Venture Investing
and Direct Public Offerings (DPO's)
DPO's are probably THE BEST way to become involved in venture investing,
but only if they are part of a complete venture incubation system.
DSI and its partners have developed exactly such a system, which
to our knowledge is unique, and truly has excellent potential.
On this page we will provide references to working papers, methods
and other information that can help improve the understanding and
decision making process relating to venture investing, business
performance and regulatory effectiveness.
DSI is committed to work as rapidly as possible with its partners
and affiliates to design and establish optimal business development
and venture investment systems. We have set up structures
and processes that pro-actively facilitate interaction and accountability
for everyone's benefit (read our working papers to see where we
are heading and please give us feedback).
DSI's system includes the following elements:
- A focus on
the use of DPO's as venture investment opportunities
- Bridge financing
as an attractive entry for venture investment
- Specialized
newsletters for DPO company management and independent investors
- Venture investment
education campaigns and promotions
- Implementation
of success assurance principles
- Formation
of online venture investment clubs
- Formation
of specialized venture investment funds
- Participation
of public organizations in pro-active systems
To obtain summary information about venture investment projects
that we are currently working on, learn more about our revolving
loan program and private investing opportunities
send an email to:
DPO's
and Venture Investments
Direct Public Offerings (DPO's)
are sales of shares offered directly to the public by companies
that are authorized to do so by securities regulators. DPO's,
properly structured, are in effect venture investments. That's
what makes them attractive.
Independent investors should have the opportunity to know more about
venture investments, but there is actually very little information
available for them. The degree of misunderstanding that exists
about such investments is dismal affecting all interested parties,
including investors, entrepreneurs and public servants.
Clearly, much needs to be done in this area. This section
of our web site will be updated and we ask that you provide comments
and feedback. We are doing what we can to do our part.
Please give us your suggestions or comments by emailing:
Success
Assurance and Performance Monitoring
The secrets of business success are not all that secret. It
is quite obvious that business success principles can be easily
identified. We have been studying this area for many years
and we know what is required. Most experienced, successful
business people also have the same knowledge. What has been
lacking is an implementation and execution system.
The main elements of a "success assurance" program are
operational results planning that create focus and discipline, along
with accountability that comes from accurate performance monitoring.
(I.e., a program based on the principles that what gets measured
is more likely to get done; and when you know you are being watched,
you are more likely to perform better.) At DSI we are implementing
this type of program by working actively with clients, their advisors,
and investors. Watch for our working paper on this topic.
Formation
of Venture Investment Clubs
After you have read our working papers, you will probably agree
that it can make a lot of sense to participate in a venture investment
club. As part of our effort to bring venture investing to
the attention of independent investors DSI has teamed up with FairShares
Corporation to sponsor the formation of venture investment clubs.
If you are interested in joining or helping to form such
a club email:
Formation
of Venture Investment Funds
Nearly 30 years ago Congress was interested in making it less burdensome
for businesses to obtain financing. In practical terms there
has been little progress to date with respect to this goal.
At DSI we believe that the emergence of the Internet and the widespread
use of computers makes it possible to create much more efficient
venture investment systems making it possible to increase the number
of investments that are made and still have better returns.
We are seeking strategic partners to establish specialized venture
funds that will take advantage of the changes in the coming venture
investment environment.
Please email
if you
are interested in working with us. If you are a resident of the
United States you will need to be an accredited investor.
Working
Papers
The following working papers are available at the FairShares
Corporation site (link will open in new window), our venture
investing partner.
FSC
WP#1. What Entrepreneurs and Investors Should
Know about Venture Investment
FSC
WP#2. How to Make Sense of Venture Investment
Returns
You can obtain
copies of these papers and other premium information simply by subscribing
to FairShares Independent Investors newsletter. To subscribe, click
here and then click on the"Join fs4u-independent-investors
button" (link will open in new window.)
Links
- Learn More about Venture Investment
http://www.people.hbs.edu/jlerner/info.html
- If you want to do some serious studying here are some materials
from a Harvard University course.
http://www.ventureeconomics.com
- "Venture Economics Information Services has
been providing institutional investors and private equity professionals
with private equity performance benchmarking and analytics products
for over thirteen years." Not geared to independent investors,
but probably the best source of data about venture capital investment
results.
Public
Service and Venture Investment
In this section we want to identify and highlight what can be done
by public servants to facilitate business development and investment
in positive ways. Much emphasis is placed on the negative
functions of government, for example with respect to business regulation
and in dealing with investment fraud. This in itself is a
serious problem.
We believe that public servants work for all of us and have responsibilities
to make positive contributions as well. This is particularly
the case regarding economic development, business growth and
investment opportunity. The Internet can have a positive
impact on the way public servants perceive their roles and responsibilities
by personalizing their interactions with the public. We would
like to see more thoughtful communication about this issue and hope
that you will get involved. Look for a working paper on this
topic soon.
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