Author: Gregory Pearl

Initial Coin Offerings or ICOs are hyped as a new way many early stage companies try to raise capital. An ICO sounds like the well-known term Initial Public Offering but it does not operate the same way.  An ICO offers ownership of a crypto currency issued by a company.  Not equity in a company.  This crypto currency often just gives the right to purchase a product or service that will be offered at some undetermined future time. The use of ICOs has gone ballistic.  In 2017 there were $5.5 billion in ICOs purchased by investors.  In 2016 that amount was…

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Manufacturing starts with raw materials and parts and produces finished goods that are then sold in wholesale or retail markets.  These can also be exported to other countries. Manufacturing includes  huge range of industries, from food to pharmaceuticals to steel to textiles and lumber, automotive, aerospace, and energy. Manufacturing is one of the primary wealth creators in the American economy.  It uses many different types of technologies and methods.   It has two basic categories: durable and nondurable goods. Durable goods such as household appliances, automotive and machinery are  used for a long periods of time. Nondurable goods are consumed quickly.…

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Some of our clients are in construction therefore we are often made aware of early trends in that industry.  Taken together with client information provided to us from other areas/industries, insights can be gained into what is happening in the national economy. Construction is a broad industry encompassing the building, maintaining, and repairing structures.   Construction also includes general contractors engaged in heavy construction other than buildings, such as highways and streets, bridges, sewers, railroads  and flood control projects and marine construction. We also include special trade contractors who undertake activities that are specialized either to building construction, including work on…

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Over the years, Chicago and the Midwest has attempted to grow its technology ecosystem.  This includes creating a friendly environment for startups and increasing the availability of venture capital.   Growing the ecosystem in the region has taken the form of government support (e.g. angel investing tax breaks in Wisconsin, incubator funding such as for 1871, etc.) and private efforts.   It always was that the entrepreneurs in Chicago complained there wasn’t enough venture capital available and the VCs complained there was a lack of good investable startups.  A Catch-22 it seemed.   I thought that the risk-adverse Midwestern culture was…

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Technology is a broad category that encompasses a wide ranging type of companies, everything from software to telecommunications to internet to biotech.  These businesses can be intangible whether software or processes or something physical.  They carry substantial technology-product and market risk.  Technology companies are characterized by disruption  and innovation. There is so much going on in technology that we can only barely begin to discuss trends. In an age of digital disruption, technology companies face increasing pressure to improve time to market and ensure their offerings are best in class.  “Buy, build, partner” models and M&A strategies can help companies…

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When what may be the world’s foremost Banana Republic starts using a form of cryptocurrencies to raise money to finance itself you know there may be something of a bubble going on. The petro is Venezuela’s new cryptocurrency utilizing blockchain technology.  Supposedly backed by oil.  Maybe that’s just in name only.  It’s backed by oil in the sense that the Venezuelan government pegs the petro the price of oil.  You can’t exchange a petro for any actual oil.  The petro is only available from the Venezuelan government in U.S. dollars.  So the average Venezuelan cannot actually buy it since they…

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