The Mass Affluence Effect in Early Stage Investing
At the end of 2011, 8.6 million households in the United States possessed between $1 million and $5 million in net worth qualifying their residents as accredited investors. The early-stage companies as an asset class have received an exponential increase in media attention; financial news shows focused solely on alternative asset classes, reality shows followed incubators and startup companies, couple with extensive coverage on fundraising events, secondary market “valuations,” acquisitions, and IPOs have all led to a flurry of new accredited investors (including celebrities) turning to the early-stage world. Even family offices have begun to bypass funds and invest directly into nascent companies. With the rise of online platforms providing access --and integration--into the ecosystem of sophisticated, professional investors, what effect will accessibility and popularization have on the early-stage market?
Join us on June 18th at the TriBeCa Rooftop to explore the current state of early-stage investing.