior to investing. Many companies offering their equity online will take years to become profitable and provide investors the return desired. These early stage firms also often require several rounds of investment. The&nbsp;reduction in liquidity, or the ability to cash out, is a factor that drives the attractive returns. Assessing each option is what makes the differens between those that consistently achieve returns and those that do not.</p> <p>Knowing that a potential <a href="https://fundwisdom.com/crowdfunding-investors">investment</a> will be inaccessible until a certain date&nbsp;may give you an insight&nbsp;into what investments you will want to avoid, reducing your investment options to those that won't tie up your money for longer than you can afford. Knowing whether invested capital will be available, and when, is crucial for every investor.</p> <h3>3. Consider how your age affects your investment</h3> <p>Younger investors may prefer to choose higher-risk investment options&nbsp;that produce&nbsp;higher returns but are less certain. People who are close to or are in retirement, however, may be more inclined to choose low-risk investments to make sure their money is as safe as possible.</p> <h3>4. Risk and Lifestyle Considerations</h3> <p>If you have dependent children, you may be more inclined to find low risk investments to help make sure your hard-earned money doesn’t get wasted. If, however,&nbsp;you are living without anything or anyone tying down your choices, then you might&nbsp;consider riskier investments that have&nbsp;higher returns.</p> <h3>5. Portfolio Management</h3> <p>Deciding how to balance your investments can be a challenge. Aggressive investment options like those being offered online, which provide attractive returns, can be balanced with lower-risk investments in debt and public equity. <a href="/crowdfunding-investors/invest-startup-funds-and-angel-index-funds">Funds are also starting to be created</a> to offer diversification and reduction in risk.&nbsp;</p> <p dir="ltr">With all the knowledge above in your hand, what you need is someone who can provide you with a way to best utilize your resources and act as your loyal partner. <a href="https://fundwisdom.com/contact">Contact us </a>to help.</p> <h3>Picking Investments and Due Diligence</h3> <p>Next up is all about ​identifying the right opportunities to invest in.</p> <p><a href="/%E2%80%8Bhttps%3A//blog.samaltman.com/how-to-invest-in-startups">Sam Altman, previous head of Y Combinator, states,</a>&nbsp;“One way to do really well as a startup investor is to get good at predicting who is going to be great before they actually are.”&nbsp; Often a great investment sign is a young founder with the potential to improve fast and bring about a large return of investment. It’s easy to get a feel for a company's future success by asking yourself whether this is someone you’d work for or whether you can picture them becoming a thought leader in the industry. A founder with a mission and a relentless determination to achieve this mission are winning characteristics.&nbsp;</p> <p>It’s important to see companies not for what they are now, but for what they can become. ​ An industry with growth opportunities will provide the potential for a startup to flourish and see a great return on investment in the coming years.</p> <p><a href="/article/brian-thopsey/how-invest-equity-crowdfunding-portals">Now you have established why and are prepared, read on to learn how to invest</a> with some examples.</p> </div> <span><span>Brian Thopsey</span></span> <span>Sat, 07/11/2020 - 09:08</span> <div class="field field--name-field-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/article/tag/capital-types" hreflang="en">Capital Types</a>, <a href="/article/tag/non-accredited" hreflang="en">Non Accredited</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=9936&amp;2=comment&amp;3=comment" token="qIGgOht0yqX9SOAGVl4gqY1tx_a0QvYGWO8J7owwKkQ"></drupal-render-placeholder> </div> <!-- #respond --> <div class="cleared"></div> </div> <div class="cleared"></div> Sat, 11 Jul 2020 13:08:04 +0000 Brian Thopsey 9936 at https://www.fundwisdom.com https://www.fundwisdom.com/article/brian-thopsey/why-invest-startups-equity-funding-portals#comments https://www.fundwisdom.com/article/brian-thopsey/why-invest-startups-equity-funding-portals#comments