Since the official Leads rollout of this new technology they have seen impressive results for clients.

Leads Inc. located in El Segundo, CA has recently partnered with Investor Media to deliver full investor awareness and investor marketing campaigns.

“We felt that leadS Inc. and investor media was a match made in heaven”

The new company’s team has a track record of success in investor marketing. They have experience in Reg A+ and Reg D marketing, Real Estate, Gold, private placements, and retail lead generation. Having worked and build email databases of Accredited Investors for Reg D campaigns, the company has built a solid foundation in investing.

The good news is that this technology can be used in all verticals making Leadlogix an essential tool for companies looking to generate leads and convert clients. This technology will help companies build quality leads with ease and precision.

Verify Accredited Investors

As the company website suggests, conversions using the full suite of tools have improved client performance up to 800%. For Reg A+ raises, Leads Inc. was able to not only target and convert the investor but also verify the investor criteria as an accredited investor, saving the issuer company thousands. Working on their metrics, they verify lead generation, lead conversion and lead verification costs were $55.00, this is way below the industry standard just to verify the investor of $60.00.

The technology build an identity graph of the site visitor, this enables the company to target their audience as never before. The ability to upsell to clients and build subscriptions through lead conversion has become automated.

Investor Lead Generation

For Financial and Investing sites, Leads Inc. gives companies the ability to build a compliant list of new investors or to target their audience with relevant offers. Their unmatched investor lead generation ability to build a large database of investors is their most appealing service at the moment.

Verify Site Users

The new advertising laws around CBD and tobacco products can benefit from LeadLogix in many ways including the ability to verify the age of the end-user, thus eliminating any issues with advertising or selling products to anyone under 21.

E-Commerce Re-Targeting

E-commerce sites have the ability to save on retargeting ads by delivering offers that their site visitors are browsing and offer discounts to an engaged audience.  The ability to target what your customer wants, when your customer wants it helps deliver impressive conversion metrics.

Leads Inc. has built a range of services for all clients and agencies depending on their needs and they offer the ability for all their customers to save tens of thousands of dollars per month on marketing and advertising budgets.

Leads Inc.

Investor Media

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DoorDash Inc mentioned on Monday it’s aiming to boost as much as $2.8 billion in an preliminary public providing (IPO), which might double the worth of the U.S. meals supply startup and be one among 2020’s largest public market debuts.

DoorDash, the most important U.S. third-party supply firm for eating places, plans to promote 33 million shares priced between $75 and $85 apiece, it mentioned in a regulatory submitting.

On the high of its goal vary, the IPO would give DoorDash a totally diluted valuation – which incorporates securities reminiscent of choices and restricted inventory models – of $31.96 billion, almost double the $16 billion DoorDash was value in a June personal fundraising spherical. DoorDash’s market capitalization at $85 per share would complete $27 billion.

The hefty leap in DoorDash’s valuation in a matter of months underscores the elevated demand for meal supply providers in the course of the COVID-19 pandemic, in addition to anticipation of continued investor demand for brand new shares which promise progress.

Firms have raised over $140 billion in the USA up to now in 2020, making it the most important 12 months ever for IPOs, in accordance with knowledge from Dealogic.

Based in 2013, DoorDash is backed by the Imaginative and prescient Fund managed by Japan tech big SoftBank Group Corp, enterprise capital agency Sequoia Capital, and the Authorities of Singapore Funding Company (GIC), Singapore’s sovereign wealth fund.

DoorDash and rivals Uber Eats, Grubhub Inc and Postmates Inc have benefited from a surge in demand for meals supply providers on account of widespread COVID-19 restrictions.

The corporate posted a surge in income progress in 2020 and its first quarterly revenue, it disclosed in its IPO submitting earlier this month.

A variety of large Silicon Valley names together with Palantir Applied sciences Inc , Snowflake Inc and Unity Software program Inc have gone public this 12 months, using on a inventory market rally within the second half of the 12 months fueled by stimulus cash and hopes of an efficient vaccine to finish the pandemic.

DoorDash’s IPO and a deliberate itemizing by house rental startup Airbnb Inc are set to make December a busy interval for IPOs not like in earlier years and mark a powerful end to a blockbuster 12 months for brand new listings.

San Francisco-based DoorDash plans to drift its shares on the New York Inventory Alternate beneath the ticker ‘DASH’ on Dec. 9. It had confidentially filed for an IPO in February.

Goldman Sachs and J.P. Morgan are the lead underwriters for the providing.

The post DoorDash Seeking Up to $2.8 Billion in IPO at Potential $32 Billion Valuation appeared first on Investor News.

Uber and Lyft are now essentially taxi services.

Uber Technologies Inc on Wednesday informed its California customers that it would switch to providing estimates as opposed to fixed prices for its rides in response to a new law that makes it harder to qualify its drivers as contractors.

In an email sent out to riders the company said the final price would now be calculated at the end of a trip, “based on the actual time and distance traveled.”

Uber and Postmates fought against the California worker law

“Due to a new state law, we are making some changes to help ensure that Uber remains a dependable source of flexible work for California drivers,” the company said in the email.

Uber in a blog post on Wednesday said the step was the result of changes to its fare structure, with drivers still getting paid per mile and minute, but the company now taking a fixed 25% cut from drivers. That service fee previously fluctuated.

Uber discontinues rider reward benefits

Uber on Wednesday also told customers it discontinued some of its reward benefits for frequent riders.

