Archive: startup
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Big Merger Indicates Crowdfunding Sector Is Changing
By Andy Gordon on October 8, 2020
In the last 12 months, we’ve sourced our startup recommendations from seven different portals. Eight were from Republic… five from SeedInvest… two each from Wefunder, StartEngine and Equifund… and one each from MicroVentures and Netcapital. Each of these portals has unique strengths. The companies raising on Republic tend to have early and strong traction. SeedInvest offers high- caliber startups raising under Regulation A+ at a slightly later stage than Reg CF companies. Wefunder is like a…
Why Crowdfunding Is Better Than VC Funds
By Andy Gordon on October 7, 2020
I don’t envy venture capitalists these days. The economics of startup investing are changing. And as of today, crowdfunders like you and me hold a significant edge over VCs. I know that may seem like a bold claim. Right now, VC investors get all the respect…
Choosing Between Startups and Tech Stocks
By Adam Sharp on October 6, 2020
Today we’re going to briefly compare tech stocks with startup investments. We’ve reached a point in the public market where many tech stocks are overvalued by what I would guess is a multiple that ranges from 2x-to-10x. The valuations at this point are simply silly, as…
Secondary Markets Have Hidden Benefits
By Adam Sharp on October 2, 2020
This month, U.S. equity crowdfunding platform StartEngine plans to open a “secondary market” where investors can buy and sell investments in startups that have already raised money using Regulation Crowdfunding and Regulation A+. This new service is…
New Pick: Invest in Cheaper Energy for Everyone
By Andy Gordon on October 1, 2020
DEAL DETAILS Startup: Neighborhood Sun Security type: Future equity Agreement (Wefunder SAFE) Round size: Up to $1.07 million Valuation cap: $15 million Minimum investment: $100 Investment portal: Wefunder Deadline:…
Economic Freedom Plan
By Vin Narayanan on September 30, 2020
I’ve been thinking a lot about freedom in the wake of Supreme Court Justice Ruth Bader Ginsburg’s passing. As Americans, freedom is in our DNA. It’s written into the Declaration of Independence. We hold these truths to be self-evident, that all men are created…
Don’t Be Tempted by More Liquidity
By Adam Sharp on September 29, 2020
AngelList is rolling out a new feature called Transfers, which will make it easier to sell private startup equity. This has been in the works for a while now. Multiple platforms are working on similar “secondary platforms” to make it easier…
The 60/40 Portfolio Doesn’t Work Anymore
By Adam Sharp on September 25, 2020
It can be hard to see a bubble when you’re smack-dab in the middle of it. I think that describes our situation today. Let’s look at a few large tech stocks’ price-to-earnings (P/E) ratios. Amazon: 115 Tesla:…
Update: Yahyn Looks Stronger Than Ever
By Andy Gordon on September 24, 2020
We recommended Yahyn back in May. It lets you shop for your favorite bottles of wine online and have them shipped directly to your home. Whenever I talk to Yahyn Founder and CEO Pierre Rogers — like I did…
Keep An Eye On the U.S.-China Tech War
By Andy Gordon on September 23, 2020
The U.S. government doesn’t trust big Chinese tech companies. Their close ties to the Chinese government mean that they can be used as instruments of the Chinese state. Hence, Trump’s ultimatum to TikTok to transfer ownership to willing U.S. buyers. The Chinese internet colossus…
The Hottest Sector in Venture Capital
By Adam Sharp on September 22, 2020
Generally speaking, I don’t believe that online startup investors should have a set-in-stone investment thesis. Since deals come to us, we have to invest in the most attractive ones that come along. If we stick to a certain industry or category, we screen out potentially good…
The Real Lesson of the Snowflake IPO
By Adam Sharp on September 18, 2020
On Wednesday, Snowflake (SNOW) went public in one of the most highly anticipated IPOs ever. Snowflake is a cloud data platform that helps companies efficiently organize and analyze huge databases. The company’s revenue is growing at a rapid 133%…
New Pick: Invest in Smart Cities
By Andy Gordon on September 17, 2020
DEAL DETAILS Startup: Cityzenith Security type: Common stock Valuation: $27.4 million Price per share: $1.15 Minimum investment: $500.25 Where to invest: StartEngine Deadline: July 1, 2021…
How Startups Can Help Protect Our Elections
By Andy Gordon on September 16, 2020
We’re in the midst of a presidential election. Along with the campaigning, speeches and crowds is the inevitable increase in disinformation. I hate it. It gets in the way of an honest national discussion on issues that engage us and divide us. …
The Future of Venture Capital
By Adam Sharp on September 15, 2020
AngelList’s new rolling funds — which we discussed a few weeks back — are likely to change how the platform operates considerably. The current system involves syndicate leads raising money on a deal-by-deal basis. I think…
Update: Digital Brands Group’s Big Holiday Plans
By Andy Gordon on September 14, 2020
DBG (Digital Brands Group) has been busy. DBG holds a special place in our hearts — and in our portfolio. It’s the only startup we’ve recommended three times. We originally recommended DBG in 2016. Back then, the company went by…