The Exchanges

Q So, I know you already kind of explained this, but I'd like to hit it from a different angle. Why would a company choose to go through a Reg A fundraise?

A Sure. I mean, there's a number of reasons. Uh, I would say the first reason that a company would want to do this is to, you know, stay in control of their company and to, um, you know, maintain probably as a founder, more equity in the company. Um, when you fundraise through venture capital, uh, there's generally a lot of caveats tied to, uh, you getting that money. And as a founder, you can give up a significant amount of control of your company. You generally have to give away board seats. You will likely have to give up a lot more equity than you probably want to. And so I've met founders that by the time that they're actually ready to go public, they've, they've, they fundraise so much through VCs that they only own, you know, a couple of percent of their company. And that to me, after having built a number of companies, that to me is a travesty. Uh, you know, for somebody who has taken the risk to start something from scratch, you know, birth something, and then, you know, end up with a lot less reward at the end of the day. So I think that's one reason that a founder particularly would be interested in this. The second reason, uh, there's a number, but the second reason I would say too, is that, um, for the right company, for the right company, Uh, it is a very good way to marry your customers to your company. So if a company has a lot of customers, then those customers c…

AI assessment note: “the first reason that a company would want to do this is to... stay in control”

Q Geez. So I guess the, where I wanted to take that was, does having a patent make it easier for the SEC to approve it, or do they don't really care?

A No, that doesn't matter. I mean, it really is in your business plan. It really is in how good the attorney at the law firm is that's doing this. Uh, and it's in how, you know, good you present the package essentially. I mean, that's really what it boils down to. Um, and, uh, most that go now get qualified. Uh, I think there's somewhere around an 87 and 91% of reg A's that, uh, actually get to the point where they're, they're, they're, They're filing with the SEC that get qualified. Don't hold me to that exact number. It might be different from the last time I checked, but I think it's somewhere around there right now. Um, so, you know, there's a very slim chance. I mean, there is a chance, but there's a slim chance that a company doesn't get qualified.

AI assessment note: “No, that doesn't matter. I mean, it really is in your business plan.”

Q What has been the hardest decision you've had to make so far?

A Wow. The hardest decision I think I've had to make so far in business. Well, there's two, I think. Number one, um, uh, is, uh, letting, uh, a business or an idea go. Uh, so, uh, you know, starting something up from scratch, building it, getting it to a point, and then realizing that it was either eating away at my soul and taking, you know, too much toll on my mental health, uh, or Uh, it was unsustainable and costing too much money to, you know, continue down the rabbit hole of the business. Uh, so that probably is, uh, you know, when you birth something like that, it's very difficult to let it go. You want to keep driving it. Um, and I don't want to sit here and say that I've had success after success because I don't think you can have success after success with, without failure. So to me, um, you know, learning how to fail has probably been the hardest part and learning how to let go of certain things. And then I, I think the second thing is, is that You know, in business, you know, you build relationships with people. You get very familiar with people. They become your friends and your family. Uh, when people are working with you to build a business from that, that ground floor level and you get very intertwined in people's lives and then to have to let that person go or move on because it's not a right fit anymore, uh, or because you've outgrown it or they've outgrown it p…

AI assessment note: “Number one, um, uh, is, uh, letting, uh, a business or an idea go.”

Q Sure. Yeah, we can do that. So, is there anything I haven't asked you that you would like to mention?

A Oh, let's see. Um, I mean, in terms of, uh, crowdfunding, I would say, you know, uh, I, I really love the model. I love, I love, uh, you know, helping companies with this model. It's a great, uh, it's a great thing to do. I mean, we've, again, we've been able to, you know, uh, probably our most successful campaign to date is a company you mentioned EI Ventures, uh, which was a psychic is a psychedelic research and development company. Um, and you know, all told, I think we helped, uh, we brought in over twenty six million dollars between multiple campaigns. Um, and so that was a big one. Um, and you know, again, I think for the right company, for the right brand, it's a great way to raise money. I would say this, I would say always, if you're, if you're an entrepreneur and you're building a company, I would say always have, uh, a strategy in your back pocket to be able to, um, you know, fund your company. You know, and educate yourself about it. Read about it. You know, learn the different ways to actually raise money for your company. Learn about these laws. I mean, these, these laws that have been enacted by the SEC are revolutionary because beforehand, and I'd say they're revolutionary from the company side, from the business side, but they're also revolutionary from the investor side because investors in the past, retail investors, the average Joe, You know, who wasn't an a…

AI assessment note: “in terms of, uh, crowdfunding, I would say, you know, uh, I, I really love the model”

Q For sure. What makes you excited for this model and for, I guess, the specific things that you do with it?

A Well, uh, you know, again, I'm a serial entrepreneur, uh, at heart. Uh, you know, I think entrepreneurship, uh, is, um, is one of the, probably the greatest things in our world today. Um, I think that, you know, uh, ingenuity, invention, ideas, um, you know, creativity comes out of that. You know, I think it's made the world what it is today and, and in a lot of ways, in a lot of respects, it's made it better. Um, and so I think that, you know, supporting entrepreneurs is what's, is what's exciting for me. Supporting people that have a dream, uh, that have a vision, uh, and that want to take that to the world. Um, we support businesses from anywhere, uh, right now in, uh, Renewable technology, uh, into finance, into tech. And so, you know, a lot of very innovative things. And to me, that's exciting to be a part of that, something that could possibly change an industry, better the world, um, you know, and support economy. Uh, you know, businesses are the driving engine of any economy. And so to support that, I think is, uh, you know, is, is, is also something that's fulfilling to me. And then of course, you know, at the end of the day, if we do our job right, you know, there's a monetary reward for it. You know, so our goal, my goal with our business, with our companies is to, you know, have invested in and own a part of equity in a hundred businesses in the next five years, a h…

AI assessment note: “supporting entrepreneurs is what's exciting for me. Supporting people that have a dream”

Q But then how do you know I'm doing what I said I'm doing?

A It's just, you can see my, you know, you put it into, and I'll get the name of the app by the end of this, or maybe at the end, uh, if you want to include it in your notes there, but, um, Uh, it's just like this and you have like a little box on the side and you write, you list in what you're going to do. There's no talk. There's no voice communication. I think you can do that, but most of the time, and they'll, they'll select you up with an accountability partner, but then you put in what you're going to do. And then at the end of that time, you know, you're checking those things off of what you're going to do and you know, you're either accountable or you're not. I mean, you know, that's, that's your personal integrity, I guess. Um, but, uh, but yeah, uh, you know, it seems to work. It seems to work for a lot of people. I don't do it all the time, but if I really have to spend five or six hours really focused in on a project and something that I'm doing that's very important, I'll jump on that, that, uh, that app.

AI assessment note: “you're either accountable or you're not. I mean, you know, that's, that's your personal integrity”