Startup Investing

A Background on Rights Offerings

Feb 21, 2017 |

Rights Offerings A Rights Offering is an issuance of ‘Rights’ to a company’s existing shareholders that allows them to purchase additional shares from the company in proportion to their ownership, within a fixed time period. In a Rights Offering, the issue price of each share is generally at a discount to the current market price. The Good Companies will often seek a Rights Offering when they need to raise money quickly (for example, to service a debt covenant, pursue an aggressive acquisition or for general working capital requirements). From a company’s perspective, Rights Offerings are typically much quicker to close than a new equity issuance, and are much cheaper to execute. From an investor’s perspective, the subscription price of a Rights Offering is often-times at a significant discount to the company’s stock price, as it needs to be attractive enough to encourage all investors – including early investors –  to participate with their prorata amount of the raise. The Bad Issuing stock at discounted valuations carries the risk of signaling a distressed cry to the market. Not only is the offering’s share price discounted, but by...

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What Babe Ruth could teach about maximizing returns on your startup investments

What Babe Ruth could teach about maximizing returns on your startup investments

Jan 5, 2017 | ,

It’s seems a waste to talk about startup investing without sharing some of the most awe-inspiring successes. We could start with Accel, the VC that invested $12.7 million in Facebook’s series A to buy 11% – back in 2005 – in a deal that was widely ridiculed for the valuation that Accel was willing to pay. Of course, Accel had the last laugh. In 2012, at IPO, Facebook’s market cap was over $100 billion, meaning that Accel eventually realized a return of 800 times its principal investment. Or else we could have a look at Bessemer Venture Partners’ $6 million series A for Intucell in 2011, which purchased them nearly half of the Israeli startup. Two years later – with no additional funding – Intucell was acquired by Cisco for nearly $500 million. Bessemer’s stake of about 50% returned over 25-30 times their principal investment. It goes without saying that these are the sorts of stories you generally don’t find outside of the VC space, in other asset classes – and it’s the magnetic pull that draws investors to startups. At...

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New year, new beginnings: An intro to Venture Capital 101

New year, new beginnings: An intro to Venture Capital 101

Jan 3, 2017 |

Consider this your formal welcome to a new year, with new ways to consider investing. If you’ve been considering diversifying your investment portfolio with startup investing – read on for an overview of how to get started. Yet another diversification conversation Most financial professionals agree that asset allocation is one of the most important investment decisions, and many recommend diversification across asset classes, as opposed to just picking and purchasing stocks. Spreading your investments across asset classes reduces risk: Obviously, a portfolio comprised of only a few stocks and bonds is susceptible to a big hit should the market suffer a drop; or, even worse, a crash. Those who divide their investments — not only among different stocks and bonds, but other asset classes, such as cash, real estate, or short-term money market securities, for instance — won’t be as impacted by a downturn. Additionally, paying attention to the particular risk level of each investment, and balancing allocation appropriately, is a way to come out ahead. Depending on what your investment goals are – a child’s college fund vs. retirement...

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Rev Your Engines! OurCrowd’s Transportation Tech Portfolio [Infographic]

Rev Your Engines! OurCrowd’s Transportation Tech Portfolio [Infographic]

Nov 10, 2016 | ,

When it comes to getting from Point A to Point B, humanity has innovated a variety of options to satisfy our need for speed — whether its bicycling, rowing, driving, or flying, transportation technologies have changed our lives and movements. Today, more than a century after Ford began building its first car, the transportation industry is again seeing great disruption with autonomous driving and the sharing economy setting the stage for another revolution in mobility, along with accompanying social and economic changes. As OurCrowd and our investor community continue to drive the next generation of transportation technologies, we have compiled the following infographic that samples some of our portfolio companies making waves in this rapidly evolving market. Did this infographic steer you in the right direction? Pass it forward and share it with your friends! To find out more about transportation technology and investment opportunities on our platform, contact our Investor Relations team or visit our...

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Investing in a Healthy Humanity: Introducing Israel’s first digital health fund, OurCrowd Qure

Investing in a Healthy Humanity: Introducing Israel’s first digital health fund, OurCrowd Qure

Nov 2, 2016 | , ,

Pop quiz: What’s the most important medical device you’ll use in the coming years? If you said mobile phone — you’re in good shape. Emerging technologies, such as cloud computing, internet of things, and mobile apps, are connecting the digital and physical worlds and changing the behaviors of both physicians and patients. In other words, digital health is revolutionizing our approach to medicine, refining healthcare, and improving our well being. Digital health solutions are becoming necessary now more than ever as the global population ages and healthcare demands accelerate, all while supplies and services cannot keep pace. Accelerating the “Qure” OurCrowd is excited to announce the launch of Israel’s first exclusively-focused digital health fund — OurCrowd Qure. The fund is raising $30-$50M to invest in Seed and Series A rounds in innovative digital health startups from areas like Artificial Intelligence, Big Data, Genomics, and Mobile Patient-Centric Solutions. Ultimately, companies that offer solutions to improve quality while simultaneously lowering costs through empowered patients, medical teams, and payers. Digital health is one of the fastest growing sectors in terms of funding and M&A activity. Exclusively focusing in digital health...

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