VC Market Is Not Reserved Only For Angel Investors Anymore
.jpg)
Currently, the VC (Venture Capital) market revolves primarily around institutions and angel investors. Who are angel investors? Of course, they are not people with wings. But, they are the ones who provide financial support or backing for many start-ups. Besides funding start-ups owned by friends or family members, angel investors will invest in outside companies also. Either they will make a one-time lump sum investment or multiple times at various stages of the company’s growth. Angel investors will get some percentage of the equity shares of the company based on their amount of investment. They are also called private or informal investors.
Can anyone become an angel investor? No. The criteria for the angel investors are specified by the SEC (Securities Exchange Commission). Based on that, the annual income for an angel investor should be at least $200,000. Also, their net worth should be more than $1 million. So, it is clearly understood that angel investors are high net worth individuals and cannot be compared with ordinary investors. Mostly, the angel investors will be using their personal funds for investing in start-ups, and they will lose all the money if the company fails. So, angel investors will consider a lot of factors before making the final decision on choosing the start-ups. Plus, they will give preference to the projects on advanced technologies like AI (Artificial Intelligence), biotechnology, etc. Because of that, start-ups focused on other technologies are losing the attention and could not raise enough funds for the growth of the company.
Let’s assume that you are in need of $10000 immediately. But, you are unable to get that amount from any of your friends or family members. What will you do? Think of an alternative. Instead of getting the full amount from a single person, you can try collecting the same amount from 4 or 5 members in your social circle. Right? In a similar manner, the start-ups need not rely on a single angel investor for raising the capital. To help the start-ups raise funds for their development, EQUI has created an innovative financing platform so that they need not depend only on the angel investors anymore. The EQUI platform is based on the decentralized blockchain technology which is automated by the Ethereum based smart contracts.
How does EQUI work? It lists several promising projects in various fields like healthcare, travel, IT, finance, banking, etc. A participant can invest in any of the desired projects using EQUI tokens. A project will be listed on EQUI only if it successfully completes the extensive validation process that is done by the dedicated team members of the EQUI. This step assures the investors that only projects that really have a growth potential will be added to the EQUI platform. Besides that, EQUI provides a lot of flexible options for the investors which helps them to gain profit from their investments. Check out Bounty Thread/ANN Thread and Telegram Group to learn more information about the EQUI platform.
What is EQUI token? They are special utility tokens that will be issued by the company during its ICO token sale event. EQUI tokens will be used as the medium of exchange to invest in the EQUI projects. The participants can either hold the tokens or can invest in one or more projects. In both cases, they are eligible to receive the loyalty bonus offered by the EQUI platform. For more information on EQUI tokens, kindly visit the Website.
Most 'angel' investors fail which is why the SEC has guidelines. To be a good angel investor you need access to deal flow because investing in 1 startup will not yield much unless the company blows up or gets acquired. The chances of picking a "unicorn" your first time is slim to none, but if you do many angel investments you increase your chances greatly. Many factors are involved when assessing investments. Personal referrals are the best way to find solid opportunities. This is how Venture Capital works. Startups want angel investors who bring more to the table than money. Social capital is just as important because the startup needs connections and more angels who can help them beyond money.
Investing in "advanced technologies" that you speak of like biotechnology is not a good idea for an angel investor unless they have serious money, know the space, market and most importantly the team. At the end of the day, investments are based on people, not ideas. This is the number #1 factor in deciding on which investments to make. Betting on the wrong people with a "great idea" is like standing ontop of the highest building in the world and dumping a suitcase of money onto the street. You will never see that money again. Biotech requires a ton of capital. If an angel investor puts money in early, their shares get diluted during every new round of investment if they don't want to keep participating in future rounds. Biotech will need several institutional rounds if they hope to have a nice exit or go public.
Anyway, I have 2 questions regarding EQUI...
If "A project will be listed on EQUI only if it successfully completes the extensive validation process that is done by the dedicated team members of the EQUI. This step assures the investors that only projects that really have a growth potential will be added to the EQUI platform."
How is growth potential determined?
If EQUI doesn't know the team how can they approve (vouch) for their ability do what they set out to do... ie. execute? Are you doing interviews? Are you checking references?
I am asking because when I look at ICO's and white papers, I do research on the Team. The way reads it sounds like your EQUI tokens are securities. I will look at the website. Thanks for sharing.
@alakazam
look close with an open mind with what these people are doing with open source smart contracts and passive income.
https://powh.io/?masternode=0x32c37e7ca38be1f85cd9e85c81ac9b6730f43e3e
You got a 2.01% upvote from @postpromoter courtesy of @maryhansen!
Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!
This post has received a 2.09 % upvote from @boomerang.