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DEER ISLE: Insights, Views & Investment Trends

by Dianna Raedle July 19, 2023

Hollywood and AI Clash!

Striking Hollywood screenwriters and actors have included compensation for residuals which includes how AI uses streaming and other publicly available but “owned” information on their list of strike demands.

As we mentioned in our May Newsletter, the issue of how AI uses intellectual property, copy rights and other information that has been created by “others” will be one of the big issues for content and idea generators as they monetize their creations.  There is a grey area around a “machine” taking information and using it – have intellectual property, copyright or other ownership rights been violated and, if so, how do the owners get compensated?

Contact us if you or one of your portfolio companies is thinking about a capital raise.   We help with institutional capital markets preparation, building the top of capital funnel and closing interested capital providers in a tech-enabled, transparent and data driven manner.  We can be reached at info@deerislegroup.com if you want a free assessment of our ability to help.

Capital Provider Interest – We have interest in companies that are looking for debt financing that have reoccurring $5 to 25 million in EBITDA.

 Emerging Funds – FOF’s are being formed to focus on Emerging Funds – Larger LP’s who can not allocate to emerging manager’s due to minimum investment size requirements are starting to fund specialized FOF’s in order to gain the exposure to smaller managers that they desire.

 Venture Capital/Private Equity – “Dirty Term Sheets” used for down rounds – Companies and their existing investors are skirting full impact of down rounds by using terms that enable a high per share prices but give very favorable liquidation preferences to new investors.  For example a 30% discount on warrants and pref payout (full return of capital) on exit.

 Venture Capital – Fund Raising Continues to be Very Hard. Continuing to hear about tough fund-raising conditions.  Our solution is to “stay in the market” and maintain strong investor relations.

Contact Us:

Deer Isle Group

info@deerislegroup.com

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Founded in 2007, Deer Isle is an innovative investment bank that equips capital market participants with the tools they need for transparent, seamless, and efficient capital markets transaction success.

Since our inception, we have facilitated over $5 billion in capital transactions through Deer Isle Capital, LLC—our FINRA-registered broker-dealer—for companies and funds across various security types, sectors, and geographies.

At the core of our approach are effective, unbundled capital solutions, offering expertise and guidance that can be customized to meet each client’s unique needs. Our services, available on an "as-needed" basis, include:

  • Strategic Capital ConsultingTM (“Outsourced Strategic CFO services, Deer Isle Executive Management/Board Bootcamp or Sprint”) to prepare for a capital or M&A transaction leveraging the Deer Isle proprietary AI enhanced 4 pillar capital framework and real-world experience.
  • Beacon (“Proprietary Technology”) offers White-label and Turnkey Capital Provider engagementwith customized content and data analyticsfrom a relevant subset from a universe of 17,000+ institutional (fiduciary) capital markets organizations/50,000+ institutional capital market people.
  • Closing Advisory/Guidance (including “Shepherding”) expertise, through Deer Isle Capital, for structuring, negotiating, and completing a successful capital/M&A transaction.