The company hopes the changes will bolster its argument that Uber is merely a technology platform connecting riders with drivers, not a transportation company.

The California law strikes at the heart of the “gig economy” business model by making it harder for companies to qualify their workers as contractors rather than employees. The measure went into effect on Jan 1.

By classifying contractors as employees, technology companies like Uber, Lyft Inc, DoorDash and Postmates Inc would be subject to labor laws that require higher pay and other benefits, such as medical insurance.

Uber and Postmates, a courier services provider, in a lawsuit in late December asked a U.S. court to block the law.

Uber has been the leader of the tech disruption since its start in 2009 by Travis Kalanick. Once the highest valuation of any Unicorn, the company has been hit by setbacks. Lawsuits and claims of sexual harassment at a corporate level hurt the image of the company.

When Uber was led by Travis Kalanick, the company took an aggressive strategy in dealing with obstacles, including regulators. In 2014, Kalanick said “You have to have what I call principled confrontation.” Uber’s strategy was generally to commence operations in a city, then, if it faced regulatory opposition, Uber mobilized public support for its service and mounted a political campaign, supported by lobbyists, to change regulations.

Uber has a list of complaints against it

In 2017, lawyers for drivers filed a class action lawsuit that alleged that Uber did not provide drivers with the 80% of collections they were entitled to.

Uber issued an apology on January 24, 2014, after documents were leaked to Valleywag and TechCrunch saying that, earlier in the month, Uber employees in New York City deliberately ordered rides from Gett, a competitor, only to cancel them later. The purpose of the fake orders was two-fold: wasting drivers’ time to obstruct legitimate customers from securing a car, and offering drivers incentives—including cash—to join Uber

In May 2019, the Uber IPO was as hyped and disappointing as the Y2K bug. Uber has a reputation for skirting laws, deceptive practices that helped it grow against its competitors and lawsuits from passengers.

The Gig economy is dead

This is not a good thing but, in light of the many issues with hiring contractors and then not stating behind those who are creating revenue, this disruptive industry has now hit the wall.

California may be the first state to initiate these worker laws aimed at fair treatment and fair salaries for employees.

This will have a far-reaching impact over the next 2 years as companies who built their growth model and revenue model on Gig work will need to pivot to a more “fair” compensation solution.

The post The Gig Economy is Over, Uber takes the beating appeared first on Investor News.

SACRAMENTO, Calif. (AP) — Ride-share company Uber and on-demand meal delivery service Postmates sued Monday to block a broad new California law aimed at giving wage and benefit protections to people who work as independent contractors.

The lawsuit filed in U.S. court in Los Angeles argues that the law set to take effect Wednesday violates federal and state constitutional guarantees of equal protection and due process.

Uber Labor Lawsuit

Uber said it will try to link the lawsuit to another legal challenge filed in mid-December by associations representing freelance writers and photographers.

The California Trucking Association filed the first challenge to the law in November on behalf of independent truckers.

The law creates the nation’s strictest test by which workers must be considered employees and it could set a precedent for other states.

The latest challenge includes two independent workers who wrote about their concerns with the new law.

“This has thrown my life and the lives of more than a hundred thousand drivers into uncertainty,” ride-share driver Lydia Olson’s wrote in a Facebook post cited by Uber.

Postmates On-Demand Work Blessing

Postmates driver Miguel Perez called on-demand work “a blessing” in a letter distributed by Uber. He said he used to drive a truck for 14 hours at a time, often overnight.

“Sometimes, when I was behind the wheel, with an endless shift stretching out ahead of me like the open road, I daydreamed about a different kind of job — a job where I could choose when, where and how much I worked and still make enough money to feed my family,” he wrote.

The lawsuit contends that the law exempts some industries but includes ride-share and delivery companies without a rational basis for distinguishing between them. It alleges that the law also infringes on workers’ rights to choose how they make a living and could void their existing contracts.

Democratic Assemblywoman Lorena Gonzalez of San Diego countered that she wrote the law to extend employee rights to more than a million California workers who lack benefits, including a minimum wage, mileage reimbursements, paid sick leave, medical coverage and disability pay for on-the-job injuries.

She noted that Uber had previously sought an exemption when lawmakers were crafting the law, then said it would defend its existing labor model from legal challenges. It joined Lyft and DoorDash in a vow to each spend $30 million to overturn the law at the ballot box in 2020 if they don’t win concessions from lawmakers next year.

“The one clear thing we know about Uber is they will do anything to try to exempt themselves from state regulations that make us all safer and their driver employees self-sufficient,” Gonzalez said in a statement. “In the meantime, Uber chief executives will continue to become billionaires while too many of their drivers are forced to sleep in their cars.”

The new law was a response to a legal ruling last year by the California Supreme Court regarding workers at the delivery company Dynamex.

The post Uber and Postmates Sue To Challenge California’s New Labor Law appeared first on Investor News.

7 simple steps to improving your chances of success in biotech investing

Exciting. Scary. Lucrative. Risky.

All of these adjectives apply to investing in biotech stocks. The excitement and the prospects for generating huge profits make biotech stocks appealing to many investors. On the other hand, the fear of big losses that stem from the high risk levels associated with many biotech stocks causes other investors to stay away.

