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  1. #21
    Junior Member
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    Detroit, MI
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    I look toward Mr. Wonderful (Kevin O'Leary) for sound financial advise on this topic:

    Cash flow, cash flow, cash flow... too early in a company's lifecycle to get any cash tomorrow? Then: Discounted cash flows.

    If Kevin runs into a company/investment opportunity that will take too long to get an ROI, then he goes to a royalty structure or a debt offering. Why? Cash in hand -- as fast as possible.

  2. #22
    Junior Member
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    Dec 2016
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    Hi Everyone we are in the final hours of this campaign on Indiegogo! Check it out learn to play the guitar from $49 with a device that you attach to your own guitar and links to your smartphone!--> http://igg.me/at/fretxguitar

  3. #23
    .
    "Cash flow, cash flow, cash flow..." Everybody wants cash flow making lots of competition, which means the company doesn't have to pay investors much of a retun.

    A dependable cash flow? Buy a CD - 1% return.

    Want a possible big hit? Select one of these: https://angel.co/
    .

  4. #24
    Junior Member
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    Dec 2016
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    Detroit, MI
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    Cash flow in personal finance (re: CD @ 1% APR) is not what I'm referring to.

    Cash flow in business is completely different. How long is it going to take for the cash that you're investing to come back to you (in the form of cash returns). Seems like a simple concept; but, if you put your money into a long-shot start-up company, then see how long it takes to ever get your money back.

    My point: look at a company's income statement and balance sheet - if your investment will turn a business into being cash flow positive in a short time then the "high yield" the OP is seeking will soon follow.

  5. #25
    Senior Member
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    Sep 2016
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    102
    How long do you consider good for an investor to hold his/her share after investing in crowdfunding before selling it off?

  6. #26
    Junior Member
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    Dec 2016
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    Detroit, MI
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    Best advice is to predetermine your minimum, maximum, and expected returns.
    It's the surest way to make a purely rational decision in a time where you can become irrationally exuberant.

    Quote Originally Posted by dbelov275 View Post
    How long do you consider good for an investor to hold his/her share after investing in crowdfunding before selling it off?
    Last edited by Dave13392; 12-12-2016 at 11:12 PM.

  7. #27
    Senior Member
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    Sep 2016
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    Quote Originally Posted by Dave13392 View Post
    Best advice is to predetermine your minimum, maximum, and expected returns.
    It's the surest way to make a purely rational decision in a time where you can become irrationally exuberant.
    Thanks. It was helpful.

  8. #28
    Junior Member
    Join Date
    Dec 2016
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    4
    That's if you can even find a buyer for it. This isn't an asset class where you have absolute liquidity and can trade it off a stock exchange.

    2 basic criteria:
    1) You'd need to find someone else who wants to buy it
    2) Depending on the way the shareholder agreement was drafted, you may need approval from the company to go ahead with the sale (e.g. don't want company financials/data to be shared with competitors who buy a small stake)

    This means your best chance of selling your stake would be back to the company itself (unlikely since they don't need any capital outflows), or other investors (who likely wouldn't be paying top dollar for it, since they've got perfect info on the company like you do).

    Once you invest in a crowdfunded company, you're in till they IPO/sell (i.e. likely a long time).

  9. #29
    Senior Member
    Join Date
    Sep 2016
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    102
    Quote Originally Posted by mikekasem View Post
    That's if you can even find a buyer for it. This isn't an asset class where you have absolute liquidity and can trade it off a stock exchange.

    2 basic criteria:
    1) You'd need to find someone else who wants to buy it
    2) Depending on the way the shareholder agreement was drafted, you may need approval from the company to go ahead with the sale (e.g. don't want company financials/data to be shared with competitors who buy a small stake)

    This means your best chance of selling your stake would be back to the company itself (unlikely since they don't need any capital outflows), or other investors (who likely wouldn't be paying top dollar for it, since they've got perfect info on the company like you do).

    Once you invest in a crowdfunded company, you're in till they IPO/sell (i.e. likely a long time).
    Very well said. I understand better. Thanks for your insight.

  10. #30
    There was an article I just read by Forbes magazine which listed these areas as the most profitable:
    Pharma: Generic 30%
    Investment Managers 29.1%
    Tobacco 27.2%
    Pharma:major 25.5%
    Internet Software/Services 25%
    Biotechnology 24.6%
    Savings Banks 24%
    IT Services 23%
    Regional Banks 23%
    Major Banks 22.9%

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