In the world of fast-paced social media, it’s not uncommon to see a startup that is gaining momentum, then experiencing a series of setbacks before disappearing into oblivion. However, one app has been making headlines for all the wrong reasons recently. Parlor, the free social network that became infamous for being a gathering place for right-wing extremists during the 2020 presidential election, has been banned by Google and Apple for user-generated comments that were seen as inciting violence. Despite the controversy that surrounds the app, there are still investors who see its potential and opportunity.
The investors behind Parlor are a mix of individuals and venture capital firms, according to public records. The CEO and Founder of Parlor, John Matze, is one of the investors. Other investors include Rebekah Mercer, the daughter of right-wing billionaire Robert Mercer, and Jeffrey Wernick, a prominent early-stage investor in Bitcoin. It’s clear that the investors in Parlor are betting on its ability to become a platform that is different from Facebook and Twitter, which have been accused of always siding with the left. By positioning itself as a more neutral platform, Parlor aims to attract a wider audience and become the go-to social network for conservatives.
While Parlor’s investors might have seen the value in its business model, the app’s swift downfall has proven that there are serious concerns surrounding its lack of moderation and guidelines. Google and Apple’s decisions to remove Parlor from their app stores was a significant blow to the app’s credibility. However, the investors in Parlor are not giving up that easily. Earlier this year, they were able to raise over $10 million to help the app get back on its feet. Whether that funding will help Parlor rebrand itself and regain its user base remains to be seen, but one thing is certain – the investors in Parlor are not backing down without a fight.
Types of Investors
When it comes to investing, there are a variety of different types of investors. Understanding these types can help you better understand the interests and behaviors of the investors involved in Parler.
- Individual Investors: These are ordinary people who make investments with their own money. They may invest in stocks, mutual funds, or other types of securities.
- Institutional Investors: These are large organizations that invest on behalf of others, such as pension funds, hedge funds, and insurance companies.
- Venture Capitalists: These are investors who provide funding to start-up companies in exchange for equity in those companies. They typically invest in companies that are high-risk, high-reward.
- Angel Investors: These are high net worth individuals who invest in start-ups, typically in the early stages. They are typically less formal than venture capitalists and invest smaller amounts of money.
- Private Equity Investors: These are investors who provide funding to companies that are not publicly traded. They typically invest in mature companies that are looking to expand or restructure.
Major Investors in Parler
The major investors in Parler are not publicly known, as the company is privately held. However, there have been reports that Robert Mercer, a prominent conservative donor, is a major investor in the company.
It’s also worth noting that many of the investors in Parler are likely to be individual investors and potentially high net worth individuals who are aligned with the conservative values that the platform espouses.
| Investor | Investment Amount |
|---|---|
| Robert Mercer | Unknown |
Despite the lack of public information about Parler’s investors, the platform has gained significant attention in recent months due to its role in the conservative political sphere and its potential as a rival to larger social media platforms like Twitter and Facebook.
Investment Strategies
Investment strategies refer to the different approaches that investors use to make investment decisions. The strategies vary based on factors such as risk tolerance, investment goals, and market conditions. In the case of Parler, the investors’ strategies could affect how the platform operates and evolves in the future.
- Value investing: This strategy involves investing in undervalued assets in the hope that they will increase in value over time. Value investors analyze financial statements and other quantitative data to identify companies with strong fundamentals but with share prices that are lower than their intrinsic value. Value investing is a long-term strategy that requires patience and discipline.
- Growth investing: This strategy involves investing in companies that are expected to experience strong earnings growth in the future. Growth investors focus on companies with innovative products or services, expanding markets, and strong competitive advantages. Growth investing is a high-risk, high-reward strategy that requires a tolerance for volatility.
- Income investing: This strategy involves investing in assets that generate a steady stream of income, such as dividend-paying stocks, bonds, or real estate investment trusts (REITs). Income investors prioritize stable cash flows over capital appreciation and seek to generate passive income from their investments.
