Public markets are offering huge opportunity for investors to start right at the ground-floor but unfortunately there are still many successful companies who remain private. Now, however, there may be a way for investors to capitalize on the successes of many novel, private start-ups by focusing on the public companies that are helping them grow through incubator and accelerator programs.
Let’s ask this question: What’s the better path to success: be part of a group or go it alone? For many entrepreneurs in the tech space, being part of something larger has helped them get their businesses off the ground more quickly and smoothly. Ultimately, an incubator can be the perfect bridge to make the big step from idea to execution.
One of the biggest benefits of being part of an incubator is the ability to tap into a strong network of business partners. A powerhouse network can also be beneficial from a public relations perspective. There is only so much you can do as a startup with a limited marketing and PR budget, and being part of a group of companies can helped gain traction and step into the spotlight.
Digital Arts Media Network (DATI) Is Giving Investors The Edge At Real Wealth Drivers, One Company At A Time & The Street Is Just Starting To Take Notice!
Just think about the first big tech boom back in the dot com age. Millionaires were minted overnight in multiple cases. If you bought about $1,000 of Google stock — about 11.76 shares — at the IPO price in 2004, then you’d have about $18,522 today. If you’d invested $10,000, then you’d have $185,384.53, a gain of $175,384…that’s an eye popping 1,752.94% change, or about 18.5x.
In today’s technology climate, the “go it alone” strategy is a thing of the past and now investors can have exposure to multiple successes by focusing on incubators & accelerators. In fact, these types of companies have been responsible for launching some of today’s most infamous “unicorns,” like Reddit, Dropbox, and Airbnb.
They have become a major player in the current startup landscape, taking credit for one third of all 2015 US startups that raised Series A capital. Competition to be included among the accelerators’ elite, and companies like TechStars, is fierce, due to the mentoring support they provide and investor attention they attract.
But now DATI has found a way to tap into this elite circle and offer something that could create a paradigm shift for the traditional incubator, which could translate into massive upside potential for those looking at the company before the shift happens.
Digital Arts Media Network (DATI) is unique within this niche space. The company’s ability to become an ‘add-on’ to top tier accelerators such as Techstars, Angelpad, Y Combinator, StartX and 500 Startups allows them to accelerate capital investment into startups. DATI provides angel investors with a hedge against their private equity investments instead of simply trying to fund and mentor startups. This provides a value-add to the entire startup community.
Digital Arts Media Network, Inc. (DATI) Purchases Equity Stake In Cannabis Crowd Funding Company, Fundanna, Inc.
Digital Arts Media Network, Inc. (DATI), a specialized tech accelerator leveraging the Public Accelerator-Incubator (PAI) model, has closed a transaction to purchase an equity position in the cannabis crowdfunding company Fundanna, Inc. – owner of Fundanna.com (powered by truCrowd, Inc.).
The initial investment, which was made as part of the Digital Arts Media Network “Invest+” program, was done with the intention of building a long-term relationship with Fundanna, Inc. As such, Fundanna, Inc., acquired an equity position in Digital Arts Media Network. It is anticipated that in the future, the relationship will expand to include other accelerator services.
Fundanna.com is an S.E.C regulated FINRA member cannabis focused, crowdfunding portal, where accredited and non-accredited investors alike, are afforded the opportunity to invest in cannabis businesses.
“We see tremendous upside in Fundanna, Inc.,” said Digital Arts Media Network CEO, Ajene Watson. “According to New Frontier Data, a cannabis-focused data firm, the ancillary cannabis market – which is what Fundanna, Inc. specializes in – grew 161.2% in 2016; consulting increased 737%, investment/M&A up 366% and consumption devices increased 116%.”
The Tipping Point, Realized
Until now, investing in well-vetted accelerator portfolio companies was almost entirely exclusive to angel investors with deep pockets. These investments were locked for years, given the amount of time it takes for ROI to mature.
Angel investors aligned with leading accelerators to gather the cream of the startup crop, and then brought entrepreneurs together with venture capitalists as mentors. This limited risk, giving the startup expert guidance in its early stages, and investors the chance to oversee developments.
Technological advancements have allowed media, internet, gaming and communication companies to achieve greater values today, higher than ever before, and at faster rates. There are a multitude of start-ups, investment interest is extraordinary, and high-value, high-growth success is attainable. However, as Mark Zuckerberg noted, “We live in a world where talent is evenly distributed, but opportunity is not.”
Through DATI, smaller investors can join the same investment pool as larger backers, funding the same well-vetted startups, and making the same kind of returns, according to the company; breaking with the traditional elitist investment model. Furthermore, DATI sees potential for quicker ROI compared to traditional and what some would call, outdated accelerator programs.
