Most startups are being privately funded by Angel investors. This sector is a large market in terms of a client base for the SharesAG private placement insurance sector products. According to the Center for Venture Research, some 400,000 high net worth individuals, known as “angel” investors, invest $30 billion – $50 billion annually into more than 50,000 ventures.
Markets
Micro cap stocks are those companies with a market capitalization of less than $250 million . The SEC characterizes micro cap securities as securities having "low share prices and little or no analyst coverage.” The OTC.BB and Pink Sheets are volatile capital markets made up of speculative, high-risk oriented equities. The securities are thinly traded and there is not much information available to investors. Due to the lack of information such as audited financials or statistical rating systems such as S&P or Moody’s that cover larger companies; it is considered high risk to invest into micro cap companies. SharesAG will be the first to market a rating system for micro cap company offerings that will provide investors and professionals with the up to date information they need to make informed decisions.
Research
SharesAG has undertaken extensive research to identify the size of the micro cap market. According to information garnered from Knobias and other sources, the combined total market cap value of the OTC and Pink Sheets exchanges is $715 Billion. Coupled with the $40 Billion invested by ‘Angels’ annually according to the US Small Business Administration, but not including the value of small sized private companies, the total value of the micro cap market is estimated to be $755 Billion. It is in this $755 Billion market that SharesAG will offer its suite of insurance risk and credit enhancement and rating products.
