The document discusses how compassionate capitalism and crowdfunding can be used to create wealth and stimulate the economy. It argues that crowdfunding democratizes access to capital and levels the playing field for entrepreneurs. When crowdfunding is used for equity investments rather than rewards, it becomes "crowd investing" and allows individuals to invest in startups and small businesses. This can reduce risk for traditional angel investors and create an entrepreneurship ecosystem that leads to wealth creation, jobs, and economic growth. The document provides an overview of different types of crowdfunding and considerations for individuals interested in becoming angel investors through these platforms.
Angel investors are wealthy individuals who invest their own money in startup businesses. They typically invest smaller amounts of up to $250,000 in individual companies and are seeking returns of at least 10 times their investment within 5 years. Angel investors are often former executives who can provide funding, connections, mentoring, and flexible terms that are unavailable from other sources of early-stage financing. Successful companies funded by angel investors are more likely to survive longer and raise additional funding.
Startup Fundraising Strategies: The Good, The Bad, and The UglyBryan Hassin
Most entrepreneurs assume that VC is the typical fundraising path for startups. However, most startups go another route. In this presentation I review the pros and cons of several different startup fundraising approaches, using my own seven startups as specific case studies.
This presentation was given 2018-03-07 to entrepreneurship students at the University of Wyoming.
This document discusses the role of angel investors in franchising and retail. It provides background on angel investors, noting that they typically provide early-stage private capital, actively participate in investments, and offer founders advice and guidance. Statistics show angel investing has grown significantly in recent decades. The document also explores trends in venture capital funding and successful industries like Internet and software, advising angels to target fast-growing mobile and Internet markets to find great investment opportunities.
The document provides an overview of a MassChallenge 2016 bootcamp on fundraising basics presented by Shereen Shermak and David Chang. The bootcamp covers topics such as sources of capital, venture capital dynamics, stages of fundraising, preparing to raise a round, targeting investors, socializing an idea, closing a deal, and negotiating valuation. Attendees are encouraged to ask questions.
Startups have many different funding options available to them. In this lecture to university entrepreneurship students, global climatetech entrepreneur Bryan Guido Hassin shares lessons learned from having raised ~$100M across nine ventures. These ventures, as well as others he has advised, have cumulatively created ~$100B exit value.
This document provides guidance on fundraising for a seed round of funding. It outlines key steps including preparing financials and pitch materials, identifying target investors, socializing your idea, conducting the fundraising campaign, and closing the deal. Important considerations are determining how much funding is needed based on financial projections, establishing milestones to prove business model risks are mitigated, and negotiating valuation and equity stakes. The process typically takes 3-6 months and success relies on building relationships, finding investors, and addressing their diligence needs.
Creative Planning was awarded best wealth management firm by readers of Kansas City's business magazine. The article notes that people work hard to accumulate wealth but want to retain it and see it do good for family or philanthropy. Creative Planning has helped redefine wealth management in the current economic environment, with its assets under management soaring in recent years, leading readers to award it the gold in this year's competition.
Angel investors are wealthy individuals who invest their own money in startup businesses. They typically invest smaller amounts of up to $250,000 in individual companies and are seeking returns of at least 10 times their investment within 5 years. Angel investors are often former executives who can provide funding, connections, mentoring, and flexible terms that are unavailable from other sources of early-stage financing. Successful companies funded by angel investors are more likely to survive longer and raise additional funding.
Startup Fundraising Strategies: The Good, The Bad, and The UglyBryan Hassin
Most entrepreneurs assume that VC is the typical fundraising path for startups. However, most startups go another route. In this presentation I review the pros and cons of several different startup fundraising approaches, using my own seven startups as specific case studies.
This presentation was given 2018-03-07 to entrepreneurship students at the University of Wyoming.
This document discusses the role of angel investors in franchising and retail. It provides background on angel investors, noting that they typically provide early-stage private capital, actively participate in investments, and offer founders advice and guidance. Statistics show angel investing has grown significantly in recent decades. The document also explores trends in venture capital funding and successful industries like Internet and software, advising angels to target fast-growing mobile and Internet markets to find great investment opportunities.
