Hey all,
Justin w/ Empire Flippers here. Happy to answer any questions you all might have about EF Capital.
I'd start by saying this is different from the Income Store (fiasco) in a number of ways. The similarity is that it involves investment in online businesses from passive/silent investors, but you'll find something similar with companies like Thrasio, Perch, and the dozens of others joining the space in the last 2-3 years.
Here are the differences:
1. Expert Operators - Rather than having one team run a host of different monetization and business models, we've identified and selected experts at each with solid experience and a track record.
2. No Black Box Investment - There isn't a pool of funds being used to run all of the businesses/portfolios. Each operator will have their own distinct pool of funds. These are closed-end funds, meaning no additional money will be put into the pool. (Opening any pool up to a Ponzi, paying older investors with newly injected money)
3. Transparent Finances - All investors in each fund will see exactly where the money went, where it was spent, and the profits distributed. In fact, it's our intention to publicly share a limited version of this data to the public, pending legal approval.
4. No Guarantee Of Returns - For pretty obvious reasons - it's not sustainable. These are high-risk, high-reward investments and requires any/all investors to be accredited. Even investors outside the US have to meet the same standard. Frankly, we don't know how these investments will perform, but we've A) Selected operators who have a track record of success and B) Are optimistic based on modeling we've done and the other funds I linked to above.
While the industry is still quite young, we've seen significant growth and early signs of more sophisticated investments in the space. We look to industries like Real Estate for examples as to where we think things are going and believe these are some of the first steps being made along the way.
We've put quite a bit of thought and effort into this in terms of legal requirements, conflict issues, incentive alignment, etc.
That being said, we're sure there will be bumps on the road, adjustments made, and problems/issues we didn't foresee.
I know there are smart, capable entrepreneurs and investors here - would love any feedback you all have for us as we move forward!
Justin w/ Empire Flippers here. Happy to answer any questions you all might have about EF Capital.
I'd start by saying this is different from the Income Store (fiasco) in a number of ways. The similarity is that it involves investment in online businesses from passive/silent investors, but you'll find something similar with companies like Thrasio, Perch, and the dozens of others joining the space in the last 2-3 years.
Here are the differences:
1. Expert Operators - Rather than having one team run a host of different monetization and business models, we've identified and selected experts at each with solid experience and a track record.
2. No Black Box Investment - There isn't a pool of funds being used to run all of the businesses/portfolios. Each operator will have their own distinct pool of funds. These are closed-end funds, meaning no additional money will be put into the pool. (Opening any pool up to a Ponzi, paying older investors with newly injected money)
3. Transparent Finances - All investors in each fund will see exactly where the money went, where it was spent, and the profits distributed. In fact, it's our intention to publicly share a limited version of this data to the public, pending legal approval.
4. No Guarantee Of Returns - For pretty obvious reasons - it's not sustainable. These are high-risk, high-reward investments and requires any/all investors to be accredited. Even investors outside the US have to meet the same standard. Frankly, we don't know how these investments will perform, but we've A) Selected operators who have a track record of success and B) Are optimistic based on modeling we've done and the other funds I linked to above.
While the industry is still quite young, we've seen significant growth and early signs of more sophisticated investments in the space. We look to industries like Real Estate for examples as to where we think things are going and believe these are some of the first steps being made along the way.
We've put quite a bit of thought and effort into this in terms of legal requirements, conflict issues, incentive alignment, etc.
That being said, we're sure there will be bumps on the road, adjustments made, and problems/issues we didn't foresee.
I know there are smart, capable entrepreneurs and investors here - would love any feedback you all have for us as we move forward!