I know what you might be thinking. “Hey, I know what an accelerator is. I even know what an incubator is. But a ‘Public Accelerator Incubator? Wouldn’t that simply be an accelerator or an incubator that’s public?”
A Public Accelerator Incubator (PAI) is simply a business model that AJENE WATSON LLC created with a team of business and financial consultants for solving two real issues for two classes of investors:
- Lack of liquidity for angel and early-stage investors participating in startups, and
- Lack of opportunity for microcap investors to participate in high-valued, high-growth startups from the beginning.
It was theorized that, in order to deliver a solution to the investing public, we must first develop a platform that encouraged angel investors to help startups. So we sought to appeal to the most basic instinctual need of every early-stage company: capital. In doing so, we essentially and inadvertently answered one of the more pestering questions of every founder and co-founder: “How to raise more money, faster?”
The PAI is a simple eco-system that allows each of our three customers (startups, angels and microcap investors) to benefit from the other’s present needs.
- Startups need more money,
- Angels need liquidity from their private investors,
- Microcap investors need to be able to participate in companies, before the IPO.
The PAI creates an environment conducive to meeting each of these independent needs.
Here is how:
- The PAI provides startups with the ability to offer their angel and early-stage investors access to liquidity super early (within 24 months).
- Happy to know that angel/early-stage investors do not have to wait the typical 5, 7, 10+ years to receive some liquidity on their investment, investors are more apt to funding companies faster and more frequently.
- In return for this amazing new ability to hasten much needed capital investments, startups give the PAI equity in their company.
- This private equity is deposited into our basket of high-valued, high-growth startups, building a diverse portfolio that increases in value as the valuation of each startup improves.
- Microcap investors get to see startup ventures that the highly regarded, experienced and successful angel investors are funding early. They get to participate alongside these angel investors, in the ownership of those high-valued, high-growth startups, through the ownership of the PAI.
This eco-system thrives as the participants from each customer group grows.
- More startups, means more equity to PAI
- More equity means more opportunity for more microcap investors
- More microcap investors means more angel investors see more opportunity for liquidity
- More angel and early-stage investors means more money, more frequently, for more startups
REPEAT… and so it continues…
Here is the crazy part: the PAI was originally premised on the mathematical constant, Pi (pronounced ‘pie’) – the circumference of any circle divided by its diameter. It doesn’t matter how big or small the circle is, the ratio remains the same. In this same fashion, we created a platform that gives a way to an eco-system that would remain constant, with everyone participating and benefiting equitably, thus, making it so that finally everyone gets a “piece of the pie.”
Sounds corny? Yes, a little. But it is true!
Like with Vezt (the new blockchain based music royalty sharing app that raised more than $3M in less than 12 months), it is just a matter of time before more high-valued, high-growth startups join the PAI platform, giving us more exposure to well-heeled investors; giving us more equity to grow our portfolio; giving our shareholders more opportunity to participate in ventures they would normally only dream of.
*** Next: Why the name ‘Public Accelerator-Incubator’ and what’s the relationship to accelerators and incubators? Stay tuned!By Ajene Watson