How should you go about investing in biotech stocks? There are 7 key steps to follow that should improve your chances of success:

1. Know which stocks are biotech stocks — and which aren’t.
2. Determine your risk tolerance.
3. Understand the risks specific to biotech stocks.
4. Know what to look for in a biotech stock.
5. Evaluate the top biotech stocks and biotech exchange-traded funds (ETFs).
6. Invest cautiously.
7. Monitor changing dynamics.

Here’s what you need to know about each of these seven steps for investing in biotech stocks.

1. Know which stocks are biotech stocks — and which aren’t

First, you’ll want to know which stocks actually are biotechs and which aren’t. It’s not as easy as you might think.

Biotech is short for biotechnology, a term that references any technology that incorporates biological organisms. Companies that make genetically modified foods fall into this category, as do drugmakers that develop biologic drugs — large, complicated molecules that are manufactured within a living organism.

But while many big pharmaceutical companies develop biologic drugs now, they aren’t usually viewed as biotechs. That’s primarily because these companies make most of their revenue from sources other than biologic drugs.

Also, some drugmakers are typically classified as biotechs even though they don’t make most of their money from biologic drugs. Why? A lot of people call any small drugmaker a “biotech” regardless of whether the drugs it develops use living organisms. Even when these small companies grow to be large, they’re still called biotechs.

If you’re looking to invest in biotech stocks, there is one quick way to determine which stocks are biotechs and which aren’t. You can check out the industry designation for the company on investing sites. On Fool.com, for example, enter the ticker symbol for a given stock and then click on the “Profile” link. If the industry in the company info section is “Med-Biomed/Genetics,” it’s a biotech stock.

2. Determine your risk tolerance

Perhaps the most important step of all with investing in biotech stocks is to determine your risk tolerance. Some investors are aggressive and can tolerate higher levels of risk. Others are more conservative and seek to minimize their risk levels. There’s a big reason you’ll want to know your risk tolerance: It will help you determine which biotech stocks are good investing candidates for you and which aren’t.

If you already know your risk tolerance, great. If you don’t, you might want to complete a risk-tolerance questionnaire to help you determine your investing style.

3. Understand the risks specific to biotech stocks

All stocks have risks. But biotech stocks have some specific risks that aren’t applicable to stocks in many other industries. These risks include clinical failures, regulatory approval setbacks, commercialization problems, and loss of exclusivity/patent expiration.

The risk of clinical failure. Probably the most critical of these biotech-specific risks is the potential of failures in clinical trials. All biotech companies must thoroughly test their experimental drugs to assess the drugs’ safety and efficacy in treating the targeted condition.

This process starts with preclinical testing. Some preclinical testing is conducted in vitro, which literally means “in the glass.” That’s a reference to lab testing in test tubes, culture dishes, and other ways that don’t involve animals or humans. Other preclinical testing is done in vivo, which means “within the living.” This kind of preclinical testing is performed using laboratory animals.

Biotechs that only have experimental drugs in the preclinical stage are especially risky. Most drugs never advance from preclinical testing into clinical studies.

If a drug looks promising in preclinical testing, though, the biotech can seek regulatory approval from the Food and Drug Administration (FDA) in the U.S. or the European Medicines Agency in Europe to begin a phase 1 clinical study. The primary purposes of phase 1 clinical studies are to evaluate the safety of an experimental drug, including identifying possible side effects, and to determine the ideal dosage range for the drug.

Around 37% of drugs that are evaluated in phase 1 clinical studies fail, according to the Biotechnology Innovation Organization (BIO). The successful drugs advance to phase 2 clinical studies. These studies test the efficacy and appropriate dosage levels of the drugs.

Most drugs — nearly 70%, based on BIO’s analysis of historical data — aren’t successful in phase 2 clinical testing. The ones that are move to phase 3 clinical studies, large clinical trials needed to assemble sufficient statistical data that the drugs are both safe and effective. Almost 42% of drugs fail in phase 3 testing.

Overall, only 11% of experimental drugs that begin clinical studies jump all the hurdles needed to file for regulatory approval.

Regulatory approval setbacks. Biotechs still face the risk that drugs that have been successful in clinical studies won’t win regulatory approval. Nearly 15% of drugs submitted for approval get a thumbs-down from the FDA, according to BIO.

In some cases, the biotech can conduct additional clinical studies to persuade regulatory agencies to approve an experimental drug. However, frequently a regulatory rejection means the end of the road for a drug.

Commercialization problems. You might think that once its drug wins regulatory approval, a biotech has it made. Not necessarily. Companies must persuade insurers and government healthcare programs to pay for a new drug.

In the U.S., this process involves working with all of the major insurers and pharmacy benefit managers, as well as Medicare and Medicaid, to provide coverage for a new drug. In Europe, biotechs must negotiate with each country individually for a new drug to be covered.

Invest in Illusio The worlds first Augmented Reality Platform For Cosmetic Surgery

On top of these negotiations, biotechs must build sales teams to promote new drugs to prescribers. In many cases, companies also market directly to consumers via online, print, and TV advertising. Despite all of these efforts, there are significant risks that a biotech will be unsuccessful in achieving commercial success for a new product.

Loss of exclusivity/patent expiration. While biotechs often compete against other drugmakers, they enjoy protection for a while from potential rivals seeking to market generic or biosimilar versions of their drugs. Biologic drugs receive a 12-year period of exclusivity from biosimilar competition, while non-biologic drugs typically have a five-year exclusivity period.

