Archive: Early Investing

Venture Capital Is Facing Real Competition at Last

By Adam Sharp on March 19, 2021

On Monday, the SEC’s new startup investing rules went into effect. Startups can now raise $5 million annually through equity crowdfunding. That’s a 5x increase from the previous limit. I really can’t overstate how important this change is. It’s a monumental moment for startups — and everyday investors like you and me. Suddenly, equity crowdfunding is a viable funding option for far more startups and small businesses. The new limit is enough to to fund a…
The tech sector is under attack. Lawsuits. Politicians. Regulators. They’re all gunning for the tech industry. But what about the venture capital firms that financed the industry’s growth?  These companies should also command our attention. Their money nurtured big tech companies in their early years. More…
One year ago — on March 12th, 2020 — bitcoin was trading at $6,131 per coin. It had been valued at more than $12,000 in June 2019. But markets everywhere were in a bit of a panic last March, and stocks were trading…

The One Thing All Good Founders Have in Common

By Andy Gordon on March 10, 2021

Why do founders become founders? There are certainly easier paths to wealth. Like what I do. A good startup investor makes more than a great startup founder eight out of 10 times. I should know — I’ve done both. And I’ve made a lot more investing…
Like a huge portion of Americans, I use Amazon a LOT these days. And with a 50% market share, it absolutely dominates online sales in the country.  But lately I’m frustrated with it. I’ve bought a few items recently that were…

Hardware Startups Have a Secret Strength

By Andy Gordon on March 3, 2021

Hardware is risky. Making something you can touch and feel usually takes more money and time than developing software products.  Yet five out of the last seven startups I recommended to my First Stage Investor members are hardware (or hybrid hardware and…

Financial Rebellions: Investors Are Pushing Back

By Adam Sharp on February 26, 2021

We are living through a very unique period in financial history.  On one side, we’re in the midst of an amazing technological revolution. Software and new technologies are streamlining the way the world runs. Advances in renewable energy are picking up steam. Medicine is leaping forward…
Andy Gordon and I spend countless hours each week reviewing startups and talking to founders. So does our friend Chris Lustrino, the founder and CEO of KingsCrowd. And every now and then, we meet a founder so interesting that we ask them to…

Silicon Valley Is Losing Dominance

By Adam Sharp on February 19, 2021

For the past few decades, Silicon Valley has dominated the world of venture capital. According to Pitchbook, Silicon Valley accounted for a whopping 26% of all VC dealmaking in 2014. Even more impressive, more than 39% of all dollars invested into VC-backed startups happened in the Silicon Valley…
The wrong kind of IPO is getting all the attention these days. And the right kind is being virtually ignored.  The much praised — but highly flawed — special-purpose acquisition company (SPAC) is the talk of the town right now. SPACs are shell companies that raise…

Most-Shorted Stocks Are Excelling Beyond Reason

By Adam Sharp on February 12, 2021

Market manias sure are intoxicating to watch, aren’t they? Right now almost everybody’s making money in the markets (except bears). All the major indexes are basically at all-time highs. The Nasdaq-100 is up 48% over the past 12 months…

Technology is Changing Food and Beverage Discovery

By Andy Gordon on February 10, 2021

I felt like pizza the other day — not an uncommon occurrence for me. Back in the ancient BC days (before COVID), my wife and I would hoof it over to our favorite neighborhood Italian restaurant — a 12-minute walk (or four minute drive).

GameStop Losses: Right Strategy, Wrong Asset

By Adam Sharp on February 5, 2021

A lot of people lost a lot of money in GameStop this week. I feel for them — especially since I have been there myself. As I write this, GameStop is trading at around $66, down from a high of more than $450…

Amazing Growth in the Medtech and Healthcare Sector

By Andy Gordon on February 3, 2021

Usually, a sector’s growth is driven by one or two things. It could be consumer trends — like the current surge in alcoholic consumption during the pandemic. Or it could be technological advances. Think of how drones and self-driving cars will upend the delivery of goods and services. …

Bitcoin and Startups: Better Revolutionary Assets

By Adam Sharp on January 29, 2021

For the last week, all eyes have been on GameStop (GME). Millions of users from forums such as Reddit’s WallStreetBets have piled into shares and call options of the wounded mall retailer, causing a short squeeze of epic…
I recently said that government-driven opportunities are one of my favorite drivers of upside and profit. This is what I wrote: “When a new [government] rule allows a product or activity that was previously prohibited or the opposite — or when they ban or prohibit something previously allowed…