Bitcoin Forum

Bitcoin => Project Development => Topic started by: bitpop on February 27, 2020, 09:07:24 AM



Title: .
Post by: bitpop on February 27, 2020, 09:07:24 AM
.


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: CristianOff on March 03, 2020, 05:28:19 PM
This actually sounds very interesting.
I am open to join an investment fund if it invests in crypto and manages crypto on behalf of the client because this is appealing to me.

If you're proceeding with the investment fund in small businesses, it would be better if you get serious about it with actual numbers
so that you can convince investors.

Here is what we will raise: $ X
Here is what we will expect to profit: $ X
Here is how much money investor gets back in X amount of time: $ X
Here are our company costs: Salary for managing the business, investment amount perhaps?

Also a person to run the fund side needs to be someone who has GREEN connections (strong connection with at least medium net worth individuals)


I know a guy who is his own "investment fund", invested in 23 local shops in 2012 (about €20k each) and is now worth over €10M so that's why I believe your idea is worth it.
The only difference is that this guy took out a big deal of a loan and leveraged his investment.


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: Vod on March 03, 2020, 08:02:57 PM
It would be a fund, like an ETF or REIT that invests in small businesses. I would create the team and business that buys and runs small businesses such as restaurants and local shops.

I have a lot of experience running a small business and would like the capital to buy and run many of them, returning the profits to the investors. It would help Bitcoin investors diversify and earn income.

You need to show proof of your success with investments.  Then you will attract investors naturally.  :)


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: hulla on March 03, 2020, 08:53:14 PM
As said by CristianOff, the idea is interesting but to none crypto enthusiast because crypto enthusiasts will choose to accumulate more coins and hold till the new ATH is achieved than raising a fund only for someone to create a small business while they receive something like a dividend. But, you may have a good response if you choose to post your offer on the local board while you and people do the deal and signing in person.


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: 2double0 on March 03, 2020, 09:14:50 PM
A Bitcoin ETF? Will it get an approval at first?
Can't you open a crowdfunding website where you can let your investors check the PoS 'Proof of Success' as directed by Vod and invest directly into your project without the involvement of a centralized institution like SEC which will need to approve your ETF before it gets publicly released?


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: stomachgrowls on March 03, 2020, 09:36:50 PM
I know a guy who is his own "investment fund", invested in 23 local shops in 2012 (about €20k each) and is now worth over €10M so that's why I believe your idea is worth it.
The only difference is that this guy took out a big deal of a loan and leveraged his investment.
Why wont take the same action?It would somewhat like a gamble but since you do know the probability on making money out of this idea then risking out will vary on you.


You need to show proof of your success with investments.  Then you will attract investors naturally.  :)
+1 to this. When it comes to money nowadays it is really very hard to support or fund a project since trust would be the main issue and
most people doesnt get attracted much if the project idea is great.


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: CristianOff on March 08, 2020, 08:50:14 PM

Why wont take the same action?It would somewhat like a gamble but since you do know the probability on making money out of this idea then risking out will vary on you.


Sounds reasonable


Numbers greatly depend on the locality. In my area, an average small business would cost $250k and net $50k per year. Small businesses have amazing return.


So true.
This guy did not do it in the US but rather in a "cheaper" country (Romania where average salary is €300/month). The only advice I know from him and I share is DO NOT BUY RESTAURANTS


If you want to do what this guy did you should follow the advice from
mister president and take a small loan of a million dollars. The risk is much higher unfortunately compared to his $400k and you won't get 10s of shops


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: Harlot on March 09, 2020, 06:23:03 PM
Generally if you are looking for a kind of partnership like this what you would be looking for is some kind of corporation where you will be the managing partner and the one providing the funds is from your silent partner. A normal partnership wouldn't simply cut out especially if you think about the market you will be covering if you think about how a corporation will stand out to the businesses you will be planning to manage. REITs and ETFs are also bound to be a corporation as they aren't normal commercial businesses. so I would advice you to start looking for partners wanting to build a corporation but it would be tough if you won't be flashing out cash on your own.


Title: Re: How would I start an investment fund that invests in small businesses?
Post by: OgNasty on March 10, 2020, 10:10:04 AM
This is what I have in mind, fully legal but without the real estate https://diversyfund.com/investment_offering/diversyfund-growth-reit/

The amount of money you’d have to invest just to start a REIT or an ETF would shock you. Just to get the ticker symbol the cheapest way you’d be looking at buying an existing company starting around 50K. Then there are so many regulations and requirements, not to mention ongoing fees... It’s honestly not realistic unless you think you can raise millions and immediately start producing millions in revenue.

A better idea might be to do a token using a coin like Ravencoin and having all your investors completely unprotected with nothing more than a wink and a smile that you’d ever return anything to them. If you have a good enough reputation you might be able to raise some funds, and with an established track record of payouts you may be able to entice new investment. There are too many issues to list that you’d have to overcome even going this route, but it’s possible.

I’ve personally looked at doing something like this with funds I have sitting around for NastyMining, but the only decent solution for me is investing in untaxable assets, which exist under certain US laws, but pay a very low return and would likely not keep up with just holding BTC.