In addition to the exclusivity periods, biotechs usually secure patents on their drugs. These patents expire 20 years after the filing date.

Once a biotech’s drug loses exclusivity and patent protection, rival companies can legally launch “copycat” versions of the drug. This nearly always causes a sharp decline in sales for the biotech’s drug.

4. Know what to look for in a biotech stock

The perfect biotech stock to buy would be one that has a broad lineup of approved drugs on the market. Each of these drugs would generate billions of dollars in annual sales. They would have a long way to go before the loss of exclusivity or patent expiration. And they would enjoy virtual monopolies for the conditions they treat.

This perfect biotech stock would also have a deep pipeline with a lot of candidates in phase 3 testing. The company would be super-profitable with fast-growing revenue and a mountain of cash built up to use in rewarding investors through share buybacks and dividends. And the stock would be dirt cheap.

Unfortunately, such a biotech stock doesn’t exist. However, these ideal qualities of a perfect biotech stock represent the things you should look for, and they fall into four main categories: current product lineup, pipeline, financial position, and valuation. The closer a given biotech stock rates on each measure, the better investment choice it should be.

Many small biotechs won’t have any approved drugs yet. For the biotechs that do, companies with multiple drugs with strong and growing sales will be less risky than others. It’s also a good sign when a biotech has best-selling drugs in multiple therapeutic areas. Diversified revenue sources are nice to have with any stock.

Pipelines can be difficult to evaluate. However, a pipeline that has several drugs in late-stage testing is preferred because they have less risk than experimental drugs in earlier-stage development. You can also check out what analysts and other industry observers have to say about early stage clinical results to get a sense of whether there are any yellow flags with what might otherwise seem to be positive results.

Established biotechs will have stronger financial positions than small clinical-stage biotechs. Strong revenue and earnings growth is a big plus. Regardless of the size of the biotech, though, look at the company’s cash position. A small biotech with no approved products could have to issue new shares if it doesn’t have enough cash, which causes dilution in the value of existing shares. (Think of a pizza with eight slices that’s cut into 16 slices. Anyone who had a slice initially has less pizza to eat after the second slicing.)

With larger biotech stocks, you can use traditional metrics such as price-to-earnings and price-to-earnings-to-growth (PEG) ratios to assess valuations. The key here is to compare these valuation metrics for a given biotech stock against its peers to determine whether it’s relatively cheap or relatively expensive.

The valuations of smaller biotech stocks with no approved drugs are tied to what investors think about the biotechs’ pipeline prospects. It’s difficult to know how reasonable the growth prospects are for pipeline candidates that haven’t been approved yet.

One important thing you can look at with small biotechs, though, is any partnerships that they have established with larger drugmakers. A major drugmaker wouldn’t partner with a smaller biotech without performing due diligence on its pipeline candidates. Having a big partner doesn’t mean that a small biotech’s pipeline isn’t risky, but investors can usually have more confidence in a small biotech’s pipeline candidate when a major drugmaker has put significant money on the line betting on the success of the experimental drug.

5. Evaluate the top biotech stocks and ETFs

The 10 biggest biotech stocks claim market caps (the total market value of a company’s outstanding shares) of at least $30 billion, with several having market caps of more than $100 million. These are the exceptions, though. There are hundreds of biotech stocks with much smaller market caps. In addition, several biotech ETFs are available that hold positions in many individual biotech stocks. Your risk tolerance will dictate which of these biotech investment alternatives are the best fits for you.

To give you a sense of how to evaluate biotech stocks and ETFs, we’ll look at a few examples that might appeal to investors with different risk tolerances. Note that there are no options provided for investors with low-risk tolerances. Why? Biotech stocks and ETFs probably wouldn’t be well suited for these investors.

Alexion Pharmaceuticals. Alexion currently has four approved products, all of which target rare diseases. The biotech’s biggest blockbuster, Soliris, recently won FDA approval for treating another condition, neuromyelitis optica spectrum disorder. Sales are climbing for all four of Alexion’s drugs, with tremendous growth for its newest product, Ultomiris, which market researcher EvaluatePharma thinks will be the biggest new drug launch of 2019.

The biotech’s pipeline includes three late-stage programs targeting rare diseases. In addition, Alexion has four early stage clinical programs.

Alexion appears to be in a strong financial position. Its revenue and earnings continue to grow rapidly. The company also has a substantial cash stockpile that it can use to reward shareholders through stock buybacks or to make strategic business development deals to fuel growth.

While many biotech stocks have sky-high valuations, Alexion is one of the most attractively valued biotechs on the market. Its forward price-to-earnings multiple, which uses estimated earnings rather than historical earnings, and PEG ratio are both low compared with most other biotech stocks.

Alexion faces some risks, including key patents for Soliris beginning to expire in 2021 and the possibility that its clinical programs won’t be successful.

Amgen. Amgen currently claims 18 approved products. Seven of these generated sales of more than $1 billion in 2018. At least two more of the biotech’s approved drugs, Kyprolis and Aimovig, appear to be on the way to becoming blockbusters.

The company’s pipeline includes six late-stage programs, including the pursuit of additional approved indications for three already-approved drugs, plus three biosimilars in development. Amgen also has 26 programs in phase 1 and phase 2 testing.

Amgen generates tremendous cash flow and has one of the largest cash stockpiles in the industry. The company also pays a dividend with an attractive yield. This strong financial position is a key reason investors with moderate risk tolerances might like Amgen.

