Behind the Rise of Do-It-Yourself Deals

The video discusses the shift from traditional investment methods like hedge funds and IPOs to direct investing, where investors put money directly into businesses. Arthur Bavelas and Simone Foxman explain the rise in direct investments, driven by family offices becoming more sophisticated and technology enabling better deal reviews. The video contrasts direct investing with angel investing, highlighting the broader range of company stages involved. It also addresses the risks, such as market downturns and rising interest rates, which could impact these investments.

What is a key reason family offices are moving towards direct investments?

• To avoid paying taxes

• To increase their philanthropic activities

• To reduce their overall wealth

• To gain more control over their investments

Which of the following is NOT mentioned as a type of opportunity in direct investment?

• Seed rounds

• Private equity funds

• Real estate

• Startup ventures

How has technology impacted direct investments?

• By increasing transaction costs

• By reducing the number of family offices

• By making it easier to review investment opportunities

• By complicating the investment process

What is a major difference between direct investment and angel investing?

• Angel investing is always risk-free

• Direct investment involves only public companies

• Direct investment can occur at various stages of a company's lifecycle

• Angel investing requires less capital

What could potentially happen if market conditions worsen for direct investments?

• All investments will become risk-free

• Companies may close down

• Interest rates will decrease

• Investors will receive higher returns