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Home / Finance / Stock Market Investing
The Publicly-Traded Venture Capital Fund
By:Thomas McCarthy
Venture Capital investment has created some of the greatest returns of all time during the past decade. The way venture capital firms typically work is by investing millions of dollars into tiny start-ups in the hope that perhaps 10% of the original investments will succeed fully. If this 1 home-run becomes a billion dollar corporation, the VC firm cashes in.
For example, imagine the original investors behind Microsoft, Google, and soon-to-be MySpace.com, whose vision, hard work ethic, and capital has taken these companies from infancy to billion dollar corporations.
Historically, VC firms pool money from very large high net worth individuals so its hard for average investors to capitalize on very early stage growth. However, this is all changing very quickly with the VC/Business Development Company EntreMetrix, Inc. (OTCBB: ERMX). Now, average investors can invest as little as $100 and reap the many potential benefits of venture capital.
I believe the small cap stock EntreMetrix, Inc. (OTCBB: ERMX) will very likely become a 1,000% gainer over the next 3 years. My convictions are so strong that I've invested well over $250,000 of my private funds into ERMX and do no plan to sell a share below $3.00. In taking just a minute to read my analysis and outlook on this growth stock, you may well find your own ticket to early financial freedom.
EntreMetrix, Inc. is a Business Development Company that actively seeks out early stage investment opportunities in life sciences and technology-based companies. When these prosperous small businesses team with EntreMetrix, they gain access to the variety of essential company tools for which Entremetrix is known.
The first step in a partnership is the signing of a joint venture agreement between Entremetrix and the small business. EntreMetrix will then manage everything in the company related to HR, payroll, marketing, SEC compliance, investment banking and beyond. Entremetrix services also include directing the IPO process that will take the small business to the public markets. The result is that the small business can concentrate solely on its core business while Entremetrix manages complex administrative issues.
Think of EntreMetrix as a publicly-traded venture capital fund, except EntreMetrix will be very "hands-on" in guiding each portfolio company rather than simply throwing money at them. EntreMetrix will be so involved that each portfolio company will have an EntreMetrix manager on their Board of Directors. A close relationship will ensure that portfolio companies finance their operations with "smart money" instead of "foolish money". EntreMetrix will also have access to all checks written, so each portfolio company will run a very tight ship, financially speaking.
EntreMetrix invests an average of $500,000 in each portfolio company, and in exchange, EntreMetrix becomes a 25% owner in each portfolio company. Thus, as long as each portfolio company maintains a market capitalization above $2 million, EntreMetrix will create net value. In today's capital markets, a $2 million market cap is a joke. Most small publicly-traded businesses have a market cap between $25-$50 million, so the growth potential for EntreMetrix is enormous.
A very attractive part of EntreMetrix' business plan is the equity distribution of portfolio company dividends to shareholders. In laymans terms, every ERMX shareholder will receive shares of each of EntreMetrix' portfolio companies at the time it goes public. As a large ERMX shareholder, I expect my equity dividends to add 20% to my current total investment in 2007. At the same time, if EntreMetrix executes their business plan and attains 12 portfolio companies by the end of 2007, I'll own 13 unique stocks (ERMX + 12 portfolio companies) simply by owning ERMX. This plan for portfolio diversification has never been done by a public company and I expect it will become very popular.
There are thousands of small businesses that need key guidance to succeed, and EntreMetrix is the perfect partner to foster growth in small companies because of their vast knowledge and experience. EntreMetrix is literally creating a new kind of value in the U.S. economy: from the bottom up.
I've met with the EntreMetrix management team and they seem very enthusiastic and unparalleled in their work ethic, and I've simply never seen an opportunity quite like this. My average purchase price is around $0.20 and I don't want to sell any ERMX shares below $3.00. I think that in the long-term, EntreMetrix has the potential to have a market capitalization in excess of $1 billion, so if you like the idea of seeing your money multiply many times over, consider buying ERMX while it's unknown and still selling for less than $1 per share.
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Article keywords: Investing, Venture Capital, Stock Market, Growth Company, Stock Trading, Stocks, Penny Stock
Article Source: http://www.articles2k.com
Thomas J. McCarthy is an investor, entrepreneur and Dean of Education at http://www.CollegeStock.com whose perspectives have changed the way people think about money and investing.
CollegeStock.com is the #1 School of High-Risk Investing, Visit Today!
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