Investing in Small Businesses

Hey guys

I found this website today on the FT:

https://circleup.com/companies/

It was launched by an ex-PE guy, and essentially allows you to invest in early stage companies (I suppose via crowd-sourcing).

Would you guys consider investing in these companies, and if so what would your strategy be?
Would you guys consider starting a company while working in IB, and if so would you consider using something like this (i.e. crowd-funding) to finance your company?

Interested to hear your thoughts.

Regards

Comments (9)

Jun 9, 2014 - 10:30am
GoldenCinderblock, what's your opinion? Comment below:

this is cool. thanks

heister:

Look at all these wannabe richies hating on an expensive salad.

https://arthuxtable.com/
  • 1
Jun 9, 2014 - 10:38am
GoldenCinderblock, what's your opinion? Comment below:

I wonder if you could start a fund, spread risk by investing in a lot of these, etc

heister:

Look at all these wannabe richies hating on an expensive salad.

https://arthuxtable.com/
Jun 9, 2014 - 10:56am
Distressed Industrial Buyer, what's your opinion? Comment below:

These and other crowd funding sites seem to be a collection of either; every entrepreneur who has been rejected by all the standard financing options or isn't savvy enough to get in front of those standard options. The only plans that seem intriguing are the mad scientist who has a genius invention - but I'm not the guy to invest in unproven technology.

Global buyer of highly distressed industrial companies. Pays Finder Fees Criteria = $50 - $500M revenues. Highly distressed industrial. Limited Reps and Warranties. Can close in 1-2 weeks.
  • 1
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  • Anonymous Monkey
  • Rank: Chimp
Jun 9, 2014 - 11:53pm
Anonymous Monkey, what's your opinion? Comment below:

Agree with you but apparently they typically sell preferred stock without warrants, etc. I can't imagine VCs being very easily satisfied with this, which makes sense.

The 'crowd' won't be able to negotiate as favourable terms, which might make it preferable for the companies raising capital as compares to more traditional routes.

Jun 9, 2014 - 11:54pm
KimchiNoodleSoup, what's your opinion? Comment below:

Small Businesses You Can Invest In For Stable Lifestyle (Originally Posted: 05/24/2015)

Hey all,

Wanted to have your opinions on something. I will be going to a top BB for IBD, but ultimately, I really don't want to work in finance in the long term. My life goal is literally invest in businesses that will generate me stable cash flow returns and I don't have to do much to maintain these businesses (I know, I sound lazy as fuck). I will try to save up money while I am in finance and I can probably ask my dad for some investment money.

What are some businesses that can potentially generate stable cash flows and eventually return my investment? Interested in hearing what you guys think!

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Best Response
Jun 9, 2014 - 11:55pm
DickFuld, what's your opinion? Comment below:

Laundromats, car washes, real estate, and the like. Try to think of things that are difficult to outsource or offshore. For instance, people might have included pay phones 30 years ago. The people who did invest did not see cell phones becoming popular even though those phones were cash cows at the time.

Jun 9, 2014 - 11:57pm
KimchiNoodleSoup, what's your opinion? Comment below:

The problem is - how do you find businesses like this if you don't have connections. Also, without observing the business over an extended period of time, it is quite difficult to gauge how much of the success of the business is dependent on the previous owner

Jun 9, 2014 - 11:58pm
KimchiNoodleSoup, what's your opinion? Comment below:

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