The document provides an overview of a MassChallenge 2016 bootcamp on fundraising basics presented by Shereen Shermak and David Chang. The bootcamp covers topics such as sources of capital, venture capital dynamics, stages of fundraising, preparing to raise a round, targeting investors, socializing an idea, closing a deal, and negotiating valuation. Attendees are encouraged to ask questions.
Startups have many different funding options available to them. In this lecture to university entrepreneurship students, global climatetech entrepreneur Bryan Guido Hassin shares lessons learned from having raised ~$100M across nine ventures. These ventures, as well as others he has advised, have cumulatively created ~$100B exit value.
This document provides guidance on fundraising for a seed round of funding. It outlines key steps including preparing financials and pitch materials, identifying target investors, socializing your idea, conducting the fundraising campaign, and closing the deal. Important considerations are determining how much funding is needed based on financial projections, establishing milestones to prove business model risks are mitigated, and negotiating valuation and equity stakes. The process typically takes 3-6 months and success relies on building relationships, finding investors, and addressing their diligence needs.
Creative Planning was awarded best wealth management firm by readers of Kansas City's business magazine. The article notes that people work hard to accumulate wealth but want to retain it and see it do good for family or philanthropy. Creative Planning has helped redefine wealth management in the current economic environment, with its assets under management soaring in recent years, leading readers to award it the gold in this year's competition.
Angel 101 - The Fundamentals of Angel Investing. Is Angel Investing right for you. This is a presentation given by Gerard Buckley to a group of Angel Investors at Maple Leaf Angels a Toronto based angel group
Harvard Law Entrepreneurship Project (HLEP) - Fundraising 101David Chang
This document summarizes a lunch talk on fundraising basics given by David Chang. It discusses determining the appropriate funding source based on a company's growth trajectory, the stages of venture capital funding, how to structure a fundraising round, negotiating valuation, and tips for pitching to investors. Key points include having a financial model, use of proceeds, milestones, creating a target investor list, closing deals over preferred stock or convertible debt, and the fundraising process typically taking 3-6 months.
My first myth of entrepreneurship is that it takes a lot of money to finance ...Alphonzo Wright
The document discusses common myths about entrepreneurship and financing startups. It notes that starting a business typically costs $25,000 and entrepreneurs can borrow or rent equipment instead of buying. While some believe banks don't lend to startups, data shows banks account for 16% of financing for companies less than two years old. The industry a business is in is also a major factor in its growth, more so than an individual entrepreneur's talents alone. Understanding cash flow realities is important to entrepreneurial success.
Financial Projections are key in all aspects of the fundraising process: Pitching, Valuation, Due Diligence, and in the long term planning of your company. Join our experts in an overview discussion of financial projections and learn the key metrics that will get investors to notice you, as well as those that will get you rejected. With the expert advice of serial Startup CFOs and VC Analysts we’ll walk you though the process of what you need to know. If you have no or little idea where to begin with your financial projections, this program is for you.
Crowdfunding has become an increasingly popular funding strategy for early stage entrepreneurs — but it’s not a guaranteed success. We’re partnering with IFundWomen, a crowdfunding platform for women-led businesses to bring you this workshop. Whether you are creating a campaign for funding or for market validation, we’ll help you create an enticing campaign that will resonate with your audience and provide your business with the capital it needs to keep growing. Our crowdfunding experts will walk you through practical ways to hone your pitch, map your network, strategically estimate your fundraising goal, market to your target audience, and design rewards that sell. We’ll also provide useful resources, playbooks, toolkits, etc that you will need to rock your crowdfunding campaign.
As the end of the year approaches, many people think about their charitable giving and tax planning. A Donor Advised Fund administered by the Raymond James Canada Foundation can help donors receive an immediate tax receipt while allowing them to recommend grants to charities over time. Donors can establish a fund with a minimum $100,000 donation, receive a tax receipt, name the fund, and later recommend grants to chosen charities. The foundation handles administrative duties like issuing receipts, distributing funds, and reporting. Donors can also name successor advisors to continue the philanthropic legacy. A Donor Advised Fund provides an easy and flexible way for end-of-year tax planning and philanthropy.
