The Cape Fear Capital Connection on MyTalker Radio. WMYT fm Monday, November 3, 2014 Curtis Wright and Thomas Vass Discuss The Difference Between The Old Venture Capital Model and The New Accredited Investor Business Model: The Case of Zacks Private Placement Profile Website

MyTalker Radio and The Cape Fear Capital Connection Have Offered A Better Model of Regional Innovation For The Cape Fear Economy Generation 1 Deal Mapping for Ideas Deal Creation Deal funding Deal Exits Profit Re-investment in Regional Companies Generation 2 Deal Mapping Deal Creation Deal funding Deal Exits

Last Week We Discussed The New Private Placement Settlement Account At Folio Investing Folio Investing Moved The Entire Closing Transaction to Raise Capital To The Internet. Deal Funding Folio Investing Company Account Multiple Investor Accounts

Why This New Closing Platform Is Important To The Company distribute company securities in a single click, rapidly gauge market response and act with current information about investor demand. regulatory compliance, tax reporting investor online accreditation, instant access to offer documentation and subscription status, and an online brokerage account

In Conjunction With The Cape Fear Capital Exchange, The New Closing Process Allows Companies in The Cape Fear To Access Capital Companies in the Cape Fear can raise an unlimited amount of capital. Companies can control the entire process of issuing securities. Companies can advertise and market their offering to investors, using new marketing tools on the internet.

Which Raises The Question: Where Do The Investors Come From? In the old venture capital model, the company went to individual venture capital firms and were at the mercy of the venture capitalist. Outcome? VCs review 100 business plans, and invest in 10. Of the 10 deals they invest in, the VCs terminate about 65% of the deals in the first 3 years because the company did not meet the VC financial goals. After our break, we will discuss a better model.

In the New Model of Raising Capital, Companies Use Internet Marketing to Find Investors A good example is Zacks Private Placement Website. Companies place a profile listing on Zacks, just like dating websites have a profile page. As a matter of fact, the new accredited investor private placement process is a lot like dating websites.

The Benefits of The Zacks Private Profile Listing Zacks Private lists over 30,000 investment opportunities that can be sorted and filtered by investors to drill down to the deals that are most important to the investor. Half a million daily subscribers use the parent Zacks Website for investment research and financial opinion pages. Over a million qualified accredited investors use Zacks to find private deals. Zacks proprietary technologies and databases can help the company pinpoint the right investors in the industry’s largest pool of accredited investors. Over 100,000 accredited investors have opted-in to obtain s on new deals that match the investor’s criteria.

Zacks Is Only One of Five Big Accredited Investor Websites That Match Companies to Investors Investors from all of those outside websites need a centralized investment account to direct their investment to the company. VOILA! Folio Investment’s New Private Placement Account.

The Biggest Difference Between The Old VC Model and the New Model? In 2012, and in most other years, the entire venture capital market in the U. S. invests about $30 billion in private deals. In 2012, the rest of the private capital Reg D market did over $800 billion in deals. In other words, the venture capital supply of capital, including the much vaunted angel partnership supply of capital, is responsible for about 3% of capital investments in the U. S. in any year.

The Implications For The Cape Fear Economy? There are tens of thousands of accredited investors who live in the 7 county Cape Fear regional economy. There are about 500 high quality private technology companies in the regional economy. Combine Zacks type of profile matching service with Folio Investment’s account, and help local companies connect to local sources of capital.