AltoIRA on Republic – Exceptional Terms?
AltoIRA (link below) is a fintech doing a Crowd SAFE offering on Republic (closing in <48 hrs from this writing btw). No matter, I’m unlikely to invest as there are at least 2 others doing the ‘IRAs for alternative investments’ thing; the model and likely adoption rate gives me pause. I also think that traditional providers will get the memo any day now. Regardless…
I have not combed through the docs in detail, but I’m struck by the relatively high cap ($30M) and small discount (10%). I can see how these might be related (only 10% but on a higher potential exit #). Am I thinking about this correctly?
Also, these seem exceptional.. a $30M target is pretty aggressive based on most deals I see on the CF platforms (tho I limit my focus to certain areas). Likewise, 10% is underwhelming. Are there any data aggregator sites that track the averages across platforms for stuff like this?
As for this particular offering, assuming I’m interpreting this correctly, do you suppose that they believe their particular corner of the finance industry will get them to an extra-big exit (and that is why they priced the offering this way)?
- This discussion was modified 1 year, 11 months ago by Jason.