Today there is a ‘gold rush’ of startups seeking to tokenize their fundraising efforts, by various means and in various jurisdictions. How is a startup without experience in blockchain to go about pursuing this? Is it even worthwhile? Similarly, how are investors without experience in blockchain to fairly evaluate a token offering of any sort, equity or utility? What regulations apply? How do we do this “right”? How can investors recognize scammers? How can a startup get itself organized so people don’t think they are a scam?
Blockchain is a whole new asset class that is increasingly being accepted by a wide range of enterprises and investors. Getting up the learning curve quickly, doing so in legal compliance, and maximizing your exposure and performance are all essential for the long term success of the startup enterprise, and of the investor seeking worthwhile investment opportunities.
This is where we come in. GSI Advisory Services brings decades of experience in startup ventures, blockchain expertise, and working with investors to bear to offer both entrepreneurs and investors a reliable source of advice on all aspects of using and investing in blockchain technology.
You may not think that you need tokenization or blockchain in your business. Your old school IT pro may be telling you that you don’t need it. But the fact is, that if you are in need of raising capital between 2-50 million dollars, you may not have a choice. Investors have increasingly diverged in the last decade, with some VCs choosing to focus on angel investing in fresh startups, while others, and family offices that seek to preserve their wealth and minimize risk, have gone upmarket, choosing to invest only in companies seeking 50-500 million, creating huge “hole” in the capital markets, what are typically called the A and B round raises.
If this is where your company is at, needing to raise several million dollars, you probably have already found it to be very difficult to raise that venture capital unless you already have multi-million dollar revenues and capital reserves, in which you really don’t need it. Going to the banks is impossible, and unless you are in a family with family office, good luck going to them for investment via traditional private equity stock placement.
This A/B round market segment is where Initial Coin Offerings have found their own. ICOs are able to raise significant funds from a global market of investors who may or may not want or need equity in your firm in exchange. We can show you how there are differences between coin or token offerings based on how you structure the tokenomics. We can help you devise business models that are both legally compliant and maximize your raises, and do it securely so that your raise is not compromised by hackers or other negative issues.
You are probably wondering about all this crypto stuff. You don’t know what a blockchain is, or how ICOs work, but you know a lot of people are making a ton of money investing in them, and you want a piece of the action. At the same time you hear lots of scare stories, what we call “FUD” about how some people are losing their shirts after mortgaging their homes to invest in crypto. The fact is that the average investor in crypto has seen an 82% return on their investment in the past year, far greater than any other asset market has performed for the average investor. By comparison, traditional private equity venture capital markets largely deliver an ROI of less than the S&P 500 the family offices and High Net Worth Individuals who make up the bulk of investment in those markets. Public stock markets rarely do better than 15-20% a year. Your savings accounts and money market accounts, even CD’s are essentially negative interest rates, less than the rate of inflation. Where else can an investor regain the sort of upward mobility that our grandparents were taught was the birthright of all Americans?
If you are already a successful investor, maybe a Family Office or HNWI, maybe you run a VC firm or Hedge Fund, you are largely concerned about preserving your wealth for the next generation by protecting against downturns. But we are now in a transformative age of disruptive technologies, much like the first Industrial Revolution that transferred most wealth from landed aristocrats to upstart middle class merchants who became the industrialists. You cannot preserve your wealth when the entire definition of wealth is being rapidly rewritten by new technologies, new business models, new currencies and asset classes. You need new thinking to help you plan to preserve your wealth in this disruptive era.
This is where GSI Advisory Services can help the investor: analysing the pitches, proposals, white papers, business plans and private placement memoranda of various ICO startups, evaluating their plans and models, teams and tech, to give you the investor quality, expert information about which opportunities represent real value propositions, and which are what we call ‘scamcoins’.
You can join our Crypto Investment Club to get access to evaluations of many ICO startups, as well as aggregated news about the ICO scene from many sources so you can make informed decisions about investing in ICOs. If you want personal, concierge services, providing deep due diligence work on specific ICOs, we can do that too. We already provide such advice to a half dozen of the top family offices in the country, and through them, to a broader network of hundreds of family offices. Our advice to FO’s is confidential as well.
Our founder, Mike Lorrey, is one of the original cypherpunk founders of crypto. He collaborated with Nick Szabo, Hal Finney, Ralph Merkle, Wei Dai, and others in the late 90’s and early 00’s to develop the ideas to fix the problems of early digital currencies, ideas that eventually became what is now known as Bitcoin. Mike developed the first virtual stock exchanges, and has advised family offices on investments in transformative technologies of all kinds for years. He has been directly involved in running and/or advising over a half dozen ICO startups to date, and that number continues to climb daily.
In addition to being CEO of Galactic Systems, Mike is CTO of Metalyfe, the leading blockchain based next generation web and game browser. He is an expert in integrating tokenomic models into standard businesses from supply chains, to news analysis, to VR, oil and gas, aircraft, and many others.
Mike is backed up by a team that has been managing Galactic Systems daily operations and advisory services for several years.
Crypto investors look for Mike’s face on the executive team or advisory team on ICO startup websites and white papers. They know he knows crypto because he’s one of the founders of the industry, and they trust that if he is involved in a project, or given it a stamp of approval, it is more than likely to succeed.