Search results for: Risk
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First Stage Investor Issue No. 35
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Mailbag: Don’t Confuse Angel Investing and Equity Crowdfunding
Q: Are angel investing and equity crowdfunding the same thing? I’m starting to hear people use the term interchangeably. A: No, they are not the same. And people who use them interchangeably are doing a real disservice to the investment community. The two terms differ in important ways. Angel investors write big checks typically worth $25,000 or more. Recently, the…
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Mailbag: How to Navigate the Binance Shutdown
Q: Binance is suspending trading. Bittrex is reducing coins you can trade. It looks like it’s going to get progressively harder for Americans to trade altcoins. Am I right? And, if so, what can we do about it? A: Unfortunately, you’re right. Rather than risking a drawn-out legal battle with the Securities and Exchange Commission (SEC), Binance is making its…
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The Category 5 Freak-Out Over Libra, Facebook’s Digital Currency
Welcome to a special edition of the News Fix. Politicians and bankers are in the midst of a Category 5 freak-out over Libra, Facebook’s proposed cryptocurrency (or currency, depending on your point of view). The hysteria we’re hearing from supposed world and financial leaders would be hilarious if it weren’t so dangerous or shortsighted. So this week, we’re going to…
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Mailbag: Crowdfunding Success Stories, Crypto Wallet Tips
Q: Have there been any success stories in private equity crowdfunding? It would be nice to know there’s a pot of gold at the end of this rainbow. A: There are plenty of success stories to be found in equity crowdfunding. The most well-known case is Zenefits, a human resources software company. It listed on crowdfunding platform Wefunder in early…
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Emerging Markets vs. U.S. Markets – Which to Buy?
Jeremy Grantham is a bit of a legend in the investment world. He famously called both the 2000 and 2008 bubbles, and his firm, GMO, manages around $74 billion in assets. Grantham is known for his historically accurate calls on future stock market returns. In 2017, The Wall Street Journal wrote, “Mr. Grantham has already cemented his legend by arguing…
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Invest in a Bootstrapping Startup With Good Taste
Startup: Taste Security type: Crowd note (will convert into equity if the company is successful – this type of deal is extremely common and generally fair for both investors and companies) Valuation (cap): $3 million Minimum investment: $500 Where to invest: SeedInvest Deadline: June 14 I’m very excited to announce our newest startup recommendation, Taste. Taste is an app that…
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Mailbag: Tron Won’t Change Warren Buffett’s Mind on Crypto
Q: Tron founder Justin Sun paid $4.57 million at a charity auction to have lunch with Warren Buffett. Is that a good thing or a bad thing? A: First, some background. Warren Buffett is not a fan of cryptocurrency. In 2018, he said bitcoin is “probably rat poison squared.” Berkshire Hathaway vice chairman Charlie Munger, Buffett’s business partner, chimed in,…
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What’s Different About This Crypto Surge
Crypto winter is over. Bitcoin has climbed 130% since the beginning of the year. I had thought it was only a matter of time before institutional money would pour into cryptocurrencies and prices would rebound. But a funny thing happened on the road to bitcoin’s (and other cryptocurrencies’) recovery. The institutional “smart” money hasn’t been the only catalyst. Institutional investors…
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News Fix: The FDA Opens Up the Cannabis Conversation
On Friday, the Food and Drug Administration (FDA) held its first public hearing on regulating cannabis. The hearing was intended “to obtain scientific data and information about the safety, manufacturing, product quality, marketing, labeling and sale of products containing cannabis or cannabis-derived compounds.” A wide variety of industry reps presented their cases to the FDA, including professionals in healthcare, agriculture,…
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Equity Crowdfunding Improving
as It Turns 3Regulation Crowdfunding (Reg CF) celebrated its third birthday this month. When the new regulation went into effect on May 16, 2016, I greeted it more with a sense of relief than elation. I (and a lot of other people) had been waiting for Reg CF since the Jumpstart Our Business Startups (JOBS) Act was signed into law on April 5,…
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KingsCrowd Underweight Deal: Is This Group Travel Startup a “Lucky Find” for Investors?
Editor’s Note: We spend most of our time researching the best startup deals for you to invest in. But it’s just as important for you to know which startup deals to avoid. So today we’re featuring a report on one startup you should steer clear of. This comes from our friends at KingsCrowd, a Boston-based startup research firm. – Andy…
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Medical Marijuana States See Major Drop in Opioid Prescriptions
In the late 1990s, pharmaceutical companies began promoting prescription opioids as a treatment for pain. Pharmaceutical companies and medical organizations assured doctors that there was a very low risk for addiction. So doctors began prescribing them at higher rates. Fast-forward to today. Prescription opioids are now known to be dangerously addictive drugs. According to the latest CDC data, which was…
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Mailbag: Explaining Convertible Notes and Cowardly Politicians
Q: Why is it so hard to legalize marijuana? The voters all seem to want it. Even some governors want it. But the votes in state legislatures are never there. Why not? A: You’re right. Voters want to legalize marijuana. A recent CBS poll found 65% of voters support legalizing marijuana. Yet in the 10 states that have legalized recreational…
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Managing Crypto Market Volatility
Editor’s Note: Adam Sharp is currently hard at work researching new cryptos to invest in. In the meantime, Senior Managing Editor Vin Narayanan is filling in. Dear Member, When you invest in crypto, it’s important to keep reminding yourself that crypto is a volatile asset. Huge swings in prices – even within the same day – are to be expected.…
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KKR Shifts From Leveraged Buyouts to Pre-IPO Startup Investing
As one of the first companies to use leveraged buyouts (LBOs), KKR helped write the private equity (PE) LBO playbook. KKR’s hit list includes the buyouts of RJR Nabisco in 1988 and TXU Energy in 2007. The latter is the biggest LBO in history. How LBOs Work It’s pretty simple. You buy cash-rich, legacy companies for remarkably little cash up…