Parler’s investors could employ a mix of these strategies depending on their investment objectives and risk preferences. For example, some investors may prioritize long-term growth and view Parler as a promising platform with a disruptive potential in the social media space. Other investors may prioritize income generation and view Parler as a source of advertising revenue or data insights.
In addition, Parler’s investors could also employ other strategies such as:
- Impact investing: This strategy involves investing in companies that have a positive social or environmental impact. Impact investors seek to generate financial returns while also contributing to positive social or environmental outcomes.
- Hedge fund investing: This strategy involves investing in a diversified portfolio of assets to minimize the overall risk of the investment. Hedge funds use various techniques such as short selling, derivatives, and leverage to generate returns that are uncorrelated to the broader market.
- Angel investing: This strategy involves investing in early-stage startups with high growth potential. Angel investors provide capital and expertise to help startups develop their products, build their teams, and secure additional funding.
Overall, Parler’s investors’ strategies could shape the platform’s direction and future growth potential. Investors who prioritize long-term growth and innovation could fund Parler’s development of new features, expansion into new markets, and acquisition of talent. Investors who prioritize income generation could fund Parler’s advertising and data monetization efforts.
| Investment Strategy | Risk Level | Expected Return |
|---|---|---|
| Value Investing | Low to Moderate | 7% – 10% per year |
| Growth Investing | High | 10% – 20% per year |
| Income Investing | Low to Moderate | 4% – 8% per year |
The table above summarizes the risk level and expected return for each of the investment strategies discussed earlier. It’s important to note that these figures are not guaranteed and may vary based on market conditions, economic factors, and company-specific risks.
Investing in Startup Companies
Investing in startups can be a high-risk, high-reward game. For every Uber or Airbnb, there are countless startups that fail to get off the ground. However, for those willing to take the risk, investing in startups can be a lucrative opportunity. Here, we will explore who the investors in Parler are.
Who are the investors in Parler?
- John Matze and Jared Thomson – the co-founders of Parler, own a significant stake in the company.
- Dan Bongino – conservative commentator and author, has invested in Parler and serves as a stakeholder in the company.
- Conservative businesswoman and politician, Rebekah Mercer, provided funding to Parler through her family’s foundation, the Mercer Family Foundation.
How do investors make money from startup companies like Parler?
Investors make money from startup companies like Parler through equity ownership. When Parler sells shares to investors, they are giving them a portion of the company in exchange for capital. As the company grows and becomes more valuable, the value of the investor’s equity grows as well. Investors can make money from their equity ownership through a few different methods:
- Acquisition: If Parler is acquired by a larger company, the acquiring company may choose to buy out the equity ownership of Parler’s investors at a premium, making them a profit.
- IPO: If Parler goes public, investors can sell their equity ownership on the stock market for a profit.
- Dividends: If Parler becomes profitable, it may choose to pay dividends to its equity owners as a way of distributing its profits.
What should investors consider before investing in startup companies like Parler?
Investing in startups like Parler is not for the faint of heart. Before investing, investors must consider the following:
- Risk tolerance: Investing in startups is risky. Investors must be willing to lose their entire investment if the company fails.
- Due diligence: Investors must research the company and its founders before investing. This includes looking at the company’s business plan, financial history, and leadership team.
- Diversification: Investors should not put all their money into one startup. Instead, they should diversify their portfolio by investing in multiple startups to minimize risk.
Overall, investing in startup companies like Parler can be a high-risk, high-reward game. Investors must be willing to take the risk and do their due diligence before investing.
Angel Investors
Angel investors are high net worth individuals who invest capital in start-up or early-stage companies in exchange for equity in those companies. They generally invest their own money, although some may pool resources in groups or networks. Angel investors are typically looking to invest in companies with high-growth potential and a strong business plan, as these investments can offer the potential for high returns.
- Angel investors often invest in companies that have already received some funding from family and friends, but are not yet ready for venture capital.
- Angel investors may provide additional value beyond their investment, such as mentorship or industry connections.
- Angel investors generally invest smaller amounts than venture capitalists, but may provide the necessary funding to get a company off the ground and attract larger investors.
