- September 28, 2020
- Posted by: Ajene Watson
- Category: Coffee Talk
Which do you prefer, revenue driven, or value driven growth? Don’t sweat it, DigitalAMN believes it has both.
DigitalAMN is currently in the process of prepping for a rather sizeable capital raise and oddly enough, the current pandemic, civil unrest, racial discord, sudden interest in diversity, imminent implosion of democracy and main street’s uncertain economic fate, quite possibly make for fructuous conditions for DigitalAMN to raise money. When questionable ‘do-gooders’ like Bank of America are *finally* issuing multi-billion dollar bonds to supposedly advance racial equality, our business model is, and always has been, deeply rooted in the principle of equally valuing profits and impact.
Sadly however, before the world fell into chaos, Corporate America didn’t truly care about diversity. Venture capitalists were happily churning out homogeneous investments that excluded women and minorities (and still seem to be). The microcap market was rife with toxic capital and the lack of financial literacy that helped to subjugate all of America, absent from the wealth of the 1%, was of no real concern to the whole of government. So, imagine how just three years ago, people were uninterested when we arrived with a plan to build a minority-lead business structured as a microcap company, focused on delivering definite socioeconomic impact, while unapologetically making money. *Crickets*
I often wondered if the resounding silence was because DigitalAMN’s PAI business model catered to the social and economic empowerment of the 99% (everyday people), or because microcaps weren’t taken seriously in the public markets, or simply because I am a non-white CEO—in that order. Whatever the case, the support I assumed [then] would overwhelmingly pour in to further the idea of doing good while doing well, was lackluster at best—especially after we instituted a stock issuance floor price to dissuade the participation of toxic investors. This resulted in a slower than desired development and execution of our PAI business model and formation of our DigitalAMN Ecosystem. But we had the courage of our convictions to push on, and it looks like culture has finally caught up with us.
Today, we believe that we have a solid business model, a strong cap structure, no toxic instruments and continue to raise money at or above the issuance floor price, with nearly half of all the capital invested in DigitalAMN being made by me. Through investment or acquisition, our ecosystem now comprises a highly rated equity crowdfunding portal operator, an international private investor deal club and a communications company focused on the marketing of Reg. A+ and Reg. CF crowdfunding campaigns. And looking forward, we are currently working to include an accelerator, an interim executive advisory firm, and the social impact initiatives of Wall Street Bound. We also intend to work toward building the value and viability of our crypto assets.
Investments into our ecosystem companies and our client companies has significantly contributed to the size and growth of our equity portfolio. This certainly drives asset value. These same investments have now positioned the DAMN ecosystem to also drive revenue. And both are done while providing the 99% (everyday people) the tremendous benefit of financial literacy along with social and economic empowerment opportunities. Imagine that!
We often hear, ‘build it, and they will come.’ To which my response has always been ‘yeah…well, when?’ For us, amongst the crisis in America today and a sudden extreme investment interest in diversity, ‘when’ has become ‘now’ and we believe our projections are favorable.
We intend to raise up to $7M in this upcoming investment round – accessing additional capital if needed. We also intend to use several capital formation strategies including private placements and crowdfunding as per the JOBS Act (Reg. D, Reg. CF, Reg. A+). With this capital, we anticipate being cashflow positive within the next three years. Over the next 3 to 5 years, we are aggressively looking to generate roughly $60M from operations by adding more than $20M in client assets to our equity portfolio – derived solely from operations, not investments. We also intend to significantly increase investments into our ecosystem companies, which too impacts both our revenue potential and equity portfolio value—neither of which have yet been estimated within our current projections.
Revenue Projections: The estimated $60M would be derived from various service fees paid to DigitalAMN from roughly 100+ client companies like Global Election Services, Inc. (GES).
Equity Portfolio Value (client assets): The estimated $20M in client assets would be derived from the fees paid in equity, from roughly 100+ client companies like Vezt, Inc.. By managing our portfolio assets, we hope to generate additional returns from realizing the upside appreciation from those assets in the future.
This means, whether you like to see a company’s growth driven by revenue or driven by value, you’ve come to the right place because we believe that DigitalAMN has both – guided by the public benefit we are driven to provide.
For continued updates on projections and capital formation strategies email us.
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