Entrepreneurs need supportive environments to launch startups, as innovative ideas only lead to action within systems designed to nurture them. Startups come in different forms and sizes, and create jobs and economic growth in the communities they operate in. Investors provide funding to startups in exchange for equity, allowing businesses to grow through external investment and scale their operations.
This document provides an overview of fundraising for startups. It discusses preparing for fundraising by developing financial projections, legal documents, and a pitch deck. It recommends socializing your idea with potential investors without directly asking for money in order to build a pipeline. The document outlines different capital sources for startups at different stages, from friends and family to venture capital. It covers important considerations for fundraising campaigns such as target criteria, valuation, deal terms, and closing investments. The goal is to help startups understand the fundraising process and effectively pitch to potential investors.
This document discusses crowdfunding and how it allows everyday Americans to invest in businesses and projects. The main points are:
1) Crowdfunding gives investors the right to directly fund people and businesses they choose and believe in, in exchange for ownership or returns.
2) Since the JOBS Act was passed, nearly all Americans can now participate in crowdfunding, compared to just 3% before.
3) Crowdfunding has seen over $40 million committed in the first 12 months in the US, with an average investment of $833 per person and income of $90k for typical crowd investors.
The Capital Network is a nonprofit organization that provides education and mentoring to help entrepreneurs successfully raise seed capital and beyond. It connects entrepreneurs to angel groups, venture capital firms, accelerators, and other investors. The Capital Network hosts over 40 events per year like workshops, roundtables, and bootcamps to help entrepreneurs with fundraising and networking. It aims to increase entrepreneurs' chances of getting the right investments and connections to help them succeed and grow.
This document discusses sources of financing for small businesses. It explains that initial financing often comes from personal savings and loans. As businesses grow, owners typically take out loans from banks. The document outlines the information banks require when applying for business loans, including a business plan, financial statements, tax returns, and proof of collateral. Alternative financing options are also mentioned.
The Capital Network is a nonprofit organization that provides education and mentoring to help early-stage entrepreneurs successfully raise seed capital. It connects entrepreneurs to angel groups, venture capital firms, accelerators, and experienced entrepreneurs through 40+ annual events like workshops, roundtables, and bootcamps. The organization aims to increase entrepreneurs' chances of obtaining the right investments and connections needed to succeed and grow their businesses.
Angel investing is a great way to participate in the growing trend of entrepreneurship. Responsible investing is very important for the health of your portfolio and for your relationships with founders. Don't invest without understanding a few simple things. Equity investments are long term relationships. Investors must do their part to be good investment partners.
Crowdfunding has grown significantly in recent years, with an estimated $5.1 billion raised worldwide in 2013. However, the majority of successful crowdfunding campaigns on sites like Kickstarter raise $10,000 or less. While reward-based crowdfunding is largely unregulated, equity crowdfunding is subject to new regulations in both the US and Europe. The US JOBS Act allows for limited equity crowdfunding for up to $1 million annually per company and caps individual investments based on income, but imposes disclosure and financial reporting requirements that some argue are too burdensome for small companies. Equity crowdfunding through accredited investors is an alternative but also has limitations
2016 Canadian Sources of Financing for Small BusinessBizLaunch
The document outlines various sources of financing for growing a business, including personal savings, friends and family, banks, government programs, and angel investors. It emphasizes developing a strong business plan that demonstrates management experience, financial projections, and a plan for growth. Sources of funding each have different criteria for loans or investments, such as credit scores, collateral, experience, and financial forecasts. The key is researching all available options and pitching the business effectively without giving up.
Part of Karen Rands' Money Hunt series of educational topics for entrepreneurs seeking knowledge about raising capital and gaining access to capital. This presentation provides a basic understanding of crowdfunding and how it compares to traditional methods for raising capital. This is the intellectual property of Karen Rands, all rights reserved.
