Where is the VC industry heading? 5 latest trends

world is flatCheck out this blog by Balazs Szabo  – Where is the VC industry heading? 5 latest trends.

With crowdfunding, starting with accredited investors, we are reinventing the venture capital model. The private and public company exchanges or platforms will just be mini stock exchanges of niche markets.

Efficiency, processing speed, transparency, and open culture will render all gatekeepers of information and old schools as relics worth more for the museums of tomorrow.

 

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B.C. Entrepreneurs Turn to Crowd-Funding

social_mediaB.C. Entrepreneurs Turn to Crowd-Funding For New Ways of Financing Startups | BC Business #HealthyCrowdfunder. Click here for article  http://ow.ly/oER39

Comments to Jacob Parry’s article

Please note my comments to Jacob’s article and specified the distinction between accredited and non-accredited investor crowd. Note how we will apply best practices when managing publicly listed companies to private companies. We are simply reinventing the public capital markets. As soon as we involve the crowd, everything is public. As soon as we use OPM – other people’s money, they are entitled to timely full disclosures and best practices of publicly listed companies. We will slash down regulatory compliance costs through use of proprietary technology.

Antonio (Tony) Arias

Jacob – thanks for covering our mission to advance equity based crowdfunding. I wish
to emphasize we are targeting accredited investors first while building a
health fund and the Healthy Crowdfunder platform.

Educating investors about the risks, co-managing and co-developing our investees until
the exit date, and developing proprietary algorithms are some of our
competitive edge.

At our recent crowdfunding meetup I spoke about how Mr Algorithm (high
frequency traders) has taken over the stock exchanges at the expense of SMEs’
access to capital and liquidity. The best antidote is algorithm itself combined
with our creative and entrepreneurial skills. The securities regulators and
securities rules are so far behind what technology can do now. One of our jobs
is to prove to them that technology itself is one of the best weapons against
fraudulent actors. Several KYC (know your clients) and KYP (know your products)
job routines can be automated. Algorithm can also detect anything that is out
of pattern. Think IBM’s Watson.

The broker/ dealers provide only a partial investor protection. The buck stops at
the CEOs, CFOs, and independent directors who report to shareholders, who stand
to lose the most if they don’t perform their fiduciary duties to shareholders.
As the strategic advisers and co-managers of these ventures, we will provide
better protection since for each investee, we are investor/shareholders ourselves.

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Dr Eric Topol Discusses the Creative Destruction of Medicine

Eric Topol 5 of 25

Eric Topol 5 of 25 (Photo credit: canada.2020)

By Antonio A.  Arias

Dr Eric TopolWe at Healthy Crowdfunder believe in the

Personalized Health Manifesto: Predictive, Preventive and Personalized health solutions. Sponsored by the Kauffman Foundation,  journalist David Ewing Duncan wrote:  “By focusing on the whole human organism, the manifesto challenges the prevailing use of drugs and protocols to target populations and averages rather than individuals. It further outlines the necessary groundwork for speeding up the process of moving from research to new drugs and other products and treatments by introducing more effective models that will ultimately improve health and reduce health care costs.”

The more we emphasize this proactive model, the less likely people are to develop fatal and costly illnesses. Each individual is unique in his or her ways, appearance as well as beliefs, and the same goes for our bodies. Prevention and prediction are the two key solutions, after which with the quantum progress in technology, almost  anything can be personalized.

Watch this  interview as Dr Eric Topol Discusses the Creative Destruction of Medicine about the technological advances in the health industry,  saving time and money, digital tools  to predict and prevent possible illnesses or act as personalized treatment to people with chronic ailments.

The new gadgets that Dr. Topol talked about fits right into our three main priorities. They are exactly what we want to support so that people all over the world get the most optimum health solution possible.

