Entrepreneurs and investors have a growing interest in building and funding companies that integrate people, planet, and profit. But despite market demand for goods and services with environmental and social value, startup ventures based on these values are typically perceived as higher-risk or lower-return, and often struggle to maintain their unique identity as they trade equity for capital.
Crowdfunding can be a powerful tool that enables a socially responsible company (SRC) to overcome these challenges, resulting in more and better opportunities for socially responsible investing (SRI). But how does the power of “the crowd” empower new startups and reduce risk for investors?
Privately held technology companies are attracting a great deal of interest and rightfully so. In this interview, David Garrity, a frequent CNBC Technology Pundit and a Principal at GVA Research and a Managing Partner at Whitemarsh Capital, talks with Jason Behrens, the ACE Portal General Counsel, about private vs. public market trends in the tech space.
Garrity covers market adaptations to the longer life cycle of private companies in the tech space. Specifically he addresses valuation concerns in the technology sector, emerging trends in fintech (financial technology), investment strategies in the private and public sector, the idea of strategic acquisitions, and how individual investors can participate in the early-stage returns of the tech space despite the longer private life-cycle of these companies.
In other interviews with David he discusses:
An ACE Portal hosted and VC Experts moderated panel on “How Integrating Platforms, Data, and Analytics Will Define Private Company Investing.”
Panelists will include representatives from IPREO, Crowdnetic, ACE, VCE, and TAAPS.
The panel will be followed by a visit to the NYSE Trading floor to see the Closing Bell ring. After the Closing Bell, there will be a Cocktail Hour with a select audience of family offices, institutional investors, and leading investment banks.
As the Alternative Asset Class continues to mature and evolve, the increased interest and scrutiny on the sector has led to more transparency. But data is still more difficult to come by than it is for the public securities. As a result, professionals rely on certain key information resources on an almost daily basis.
From our perspective at the DTCC – Alternative Investment Products Division, we are constantly analyzing and evaluating these informational news digests and data feeds in depth. We have found that there are many pretenders, and only a few resources that have stood the test of time (or show promise). What follows is our/my go-to list for real value-add information for news, research, and data.
When it comes to allocating your capital to private equity, like any other asset class, you’re looking for the best returns possible, which ultimately depend on fund manager selection. Choosing a guardian for your capital requires thorough due diligence to ensure minimal risk and the best chance of securing your expected level of return.
But how can you predict top performing private equity fund managers?
As the saying goes, past performance is not a guarantee of future performance but a private equity firm’s historical performance data is undoubtedly the most important place to start the due diligence process. If you look beyond headline performance numbers and dig into the underlying data, track record analysis can provide you with the questions you need to ask to evaluate the likelihood of future success.
Here are five of the most important areas of a track record you need to scrutinize as a potential investor
ACE General Counsel, Jason Behrens, interviews Joe Bartlett, a Co-Founder of our partner VC Experts and Special Counsel to McCarter and English on the fundraising environment for Emerging Growth Companies following the passage of the JOBS Act.
In the video they first discuss nuances of the current legal environment with respect to IPOs relative to the entire JOBS Act. They then focus on whether the overall JOBS Act, which encourages companies to stay private longer, will have a greater impact than the IPO on-ramp provision found in Title 1 of the Act. Will the end result will be more IPOs or fewer?
The second half of the video focuses on the change to the maximum number of shareholders and the potential for secondary trading and new liquidity programs in this new environment as well as the role of registered (and unregistered) finders in the capital raising process.
For more video interviews with Joe see:
VC Experts provides powerful data on the financing of private companies, along with industry-leading content on fundraising. We conduct exhaustive analyses of all state and federal regulatory filings by private companies. Information gathered by VC Experts includes valuations, share prices, terms and conditions, board members, and behind the scenes details for improved deal context. We maintain an online library of 6,000 articles and more than 300 downloadable forms commonly used to construct private equity investment agreements. VC Experts has become an indispensable resource for entrepreneurs, investors, lawyers, and various services provides in the venture capital and private equity industries.
Peter Williams, CEO and founder of ACE, interviews Daniel Gorfine, Director of Financial Markets Policy at the Milken Institute (www.milkeninstitute.org), on capital market efficiency. Among the topics of conversation, Peter and Daniel discuss why financial markets are important and why the efficient flow of capital is essential to maintain a prosperous economy. They also address how the private and public markets are different from a regulatory perspective and how efficiency can be increased in the private market by leveraging more technology.
ACE Portal’s user base of registered placement agents has warmed to the idea of general solicitation
Given the fanfare surrounding the passage of the JOBS Act, most industry participants are likely familiar with Title II which created the framework for entrepreneurs and fund managers to publicly advertise that they are fundraising. In short, Title II created a new exemption, termed “506c”, which allows an issuer to advertise that they are raising money / generally solicit investors for their capital raise. This provides issuers (and their placement agents) unprecedented latitude to reach out to investors, as compared to offerings made under “506b”, where marketing is limited to investors with whom an issuer or their agent has a substantive pre-existing relationship. (For a more in depth review on the different offering formats, please refer to our White Paper, “Navigating Change in the Private Capital Markets”).
The following interview (by Alicia Purdy) originally appeared on Accredited Investor Markets (AIMkts) and can be found at http://www.accreditedinvestormarkets.com/a-few-minutes-with-ace-portal.
1. What sort of gap/need in the private investment market spurred the inspiration for ACE Portal?
Peter Williams (PW): The initial basis for ACE Portal was born from practical experience. Having worked in investment banking for close to a decade I was pulled into numerous private placement processes and was amazed at the inefficiencies in that process. On the investment banking side the process is very labor intensive, with most investor interactions recorded manually. Investor reach was highly limited and literally relied on a couple of guys and a telephone as the state of the art way to reach the investment community. While there are over 30,000 qualified institutional buyers in the US alone, collectively we, the bankers, would determine which 25-75 investors would be the only ones to even know about the specific transaction we were marketing. This took months and often resulted in failed transactions. Ultimately I thought there had to be a better way to bring efficiency to this market, to increase transaction speed and success rates, all in a fully compliant manner.
Carl Torrillo (CT): For me, the inspiration is about democratizing access to capital for deserving companies and in turn democratizing access to deal flow for investors, which I believe ultimately helps stimulate growth in the economy. The catalystfor me to leave my profession and join forces with Peter and Rich was the passage of the JOBS act. This created the practical opportunity to address the grand vision of streamlining a tremendous (~$1 trillion) market.
Richard Pistilli (RP): What I found in the private investment market was a common structural impediment towards streamlining processes which was driven by antiquated systems and aversion to change. The challenge to introduce efficiencies through innovation resonated with me, and it’s what I saw in ACE. The private capital markets are in need of structural solutions that can transform the asset class, which can then enhance capital flows and accelerate economic growth.