First Stage Investor

Addressing Missed Opportunities

Addressing Missed Opportunities
By Andy Gordon
Date September 28, 2017
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In early September, I recommended a rising startup called Balance. In a nutshell, Balance is capitalizing on the growth of cryptocurrencies and the blockchain by making the platforms easier to use.

Here’s my original recommendation that explains Balance in more detail.

I was so bullish on Balance that I didn’t want to wait until the monthly issue to broadcast the recommendation… as I had a feeling the company’s raise would fill up quickly.

Sure enough, it did. Unfortunately, this is just a reality of the unpredictability of these raises.

Some investors get in… some investors are left out. Sometimes it’s just a matter of bad timing.

In fact, members have asked me about this recently, so I thought I’d address this topic.

Q: It was my intention to make an investment in Balance as recommended by Andy Gordon. But it appears that it already reached its investment goal yesterday, so the opportunity to invest is no longer there. Is this correct?  I’m very disappointed to have missed out on this opportunity. Do you think there may be another round of fundraising coming? – EC

A: Hi, EC. Thanks for reaching out. And I’m sorry you missed out on investing in Balance… and by just one day. Must have been frustrating.

As it turns out, our members had two weeks from the day we recommended Balance to invest. Balance reached its $1 million fundraising target on September 19, having raised $1.07 million from 1,667 investors.

These raises can last months. They can last weeks. It’s hard to predict. For future purposes, it’s always better to go to the startup portal sooner rather than later to make your investment.

As for a follow-up round…?

In crowdfunding, follow-up rounds are more the exception than the rule. But they do happen.

As a matter of fact, our latest recommendation, DSTLD, was a follow-up round opportunity we jumped on. DSTLD had been exceeding our expectations in the year since we first recommended it. We thought it was a fantastic opportunity for our members.

If Balance decides to crowdfund again… and if it kills it like DSTLD is doing… and if we think the valuation is fair and reasonable…

Then we’re likely to recommend it again.

Balance CEO Richard Burton says he hopes to raise a Series A at some point. His dream scenario would be issuing shares on a chain when the regulatory environment allows it. If realized, that’s something that would be open to all investors.

It’s too early to ask Richard anything more specific than that. What matters now – and I’m sure Richard and his team feel the same way – is making best use of the $1 million Balance collected from its recent round.

The first thing the company plans to do is grow the team…

We want to grow our team so we can massively increase our output. There is an amazing set of people who are ready to join us full time when we can afford to pay them. Your money will help us do that.

It also wants to offer more software…

We want to deliver an enormous amount of useful software. We want to appeal to a large userbase with our free apps and offer a set of premium services that people and businesses will pay for.

As I’ve often said about startups’ plans and goals: “It’s one thing to say it, it’s another to do it.”

Execution and perseverance are key. We’ll be tracking Balance’s progress and letting you know how it fares in the months (and years) ahead.

In other news from the early-stage investing world…

Hedge Funds Are Rushing Into Cryptocurrencies to Juice Their Weak Returns

Hedge funds have been trounced by the stock market in recent years. Now they’re eyeing a new asset class that might provide the big returns their clients pay them to produce: bitcoin and other cryptocurrencies.

Governments Are Testing Their Own Cryptocurrencies

Bitcoin-like money may emerge in countries where cash is in decline or where financial networks need updating.

Toyota Needs These Startups to Crack the Driverless Code

When it comes to cracking the code for self-driving cars, startups have an edge on big business, says computer scientist Katsuya Uenoyama.

Good investing,

Andy Gordon
Co-Founder, First Stage Investor

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