According to the National Venture Capital Association, angel investors contributed $25.6 billion in the US in 2019. In fact, angel investment makes up the largest share of early-stage funding for startups. While angel investors are often friends and family of company founders, they may also be accredited investors who are members of online funding platforms or part of angel investor groups.
| Pros | Cons |
|---|---|
| Angel investors provide funding when other sources are not available. | Angel investors may not have as much money to invest as venture capitalists or private equity firms. |
| Many angel investors have industry experience and can provide valuable insights and connections. | Angel investors may not be as experienced in investing or business as venture capitalists. |
| Angel investors can be more flexible with the terms of their investment compared to traditional sources of funding. | Angel investors may want to be more involved in the company than the founders would like. |
Overall, angel investors are an important source of funding for start-ups and early-stage companies. While they may not provide the same level of funding as larger investors like venture capitalists, they can often provide valuable mentorship and connections in addition to their investment.
Venture Capitalists
Venture capitalists are investors who provide funding to startups and growing companies that have high potential for growth. Typically, venture capitalists invest in early-stage companies that are not yet profitable, but have an innovative idea and potential for a high return on investment. These investors take a high risk by investing in companies that are still in their infancy and may not yield any returns for several years. However, the potential payoff for successful investments can be very high.
- Sequoia Capital is one of the most successful and well-known venture capital firms in the world. It has invested in companies such as Apple, Google, Oracle, and WhatsApp.
- Accel Partners is a venture capital firm that has invested in companies such as Facebook, Dropbox, and Spotify.
- Andreessen Horowitz is a Silicon Valley-based venture capital firm that has invested in companies such as Airbnb, Lyft, and Slack.
Venture capitalists typically invest in startups during seed, early, and growth stages. Seed funding is provided to help the startup get off the ground, early-stage funding is for startups that are still developing their product or service, and growth-stage funding is for startups that are already seeing significant traction and are ready to scale.
Venture capitalists often provide more than just funding. They can offer guidance, connections, and expertise in areas such as marketing, product development, and hiring. They may also serve on the company’s Board of Directors and help make strategic decisions.
| Venture Capital Firm | Notable Investments |
|---|---|
| Sequoia Capital | Apple, Google, Oracle, WhatsApp |
| Accel Partners | Facebook, Dropbox, Spotify |
| Andreessen Horowitz | Airbnb, Lyft, Slack |
In conclusion, venture capitalists are an important source of funding for startups. They take a high risk by investing in early-stage companies, but the potential payoff can be very high. Venture capitalists often provide more than just funding and offer guidance, expertise, and connections to help startups succeed.
Private Equity Firms
Private Equity (PE) Firms are investors that make equity investments in companies that are not publicly trading on the stock market. These firms typically have a pool of capital that is raised from wealthy individuals, institutional investors, and pension funds. The funds are then invested in private companies for the purpose of acquiring them, growing them, and selling them off for profit.
Parler, a social media platform that gained popularity in the United States due to its conservative user base, attracted a lot of attention from private equity firms. The platform experienced a surge in user signups after the 2020 US Presidential Election. PE Firms saw this as an opportunity to invest in the company and capitalize on its fast growth.
- Rebekah Mercer – The daughter of hedge fund billionaire Robert Mercer, Rebekah Mercer is a prominent donor to conservative causes. Mercer was one of the first investors in Parler, and it is rumored that she played a significant role in its rise to popularity.
- Dan Bongino – A conservative commentator and former Secret Service agent, Bongino is a minority investor in Parler. He has been vocal about his support for the platform and has been actively promoting it to his followers on social media.
- Galley Support Innovations LLC – This Florida-based company specializes in providing support services to the aviation industry. The firm made a strategic investment in Parler and has stated that it plans to use the platform to communicate with its employees and clients.