All entrepreneurs seeking capital have these 5 things in common: SNACK. This presentation is about the Art of Raising Capital and understanding the importance of filling your capital funnel. The Kugarand Capital Theory of Private Equity is explained. Created and owned by Karen Rands
Angel 101 - The Fundamentals of Angel Investing. Is Angel Investing right for you. This is a presentation given by Gerard Buckley to a group of Angel Investors at Maple Leaf Angels a Toronto based angel group
Harvard Law Entrepreneurship Project (HLEP) - Fundraising 101David Chang
This document summarizes a lunch talk on fundraising basics given by David Chang. It discusses determining the appropriate funding source based on a company's growth trajectory, the stages of venture capital funding, how to structure a fundraising round, negotiating valuation, and tips for pitching to investors. Key points include having a financial model, use of proceeds, milestones, creating a target investor list, closing deals over preferred stock or convertible debt, and the fundraising process typically taking 3-6 months.
My first myth of entrepreneurship is that it takes a lot of money to finance ...Alphonzo Wright
The document discusses common myths about entrepreneurship and financing startups. It notes that starting a business typically costs $25,000 and entrepreneurs can borrow or rent equipment instead of buying. While some believe banks don't lend to startups, data shows banks account for 16% of financing for companies less than two years old. The industry a business is in is also a major factor in its growth, more so than an individual entrepreneur's talents alone. Understanding cash flow realities is important to entrepreneurial success.
Financial Projections are key in all aspects of the fundraising process: Pitching, Valuation, Due Diligence, and in the long term planning of your company. Join our experts in an overview discussion of financial projections and learn the key metrics that will get investors to notice you, as well as those that will get you rejected. With the expert advice of serial Startup CFOs and VC Analysts we’ll walk you though the process of what you need to know. If you have no or little idea where to begin with your financial projections, this program is for you.
Crowdfunding has become an increasingly popular funding strategy for early stage entrepreneurs — but it’s not a guaranteed success. We’re partnering with IFundWomen, a crowdfunding platform for women-led businesses to bring you this workshop. Whether you are creating a campaign for funding or for market validation, we’ll help you create an enticing campaign that will resonate with your audience and provide your business with the capital it needs to keep growing. Our crowdfunding experts will walk you through practical ways to hone your pitch, map your network, strategically estimate your fundraising goal, market to your target audience, and design rewards that sell. We’ll also provide useful resources, playbooks, toolkits, etc that you will need to rock your crowdfunding campaign.
As the end of the year approaches, many people think about their charitable giving and tax planning. A Donor Advised Fund administered by the Raymond James Canada Foundation can help donors receive an immediate tax receipt while allowing them to recommend grants to charities over time. Donors can establish a fund with a minimum $100,000 donation, receive a tax receipt, name the fund, and later recommend grants to chosen charities. The foundation handles administrative duties like issuing receipts, distributing funds, and reporting. Donors can also name successor advisors to continue the philanthropic legacy. A Donor Advised Fund provides an easy and flexible way for end-of-year tax planning and philanthropy.
Entrepreneurs need supportive environments to launch startups, as innovative ideas only lead to action within systems designed to nurture them. Startups come in different forms and sizes, and create jobs and economic growth in the communities they operate in. Investors provide funding to startups in exchange for equity, allowing businesses to grow through external investment and scale their operations.
This document provides an overview of fundraising for startups. It discusses preparing for fundraising by developing financial projections, legal documents, and a pitch deck. It recommends socializing your idea with potential investors without directly asking for money in order to build a pipeline. The document outlines different capital sources for startups at different stages, from friends and family to venture capital. It covers important considerations for fundraising campaigns such as target criteria, valuation, deal terms, and closing investments. The goal is to help startups understand the fundraising process and effectively pitch to potential investors.
This document discusses crowdfunding and how it allows everyday Americans to invest in businesses and projects. The main points are:
1) Crowdfunding gives investors the right to directly fund people and businesses they choose and believe in, in exchange for ownership or returns.
