Digital Asset Monetary Network Inc DATI

Nice article explaining the "PAI"

[DiamondInTherou]

What The Heck Is A “Public Accelerator Incubator” And Why Would I Want To Invest In One – We Explain!

Have you ever wished you had equity in some of the biggest startups such as SnapChat (NYSE:SNAP), Uber, or Facebook (NASDAQ:FB) before they went public? Well, until now, it wasn't so easy. Before the introduction of the "Public Accelerator Incubator" (PAI) model, developed by the founders of Digital Arts Media Network, Inc. (OTCMKTS:DATI), owning equity in these unicorn startups was, in most cases, reserved for angel investors with deep pockets.

Public Accelerator Incubator. If you find yourself scratching your head when you hear the phrase, you’re not alone; and I’ll admit, it took us a little time to understand it too. Well, we have good news. This article is dedicated to helping you reach that “aha moment”, when you come to realize how the PAI model allows investors - from all walks of life – to get a "piece of the PAI" of up-and-coming startups. So, let’s put our thinking-caps on and get right down to business.

One of the easiest ways to understand the PAI model is to use our imaginations for a moment. Imagine a scenario where all four parties: the accelerator, the angel investor, the startup and the shareholder, are involved in a very successful startup.

Let’s say, for example, you own a startup called “Hurricane Aid USA”, a humanitarian organization that provides aid to hurricane victims. You’re in a dilemma. Your business is not expanding quick enough to meet demand.

So, you go out and apply to an Accelerator, such as TechStars.  The accelerator conducts a thorough evaluation of your startup and they like the idea.

The accelerator’s mentors come up with a plan to demonstrate why "Hurricane Aid USA" requires more capital to grow and meet the new demand. The accelerator brings a group of angel investors into the mix.

You’re approached by an Angel Investor who is convinced that, given the quality guidance you’ve received from the accelerator (in this example Techstars), “Hurricane Aid USA” will one day become the largest humanitarian organization in the world. The Angel Investor wants to make an initial investment of $500,000 for 10% equity in your company. The Angel Investor is reluctant to fund at first. He is weighing the future success of the startup against the time that his money will be tied up for. 

You see, the Angel Investor is in a predicament that all too many angel investors and startups find themselves in. Angel investors have to wait as long as ten years before their investment matures to liquidity. This is a problem which spills over to accelerators and startups. And this is where Digital Arts Media Network (OTCMKTS:DATI) steps in.

The solution is simple. In exchange for equity in your startup company, a public accelerator incubator like (OTCMKTS:DATI) gives angel investors early liquidity. In as early as 24-months, the angel investors can begin accessing liquidity through a Public Accelerator Incubator (OTCMKTS:DATI), recouping the money they invested in your startup, without any cost to them.

There you have it. Public Accelerator Incubator (PAI). That wasn’t so hard, now, was it?

You may be wondering, “I see how that benefits the Angel Investor.  How does that benefit shareholders and generate shareholder value?”

The shareholders of the PAI become beneficiaries of each transaction DATI completes with a startup; gaining an equity position in each startup. As the basket of equity created from the portfolio of startups grows, the stock valuation of DATI increases. And here’s where it gets interesting… with each startup added, the likelihood of shareholders having equity in the next Snapchat, Uber, or Facebook increases.

You may be wondering, “How will the value of my stock position increase if Angel Investors are selling their shares?”

(OTCMKTS:DATI) has created an environment where dilution is extremely limited because it is not allowed to issue any shares below the floor price. This means that the company can never issue a convertible debenture that converts below the floor price. This stops dilution before it can occur, and protects the company from taking on any toxic instruments.

Angel Investors may just as likely hold on to their shares vs selling them because the collective value of the DATI's portfolio (the basket of startup equities) may easily outweigh their original investment in the single private startup.  If they want to see a greater return or their principal back sooner, they will hold on to their positions as the basket grows in value; making them long-term shareholders.

In closing, it’s now possible for investors of all sizes to get in on the next big startup company.