How Retail Investors Beat Wall Street (The Rich Hate This) w/ Darren Marble 💵 E99
The Money Mondays
Deep Dive
What is Issuance and how does it work?
Issuance is a fintech software platform that supports various kinds of online capital raising, such as Regulation Crowdfunding campaigns. It allows companies to raise up to $5 million from anyone over 18 globally, using credit cards, debit cards, or other payment methods. It’s designed to be fast, compliant, and user-friendly for retail investors.
Why should companies consider crowdfunding campaigns?
Crowdfunding campaigns, like those hosted on Issuance, are ideal for companies with established communities, fans, and followers. These businesses typically have a few million in revenue, a large email list, and a highly engaged audience, making it easier to convert their community into investors.
What are the prerequisites for launching a crowdfunding campaign?
Before launching, companies must provide two years of reviewed or audited financials and file a disclosure document with the SEC called a Form C. This process involves third-party auditors and securities lawyers, ensuring compliance with SEC regulations.
Why are alternatives like startups and private companies becoming more attractive to investors?
Alternatives, such as startups and private companies, are growing in popularity because fewer companies are going public. This creates a backlog of private companies with strong demand for their securities. Additionally, younger investors trust alternative sources like TikTok and Instagram over traditional financial media like CNBC.
What are the risks of investing in startups or private companies?
The main risk is the lack of liquidity. Investors can’t quickly sell their shares for a profit, as they would with public stocks. Instead, they hope the company will eventually exit through an IPO, acquisition, or other means, which could take years.
Why has Darren Marble dedicated his career to crowdfunding?
Marble believes that the traditional venture capital system favors the wealthy, creating a system where only the rich get richer. He aims to level the playing field by giving everyday Americans access to high-return investment opportunities without needing millions to invest.
How should entrepreneurs decide where to invest their wealth?
Marble suggests investing in what you know. Entrepreneurs should leverage their expertise in a particular sector or industry, as this gives them an edge over other investors. It’s also a good starting point for diversifying investments.
What makes a company a good fit for Going Public?
Going Public looks for exceptional founders with proven execution ability, generating revenue and having a strong, engaged community. The show also prioritizes diversity, featuring founders of color, women-owned businesses, and other underrepresented groups in entrepreneurship.
Why does Darren Marble think some businesses should include philanthropy?
Marble believes philanthropy should be a personal choice based on the founder’s passions and values. For example, a hot sauce company donating 5% of its revenue to a cerebral palsy foundation aligns with the founder’s personal story and adds a meaningful dimension to the business.
How does Darren Marble plan to handle wealth accumulation for his children?
Marble emphasizes the importance of instilling a strong work ethic in his children. He doesn’t want to simply hand them wealth without teaching them the value of hard work and commitment, which he believes is crucial for their future success.
- Alternative investments, including startups and private company secondaries, represent the fastest-growing market in US capital markets.
- Fewer companies are going public, leading to a backlog of private companies raising capital.
- Younger investors are increasingly interested in alternatives, relying on digital platforms for information rather than traditional financial media.
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