3 reasons why public companies want to clean up shark tanks | Via Samson | The Capital | October 2021


Samson

TL; PhD

  1. Clients have more money than venture capital.
  2. The listing enables founders to raise up to $75 million in capital through RegA+ crowdfunding although Set investment terms for venture capital, sharks, whales, institutions and customers.
  3. Nothing shows the “attractiveness” of Wall Street investors better than raising funds from 20,000 or 30,000 investors.

First, we should state the obvious. If you are a founder, throwing a ball at Sharks is the least efficient way to raise funds. However, before JOBS Act Investment Crowdfunding, you had no choice but to look around for so-called “angels” and self-identified sharks, and beg them for a chance to pitch. However, now you don’t have to beg. On the contrary, by investing in crowdfunding, you have the opportunity to create an investment boom specifically for your business. No, this did not make it easier to raise funds. Raising funds is very similar to running a marathon. Even if you randomly find yourself on the starting line five minutes before the start of the race, it does not mean that you will win the race, let alone finish the race. Why? Well, because there is a lot of truth in these 26.2 miles. The fact that these miles speak is whether you are prepared and trained for the marathon. Raising funds is no exception. If someone promises you a shortcut and an easy journey, you should probably check your floatation device, because you are likely to appear on the shark tank dinner menu.

So to be clear, it is very difficult to raise funds. Although there is no 100% guarantee of success, crowdfunding, especially listing, is changing the capital formation game.

  1. Your clients actually have more money than venture capitalists. VCs use you to extract wealth from customers for them. Let me repeat, until recently, what was the “life cycle” for founders seeking to raise funds. Venture capital invests in you, so you can attract customers; therefore, customers give you their hard-earned money, so you can repay the shark in multiples of 100. That is the matter of raising funds, it is not earned. You have to pay back the money. But what happens when your current, future and potential customers invest directly in a business that they are already fans/customers? When your customers can invest directly in your business, the founder will win. Not only can the founder make money, but he can also control his business better. It turns out that crowdfunding is a great way to remove your assets from the menu and keep the sharks on a diet.
  2. Raise funds on your termsFor 1% of founders, they successfully raised funds from Sharks after more than 30 months of attempts, but of these 1%, more than 60% found themselves diluted as “employee status.” This means that even if you are the founder of this company, this company has raised 10 million US dollars, 20 million US dollars, 50 million US dollars, but you have a new boss, “Mr. Shark.” The following is the founder general An important reason for choosing crowdfunding. The founders set the terms. Historically, the founders have a certain understanding of the terms, and the sharks will sharpen their teeth on the terms list and tear them apart, so that the founders find themselves in a very one-sided employment agreement. If you are a founder and don’t want to find your equity and entrepreneurial babies on the wrong side of Shark’s dinner menu, consider crowdfunding. Whether you need to raise US$100,000, US$5 million, US$50 million, US$75 million or more, crowdfunding provides you with an option, at least you can try instead of being eaten by sharks.
  3. Listed. Going public is the process by which a private company solicits investment from everyone (usually on the New York Stock Exchange or Nasdaq) through an initial public offering (IPO). Shark love, love, love! Initial public offering. Why? This is how the shark gets a 10,000 times return. Here, you can hear these stories about how XX turned a $20,000 pre-seed investment into a return of $100 million (after waiting for the company to become a unicorn for just 10 years). The real irony of IPOs and how much sharks love them is that IPOs are the highest stage of crowdfunding development. The New York Stock Exchange and Nasdaq are any other names for crowdfunding platforms, and the rules for raising funds from everyone are slightly different. This is important to you. Just in case the shark suggests that crowdfunding is something “weak” companies that are not worthy of venture capital funding are doing. At the same time, the program GoingPublic enables companies to conduct “baby IPOs.” Turn customers over 20k, 30k, and 50k into investors. What happens when you have 50,000 investors and then go public on the New York Stock Exchange? Stay tuned, because we can look forward to hearing more stories about how customers invested $1,000 in their favorite products (startups) and turned that $1,000 into lifetime customer loyalty, sales and revenue.

Now, there are many reasons why going public will always fundamentally change the game of capital formation. Similarly, there are many reasons why Sharks will flock to listed companies. But as Lavar Burton said, “You don’t have to believe my words.” Listen to Entrepreneur.com and see what happens when customers, sharks, angels, and institutions have the same opportunity to invest in private companies at the same time.

Oh, the last point about the listing itself. If you are an investor and want to know why someone would invest in a public listing, here are the things you need to consider:

Unlike traditional capital market operators, Going Public does not need to make money or raise funds. The listing will generate revenue for itself like any TV/streaming media. For example, how does marriage at First Site or The Real House Wives of Shark Tank generate income? The same way as the public listing. Think about it, and good luck! May the odds and algorithms always be in your favor.

Samson Williams is the co-founder of Milky Way Economy, a Washington-based think tank that specializes in space and alternative financial economics. Galaxy Economy and his partner George Pullen are the 17th investors in the seed round of Going Public. Therefore, please treat his fanaticism with great skepticism, because he and George believe in the power of crowdfunding and the mission of listing so much that they put the money on their lips.

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