In order for these new inventions to become standardized medical tools, their reliability still has to be proven. I find it hard to get my head around the fact that such a small device that is attached to my mobile phone could potentially save my life. What if the device is carried in a bag and gets dirty, will it still give accurate results? It is a challenge to mainstream medical devices but if they are applied successfully, the outcome could be life saving.

The health industry is evolving in a way that it is improving existing systems and developing amazing technology. Who would have imagined holding a device attached to your phone that can read your blood pressure? These new innovations are reducing prices and making medical care more accessible to people. If  Dr. Topol’s vision becomes more main stream, then the next few decades will revolutionize the way we view and interact with medical care.

I think Dr. Topol is completely right, we would all like to know more about our body’s health condition, knowledge that could predict a heart attack or prevent us from becoming seriously ill. Let’s support innovators who have the know-how yet lack the means to develop technology that will only benefit us all!

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August 3, 2013 · 3:01 pm

Top CEO Leadership Secrets

For Mukesh Ambani, Chairman & MD of Reliance Industries, and one of Asia’s richest men, “leadership is about soul, heart, and mind. ‘Soul’ is what you believe in – your values. Everyone’s values are different; it’s not necessary to converge on them. ‘Heart’ is your passion – it gives you the courage to build something and compassion and the other qualities that define who you are. The last and least is ’mind’ – your competences.” http://ow.ly/nBwab

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Protect Equity Crowdfund Investors by Strong Corporate Governance

By Antonio Arias

STOP FRAUDAs the former CFO or Audit Committee Chairman of publicly listed companies, I have resigned three times in my career to protect the shareholders’ interest. Most of my professional accountant colleagues laud the decision but others have frowned on my “radical” position. After all, taking that position means cutting my income. At one time, a CEO even tried to lure me with stock options to change my position. In all cases, I have challenged the CEO to resign or I resign.  Each one had rather have me leave. Consequently, I have won investors as friends for standing out for them and eventually the guilty CEOs had to resign.

This weekend I read an article by Mr Gwyn Morgan, former chairman of SNC-Lavalin, who has recommended corporate governance changes I have been advocating for quite some time. The business practices of the public corporate world is fraught with conflict it seems the entire system is too blind to accept the realities of commercial greed.

Here are some of Mr Morgan’s  recommendation   as written in  Globe& Mail: What I Learned from SNC Lavalin Woes (Gwyn Morgan)

Information is key

Because directors get most of their information from people within the company, they need to do everything they can to build and diversify their sources. There should be a robust whistle-blower system, independent of management, so employees can pass on information to directors without fear of reprisal.

Financial reporting structures matter

Internal auditors should report directly – and only – to the chair of the audit committee, not to management. The chief financial officer should have a direct reporting relationship to the audit committee chair. Operating division comptrollers should report to the CFO, not to the division leader or the business-unit head.

Focus on leadership

It’s important to have strong financial controls and ethical codes, but they will fail unless all people in leadership roles, from the CEO on down, follow them diligently and consistently.

Culture, culture, culture

It is said that corporate culture is defined by how people act when no one is looking. But it is also defined by how employees react when they see behaviour that is inconsistent with the values of the organization. When their reaction is, “We’re not going to let this happen in our company,” the organization is built upon a solid ethical foundation.

What does this mean for Equity Crowdfunding?

At Healthy Crowdfunder, we will manage our client-investees, by applying strong corporate governance. As co-investors, our interests will be aligned with all shareholders. A strong fraud prevention system relies on strong corporate governance policies and practices, championed by the CEO and independent board of directors.

The SECs of the world should put the onus of protecting investors in the hands of those who have the most to lose – the independent board of directors who hires the CEO and its top executives. The cost of investor protection should be proportionately related to the amount of money at risk. The larger the amount the stricter the controls. Technology is already here to mitigate some of those risks.  Let’s use it.

