MSRPlans Blog

November 19, 2014
Some estimates suggest there are 100,000 startups per month. Not all receive funding, and many that do are funded internally. However in 2012, approximately 153,000 investors participated in offerings by operating companies, while approximately 81,000 investors invested in offerings by pooled investment funds. Because some investors participate in multiple offerings, so these numbers overestimate the actual number of unique investors in these reported offerings. Only 8% of offerings by pooled investment funds included non-accredited investors.
The SEC estimates that at least 8.7 million U.S. households, or 7.4% of all U.S. households, qualified as accredited investors in 2010, based on the net worth standard in the definition of “accredited investor.” Data from Form D filings in 2012 suggests that fewer than 234,000 investors (of which an unknown subset are natural persons) participated in Regulation D offerings, which is small compared to the 8.7 million households that qualify as accredited investors who control $800 billion of private investment.

August, 12, 2011
An impassioned salesman often uses the word “guarantee”, but when selling stock or private equity, this word is blacklisted. Brokers used to take greater liberties in making predictions - saying they guarantee a stock is going to soar. But this was already history when I was on Wall Street in the late 1990s as an investor relations (IR) account executive and hedge fund manager.

Back then I was taught, “The only thing that is guaranteed is US Treasuries.” On August 6, 2011, the United States lost its AAA rating by Standard & Poor’s (S&P). Even though S&P dropped the rank by the smallest increment possible, and the two other ratings agencies kept US debt at the highest ranking, the markets gyrated wildly in the following days.

Where does this leave the meaning and applicability of guarantee? There are plenty of countries on S&P’s list that retain AAA status: Austria, Australia, Germany, Sweden, Singapore and Guernsey, which is in the Channel Islands. However, I don’t think today’s IR reps are going to be taught to only use the word guarantee when talking about the debt of Guernsey.