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...