2) Since the JOBS Act was passed, nearly all Americans can now participate in crowdfunding, compared to just 3% before.
3) Crowdfunding has seen over $40 million committed in the first 12 months in the US, with an average investment of $833 per person and income of $90k for typical crowd investors.
The Capital Network is a nonprofit organization that provides education and mentoring to help entrepreneurs successfully raise seed capital and beyond. It connects entrepreneurs to angel groups, venture capital firms, accelerators, and other investors. The Capital Network hosts over 40 events per year like workshops, roundtables, and bootcamps to help entrepreneurs with fundraising and networking. It aims to increase entrepreneurs' chances of getting the right investments and connections to help them succeed and grow.
This document discusses sources of financing for small businesses. It explains that initial financing often comes from personal savings and loans. As businesses grow, owners typically take out loans from banks. The document outlines the information banks require when applying for business loans, including a business plan, financial statements, tax returns, and proof of collateral. Alternative financing options are also mentioned.
The Capital Network is a nonprofit organization that provides education and mentoring to help early-stage entrepreneurs successfully raise seed capital. It connects entrepreneurs to angel groups, venture capital firms, accelerators, and experienced entrepreneurs through 40+ annual events like workshops, roundtables, and bootcamps. The organization aims to increase entrepreneurs' chances of obtaining the right investments and connections needed to succeed and grow their businesses.
Angel investing is a great way to participate in the growing trend of entrepreneurship. Responsible investing is very important for the health of your portfolio and for your relationships with founders. Don't invest without understanding a few simple things. Equity investments are long term relationships. Investors must do their part to be good investment partners.
Crowdfunding has grown significantly in recent years, with an estimated $5.1 billion raised worldwide in 2013. However, the majority of successful crowdfunding campaigns on sites like Kickstarter raise $10,000 or less. While reward-based crowdfunding is largely unregulated, equity crowdfunding is subject to new regulations in both the US and Europe. The US JOBS Act allows for limited equity crowdfunding for up to $1 million annually per company and caps individual investments based on income, but imposes disclosure and financial reporting requirements that some argue are too burdensome for small companies. Equity crowdfunding through accredited investors is an alternative but also has limitations
2016 Canadian Sources of Financing for Small BusinessBizLaunch
The document outlines various sources of financing for growing a business, including personal savings, friends and family, banks, government programs, and angel investors. It emphasizes developing a strong business plan that demonstrates management experience, financial projections, and a plan for growth. Sources of funding each have different criteria for loans or investments, such as credit scores, collateral, experience, and financial forecasts. The key is researching all available options and pitching the business effectively without giving up.
Part of Karen Rands' Money Hunt series of educational topics for entrepreneurs seeking knowledge about raising capital and gaining access to capital. This presentation provides a basic understanding of crowdfunding and how it compares to traditional methods for raising capital. This is the intellectual property of Karen Rands, all rights reserved.
All entrepreneurs seeking capital have these 5 things in common: SNACK. This presentation is about the Art of Raising Capital and understanding the importance of filling your capital funnel. The Kugarand Capital Theory of Private Equity is explained. Created and owned by Karen Rands
The document discusses different types of investors that may fund a startup, including friends and family (FFF), business angels, family offices, venture capital (VC) funds, and private equity (PE) firms. It provides information on the typical source of funds, investment motivation, rounds invested in, and investment size for each type. FFF invest small amounts from personal savings, angels invest from $25k-$250k for growth, family offices invest for diversification, VCs aim for high returns investing $2M+, and PE firms seek high yields investing $20M+. Understanding the different investors is key to raising money from the right fit.
This document provides an overview of raising seed capital from Steve Schlafman of RRE Ventures. It discusses the basics of venture capital, including the different funding options available to startups and reasons to raise capital. It covers the current state of the seed market, notable angel investors and seed funds, as well as tips for preparing to raise a seed round, such as launching a minimum viable product, finding advisors, choosing the right investors, and setting an appropriate funding target and round size. The document emphasizes the importance of having a compelling brand and story to attract investors.
