Tech accelerator uses equity crowdfunding to go public

June 8, 2014 12:45 am by Hermione Way, Tech City News

Joey Ricard is the president of Development Capital Group OTCBB: DLPM, the first publicly traded tech accelerator.

Startups in Silicon Valley are queuing up to gain a place at tech accelerators like Y Combinator, 500 Startups, and Techstars; but only accredited investors can get in on the deals.


With Development Capital Group, anyone can invest in technology startups by buying public stock in DLPM’s portfolio.

Hailing from Miami, Development Capital Group takes a new approach to investing in startups. The group’s President, Joey Ricard, tells us the story:

What’s the story behind Development Capital Group (or DLPM)?
I was looking to raise about $2 million for one of the the projects I was working, and while in discussions with a small group of my friends, I was Immediately connected to an investor who knew the public markets and thought it would be a good way for me to raise the capital that was needed.

After further research, by talking to angel investors and traditional connected venture capitalists, I saw the public markets, particularly the microcap area, as a very advantageous way to raise capital for some of the interesting technology projects I was developing.

After seeing how we could raise capital to build new technology which could be very scalable, it reminded me how an incubator functions, and gave me the idea to approach investors with the concept of it being a publicly traded incubator. This way they are not just investing in me, they are investing in multiple ideas that other people like myself can build into innovative businesses.

How did you get involved with investing in startups?
I started my first company at 22. It was an on-campus tech company (based at Florida State University) called The Tech Shop.

I was still at university, and I put every penny I had into it, including some borrowed money from friends and family. Later, I ended up doing a startup that I grew from my laptop which grew revenue from $0 to $1.8 million in about 16 months.


download (5)

What’s the difference between a normal tech accelerator, where investors invest a small amount of funding for a high amount of equity, and DLPM?
In most tech startups where you hear about incubations, where they may have received funding from an angel investor or venture capitalist, the investors want the startup to get into an IPO where the investor anticipates making a huge amount of profit on their investment.

There are so many horror stories where the founder of an early-stage investment brings the company to a successful IPO and the founder only walks away with $36,000.

Our theory is, come completely into our company, we issue you shares that are part of our public company, and we invest the money and resources to grow the company which also grows the value of the shares.

Seeing as DLPM is a publically traded company, can I or any member of the public invest in Development Capital Group?
Yes. Our company Development Capital Group, has the ticker DLPM. Its as simple as opening up an Etrade account and buying shares in our company, like you would with Facebook or any other big tech company.

The real difference in buying shares of DLPM is that, although there is risk, we are a company with pool of tech startups that could possibly turn into the next Facebook.

Because DLPM trades right now under a $1, its pretty easy for the average person to buy our shares of stock versus something like Apple or Google that trade over $500 per share.

You liken DLPM to crowdfunded investment; doesn’t that mean every publicly traded company is crowdfunded?
Investing privately in a company as a venture capitalist or angel investor typically requires you to be accredited and have a net worth of over $1 million. The reason is because they don’t want you to invest the $5,000 you need to pay your mortgage into some high-risk startup.

Crowdfunding is allowing people to participate in these private deals that usually are only limited to venture capitalist or angel investment groups.

This is the closest you can get to a proper crowdfunding platform for equity ownership as you can get right now.

There are things changing around the crowdfunding space which will open up many more opportunities to all different types of investors. Ultimately, having a market place in general where an investor can see the market price of their equity in a company, and then having a platform to sell such equity into the market, is important to grow either a private or public company.

Read more:

Tags: , , ,


ForbesHow Crowdfunding Can Supercharge Your Campaign In 2016ForbesThey say that there are about 7.45 billion people living in this world right now. Imagine that if you could get each of these seven-and-a-half billion people to contribute one cent to your project, well, you know what I [...]

ForbesHow Crowdfunding Can Supercharge Your Campaign In 2016ForbesCrowdfunding has helped a lot of businesses recently. Want to join the queue? Here's how to raise funds for your projects.and more » [...]

The Jewish Press » » Funny Jewish Women's Crowdfunding Video ...The Jewish PressThe Women's Performance Community of Jerusalem and OU Israel are creating harmony among the women of Greater Jerusalem through the creation of a ...and more » [...]

BdailyAndy Murray has invested in UK startups WeSwap and Perkbox through the Seedrs crowdfunding platformBusiness InsiderTennis star Andy Murray has backed two more early stage UK tech companies on crowdfunding platform Seedrs, bringing his startup portfolio up to 17 companies. The wo [...]

Corporate Counsel (registration)FTC Hears From Company Leaders as Crowdfunding Grows ...Corporate Counsel (registration)"You're going to see people developing an expertise and really move on from this initial stage of everyone kind of exploring crowdfunding in a more general [...]

Singularity HubHow Crowdfunding Has Changed the Startup Game - Singularity HUBSingularity HubThe development of innovative technology — from virtual reality headsets to space exploration to solar-powered roadways — is no longer the province of ...and more » [...]

KNWACrowdfunding Sends NWA Family to Wrigley - Story | NWAHomepageKNWAThis World Series matchup features the two franchises with the longest world series title drought, a combined 176 years without a championship.and more » [...]

BillboardCrowdfunding for His Life: How GoFundMe Helped Save a Punk Legend's LifeBillboardSo on the advice of a close friend, Julian -- like an increasing number of aging musicians without a lucrative record contract -- turned to crowdfunding, launching a campaign on the No. 1 pl [...]

Minneapolis Star TribuneSEC releases new, relaxed rules on investment crowdfundingMinneapolis Star TribuneNew rules announced this week will make it easier for small companies to raise capital from small-time investors, another step forward for Minnesota's fledgling investment cr [...]

The GuardianCrowdfunding: the new buzzword for academics needing research moneyThe GuardianArchaeologist Dr David Petts, from Durham University, has also used crowdfunding, raising almost £25,000 to fund a project on Lindisfarne, off the Northumberland coast. The dig, in June, led to [...]

CFB Finance

Press Release

CrowdFund Beat News

Hello @CrowdFundBeat's 17363 followers - thank you so much for following! Wishing you all a happy Thursday! >>

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |