With the probability increasing that Jinglz will become a unicorn and a $1 billion valuation partners have been asking questions about how Dynasty Wealth (DW) profits from the startups that it finds and recommends.
DW receives cash and shares as compensation from a majority of the startups that it finds and recommends. For a startup to be recommended it must have the following attributes:
- Business model that has the potential to support billion-dollar valuation for the startup within five years.
- Startup valued for and willing to raise capital at a $50 million valuation.
DW’s equity stake or shares which it receives from a startup range from 3%to 5% of a startup’s outstanding shares. Since every DW startup has the potential to get to a valuation of $1 billion the partnership could potentially make as much as $50 million from a startup. This assumes that the startup will experience little dilution.
Assuming that Jinglz reaches its maximum discounted cash flow valuation of $156.34 per share, DW’s gain would be approximately $100 million. Based on a pro-rata distribution of the gain, a $10,000 stakeholder would receive approximately $100,000. Click to read contract that DW entered into with Jinglz in 2016.
Since Dynasty Wealth decided to become a registered investment advisor (RIA) or professional money manager (see August 2019, Seismic Shift memo) its startups business has gained significant traction. It’s especially since DW established a relationship with Aliso Advisors in November 2019. Aliso is completing development of its new alternative investments’ due diligence platform for registered investment advisors. Aliso’s revolutionary platform will significantly increase the capital which RIAs allocate for private equity and startups. For more on the Aliso platform and why it will substantially increase the amount allocated by RIAs to alternative investments, which will be of great benefit to DW read November 15, 2019, DW partner memo.
For more on Jinglz read recent partner updates:
- November 18th, about the digital company’s CAMPAIGN TESTER™, the first-ever smartphone app that reads emotions.
- November 19th, about video testimonial by a leading digital sales expert and about Jinglz’s newest advisor, Google’s former head of sales positioning Jinglz for exponential growth.
- December 8th, about controversial Peloton ad validating the need for Jinglz patent pending emotion reader app and technology.