Raising Seed Capital by Steve Schlafman at RRE VenturesAlejandro Cremades
Navigating the seed funding landscape can be complex and demanding. Thanks to insights from Steve Schlafman of RRE Ventures, their detailed presentation sheds light on this critical phase of startup development.
Key Points from the Presentation:
1) Sources of Seed Capital: Explore diverse funding sources from venture capital to angel investors and learn how to leverage them effectively.
2) Preparing for the Pitch: Understanding what investors look for in a seed stage startup is crucial— from traction and product to team dynamics.
3) The Pitch Itself: Learn how to create FOMO (Fear of Missing Out) among investors and how to convey your startup's value compellingly.
4) Post-Pitch Strategy: Discover what steps to take after your pitch to maintain momentum and secure funding.
Funding options early stage companies april30 v2-lsn.pptx
Are you thinking about what you need to fund your company? Where do you start?
Funding is not one size fits all. Every company has to approach their pathway to funding with a unique approach. Join our fundraising experts for an in depth discussion of what options you have for funding and how to decide which paths are right for you and your company.
Topics covered will include investment criteria, time to closing, investment range, success rates, control features, compliance requirements and the overall costs of capital from each such source.
www.thecapitalnetwork.org
The document summarizes an upcoming presentation on funding options for early stage companies. Jean Hammond will discuss different funding sources that are appropriate for companies at various stages of growth and maturity levels. These include friends and family funding for normal growth companies, angel investors and accelerators for high growth companies, and strategic corporate investors for extreme high growth companies seeking large exits. The presentation will also cover how growing a company and reducing risks makes it eligible for larger sources of capital.
This document provides guidance on raising seed capital from venture capital firms and other investors. It discusses the basics of venture capital and seed stage funding. Key points include:
- Seed funding ranges from $50k-$1.5M and is used to build an initial product and validate the business idea. It discusses various sources of seed capital including angels, accelerators, seed funds, and some VCs.
- Preparing for a fundraise involves launching a minimum viable product to prove traction, finding experienced advisors, crafting an investor pitch deck, and networking within the startup community.
- When pitching investors, the goals are to excite them about the opportunity and make them fear missing out. The pitch should
Valuation is caveat emptor –buyer beware. More investors have lost more money because they overpaid for a stock than has been lost due to fraud. (Warren Buffett and Benjamin Graham = Value Investing)
Raising your first $1mm to $5mm a view from both sides of the tableStartupWeekDallas
This document provides an overview of raising seed funding for startups. It begins with introductions and background on the speaker's experience in venture capital. It then covers the fundraising landscape, including sources of money and typical terms. Key topics discussed include understanding investor perspectives, qualifying investors, creating an effective pitch, addressing common risks, and finding the right funding fit. Throughout, it emphasizes the importance of traction, passion, and superior execution over valuation. The overall message is that entrepreneurship requires resilience and there are many potential paths to financing a business.
Crowdfunding has become a viable option for funding small businesses and startups. The document discusses the history and overview of crowdfunding, including how the JOBS Act eased regulations. There are different types of crowdfunding platforms such as donation, reward, and equity based sites. A successful crowdfunding campaign needs a compelling story, high quality visuals and video, and an email and social media strategy to share the project widely. The document provides tips for entrepreneurs on using crowdfunding and lists relevant resources.
Valuation Workshop by Anand Lunia and Shailesh V Singh 23 Jul 2011 v2GetEvangelized
The document discusses venture capital and provides examples of companies that have reached valuations of over $1 billion (the "Billion Dollar Club"). It then covers topics such as the structure of venture capital funds, common valuation methodologies used in venture capital like discounted cash flow analysis and multiples, how deals are structured between investors and entrepreneurs, and provides a case study of the venture capital funding rounds for Make My Trip.