The biotech’s forward P/E ratio is low. However, some investors might be leery of Amgen’s high PEG ratio.

However, several of Amgen’s top drugs face intense competition. This situation is likely to weigh on Amgen’s growth in the coming years. Amgen’s pipeline is also risky, with 23 programs in phase 1 clinical studies.

Editas Medicine. Editas Medicine is by far the riskiest of the biotech stocks on our list. The company has no approved products and is a long way from even the possibility of launching a drug commercially.

The attraction for Editas is its pipeline. The biotech plans to begin the first in vivo testing of a CRISPR gene editing therapy in humans in 2019. This phase 1 study will evaluate Editas’ lead candidate, EDIT-101, in treating Leber congenital amaurosis type 10, the leading genetic cause of blindness. Allergan is partnering with Editas on developing EDIT-101. Other than EDIT-101, though, Editas’ pipeline consists only of preclinical programs.

Editas has to rely largely on collaboration revenue from Allergan and its other big partner, Celgene, to fund operations. The biotech could have to raise additional cash through issuing new stock in the future.

For a company with no product revenue, Editas’ market cap is quite high. However, the market cap reflects the tremendous excitement among investors about the potential for the biotech’s gene-editing candidates.

But although CRISPR gene editing could be a game-changer in treating diseases, it remains a technology in its infancy. Editas faces considerable challenges in advancing its pipeline candidates.

Vertex Pharmaceuticals. Vertex Pharmaceuticals has three approved drugs on the market, all of which treat the underlying cause of cystic fibrosis (CF). The biotech essentially enjoys a monopoly in CF right now.

It’s likely that Vertex’s pipeline will fuel more growth. The biotech hopes to win approval for a triple-drug CF combo in 2020. This regimen would dramatically increase Vertex’s target patient population. In addition, the biotech’s pipeline includes an experimental pain drug that’s in phase 2 testing and a couple of early stage programs targeting rare diseases.

Vertex’s financial position continues to look better and better as its revenue and profitability increase. The company has a significant amount of cash built up that it plans to use in adding more programs to its pipeline.

While Amgen has a low forward P/E multiple and a high PEG ratio, it’s the opposite case for Vertex. The biotech’s attractive PEG ratio is a sign of the tremendous growth expected for Vertex, with the anticipated launch next year of its triple-drug combo for treating CF.

There is a risk, though, that Vertex could run into regulatory approval problems. The biotech’s pipeline candidates also face risks of failure in clinical studies.

SPDR S&P Biotech ETF. You might wonder why the SPDR S&P Biotech ETF isn’t more suitable for investors with low risk tolerances. Although the ETF holds positions in over 100 biotech stocks, many of these stocks have high or very high risk levels.

For moderately aggressive investors, though, this ETF could be a smart way to profit from growth in the biotech industry. While some of the biotechs among the fund’s holdings could experience pipeline setbacks or other issues, not all of them will.

The primary downside to buying the SPDR S&P Biotech ETF, other than risk, is that the fund has an annual expense ratio of 0.35%. However, that’s not unreasonable, considering the broad basket of biotech stocks the ETF provides.

6. Invest cautiously

Whichever biotech stock or ETF you buy, invest cautiously. Don’t put too much of your portfolio in biotech stocks, because of the risk and volatility associated with the industry.

If you’re buying the stock of a small clinical-stage biotech, you’ll want to be even more cautious. You might consider investing a small amount initially. If clinical study results increase your confidence in the biotech’s prospects, you could then increase your position in the stock.

7. Monitor changing dynamics

The last step for investing in biotech stocks is to monitor changing dynamics. Bad news doesn’t necessarily mean you should sell your biotech stocks, but it could prompt you to do so. Horrible results from a clinical study, for instance, could completely change your entire investing thesis — especially for a clinical-stage biotech.

Keep your eyes on the competition, too. The emergence of new drugs could threaten even a big biotech’s sales.

There’s also the possibility that the reimbursement environment changes dramatically. For example, major changes to the U.S. healthcare system that limit the ability of biotechs to set drug prices would probably negatively affect stock prices.

Back to those adjectives

Yes, investing in biotech stocks can be scary and risky. However, following these seven steps should increase the odds that your experience in investing in biotech stocks is both exciting and lucrative over the long run.

Now that you’ve got the basics,

The post How to Invest in Biotech Stocks appeared first on Investor News.

Israel has become the center for Tech startups and the future for the European cannabis markets.

Israel the Startup Paradise

Israel has gained recognition throughout the world as being leaders and helping companies grow by government-initiated subsidies and grants. Israeli startups today are fortunate to benefit from an extensive variety of programs and initiatives that are available in Israel which are not available in other countries. For example, Israel has in place over 30 programs that are tailor-made for startups to help them secure funding for their businesses.

US is the World of Unicorn Fever

The United States, unfortunately, has not seen fit to step in to help companies the same way as Israel.  This has left the United States with a culture where VC’s have dominated the investment industry. VCs give false hope too many accredited investors by inflating the value of the companies they have initially invested in.  Proof of this can be found with WeWork, Uber, and Lyft.

Silicon Valley has taken Valuations over innovation

Silicon Valley has long taken nepotism before innovation. Facebook no longer is an innovation company it is an acquisition company. Snapchat Has Fallen since its IPO has failed to produce anything new since its Inception.  YouTube which is owned by Google has kept the same format but now through influencers and monetization is the second largest search engine in the world.

