A new story from Wintrust Business Lunch with Amy Guth


Right I mention this before we got a partnership with these guys in the past I'm a big fan but I was only I think I'm going back in my memory here I think I only talked about this on the radio show and on the podcast which of you haven't listen to the podcast you should be basically this but like longer louder and more bad words in my opinion is more fun because you can talk to somebody founders like you maybe it's ten minutes and then it just turns into like an hour as they go down there they're like life channel it's like twenty three in me on why a founder where they came from and why they got to the point where they started a company that does whatever speaking of twenty three me that's why I bring this up so micro managers is a group that we work with in the past only on the retail side so like all of the times we have these pictures come in and you got a Republic dot dot seo slash register in you can invest in these companies that is for non accredited individuals to invest it's you know hundred dollars whatever minimum so recent not so recently been doing this a long time but recently I have got more involved with it on a makerbot your side they have a later stage side which I believe you have to be accredited or if not accredited you have to have a maybe a hundred thousand dollars in assets or something something like that because well you have to have it anyway because the minimums for investing as usual like ten thousand sometimes five thousand ten twenty twenty five fifty and up which sounds insane but in truth to invest in some of the companies are about to mention including twenty three me you would need to be a part of a fund it's investing several million in the units per unit would be you know at Lois probably two hundred thousand and change so it kind of eliminates the ability for you and I to invest in some of these companies at least at this stage if you found it when it was to farmers run around the you know the computer you could give them ten grand or whatever and been in but not now so the idea here is that companies that are in their later stage invest Roberts you know D. F. D. F. one go I PO pre IPO how do I get shares of that company and Michael ventures has basically build an app for this to participate I was you go to the website my prevention dot com and read more about it but the companies that are on this which is why I'm talking about this these are what are available right now okay I don't go into after will pick a couple these Airbnb is one for sure I think everyone knows about top golf if you're not familiar with top golf Robin Hood app you should be familiar with I talk about it constantly it pays another one twenty three me I just mentioned there are several more you know that lift was on here one point these are all companies that are not public that there ARE founder shares or there's a secondary going on and micromanages funds have been able to get in on those rounds and then they enable those of us who are not part of that larger syndicate are not part of that larger investment group to participate at a smaller value so if Michael ventures has to commit to putting in two hundred fifty thousand dollars to equal one unit of the round of the secondary they then open it up to us me in you if we felt the certain you know parameters to be able to invest as little as ten thousand or twenty five thousand to make up the two hundred fifty thousand or whatever the number is choosing amount that they need in order to make their investment so the terms are all presets only give an example of this is well and I'll tell you one tell you this I'll pick top golf because I like the Gulf and and it's something I think everyone can understand like if it's like an amusement park they have I don't know how many actually I I click on unless you know exactly they have something like sixty some odd venues around the country fifty seven to be exact around the U. S. and U. K. and they've got plans to expand into Mexico in Australia Canada and data into revenues around a hundred and sorry if I eat a hundred million dollars as QC twenty eighteen with private companies this numbers are not as easy to to find so that's that's why it's so late bottom line is there are reports that have come out that Morgan Stanley JP Morgan PFA have been hired to help them take the company public at a valuation that they're hoping to be around four billion okay so to give you perspective the last round that they raise that for this company for top golf it was raise an evaluation of about two point one billion that is one in twenty seventeen when they raise a bunch of money this round right now enables us to get in somewhere in the same general ballpark it's actually a thirty by thirty percent hike two point nine billion is the is the estimated valuation on this new second or around if this company goes public and there's a lot if you're still stay with me if the company goes public and they do meet the four billion dollar valuation you know they're about the day of of IPO or whatever the lock up ends and you got in at two point nine billion value that's obviously you know one axis sensually on money and if it ends up being worth more than that then it's worth more than that if you were an investor who got in when the valuation was one and a half billion we're two or two point three in the latest round obviously at a two billion dollar valuation they appealed for you doubled your money no none of us could have participated in those rounds because their reserve for the people who are at like sequoia Andriessen Horowitz and all the rest and obviously the companies that are out there are other the firms and funds like why commoner the get in really early the same can be said for Airbnb but only use this as an example and while like this here BMB excuse me battling a little bit of a cold these days as I'm sure many of your so Airbnb is a little fat Airbnb is raising money and a lot more value have a hard time pulling this up right now but your BMV is raising raising money at a lot fatter terms than they were when they were raising last until the IPO the question is will the IPO pan out or will be like lifting some of the other ones that went out this year with the I. P. O. at all first off second if it does will it panned out where would flop if it flops then your investment is of course obviously not a good investment and it's not worth doing but what I think is fascinating about all this is he gives us the opportunity to invest in pre IPO companies that are a little bit longer in the tooth and why that's interesting is I don't think that that's ever been nothing like I know that though the laws have been able to since about twenty sixteen you can do it since like twenty fourteen and thirteen and real estate but for private companies to be able to invest along with funds prior to the IPO mark being that close to the to the end hi I think it's really fascinating and I'm I'm sort of jazz about it I I kind of want to look into some of these companies because I I think what's best for you know six nine months and I'm on the show rambling on about some of the companies that I like so let's go backwards and then go forward I was talking about how I thought peloton could be an exciting company I was talking about how I love sprout social and live longer when they were private companies that I knew were working on going public I didn't know when they would but I I knew that they were can someone had let me get shares at somewhere around twenty to twenty five percent discount for what its IPO share or like within the first couple months of IPO shares are worth I would have done that in a heart beat because guess what when they when I PO I waited for to bounce off the floor and I bought a tele shares anyway but I bought the shares it like an example of a long ago love on one of the like forty dollars a day one went down about twenty three I bought a bunch of shares a twenty three because I love love ongoing think it's the future of the way people manage their health and Glenn Pullman is a genius so there's that but if I could have been in it sixteen Bucks what four weeks before the I. P. Otis part of this round to Mike about yours I mean who says that that that's a no brainer right because the the company I think it's probably valued at a forty dollar share do you in the next like year and change with the exception of you know recession or whatever this is a really unique tool and opportunities I think people should be looking more into so from that standpoint I think it's really fascinating and then there's also just a part of like by being able to invest in companies that we use everyday like Airbnb I'm not a big Airbnb guy but I think it's cool and I also just going to be a BB thing for one second because I I think it's worth noting Airbnb is one of the companies I don't I I promise this is in a random read this section is leading into the next segment he's one of the companies it's really jumped on to the crowd cheering obviously right because they they crowdsource homes about letting the people who are the Power Rangers of the homes to own a piece of the company they've been working on ways to do this for a long time which I suspect is part of why I PO is not such a simple route but I think that's the future I and we thought we'd be anyone is going to text in right now you're welcome to text or call at three one two nine eight one seventy two hundred years they will yeah dove dummy we had profit sharing you know forever it's a little different because right now I can't trade though shares I can't sell just like profit sharing but it's not far away because when we talk to the the call in pitch in the second half of the show about crypto that is why crypto is interesting because it could enable those people to have an ownership stake in the.

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