Valuation anand lunia shailesh v singh 23 jul 2011 v2GetEvangelized
The document discusses venture capital and provides examples of companies that have reached valuations of over $1 billion (the "Billion Dollar Club"). It outlines some key metrics for companies in this club such as Airbnb, Square, Dropbox, Gilt Groupe. It then discusses what venture capital is, common valuation methodologies used in venture capital like discounted cash flow analysis and multiples, how venture capital funds are structured, and considerations in structuring deals with startups.
How can equity crowdfunding help my business?BizSmart Select
A brief introduction to CrowdfundingThis webinar will give a brief history of this new internet phenomenon and its place in the funding of new ideas and companies. Equity crowdfunding, in particular, will be discussed and illustrated with a particular (successful) example
Mike Noel Raise Cash Private Capital SecretsDavid Cogan
The document discusses various methods for raising private capital. It begins by introducing the author and their experience in finance and investment banking. It then lists different types of private capital raises including venture capital, private equity, factoring, crowd funding, personal debt, and private raises. The document emphasizes that private capital is the best capital if obtained correctly. It provides brief overviews of various capital raise types such as private equity, venture capital, angel funding, crowd funding, factoring, and personal debt. Throughout it stresses the importance of finding an investor that has a problem the business solves in order to form a strategic alliance.
The document discusses different types of funding options for companies based on their stage of growth and business model. It identifies the main categories as normal growth companies, high growth companies, extreme high growth companies, and social venture companies. Each category is best suited for different sources of funding, from friends and family for early stage, to angels, micro VCs, and larger VCs for later stages of high growth companies seeking larger investments. The types of funding include both equity-based options like stock, as well as non-dilutive options like debt, customers, and grants. The right funding source depends on balancing the size of investment needed with the level of risk at each stage of a company's development.
This document provides an overview of startup fundraising options, including non-equity financing methods like bootstrapping and debt financing as well as equity financing sources like angels, venture capital, and strategic investors. It discusses when each method is appropriate, how venture capital firms generate returns, what motivates angel investors, and some key terms involved in equity financings. The main points are that bootstrapping allows founders to retain more control while outside equity introduces new goals, and raising the right amount of money from aligned investors at the right time is important for startup success.
Many technology ventures are focused on securing funds from venture capitalists (VCs). This lecture focuses on understanding the motivation of private venture capital firms and how it affects the structure of their term sheets and legal agreements. We explore common pitfalls in dealing with VCs, as well as success stories regarding VC investment.
The State of Real Estate Crowdfunding - April 2018Daniel Fetner
Real Estate Crowdfunding is democratizing access to the CRE asset class for investors, and is helping developers find creative ways to finance deals. In the attached landscape I analyzed 22 crowdfunding platforms and bucketed them into three distinct groups. In my rough estimation, here are a few statistics:
• >$7B of capital invested by Accredited Investors into Real Estate deals via these platforms
• >20,000 transactions done via these platforms
• >$1B of Venture Capital invested into these startups
Page 2 of the landscape discusses my commentary and industry trends. Please don’t hesitate to reach out with questions!
Similar to JOBS Act - Economic Stimulus through Compassionate Capitalism (20)
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
12. 1. Crowdfunding for Equity
2. Removal of Barriers
3. Wealth from Angel Investing
Compassionate Capitalist- All Rights Reserved - Karen Rands
2018
13. Crowd Funding becomes Crowd Investing
A report published 2015 by Goldman Sachs went as far as to
label crowdfunding as "potentially the most disruptive of all
the new models of finance," with the Worl Bank predicting
that crowdfunding investments will be a $96 billion a year
market in developing countries alone by 2025.