Israel, on the other hand, has taken steps to help companies innovate.  The success of startups in Israel is 10 times that of the US because they look at helping to grow technology and innovation from the government down.  The US VCs don’t get a say how to value the Israeli companies that they invest in, to the extent that is dictated in America.

Israel is benefits startups

One of the benefits of doing business in Israel is its size. Israel is a small country, and as such, it is much easier for entrepreneurs to conduct market tests, and to determine the needs of their target market. Identifying and solving the problems of your target customer is one of the core elements of entrepreneurship, and the smaller size of Israel reduces the cost and the time of this process. By understanding and resolving the problems of their customers faster, Israeli companies can now go to market more quickly with a product that serves a market need. If there is a shift in demand for their product or service, it is easier to pick up on these changes and then pivot accordingly. This ease of access also enables entrepreneurs to be in touch with their business partners, suppliers, in addition to their consumers.

Private unicorns versus public listed companies

Companies and startups in Israel are helped by a lack of inflated valuations and more on the success of the product and the company itself.  In Silicon Valley if you have the big VCS like Drapper Ventures backing you,  you are more likely to succeed financially than if you have a smaller VC with the lesser-known name.  Becoming a unicorn is less about your product or your service it is more about the VC who invests.

Uber has shown what can happen when a company is overvalued at $72 billion and yet continued to raise money in Series H, I, J, K. In 2017 Uber was supposed to be the biggest and most anticipated IPO of the year.  In 2018 the Uber IPO became a disaster with the stock and company valuation less than half of what it was in 2016.

THE JOBS Act is finally good for all investors

The JOBS Act of 2012 put the ability for investors to gauge companies and help the economy and small businesses.  The problem with the JOBS Act is that it was too little too late.  Now with Title IV of the JOBS Act, more investors can invest in startups through red CF and Reg A+ which helps investors gain more and eliminate or minimize the influence of big VCS which will help smaller companies and give real valuations of companies worth based on their products rather than their initial investor.

This should be a good thing for all companies and help investors to see the true potential of companies while minimizing the influence of VC’s and their predatory practices. It is still not on par with the involvement that Israel and its government has placed in building new innovation and new companies.

Israel will dominate European Cannabis Markets

If you are to look at the Cannabis industry you will notice that Israel has become and will become the leading player in the European cannabis markets. Meanwhile, the US cannabis markets will fluctuate and many of the current publicly-listed marijuana companies will fail.  investor expectations in marijuana and CBD will lead more investors to go towards Israel as an investment versus staying with the US Cannabis markets due to regulations and lack of government support.

Securities Act of 1933

The SEC has had a tough time trying to fix the issues that they themselves created back in the 1930s. The securities acts restricting regular investors from investing certain high-risk securities.  Equity crowdfunding should have been the biggest investment vehicle since 1933.  Instead, what we have is uncertainty of who can invest, how much they can invest, and where they can invest. For accredited investors and the high net worth individuals, this has never been an issue but for Main Street investors and issuers trying to raise capital the SEC has stepped on its own toes.

Reg A+ and Reg CF will mature in 2020

Reg A+ and Reg CF should see the final demise and put the final nail in the coffin for all the VC vultures in Silicon Valley that have helped themselves by rigging a system in their favor at the expense of regular investors.  They have also helped destroy many innovative companies. Quick buyouts and acquisitions get out of long term deals and gain the maximum returns for the VCs before the company has had time to build their service or product correctly.

All investors should be rejoicing but they can now invest in the same companies at the same time and reach the same returns on investment that previously was only enjoyed by these species.

Stop the Silicon Valley Ponzi Schemes

The situation is very simple the Israeli government has purposely and effectively salt to build innovation and bring new jobs new technology it has stood behind its companies and helps fund many startups.  the United States government has left this to the feces and it caused a Ponzi scheme in Silicon Valley that is enriched the rich and locked out the 98%.

Equity Investors

If you are an investor any income now is your opportunity to finally be able to get in early-stage for as little as $500.  Look to equity crowdfunding as a new way to invest your money should be the most important part of your investment portfolio for the next 3 years.  Equity investing and Reg A+ investing will yield higher returns than the stock market or any other investment vehicle. Therefore, the investor needs to research and understand the companies that they are investing in.

Most investors do not fully understand their 401k, so this gives investors who are in the know the opportunity to build a robust portfolio and take back their earnings and build higher returns on investment.

The post How the US is falling behind Israel in helping startups and why Reg A+ is the answer in 2020 appeared first on Investor News.

Before 2015, a business looking to raise money had very limited options. The most common avenues were an initial public offering or raising capital privately. This left only seasoned companies and accredited investors to reap the benefits leaving a pool of investors.

The JOBS Act in 2012, rang in new era for companies and investors. Specifically, Title IV, known as Regulation A+, which is essentially a “Mini-IPO”. Reg A+ has opened opportunities for small-cap U.S. and Canadian companies looking to raise capital and investors looking for new access to pre-IPO investment deals.

The Benefits of Reg A+

In a Reg A+ offering, a company raises investment capital by creating a new class of stock that can be bought and sold on a secondary market (such as national exchange or OTC Markets) by the general public. The offering can also be combined with venture capital, allowing the company to create an even larger raise during the funding round.

