Time for some proper due diligence/ independent auditing in our communities

[Joel]

Are we gonna talk about the 18 million dollars mostly from frum people that was raised for Gparency which seems incredibly desperate for cash?

I always wondered how they can actually turn a profit by getting 4k on a deal

[Joel]

https://www.linkedin.com/posts/jeff-chaitoff-ba77046_gparency-realestate-mortgage-activity-7039676468322299904-z5-7

[yuneeq]

Are we gonna talk about the 18 million dollars mostly from frum people that was raised for Gparency which seems incredibly desperate for cash?

How is it relevant here? It’s a startup trying to innovate, it’s inherently risky even if the CEO has plenty of relevant experience.

[YesThatsMe]

I always wondered how they can actually turn a profit by getting 4k on a deal

+ 100

[Afrages6]

How is it relevant here? It’s a startup trying to innovate, it’s inherently risky even if the CEO has plenty of relevant experience.

The due diligence aspect?
He was raising money at a crazy valuation and blowing a million dollars every month. He was selling a dream which he had no personal risk in pursuing and instead just blew through 18 million dollars.

[JMHO]

He was selling a dream which he had no personal risk in pursuing and instead just blew through 18 million dollars.

Source?

[Afrages6]

Source?

He had public webcasts where he discussed his first round which he raised 12 million dollars through and how he was burning 1.2 million a month. And then this year when he ran out of the first 12 million tried to raise another 12 but barely even made it to six.

[gubevo18]

The due diligence aspect?
He was raising money at a crazy valuation and blowing a million dollars every month. He was selling a dream which he had no personal risk in pursuing and instead just blew through 18 million dollars.

Exactly what yuneeq is saying. This is how startups work. Valuations are nuts and mostly meaningless and investors bear all or most of the risk.

[Afrages6]

Exactly what yuneeq is saying. This is how startups work. Valuations are nuts and mostly meaningless and investors bear all or most of the risk.

And that’s why they mostly take money from venture capital funds who can win 1 out of 100 and still make money. My point is that just like we can discuss bad real estate deals and ponzi schemes but also discuss the fact that soliciting money from the Jewish community for a really risky venture should also be something that is frowned upon.

[chevron]

I once asked a friend in family office world, what does someone with 100mm make a year ?

He said about 20% which they spend part and reinvest part in capitals principal and there's usually a few million on top of the 20% that they can fund for startups, VC etc

Maybe things changed since but obviously 100mm is a different story.

It just seems like people throw money around hoping it lands on something.

I always think of Einstein's compound interest statement. If someone invests 100k a year in a mixture portfolio getting them 10% a year.

In 30 years, you will have $20,820,385.81

[Euclid]

CMIIW, but I think $100k compounding at 10% for 30 years is $1,744,940.

Still a valid point, but it's $1.7m, not $20.8m.

He means infusing a new $100k each year

[chevron]

He means infusing a new $100k each year

Why don't I see yehudaaa reply ? Odd.

I'm talking about annual infusion of 100k yes

Getting to a 20 million pile with continued 10 % interest means at 60 let's say, you'd get 2 million a year, 1 million you can reinvest, 1 million spend wtvr

[gubevo18]

Why don't I see yehudaaa reply ? Odd.

I'm talking about annual infusion of 100k yes

Getting to a 20 million pile with continued 10 % interest means at 60 let's say, you'd get 2 million a year, 1 million you can reinvest, 1 million spend wtvr

Assuming its a Roth. Otherwise taxes will take a chunk

[JMHO]

He had public webcasts where he discussed his first round which he raised 12 million dollars through and how he was burning 1.2 million a month. And then this year when he ran out of the first 12 million tried to raise another 12 but barely even made it to six.

The business has to make money day 1?
If there is a plan (with anticipated burn rate) and investors buy it, what's the issue?

[Joel]

The business has to make money day 1?
If there is a plan (with anticipated burn rate) and investors buy it, what's the issue?

Until when is it considered a startup?
Issue is that he might have targeted the community which is known for trusting someone blindly start reading this thread

[JMHO]

Until when is it considered a startup?
Issue is that he might have targeted the community which is known for trusting someone blindly start reading this thread

Is he not providing this information to potential investors?

The real issue is people trusting blindly, nebach!!

[dealfinder11]

Assuming its a Roth. Otherwise taxes will take a chunk

Not if it remains unrealized.

[aygart]

Not if it remains unrealized.

Won't work for interest

[Afrages6]

Is he not providing this information to potential investors?

The real issue is people trusting blindly, nebach!!

You don’t think that failed real estate deals had the risks in their OM’s?

[JMHO]

You don’t think that failed real estate deals had the risks in their OM’s?

Sure. But let's not throw accusations without knowing more information...