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3. Like other financial institutions, we cannot stop bad people from doing bad things. What we can do is put the proper safeguards and procedures to protect pe

3. Like other financial institutions, we cannot stop bad people from doing bad things. What we can do is put the proper safeguards and procedures to protect people. 4. Let's say you're an investment leader. You buy Tesla and you submit a writeup. The trade gets executed. The write up is reviewed internally by member of the Instavest team and is cross checked for financial discrepancies against SEC filings. Of course, each person prior to using the platform and when posting an investment is disclosing that he or she is not privy to material non public information, etc. 5. You can put $500 in a stock. There is no minimum investment size. I will say that the absolute dollar amount demonstrates some level of conviction to our members. We currently are not capping the level of co-investment but could do so in the near future.

discardorama 11y ago
> The write up is reviewed internally by member of the Instavest team and is cross checked for financial discrepancies against SEC filings. Is this really scalable?
- jessedhillon 11y ago
  > Is this really scalable? To what scale? If they've got ~100,000 active lead investors, each executing one trade a week, that's 1,000 reviewers reading 100 plans a week. If it takes 15-30 minutes to read and validate each one (I'm assuming a cursory check here), then we're talking ~35 hours a week. If each lead investor's trade can trigger 25 follow-on trades, that's $8.75M in trading fees, per week. Obviously, those are nice, blue sky numbers, but I think it's clear that in their best case, the biggest problem will be hiring enough qualified reviewers, and a thousand employees is a reasonable hiring target IMO.
  - notahacker 11y ago
    Using your numbers and assuming employees adequately qualified to assess investment plans tends to cost in the $2k/week range, you'd want to be pretty confident that lead investors typically were generating something approaching 25 follow on trades though...
  - discardorama 11y ago
    > that's $8.75M in trading fees, per week. But those fees go to the brokerage (Tradier?), not them, right?

discardorama 11y ago

> The write up is reviewed internally by member of the Instavest team and is cross checked for financial discrepancies against SEC filings. Is this really scalable?

jessedhillon 11y ago
> Is this really scalable? To what scale? If they've got ~100,000 active lead investors, each executing one trade a week, that's 1,000 reviewers reading 100 plans a week. If it takes 15-30 minutes to read and validate each one (I'm assuming a cursory check here), then we're talking ~35 hours a week. If each lead investor's trade can trigger 25 follow-on trades, that's $8.75M in trading fees, per week. Obviously, those are nice, blue sky numbers, but I think it's clear that in their best case, the biggest problem will be hiring enough qualified reviewers, and a thousand employees is a reasonable hiring target IMO.
- notahacker 11y ago
  Using your numbers and assuming employees adequately qualified to assess investment plans tends to cost in the $2k/week range, you'd want to be pretty confident that lead investors typically were generating something approaching 25 follow on trades though...
- discardorama 11y ago
  > that's $8.75M in trading fees, per week. But those fees go to the brokerage (Tradier?), not them, right?