Hi there, 👋
While the crypto markets got rekt last weekend, a new report shows that 55% of Bitcoin investors said they just started investing this year.
The results underscore the explosive growth that cryptocurrencies have seen in the last 12 months. (Did you HODL?)
You'll find more weird and wonderful news on NFTs and crypto in the snippets section below.
In this issue:
- Coming soon: Fractionalized franchises
- New marketplace for flipping WP
- Small groups of investors reap most of the gains
- San Francisco says "bye bye" to cannabis tax
As always, thanks for being here.
Coming Soon: Fractionalized Franchises
Fractional ownership is becoming more common.
Just look at what's been happening with:
- Real estate
- Sports cards
The list goes on.
Shared ownership is a means to diversify your investments with a smaller amount of cash, and is often used to earn a passive return.
The franchise business model has been around for at least 300 years, but modern franchising came to prominence with the rise of franchise-based food service establishments.
But, it's not a cheap business to enter.
For example, the total investment necessary to begin operating a McDonald's franchise ranges from $1,008,000 to $2,214,080.
Kenny Rose, the CEO of FranShares, wants to change franchise investing.
FranShares is a soon-to-launch investment platform that will allow anyone to invest in a diversified portfolio of franchise businesses.
Brands will be chosen based on criteria such as profitability, growth, manageability, and executive leadership.
An entire portfolio will comprise 50-100 different franchises to give investors exposure to a range of businesses across different geographies and industries.
FranShares state that they will charge zero fees. Instead, they will participate in each fund and take a share of any franchise sale - along with a commission from the franchisor.
FranShares filed with the SEC several months ago after securing a pre-seed raise of $1.42 million led by Chicago Ventures. It appears that the SEC registration process is not yet complete, but their investor waitlist is open.
On the plus side, you don’t have to be a US citizen or an accredited investor, and the minimum investment is only $500.
Last month, we introduced you to Artflow - the A.I. that lets you generate a portrait by entering a short text on their site.
Now, using a new app called Dream, anyone can create “AI-powered paintings.”
It’s available on iOS, Android, and the web, and is the work of a Canadian startup named Wombo.
These AI-generated images have been popping up all over social media, proving that anyone has the potential to become an 'artist.'
The use cases are varied and limited only by your imagination.
We've come across people using Dream to create comic books, and an educator who entered her PhD thesis title into the app to create a truly surreal artwork.
Simply type a brief description in the prompt box, choose an art style, and hit the 'create' button.
What did you get?
(Wombo has also started competitions. Here's their first giveaway)
Together With MicroAcquire
🎧 A Buyer’s Perspective on a $250k Acquisition
Are you curious about how to buy a business on MicroAcquire?
In this ~20 minute episode of the SaaS Acquisition Stories Podcast, Andrew Gazdecki interviews Aaron Stone and Zach Hendershot from Crux Digital.
These first-time buyers recently MicroAcquired a business for $250,000.
Get the inside perspective on:
- Due Diligence
- Transferring Assets
You'll pick up a bunch of practical advice and tips to apply to your next business purchase.
SaaS Acquisition Stories Podcast is available on all major platforms:
👉 Apple Podcast
The Investors Reaping Most of the Gains
A new study from Chainalysis shows that a small portion of participants reap most of the gains.
From their report:
- Investing frequently in a wide array of collections appears to lead to the highest profits
- Whitelisting - the practice of allowing a certain set of followers or others to purchase new NFTs at a much lower price than other users during minting events - helps those people significantly
- Users who make the whitelist and later sell their newly-minted NFT gain a profit 75.7% of the time, versus just 20.8% for users who do so without being whitelisted
Chainalysis cites Opensea data which suggests it's nearly impossible to reap outsized returns on minting purchases without being whitelisted.
The report also states:
"We also see possible evidence of the use of bots by investors looking to purchase during minting events, which could shut out less sophisticated users, and even result in failed transactions that cost them in fees."
You'll find a report preview on the Chainalysis blog.
The Magic Sidebar
We swear that Tony Dinh makes more improvements to Twitter than they do themselves!
Here's another tool from his growing line at BlackMagic.
The Magic Sidebar has a multitude of useful features including:
- Tweet inspirations
- Bookmark your favorite people
- Highlight notifications from people you follow
- Set reminders for a user or a tweet
- Steal the best tweets from anyone:)
- Compare your tweet performance
There are plans to make Magic Sidebar a paid product, but it's free while in beta.
You'll find the early bird pricing here.
Want a demo? Tony posted a bunch in this Twitter thread.
Are you in the market to buy or sell a WordPress business?
We discovered a private acquisition marketplace for WordPress businesses called FlipWP.
FlipWP gives buyers access to the latest WordPress acquisition opportunities by signing up to receive their email listings. You'll also get direct access to owners - with no middlemen - for a membership fee of $299 per annum.
Sellers can list for free and there is no exclusivity obligation: If you sell to a member on the site, they charge you a 1% success fee.
FlipWP is a unique platform in the WordPress community.
If you've got a bunch of WP plugins lying around or a WordPress startup you want to quit, then this platform might be what you're looking for.
Brought to You by Smash Digital
🦄 SEOs with Skin in the Game
Smash Digital - a growth agency, filled to the brim with unicorn images and SEO memes.
A team of SEOs with actual skin in the game, ranking their own portfolio of profitable businesses, and offering the exact same services to clients.
An agency with so much link juice you’ll need a mop and bucket to clean it all up.
Check. Them. Out.
✅ Snippets to Send You on Your Way
🔷 Selling 250,000 NFTs: Last weekend, Murat Pak completed the largest primary sale by a living artist in history when he sold 266,855 pieces for between $400 and $525 each. The final number was at least $106 million. See more on Nifty Gateway. (That's what you call a good weekend).
🔷 An ETF for NFTs: Defiance ETF, a thematic ETF based in New York, has launched a first-of-its-kind ETF focused on Non-Fungible Tokens. The ETF will go by the ticker $NFTZ, and will support creators' efforts by bringing new funding to the ecosystem and educating investors on the ins and outs of the technology. (NGL: The headline for this article is a torment).
🔷 Is it art?: Dot art domain names became publicly available in 2017, but the pace of sales has picked up in 2021. It seems .art is following the upward NFT curve. Yinan Wang owns NFTart.com and has received 6 figure offers for the name since he acquired it.
🔷 No one is commenting: Several venture groups are considering buying into the Polygon project, which is built atop the Ethereum blockchain. That a collection of investors is looking to buy tokens isn’t a shock per se, but is indication that crypto really has moved from fringe to the center of the venture capital world. The investors are looking to purchase tokens worth $50 million to $150 million, sources said.
🔷 Reimagining NFTs: Sports-card pioneer Karvin Cheung is linking NFTs to physical products on his new platform, the Grid. People can buy NFTs of sports memorabilia, (like an NBA jersey) accrue points through trading and selling those NFTs, and wind up with the real jersey. Fast Company.
🔷 Bye bye weed tax: San Francisco is suspending its Cannabis Business Tax to help legal cannabis operations compete with the prices of illegal dealers. (Plus, your local weed dispensary probably has free delivery so there's a convenience factor involved).
🥬 Forgot your bag:
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