Q: Entrex has brought public market standards and disciplines to the private market. I understand the value of this to the alternative investment community, but what is the value to me as the owner of a private company?
- Craig Rutkai, business owner, Fort Lauderdale, Fla.
A: It's the question I get more than any other. To answer, let's start with what Entrex is.
In broad strokes, Entrex is a brand-new market for the alternative investment community. It takes the compliance standards and reporting structures that have long been a part of the public investing market and applies them to private companies.
Until Entrex, there was no way to compare apples to apples and no way of knowing what you were getting yourself into when investing in a private company. Entrex has brought transparency to the process of private investing, giving the alternative investment community a new place to put their money.
So how does this benefit you and others like you? In a word: capital.
Today, roughly 80 percent of private companies receive their funding within a 50-mile radius of their home office. Essentially this means friends and family, country club colleagues, regionally focused venture capitalists and fellow businesspeople. To say these avenues for pursuing capital are limiting would be something of an understatement.
But alternative investors are chomping at the bit to invest in private companies. They simply require the means to do so - an entity willing to do the due diligence so that they may find, research, track, manage and trade their investments. Entrex is that entity.
Whether you're looking for capital, interested in being acquired or simply want to see how your business is valued for shareholders on a quarterly basis, Entrex can help. It brings private business owners' need for liquidity and the alternative investment market's need for fresh investment opportunities together in one place.
The revolution is beginning. You can be a part of it.