Social investing, an extension of Social Media (SM), is driving the growth component for a portfolio into the private from the public market.
Research of the 2012 JOBS Act and the SEC’s Regulations pertaining to the act’s crowdfunding application led to the discovery of a need for investing to become social and for social investing communities which are an extension of Social Media (SM) to emerge.
The first social investing community (SIC), OurCrowd was founded in 2013. Below are the metrics obtained from OurCrowd’s home page. OurCrowd has become a significant provider of capital and expertise to private startup and early-stage companies.
A social investing community (SIC) supports private startup and early-stage companies. The SIC reduces risk and increases upside. My 2014 report “Crowdfunding Must Get back to its Roots”, explained why SICs were needed for crowdfunding to be fully leveraged. The video below explains the evolution of “Social Investing” which actually began in the 19th Century and was snuffed out in 1933 when the SEC was formed after the Crash of 1929.
JOBS ACT, “SOCIAL INVESTING” to Enable PRIVATE to Dwarf PUBLIC Capital Markets
The SIC, Dynasty Wealth LLC (DW) was founded in 2014 with a two-fold focus.
1. Exclusively identify and support startup and early-stage companies which have similar traits and upside potential as the companies in the table below when then were startups, etc. $10,000 seed round investments in any of the four by as late as 2012 increased to a minimum of $7.4 Million by 2017. My methodology since 1978, which has been to research extreme current and historical events to find possible cause and common denominators, was the motivator for research to be conducted on the four companies.
Common denominators were discovered and the result is that the four companies in the table below which possess similar traits were identified.
Similar to OurCrowd, the companies in the above table have since been supported by Dynasty Wealth which assists them in deploying a Perpetual Financing Strategy. The strategy was utilized by UBER in its early stages.
2. Develop a secondary market for the shares of companies, including those in the above table, which have valuations of less than $1.0 billion. A secondary market for the shares of private companies at valuations of at least $1 billion has existed since 2009. View “Facebook Seeded Secondary Market for Private Shares” video below:
Facebook Seeded Secondary Market for Private Shares
Dynasty Wealth, Leading Growth Investments Transformation to Private from Public
My report “2025’, Year for Transformation to Private from Public Market Began” and its associated content is a must click. The site contains recent news and videos that provide the rationale for why 2025 will become recognized as the year in which privately held securities became a major investment growth category for asset managers, etc.
Four companies being identified, their deploying a perpetual financing strategy, and each having the potential to reach $250 million valuations from 2025 to 2027 was a significant feat. Dynasty Wealth is well positioned to leverage the four to establish a vibrant secondary market for private companies valued for less than $1.0 billion.
The four DW companies at 12/31/24 had valuations of less than $42 million. Share prices for each have the potential to multiply by six or more times by 2027 or earlier. The companies’ achievable valuations based on their IP and addressable markets range from $100 billion to $1.0 trillion. The table below contains their appreciation multiples to their achievable future valuations.
The first step to establish a vibrant secondary market for select private companies valued for less than $1.0 billion was to preconceive a liquidation strategy. A strategy to enable private shares to be easily purchased was necessary. Its purpose is to ensure that a sufficient quantity of shares for the qualifying companies would be available for purchase by new investors upon the valuation thresholds below being reached:
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- $250 million
- $500 million
- $1.0 billion
The Liquid Hyper Growth Strategy (LHGS), which is managed via a fund/trust with a capacity of $2.5 million (100 investors), is the ideal solution. The fund/trust managing the LHGS will become a showcase. The LHGS is especially ideal for investors above the age of 50. The manager of the LHGS vehicle has a prescribed mandate to produce and distribute aggregate gains equivalent to 100% within three years of investment. A fund/trust investor then has the discretion for when to sell their remaining pro-rata holdings.
A $25,000 LHGS containing $6,250 stakes in each of the companies identified by Dynasty Wealth is projected to produce and distribute the aggregate of $57,000 from 2025 to 2027. After the prescribed distributions are received the investor can choose to sell their remaining holdings at any time. The table below contains the projected values for the remaining holdings. If held until the achievable valuations are reached the LHGS’ remaining holdings have the potential to reach $293.7 million. “Liquid Hyper Growth Strategy’ Drives $25K to $293M” is highly recommended.