Typical accelerators usually have private investors who need to wait as much as ten years before their investment matured to liquidity. During that time they had no choice but to wait and see if their investment proved to be a success. But now DATI’s public incubator accelerator takes away much of this liquidity risk.
“The investment community has never been a space for all people, until now. True access to wealth and financial prosperity through investments has never been within arm’s reach for the majority of people in this country… finally, microcap investors will… have the confidence they’re investing in solid teams and technologies.” – Ruben Porras, a Techstars Alum, Co-Chief Architect of PAI and Board Advisor to DATI,
The Public Accelerator-Incubator not only effectively offers solutions to multiple investor types, but also resolves many of the challenges shared by startup ventures and high-growth development companies – both private and within the microcap markets.
The Shark Mentality
Breaking it down, simply, the show, “Shark Tank,” can explain this easiest. The Sharks take an equity stake in the companies to act as advisors in most cases. They do not take the position of acting CEO or manage the day-to-day.
DATI’s incubator/accelerator platform serves a similar role. By focusing on equity stake in successful start-ups, DATI potentially benefits from its equity value growing, which can then translate into the public markets as building stronger shareholder value.
By giving angel investors quick access to investment liquidity, Mom-and-Pop investors a chance at success they’ve never had before, and startups access to a more profitable capital model, this is one innovational platform that could change the way start up investment is handled.
DATI’s model could offer investors the ability to diversify, maximize success, easily see money at work, and access liquidity. This, while mitigating the oncoming risk bubble and giving the startup and microcap communities another, more conducive, platform for growth.
And the company itself is standing behind a model that focused on creating real shareholder value. How? Well, just for starters, the company announced a massive share reduction already and the fact that according to management, it could be just the beginning.
DATI announced that it has elected to retire 18,526,879 Shares of its common stock, bringing the current outstanding down to approximately 105M shares as part of an effort to build shareholder confidence and substantiate value through a Share Reduction Program.
According to management, currently there is a little more than 2M shares in the trading float and approximately 105M shares outstanding of which, roughly 90% of the outstanding stock is restricted and held by AJENE WATSON, LLC!
BUT THAT’S NOT WHERE IT ENDS
A look at the “Subsequent Events” section of the second quarter financials (found here) shows even FURTHER share reduction, “During August 2017, the Company’s largest shareholder, principally owned by the Company’s CEO, canceled and retired 83,733,121 shares of its common stock holdings; returning the stock back to the Company treasury.”
That is why, if you look on OTCMarkets.com right now (as of 8-22-17) the Outstanding Share count shows less than 22,000,000!
It Comes Down To Timing
Word has just started to get out on DATI and the market has just begun to buzz. In fact, during the second quarter of this year, DATI caught serious attention when a columnist from Inc.com specifically highlighted its PAI model! The timing of this could be critical especially considering that the landscape for tech start-ups has been trending at a feverish pace.
DATI has flipped the incubator industry on its head but opening the doors, allowing access by more than just “elite angels”. On top of this, there are few opportunities for the public to take advantage of any incubator, let alone one who’s working to change the face of the way an industry does business. For these reasons, right now could be one of the most important times to have DATI on your watch-list!
DISCLAIMER: PURSUANT TO AN AGREEMENT BETWEEN US AND Digital Arts Media Network Inc. WE WERE HIRED FOR A PERIOD BEGINNING ON 6/12/17 AND ENDING ON 6/30/17 TO PUBLICLY DISSEMINATE INFORMATION ABOUT Digital Arts Media Network Inc. (DATI) INCLUDING ON THE WEBSITE AND OTHER MEDIA INCLUDING FACEBOOK AND TWITTER. WE ARE BEING PAID $25,000 (CASH). WE OWN ZERO SHARES OF (DATI), WHICH WE PURCHASED IN THE OPEN MARKET. WE PLAN TO SELL THE “ZERO” SHARES OF (DATI) THAT WE HOLD DURING THE TIME THE WEBSITE AND/OR FACEBOOK AND TWITTER INFORMATION RECOMMENDS THAT INVESTORS OR VISITORS TO THE WEBSITE PURCHASE WITHOUT FURTHER NOTICE TO YOU. WE MAY BUY OR SELL ADDITIONAL SHARES OF (DATI) IN THE OPEN MARKET AT ANY TIME, INCLUDING BEFORE, DURING OR AFTER THE WEBSITE AND INFORMATION, PROVIDE PUBLIC DISSEMINATION OF FAVORABLE INFORMATION.