Private Equity Firms typically invest in companies that show strong growth potential, and they are willing to take on high levels of risk in exchange for potentially high returns. While private equity investments can be lucrative, they also come with certain risks and challenges. One of the main risks is that the investor may not be able to exit the investment at a profit, which can result in a loss of capital.
| Firm | Investment Amount | Investment Date |
|---|---|---|
| Jeffrey Wernick | $30,000 | Unknown |
| Rebekah Mercer | Unknown | Unknown |
| Dan Bongino | Unknown | Unknown |
Parler has attracted a range of investors from different industries and backgrounds, including wealthy individuals, conservative donors, and companies with strategic interests. The platform has positioned itself as an alternative to mainstream social media platforms, which are often criticized for censoring conservative voices. While it remains to be seen whether Parler can sustain its growth in the long term, its popularity among certain segments of the population has made it an attractive investment opportunity for private equity firms.
Institutional Investors
Institutional investors are large organizations that invest on behalf of their clients. They usually have significant resources and can buy or sell large amounts of shares in a company at once. Parler has seen an influx of institutional investors in recent years, indicating that the company has potential for growth and profitability.
- Rebekah Mercer: Parler’s biggest backer is Rebekah Mercer, daughter of billionaire Robert Mercer. She is known for her conservative political views and has been a major donor to Republican candidates and causes. Mercer’s involvement with Parler has been both financial and strategic, as she played a key role in getting the app back online after its initial shutdown.
- Dan Bongino: Conservative commentator Dan Bongino has also invested in Parler, citing its potential to provide a platform for free speech and alternative viewpoints. Bongino is also a vocal critic of Big Tech censorship and has used Parler to communicate with his audience without fear of being deplatformed.
- Cambridge Analytica: The now-defunct data firm Cambridge Analytica was reportedly involved in Parler’s early development, using the app as a testing ground for its political messaging tools. While the relationship between the two companies is unclear, Parler’s focus on conservative and libertarian viewpoints aligns with Cambridge Analytica’s work on behalf of Republican candidates.
In addition to these prominent investors, Parler has also received funding from a number of smaller venture capital firms and angel investors, indicating a growing interest in the app’s potential to disrupt the social media landscape.
Parler Ownership Structure
Parler’s ownership structure is relatively complex, with multiple parties holding stakes in the company. According to a 2020 filing with the SEC, the company is structured as a limited liability corporation (LLC) registered in Nevada.
| Investor | Stake |
|---|---|
| Parler LLC | 95% |
| John Matze | 5% |
Parler LLC is listed as the majority owner, with CEO John Matze holding a minority stake. However, the involvement of Rebekah Mercer and other high-profile investors may complicate the ownership picture, as they likely have some level of control or influence over the company’s operations.
FAQs about Who Are the Investors in Parlor
Q: Who are the investors in Parlor?
A: Some of the investors in Parlor include Dan Bongino, Rebecca Mercer, and Jeffrey Wernick.
Q: What is Dan Bongino’s connection to Parlor?
A: Dan Bongino is a part-owner of Parlor and has been a vocal advocate for the platform.
Q: Who is Rebecca Mercer and why did she invest in Parlor?
A: Rebecca Mercer is a prominent conservative donor and activist who believes in free speech and free expression.
Q: What is Jeffrey Wernick’s background and why did he invest in Parlor?
A: Jeffrey Wernick is a veteran investor in tech startups and believes in the importance of protecting speech that may be unpopular.
Q: Are all the investors in Parlor conservative?
A: No, while some of the investors in Parlor are conservative, not all of them share the same political beliefs.
Q: How much money has Parlor raised from investors?
A: According to reports, Parlor has raised around $12 million from investors.
Q: Are there any risks for investors in Parlor?
A: Yes, there are risks associated with investing in any startup. Parlor faces challenges related to content moderation and potential lawsuits.
Q: What is the future outlook for Parlor and its investors?
A: It’s unclear what the future holds for Parlor and its investors, but the platform has attracted a large user base and is continuing to grow.
Closing Thoughts
Thank you for reading this article about who are the investors in Parlor. While Parlor has faced some controversy, it is an interesting case study in the intersection of free speech and social media. We encourage you to stay informed about developments related to Parlor and other similar platforms. Check back soon for more updates!