Grofolio sets sights on finding best investments for high-net-worth accredited investors

By: Steve Friday July 5, 2013 0 comments Tags: Dave Milliken, Denver, Galvanize, Grofolio, Shane Fleenor, Steve Reaser

By Steve Porter


Grofolio logoDENVER - While the stock market has been generally up recently, anyone who has an investment in it knows it's a rollercoaster ride fraught with uncertainty.

But a Denver-based startup called Grofolio aims to help high-net-worth investors find some stability for their nest eggs through longer-term investment strategies.

Grofolio, currently a Galvanize incubator client company, plans to officially launch in the next four-to-six weeks, according to co-founder and CEO Dave Milliken.

Milliken said Grofolio intends to provide "accredited investors" with access to a variety of high-quality, pre-vetted alternative investment choices.

Accredited investors are generally people who - together with their spouse if married - have a joint net worth of at least $1 million and individual income of at least $200,000 annually or at least $300,000 in joint income.

Alternative investments are those made outside the stock market and can include private equity, hedge and venture capital funds, real estate, high-yield debt and oil-and-gas royalties.

Under the Securities Act of 1933, Regulation D, Rule 506, accredited investors are permitted to take part in private placement deals without registering with the SEC, Milliken said.

Dave Milliken
"There's a lot of cash sitting on the sidelines - over $1 trillion - and much of it is institutional but a lot of it is accredited investors who are looking for stability and long-term wealth accumulation," he said.

"It can be challenging for a lot of accredited investors to choose the right investment opportunity for their money."

Milliken has an MBA from New York University's Stern School of Business and considerable experience in business, including sales for IBM and VP of marketing for Smashburger.

He's joined by co-founders Shane Fleenor, legal expert, and Steve Reaser, product development.

Milliken said it's estimated there are between 7 to11 million Americans who would qualify as accredited investors, along with other entities.

"We think of it as a tool not just individuals would use but also by family offices and small investment institutions," he said.

Milliken said Grofolio is partnering with New York-based Bendigo Securities LLC, which is conducting due diligence on every investment platform Grofolio will offer.

"We anticipate focusing on individual private growth companies and small venture capital and private equity funds initially," he said.

Milliken said Grofolio's 2013 goals include its official launch later this summer and raising money.

"We are in a capital-raising mode right now," he said. "We'd like to have $3.5 million raised by New Year's."

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