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Risk & Assurance

BREXIT – The BAM ALLIANCE Reacts

The BAM ALLIANCE , a group of more than 140 independent wealth management firms throughout the United States, Friday reacted to Britain’s historic vote to leave the European Union, and what it may mean to you. Here is the organization’s full statement.


The Rise (and Possible Fall) of Tech 2.0

If this year’s first-quarter numbers are any indication of things to come, the tech industry is looking at a major slowing of VC (venture capital) investing in new startups.  This trend started near the end of 2015, after investors began discovering that many of those tech startups were being overvalued. In an article published in […]


SAFE Discounts Should Be 50% At Least

The SAFE is like a warrant entitling investors to shares in the company, typically preferred stock, if and when there is a future liquidity event, i.e., if and when the company next raises “priced” equity capital, or is acquired, or files an IPO. Like convertible debt, SAFE deal terms can include valuation caps and share-price discounts, to give early (CF) investors a lower price per share than later (VC) investors or acquirers get for the same equity.


Equity Crowdfinancing Risks & Returns

The potential rewards of angel investing are not just financial, though. There are also strategic benefits, which may include:


Fundamentals of Corporate Structures and Private Securities

Title III equity offerings are predominantly C corporation stock, limited liability company (LLC) membership units, convertible debt, and a relatively new structure called a simple agreement for future equity (SAFE). This article covers the fundamentals of each of these securities, and their advantages and drawbacks for investors.


CrowdFinance 7 Steps- #1 Calculate your crowdfinancing investment limits

The first step in the seven-step crowdfunding investment plan is to calculate the maximum amount of money that you are allowed to invest each year in Title III offerings.


CrowdFinance 7 Steps- #5 Evaluate offerings

After you identify an offering that you feel optimistic about, review the terms of the deal that really matter—including price, equity percent, valuation, use of proceeds, liquidation preferences, conversion rights, etc.—and be sure they make sense. Then conduct due diligence, perhaps collaborating with or relying on other smart investors or a professional adviser.


CrowdFinance 7 Steps- #7 Manage your crowdfinancing portfolio

Monitor your equity crowdfunding investments and, every 12 months, perhaps adjust your allocation and budget for the coming year. Over the years, stay alert to opportunities for an exit (acquisition or IPO), later-round investing, redemption, liquidation, or sale of shares on secondary markets.


How to Avoid Fraud in Equity Crowdfunding

Supporters of crowdfunding acknowledge that some fraud will probably occur, as it does everywhere—including the public securities markets. But they point to the low instance of fraud in rewards-based crowdfunding in the United States, and in equity-based crowdfunding in Australia (since 2006) and the United Kingdom (since 2012), where unsophisticated investors participate in private securities offerings.


Episode 36 with Ted Neild

In Episode 36 of Accredited Investor Markets Radio host Christopher Cahill and Ted Neild, President and Chief Investment Officer of Gresham Partners, LLC discuss the logic of portfolio diversification, the proper understanding of risk, and the role of active management in an appropriate market.


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