According to striking new research by Equivesto (Canada’s inclusive investment disruptors offering access to investment opportunities not limited by privilege or network,) a surprising number of Canadians may be overconfident in their working knowledge of private market investment terms.
The survey polled 1000 Canadians and asked for the definitions of ‘made up’ investment terms. Specifically, Canadians were asked …
- 1) What is Blue Chip Debt? (made up investment term)A total of 100% of Canadians surveyed mistakenly believe that Blue Chip Debt is a real investing term and defined it as one of the following:
- The safest debt Investments (28.8%)
- Debt from companies with the best reputations(27.9%)
- Only available to Fortune 500 companies(23.0%)
- The best debt instrument available in market (20.3%)
2) What does NVP stand for? (made up investment term)
A total of 91.7% of Canadians mistakenly believe NVP stands for one of the following:
a) Non-verified person – 29.6%
b) Net volume produced – 25.4%
c) Net value presented – 21.4%
d) Negative valuation posted – 15.3%
The most active usages of the term NVP are actually the NFL term “Nickelodeon Value Player,” and “National Vice President” in business.
3) What is a P/X ratio? (made up investment term)
A total of 100% of Canadians mistakenly believe that a P/X ratio is one of the following:
a) Price-to-multiplier – 37.1%
b) Price-to-earnings – 24.0
c) Price-to-debt – 20.7
d) Price-to-loss – 18.2%
Interestingly, the term P/X ratio is actively used in the calculation of aspect ratios.
“We decided to have a bit of fun with Canadians here to make a broader point,” said Ryan Correia, Managing Director of Equivesto. “The point is that Canadian consumers are confused and perhaps overconfident in their knowledge and understanding of traditional public investments, let alone the more obscure private markets we work in. We want to not only empower them to make clear investment decisions based on solid understanding, but also give them access to investment opportunities historically limited to the privileged or networked.”
4) 75.4% of Canadians don’t have specific knowledge about affordable investment options
As part of the survey, Equivesto also asked Canadians ‘what is the minimum amount Canadians can invest in real estate, start-ups and small businesses.’ Surprisingly, the majority (75.4%) simply said ‘they don’t know.’
What is Equivesto?
Equivesto is an online platform where regular Canadians can access vetted startup, small business, and real estate opportunities, starting only at $100. Through the crowd’s contribution these local companies can raise the capital they need to grow and reward their community with an ownership stake in their business. Equivesto allows many more people to participate in the higher risk, but higher return private investment market, which had traditionally required high minimum investments and limited to those who are considered wealthy.
What is Equivesto up to next?
- Private Market Education – There is an ample number of available resources to teach people about the public markets, but little written about the Canadian private markets and how to invest. One of our major goals of 2022 is improving financial literacy in private markets for both founders and investors. We launched a community hub called the “Equivesto Community” to provide this information to the public for free. https://community.equivesto.com
- Helping more underserved businesses get funded – Less than 25% of BIPOC and/or Women led businesses receive venture funding and those that do, get severely less support than our US or UK counterparts. The problem stems from the Investor profile with an almost 1-to-1 ratio between profile of investor and profile of founder. For example, 83% of angel investors are male & 87% are white, with 77% of venture-backed founders being white men. Equivesto offers an opportunity for a more democratized investment process with no exclusion on the Investor or Founder side. https://equivesto.com/why-equivesto
- We’re Raising Capital to Grow – To reach as many businesses and founders as we can, Equivesto is raising growth capital from our community of supporters. We strongly believe that our company should be built with the public as stakeholders. What better way to represent that than to offer an equity ownership opportunity to our community. https://equivesto.com/announcement-raise
Equivesto (Equivesto Canada Inc.) is a fully registered Exempt Market Dealer, licensed in Ontario, BC, Alberta and Nova Scotia.