A key feature of the Reg A+ process is the ability for companies to “test the waters”. This gives the company the ability to confidentially submit and offering circular to the SEC while also gauging potential investor interest to see if there is enough public interest to justify the offering.

THERE ARE TWO TIERS TO REG A+ OFFERINGS. 

REG A+ TIER 1

Tier 1 Reg A+ offering, allows for companies to have a public offering up to $20 million in a 12 month period, no more than $6 million of which can be raised from affiliates of the issuer company. Reg A+ offerings as subject to both federal and state requirements, and there is no limit to how much any one investor can invest in the offering.

Furthermore, companies raising through a Tier 1 Reg A+ offering have to disclose and submit their financials for review, but are not required to continuously report them once the Tier 1 offering is complete.

REG A+ TIER 2

A Reg A+ offering have more stringent regulation that their counterpart. They allow for a company to raise up to $50 million in a 12 month period, not more than $15 million can be raised from affiliates of the issuer company.

Unlike Tier 1, the Tier 2 offerings are subject to federal review only, but they do require addition and ongoing reporting requirements such as audited financials with semi-annual and annual reporting. Furthermore, no investor or group can invest more than 10% of their annual revenue or net worth in a Tier 2 offering.

WHY WOULD COMPANIES FILE FOR A REG A + OFFERING

The process of setting up a Reg A+ offering is less complicated and more cost effective than a traditional IPO. This makes to appealing to small-cap, micro-cap market sized companies who wish to raise capital without going public.

Initially, Reg A+ offerings were only available to non-SEC reporting companies. However, in 2017, a provision was added allowing for SEC-reporting companies to raise capital through an online offer under Reg A+.

The new amendments to Reg A+ lower the barriers to entry for small-cap companies seeking public offerings. They also allow for added flexibility when structuring transactions – bridging the gap that exists between public and private offerings, reducing the costs and complexity of running a public entity.

SECURITY TOKEN OFFERINGS

Reg A+ offerings will also be the go to investment vehicle for STO (security token offerings), as more companies opt to raise through the new ICO compliant raising model.

The post Reg A+ will gain momentum in 2020 appeared first on Investor News.

In 2017 the world learned about initial coin offerings (ICO) as the start-ups began raising capital in a new and innovative way. In 2017 and 2018 more than $14 billion as invested through ICOs in Blockchain companies as investors were eager to cash in on the crypto craze. The companies too held this as a new, less complicated and expensive way to raise capitals.

Since 2018 the ICO market has gone all but bust, but the legacy of the new crowdfunded investing model will become a mainstay for many companies who will enter into legitimate raises in the future.  More start-ups will look to tokenize real assets and leverage the power of the crowd to finance their next project. The new regulation put in place by the U.S. Securities and Exchange Commission (SEC), has deemed all crypto assets except Ethereum and Bitcoin as securities for all projects seeking exposure in the U.S. Market.

The SEC has stated that it does not differentiate between so0called utility tokens and security tokens. All token offerings must comply with federal securities laws. Hence, the new investing vehicle the Security Token Offering (STO).

10 Reason why the STO will change then investment ecosystem

High-quality, compliant cryptocurrencies are a sought after commodity. Early STO investors will become a new breed of investors. As with early bitcoin and crypto investors they will have most to gain.

1. STO Credibility

   STOs that follow federal guidelines and are approved by the SEC will become instantly credible. Furthermore, this will take more of the grunt work investors will face in evaluating the projects or the companies.

2. Legitimizing crypto investing

   Increased regulation and credibility will help to end much of the stigma around cryptocurrencies among traditional investors. STO investors are banking on more than just institutional investors and look beyond bitcoin futures and custodial services.

3. Micro-investments

   The main attraction of ICOs was the low barrier to entry relative to other capital markets. STOs could take micro-investing mainstream and allow more people to participate and invest in Start-Up ventures that were previously restricted to institutional, VCs and Accredited investors.

4. Crypto as a Security

   Platforms like tZero will become more popular and familiar and help deliver new regulated STOs for trading. This will mean cryptocurrencies will be traded lie a security, giving STO investors ownership, voting and asset allocation rights. This could mean STOs being included in tax-free savings and retirement accounts.

5. Ownership of Security

   Whereas the “utility tokens” were delivered as future access to a product or service, a security token represents actual ownership of and underlying asset. If you invest in a real estate STO, you will actually hold shares in a physical property rather than an IOU for a future date.

6. Programmable Ownership and Compliance

   Security Tokens are programmable by nature, this ensure compliance protocols can be embedded into actual assets and amended over time. ICOs did not have this level of sophistication

7. High Success Rate

   Most of the ICOs have gone bust or are in the process of going out of business. The early track record for STOs has been extremely positive. STOs currently have a 99% success rate. ICOs were merely pipe dreams based on white papers. STOs have something real to offer investors.

8. Low Fees for STO Investors

   Blockchain technology reduced the need of expensive middle-men and those savings will be passed on to STO investors. The emergence of the low-fee investing will serve to strengthen the STO model with its programmable compliance and ownership features.

9. Decentralized assets remain decentralized

   As the SEC has already noted, regulation impacting security token offerings have no bearing on assets that are “sufficiently decentralized”, such as Bitcoin and Ethereum. The truth is decentralized money is here to stay and more confidence in in cryptocurrency investing will become the norm among investors of all kinds.

