Tag Archives: Investing

New and Improved Investor Network Membership Services

Going online has never felt better! Our Investor Network Membership Services have migrated to an online platform for the convenience of our Investor Network members.

Through the new site, Tech-Rx Investor Network members can view companies under evaluation, companies open for investment, opportunities declined, and other opportunities

Companies Open for Investment

Especially interesting is the  section of companies open for investment. These companies have been fully evaluated and are currently offering securities for sale. We include the company’s Private Offering Memorandum, our opinion of the company and other information that you may find valuable and make it available to you here on a confidential basis.

Investor Network Sign-Up

Interested in joining the Tech-Rx Investor Network? Well now you easily can because the sign-up and authentification process is online. New members can view investment opportunities shortly after they sign up.

Other Investment Opportunities

Oftentimes we come across interesting investment opportunities but are just not candidates for Tech-Rx. Here is where you will find these companies! Of course, if you are interested in investing in any of these companies, you must contact them directly. We would also like to note that Tech-Rx does not perform any type of due diligence on these companies and does not endorse them.

As the exclusive section of our website continues to grow, we look forward to enabling you to better make better investments.

-Steve Hogan, Managing Partner, Tech-Rx

Bloomberg Business Week Talks About Tech-Rx

These types of posts are becoming alarmingly common! It is becoming more and more obvious that Venture Capital is not able to further fund all the startups that were angel-funded, resulting in a lot of stranded good technology. Read the entire article here. “Last week, Andreessen Horowitz co-founder Ben Horowitz wrote in Fortune that in the current climate for raising venture capital, startup founders should swallow their pride and embrace the “down round.” That is, founders running out of cash may need to raise more capital at lower valuations than in previous fundraising rounds:

“Hoping that the fundraising climate will change before you die is a bad strategy because a dwindling cash balance will make it even more difficult to raise money than it already is, so even in a steady climate, your prospects will dim. You need to figure out how to stop the bleeding, as it is too late to prevent it from starting. Eating s— is horrible, but is far better than suicide.”

Herewith, more musings on investors’ appetite for startups in peril from around the Web: Wired’s Ryan Tate found fodder in Horowitz’s column, noting in a piece on the “screams of crushed startups” that Silicon Valley is walking into the business end of the Series A crunch. In recent years angel investing has increased, helping more startups launch. The pool of venture capital available to those companies hasn’t kept pace. Thus situations like the one described on the blog My Startup Has 30 Days to Live, and thus this nugget from Tate’s piece:

“At least one firm, Freestyle Capital, is setting up a bridge program to help early stage startups reach their next investment round, with the bridge investing up to $1 million into sufficiently promising companies so they have more time to find new investors.”

That sounds like what Reuters blogger Felix Salmon meant when he took note of a “very, very new market” in “distressed startup opportunities.” Salmon was also writing in response to Horowitz’s column, though the distressed startup he had in mind was the subject of another article, this one by David Segal in the New York Times. That piece was about an entrepreneur who gave up equity in his company in return for help combating a patent troll. Maybe Salmon overstates how new the phenomenon is. This week, PandoDaily’s Erin Griffith profiled a startup investor named Steve Hogan, whose firm, Tech-Rx, sounds a lot like a private equity turnaround shop:

“This isn’t about creating the next Facebook (FB). Once a company reaches him, it has already missed that opportunity. No, the ultimate goal for each situation is to sell the fixed-up companies in two to five years. The fact that this plan includes minting a solid return for his network of angel investors doesn’t hurt the cause, either. If successful, he’ll achieve at three-times to five-times return in that time frame.”

The ACA Warns the SEC

In a recent article by Silicon Valley Business Journal‘s Cromwell Schubarth, an unexpected consequence to last week’s SEC decision has been unearthed. In response to last week’s decision to end the ban on general solicitation, the Angel Capital Association issued a warning. The group warned that many of its thousands of investors will stop investing if forced to submit financial documentation to verify their accreditation as investors. This is an example of another well-meaning but unrealistic program. Contrary to the original intent of the JOBS act, this may be a detrimental repercussion to the startup community. Read the full article here.