At Deal Report Pro we are bringing the Regulation A and Regulation CF deals that have the best opportunity for large returns on your investment dollars. We are currently putting the final touches on our next company.
This month’s selection has a lower risk profile than our prior pick. That company was in the home automation business, a business that is consolidating around giants like Amazon and Google. It is still fairly early in its development, having just introduced its second product. This month’s pick is more financially mature. It still has a lot of growth possibilities – we estimate that its market is only 10 percent penetrated. But our pick has positive EBITDA, owned real estate, and even pays a cash dividend.
We’ll let you know as soon as our selected company and the complete dossier are posted on the Deal Report Pro website. And shortly after we unveil the choice, we will have an exclusive interview with the company’s CEO, who will talk about the business, the real estate market, and more.
While the Deal Report Staff works on the dossier, we want to revisit some statistics we shared earlier this year. In July, we wrote that through May of 2022 venture capitalists invested 20 percent less money than they did in the prior period last year, while Regulation A filings were down only 5 percent.
Now we have exclusive updated statistics from our partners at Dealmaker, and the numbers are a stunning example of the increasing influence of democratized capital. For the three months through the end of July, venture capital funding was down 43 percent, according to Crunchbase[i].
By comparison, active Regulation A and Regulation CF offerings on the platform of our partners at Dealmaker saw funding up by 49 percent.
There are some caveats to those numbers. First, the democratized capital figure only includes deals on the Dealmaker platform. Secondly, investments in democratized deals are still just a fraction of the money coming from venture capitalists. Finally, the amount raised from retail investors on democratized platforms can be lumpy. That is, a relatively small number of successful deals can have an outsized impact on the total amount invested.
Even with these caveats, it is becoming increasingly clear that more and more people are looking to Regulation A and Regulation CF offerings as a way to deploy private capital while traditional venture capitalists and public equity markets struggle to earn back losses from earlier in the year.
Deal Report discussed some strategies for investing in private deals in a difficult equity market. Our current selection in Deal Report Pro fits all three strategies. It is a potentially disruptive company, early in its development, and is more likely to be acquired than to try to complete an IPO.
The upcoming company is different from that. As Deal Report Pro subscribers will soon see,, the new company is built on a strategy to succeed without ever going public or being acquired. That’s not to say that the company will never go public or that a larger company will never purchase it. But public equity markets can stay weak for quite some time and this company will be adding value as long as it continues to meet its objectives. A company with positive cash flow can survive much better than companies that constantly need cash injected.
Important Disclosure! These are not official recommendations. Investing is risky. Before making any
investments, we strongly advise you to discuss your investment options with your financial advisor, including whether any investment is suitable for your specific financial circumstances and needs.
All of us here at Deal Report are excited to announce that Deal Report Pro is now live.
We have a home automation dossier queued up featuring a promising private deal opportunity for you, and a second dossier featuring a company paying a substantial cash dividend.
Retail private investors will rarely find a company attractive if they cannot see a potential exit. But many of the world's largest and most successful companies are privately held, and some have been private for decades or longer. The key is that investors must see a return on their investment outside the public market or through being acquired. Specifically, the owners (often families) of these companies look to robust dividends to generate their returns. The company we will be writing about in Deal Report Pro pays a substantial cash dividend now by issuing preferred shares, with the shares converting to common shares if the company does complete an IPO. If the company continues to meet its objectives, that dividend can sustain private investors through a long bear market, with an IPO (if the company completes one) coming when conditions are better.
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Private Investment Opportunities
- In-depth research on promising Reg A and Reg CF deals
- Interviews with founders
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- Actionable insights on how the private markets are evolving
Pop Finance, LLC (“Deal Report”) is affiliated with Novation Solutions, Inc. d/b/a DealMaker (“DealMaker”) . DealMaker provides issuers with a technology platform and analytics suite to facilitate their capital raise. These fees are billed as setup, platform and processing fees in connection with its services for the featured company and include per investor processing fees. Issuers do not compensate Deal Report in order to be featured. The intention of Deal Report is to bring investors a selected list of opportunities available from Deal Report’s affiliation with DealMaker, in addition to other timely and relevant financial information. Deal Report is operated as an independent publisher and performs independent analysis of any issuers that are featured. The content provided by Deal Report is based on publicly available information. Although we obtain this information from public sources and believe it to be correct at the time of publication, we do not guarantee that the information is accurate or complete. This information may become outdated and we have no obligation to update it. Deal Report, its affiliates, members, officers, directors, owners, employees, agents, representatives, and/or services providers make no warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, or completeness of any information contained in the content provided by Deal Report. The content provided by Deal Report is solely for informative purposes and does not constitute investment, legal, accounting or tax advice, nor is it a solicitation of an offer or recommendation to buy, sell or hold a security. You should not assume that any investment in a featured company will be profitable or have been profitable in the past. Before making any investments, we strongly advise you to discuss your proposed investment as well as alternative investment options with your financial adviser, including whether any investment is suitable for your specific financial circumstances and needs.