10. Increases Innovation

    A regulated investment ecosystem for tokenization will open the door for greater adoption and, ultimately, new innovations in the Blockchain arena. A more innovative environment means more investment opportunities and increased returns for STO investors. This trend is already underway as more start ups and institutions continue to utilize and develop more decentralized ledgers.

The Security Token Offering Investor Outlook

The days of the ICO are gone, but STOs are an offshoot of the ICO just a more regulated compliant and better investment alternative.  The new paradigm will affect every industry and from standard issuance of stocks and bonds to smaller assets like business shares and real estate.

There is a lot for the STO investor to be bullish about in the future. Security Token Offerings will become more accepted and adapted. Blockchain projects are in their infancy and with companies like Facebook launching their cryptocurrency now is the time for serious investors to look at STO.

The post 10 Reasons why STO (Security Token Offering) Will Become Huge Investment vehicle appeared first on Investor News.

Alphabet (GOOGL) sent the broader tech sector reeling out of the gate on news the Department of Justice (DoJ) is considering an antitrust probe into the search engine giant. Losses have only accelerated for fellow FAANG stock Facebook, Inc. (NASDAQ:FB), after a Wall Street Journal report indicated the Federal Trade Commission (FTC) secured the right to lead antitrust investigations into the social media firm as part of a broader deal that allows the DoJ to head the Google inquiry.

At last check, FB stock was down 7.2% at $164.75 — set for its worst day since Dec. 19 — and options traders are in overdrive. With about 90 minutes left in today’s trading, around 372,000 calls and 220,000 puts have been exchanged, four times what’s typically seen at this point in the session. Plus, Facebook’s 30-day implied volatility has spiked 20.5% to 35.5%, which registers in the 98th annual percentile.

The weekly 6/7 175-strike call is most active, and Trade-Alert suggests some buy-to-open activity is occurring here. The volume-weighted average price on these calls was most recently seen at $0.94, which would make breakeven for the call buyers at the close this Friday, June 7 — when the weekly options series expires — $175.94 (strike plus premium paid).

Today’s call-skewed session is nothing new for Facebook options traders, though. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock’s 10-day call/put volume ratio of 2.08 ranks in the 76th percentile of its 52-week range, meaning calls have been bought to open over puts at an accelerated clip.

The optimism is seen outside of the options pits, too. While 31 of 36 analysts maintain a “buy” or better rating, the average 12-month price target of $222.35 is a 35% premium to current trading levels. This leaves the door open for a round of bear notes to come through, should FB stock continue its recent slide.

In fact, Facebook stock is now down 17% from its late-April peak above $198, trading below the $500 billion market cap level. But while the shares are on track to close below their 120-day moving average for the first time since before a late-January bull gap, they have found a foothold atop their 200-day trendline.

The post Facebook FTC Buzz Sparks Unusual Options Volume appeared first on Investor News.

Apple’s iPhone sales fell 17% in the first three months of the year as the company’s flagship product continued to struggle.

The tech company reported revenues of $31.05bn in iPhone revenues for the quarter, the majority of the $58.bn in revenues Apple brought in over the three months.

The news was less gloomy than expected and Apple’s shares spiked 5% in after hours trading as Apple announced it was buying back another $75bn of its shares.

The company made a profit of $11.6bn – ahead of expectations. But this quarter marked another quarterly decline in profit and revenue as the company struggled to move beyond the iPhone.

In January Apple reported its first decline in revenues and profits in over a decade as slowing sales of iPhones and an economic slowdown in China took their toll.

Those results came after chief executive Tim Cook shocked investors by issuing Apple’s first profits warning since 2002 citing “the magnitude of the economic deceleration, particularly in greater China.”

The company has stopped reporting unit sales of iPhones – leaving analysts searching other sources of data for their estimates. Most don’t expect a recovery in sales until the next generation of phones, using the super-fast 5G network, are launched, likely to be in 2020.

In the meantime Apple is repositioning itself as a services and software company as well as the manufacturer of hardware.

“Investors are slowly shifting their focus away from the iPhone cycle and valuing the company more based on the ecosystem of hardware, software, and services, but it will take several years for this to become consensus,” Gene Munster, managing partner of Loup Ventures, wrote in a blog post this week.

Apple’s services segment, which includes products like Apple Pay, Apple Care and Apple Music, posted a record $11.5bn after reporting a record $10.9bn in the last quarter.

Last month Apple unveiled a host of new subscription services, Apple TV+, at a star-studded event attended by Oprah Winfrey, Steven Spielberg, Reese Witherspoon and Big Bird. It has also announced Apple Card, a credit card backed by Goldman Sachs and MasterCard.

“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for services, and the strong momentum of our wearables, home and accessories category, which set a new March quarter record,” said Tim Cook, Apple’s chief executive officer.

Yoram Wurmser, eMarketer principal analyst, said: “The long-term growth in services and, to a less extent, other devices depends on having as many users as possible in the Apple ecosystem, and that’s still primarily about the iPhone. So, it’s worrisome that iPhone sales fell 17% year on year. Moreover, sales in China fell 22%, so the issues in that market remain. Services did rise 16% and wearable, home and accessories grew a strong 30%, but the long-term growth of the company still depends directly and indirectly on iPhone sales.”

The post Apple’s iPhone sales fall 17% in first quarter as flagship product struggles appeared first on Investor News.