To: Bill Ulrich who wrote (2258 ) 12/5/1998 2:43:00 PM From: tugboat Respond to of 2770
The FairShare Solution - Organize the Buyers! Premise: Young technology companies increasingly use IPOs to raise, essentially, venture capital. Problem: The public pays too much to participate! Companies get a higher price from "public VCs" because the public is so eager to invest in high potential stocks. IPO pricing takes advantage of the desire by investors with limited access to early stage deals and poor ability to demand a more attractive price. Why? Valuation is not a required disclosure for public investors, but it is the most critical piece of information for the "big guys" when they evaluate a deal. Absent valuation disclosure, public investors principally evaluate IPOs on other --non-financial--terms, such as: Are early investors and underwriters prestigious? Is the company well known? Positive impression of company's product, technology, management, and market space? Result: Ordinary investors occupy the last position in the "investor food chain"; unlikely to make money on popular IPOs unless they get in before others who are even less "valuation aware" than they are. They also find it hard to decide if a less well known IPO or DPO (direct public offering) is fairly priced. Solution: Organize investors to get better deals on venture capital IPOs. Provide deal structure education, the ability to network and to pool due diligence. Provide promising, pre-screened companies with IPOs/DPOs free access to these investors in exchange for VC (low) valuations and guarantees that small investments may be made. That's What Fair$hare Is All About! What's FairShare all About | Membership | Food Chain | Site Map | Join Now! Welcome Letter | FairShare Solution | FAQs| Archives | Contact us | Disclaimers | Privacy Policy Copyright © 1998 Fair$hare. All rights reserved. Site maintained by webmaster@fairshare.com