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SEC Lifts Ban on Advertising to Accredited Investors – Sept 23, 2013

by Antonio Arias

See “SEC Fact Sheet” >http://www.sec.gov/news/press/2013/2013-124-item1.htm
us sec
Significance to Securities Issuers
1. Subject to compliance of Regulation D Rule 506(c) exemption Form D, we can leverage both social and traditional media to reach out to accredited investors and present our value proposition.
2. Now, investors will know we exist. They could start doing their research. Because of technology, there will be traditional and digital conversations from which we can deduce new knowledge. With new knowledge we can connect the dots previously not apparent.
3. We will know our competition. How does their offering stack against ours? If they are better, we got more work to do. In the end, the end user ends up with a better product. We all win if we put our customers’ interest on top. Our customer can be our target strategic investors or strategic partners.
4. It is the perfect opportunity to practice transparency and operate with full integrity. It is an opportunity to build trust and a longer term relationship with our investors.
5. We can find more capital on this round and future rounds if we deliver expected results. More capital will flow to the US at the expense of other countries lagging behind equity crowdfunding.

Significance to Investors
1. For long term investors, the selection of private securities of industries we believe in has just expanded.
2. We will know other investors of common interest and co-invest like a syndicate. Conducting due diligence as a group could save us time and resources if we all collaborate.
3. We are no longer restricted to investing in the volatile public capital markets. The lines dividing the private and public company exchanges will blur and eventually converge.
4. Inclusion of “bad actor” provisions will prevent actors or relevant parties who have been convicted of securities fraud or violations from participating under this new rule.
5. For professional investors like Healthy Crowdfunder, our deal flow sources have just expanded. It can lower our acquisition cost.

Significance to Consumers
1. We can be investors and consumers of the very products we need and believe in.
2. Our choices of quality products have just expanded.
3. We can participate in the creation of innovative products or solutions by the kind of companies we support.

Significance to Securities Regulators
1. We can learn how technology can allay a lot of our fears of investor safety. Technology engineers are listening and will design the relevant algorithms.
2. We will see traditional and social media conversations and will alert us about the trouble spots.

To all positive thinkers, can you think of anything else?

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Happy Mother’s Day – 5 Things Mother Taught Me

by Antonio Arias

IMG-20110929-00021In honor of my mother today being Mother’s Day, let me share some of the things she taught me about business. I was very fortunate to be her first-born as she often shared with me her working days even when I was a kid.

1. Respect other people’s money
Your business will grow as long as you are delivering your customers’ needs. When you grow, you will need other partners or investors to keep delivering more of what your customers need. Your investors become your customers too. Respect them by investing their money to what you said you will do. If you have to change your direction, ask them permission or return their money. Return their money plus the profit they expected to gain.

2. Give generously but wise about giving your time
Building relationships is sharing the most important finite resource that you will never get back – time. The only way to be wise about who to give your time to is to get better at knowing people. The only way to know people is to keep investing at them by understanding their motives and their values. So giving time is a form of investment. Not all will yield a positive return. Diversify your investment in the kind of people you deal with. Once you know the people you can trust, no contract will be strong enough to protect your interests.

3. We are in business to serve
Customers’ needs always come first. Never chase money for the sake of money. It always comes as a result of delivering results. Spend enough time to understand the changing needs of your customers. Know your competition as that is the only way you can deliver something better that your customers will buy.

4. Negotiate hard but make everyone win
To deliver results mean recruiting partners or suppliers. We are all playing to win. Sometimes, you have to defer your rewards to make others win first. Understand the motivation of your partners. Winning does not come from hard cash alone. Offer something else to compensate so that all of you achieve your respective goals.

5. Maintain balance
Life has to be fun. Mom always had a happy disposition. I remember mostly happy moments with her, probably because she was always talking with other people. She gave out energy as much as she took in. If she was not working in business, she was playing the piano or doing some cooking for all of us to enjoy. For me balance meant using both the left and right side of the brain. Spending time being creative as opposed to analysing data, or simply exercising to get the rusty parts of our mind and body functioning. My Mom taught me to work hard and play hard.

 

 

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