The video ““How Possible for $25K to increase to $293 Million” covers my research methodology, which is to research extreme events to possibly identify common denominator(s). An algorithm is then developed to predict the next event. Covered in the video is my research of the companies in the table below. A $25,000 trust that invested $6,250 into each of them produced gains comparable to the projections in the table containing four companies above.
Upon the fund becoming fully subscribed the plan is as follows:
Liquidity Plan for LHGS Fund/Trust
1. The valuations and equivalent share prices for each of the fund’s four holdings will be increased to their next perpetual financing valuation level.
2. A second fund to purchase shares from the issuer/companies and also from their shareholders at the increased valuations will commence an offering.
3. The initial LHGS fund/trust will file a S-1 registration with the SEC. The registration will enable the holders of the shares of the fund to sell.
4. Upon the S-1 becoming effective Dynasty Wealth (DW) intends to market the fund to registered investment advisors and wealth managers, etc. The fund provides less risk and more upside for the clients of an investment manager or advisor when compared to the publicly traded growth investment option which has higher risk. Read January 2025 Apollo report “Can Private Markets Be the Alternative to Lofty Public Market Valuations?”.
View video “Overvalued Tech Stocks Driving Demand for Private Tech Shares” below:
Overvalued Tech Stocks Driving Demand for Private Tech Shares
Upon the second fund becoming fully subscribed the above process or steps including items 1 through 4 above are to be repeated. Upon each subsequent fund becoming fully subscribed a new fund will be launched. The fund will purchase shares from the companies and/or their shareholders at an increased valuation and share price.
To summarize, the plan is for there to be a family of funds that work in congruence with each other. More fund families with funds at the various prescribed valuation levels that will contain the additional companies which are identified will also be offered. The fund/trust vehicle and the family of funds strategy is projected to be adopted by many venture capitalists and investment bankers in the future. The result will be a vibrant market place and liquidity for the fund/trusts and also for the private companies that are held by the fund/trusts. Such market places include Capital Engine which is one of the four holdings in the first LHGS fund/trust.
Note. The LHGS and also the perpetual financing strategy can only be utilized for companies which have the potential to reach a private and pre-IPO valuation of $10 billion. Companies which do not have the IP and addressable markets to reach an achievable valuation of $100 billion do not meet Dynasty Wealth’s qualifications. Due to the 2010 Dodd Frank Act the liquidity for publicly traded companies with valuations of less than $10 billion evaporated. View “Liquidity for Publicly Traded Micro-caps Evaporated After New 2010 Regulation” below.
Liquidity for Publicly Traded Micro-caps Evaporated after new 2010 Regulation
Finally and most importantly, Dynasty Wealth SIC is well positioned to digitally disrupt the brick and mortar VC industry. View video below. The fund/trust vehicle and the utilization of a fund family is projected to gain wide acceptance, visibility and most importantly publicity. Therefore, the majority of all startups and early-stage companies with the potential to reach $100 billion valuations will flock to Dynasty Wealth.
Save Change World, a Serious Disruptor to VC Industry
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Updates & timely info pertaining to just concluded trading week including:
─ Coverage of the extreme market and economic events that are discovered and analyzed
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─ Pertinent news for U.S. & Global Economy
─ Companies listed on SaveChangeWorld.com that qualify for inclusion in a defensive growth portfolio
- Publicly traded micro-caps with 10X upside potential
- Private startup and early stage with 100X upside potential
Michael Markowski, Director of Research for AlphaTack.com. Developer of “Defensive Growth Strategy”. Entered markets with Merrill Lynch in 1977. Named “Top 50 Investor” by Fortune Magazine. Formerly, underwriter of venture stage IPOs, including one acquired by United Health Care for 1700% gain. Since 2002 has conducted empirical research to develop algorithms which predict the negative and positive extremes for the market and stocks. Has verifiable track records for predicting (1) bankruptcies of blue chips, (2) market crashes and (3) stocks multiplying by 10X. In a 2007 Equities Magazine article predicted the epic collapses for Lehman, Bear Stearns and Merrill Lynch. Most recent algorithm developed from research of UBER and AirBnB has enabled identification of startups having 100X upside potential within 7 to 10 years.