lowtrade

[lowtrade]

I'm slowly excepting that the OTC of old is no longer. JMO this one looks old school. Probably wrong as I really don't spend any time researching anything in pennyland any longer. But if trends in price action remain, odds are the market as a whole will become known as a ghost town, instead of wild west.

I just posted how market makers M&Ms are dwindling, If the OTC VC niche follows, gambling on the OTC may be a thing of the past.

As for the Venture Capital industry, it seems to be booming. But in other niches. Lots of money flowing into second and third round funding of non public companies. Probably why we see TV shows on the subject now. If you ever watched Shark Tank, you get an idea of how rich big guys think.

The company owner gives their company a value and asks for a percentage of ownership based on that. Every shark cuts that value hugely forcing owners to except way less then wanted or expected. Adding the synergy of their experience to help build a successful start up. Usually owners jump at giving more of their company for the mentorship, over cash desired. But basic, simple and clean. The Sharks fleece the owners every show.

I find business start up funding interesting and have spent hours learning about it. Here's a link to help understand startup funding. Keep in mind this info is more about private startups then public. Public like the OTC is another niche. And we're discussing the changes in that niche now.

Will OTC VCs be happy with smaller gains and continue to fund. Or move on to a new area to fund. That's the question. Or will they try to resort back to the old ways.

Here's the link to study startups to IPO's. Great basic info !!! IMO
http://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/raising-money-for-a-startup