Internal Rate of Return (IRR) and Exit (or Return) Multiples are key elements when starting out in equity crowdfunding. Learn what they are, why they are important, and how to calculate them.
Continue readingFor our first monthly investment book review, we dive into Jason Calacanis’ book “Angel: How to Invest in Tech Startups”. Find out what some of the key lessons and takeaways are for equity crowdfunding investors.
Continue readingAs an asset class, equity crowdfunding offers new investment opportunities, but it also comes with new risks. Learn about the seven types of risk specific to the Reg CF asset class.
Continue readingIn Part 1 of understanding risks in equity crowdfund investing, we will learn about risk-reward tradeoffs and dive into the human psychology that impacts our investment decisions.
Continue readingToday, we look to provide some perspective on the question “how much time should I spend on due diligence for equity crowdfunding?” We analyze historical data from Angels and VCs, and pose questions that every investor should ask.
Continue readingInterested in some actual analysis of real equity crowdfunding data to date? We constructed a Monte Carlo Simulation to run over 140,000 investment scenarios based on the Q4-2018 WeFunder Reg D results. We’ll dive into the results and potential implications in terms of portfolio size and expected returns in today’s post.
Continue readingWith the high risk of failure in equity crowdfunding, what are the returns that investors can expect? We will use historical data from Angels and VCs and current results to start to assess potential investment returns.
Continue readingPower laws govern not only financial returns but many other things in life. Learn what power law investing is and how to leverage it for your investments.
Continue readingJumping into the equity crowdfunding world can be scary for new investors. In today’s post, we provide an overview of the most common terms to help you get started investing in startups.
Continue readingBefore you make your first investment in equity crowdfunding, it is vital to plan how much you will invest total in early-stage companies, and how much you will invest in each deal. Today, we will provide some guidance and examples to help you plan your equity crowdfunding portfolio.
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