Forbes Magazine, March 15, 2016
Compassionate Capitalist- All Rights Reserved - Karen Rands
2018
14. Hot Spots of Tech Startup Investment
https://www.fundz.net/startup-database-funding-trends
2015 - 2017
Over Half a Billion Dollars
$300,000,000
About a Half a Billion
$30,000,000
$90,000,000
$24,000,000
$42,000,000
15. Crowd Funding becomes Crowd Investing
• Geographic Limits on Access to Capital Removed
• Levels the Playing Field
• Significant Oversight on Intrastate, Reg CF and Reg A+
• “Stock Market Investors” & Real Estate investors Can Play
• Effectively Reduces Risk for Traditional Angel Investors
16. So How to Think About It…
• Reward CF is like SBIR grants, or University Grants
• Get a product developed but not a business fully built
• Equity Reg CF is like the F&F round,
• contained, small dollar, but gets the company to a proven spot
• Intrastate is really perfect for economic development
• Investment from community
• Local angel groups can consider it like a local syndication
• Reg D 506c can be a replacement for a VC
• less likely for a cram down
• Reg A+ is like a Private Equity round
• but you aren’t being bought out
• for organically grown companies that could never raise capital from Angel groups
or VCs.
Compassionate Capitalist- All Rights Reserved - Karen Rands
2018
19. Ways to Invest
• Bridge Financing – Be the BANK
• Royalty/Revenue Financing
• In an Angel Fund or With a Group
• Convertible Note / SAFE Note
• Straight Equity
• Reg CF
• Reg A+
• Reg D
20. Food for Thought
• Don’t go it Alone
• Fundamental profit model….
• Buy at Wholesale, Sell at Retail
• Asset Class that out performs Real Estate, Stocks, Bonds…..
• Remember WebVan? Pets.com?
• Risk vs Reward
• Compassionate Capitalism
Good Evening, I am honored and excited to be the guest Key note speaker for the Annual Economic Conference and thank you to Bridge Angel Investors and the University of South Florida Sarasota Manatee.
Not just because as an author, this type of an event is a golden goose for broadcasting a message to a preferred audience, but because it really is quite simply a topic that I am deeply passionate about.
Sharing insights I have gained over more than 25 years of working with entrepreneurs and investors is near and dear to my heart. Wealth Creation by investing in the entrepreneur endeavors that bring innovation to market, is one aspect, but even more so is the ‘pay it forward’ effect to the prosperity that comes from the jobs that are created by those startup companies and the generational wealth that can come from the success of that business for the founders and the investors alike.
I call that Compassionate Capitalism
-----float in compassionate and capitalism.
The Concept of compassionate capitalism has been a hot button for me since 2009. As the recession settled in, I noticed how many of the investors in the investor group I managed at the time, the Network of Business Angels & Investors, had the responsibility of running their own company or were an executive in a company with the responsibility of attracting and retaining customers, had to survive the recession, so their level of activity in investing in entrepreneurs had waned. Other investors, from fear of the collapse of the capital financial markets, had parked their money on the sidelines.
As an economist, I knew full well that the way to grow an economy was to fuel job creation and innovation through the growth in new business, and the strengthening of existing businesses. But how does one convince others that if they stepped away from their fear, if they put their money to work by enabling good valid businesses to grow, and thereby grow the jobs they offered, they could have a greater impact on the economy, with sustainable growth, than any thing the government could do by extending unemployment benefits, or helping them refinance their homes….
My first step was to change the name of my podcast to the Compassionate Capitalist Radio Show….and hence the movement --- the Compassionate Capitalist Movement was born. I interview entrepreneurs, industry experts, investors, all types about best practices for starting and growing a business and insights about investing in entrepreneurs. You can find it on itunes, stitcher, tunein, google, beyond pod… pretty much every where. But first let me explain what a Compassionate Capitalist is…. A person that invests knowledge, resources, time, and money into entrepreneur endeavors to bring innovation to market, create jobs and create wealth for founders and investors.
You see, we are a capitalist society. Capitalism is the natural order of free economy to buy and sell things that people have the freedom to decide if they want that, and at what price. But to go beyond the traditional strappings of capitalism….the investment mantra of buy low and sell high that is the foundation for real estate investing or stock market investing or gold boullion investing… whatever your favored investment asset is….. To the decision that you are going to be proactive in how you choose to expand your investment portfolio to include an asset class that has potential to change the world as we know it and improve the economy of our community like no other way. To take the greater risk of becoming an angel investor, a compassionate capitalist, because the potential reward is far greater, financially and emotionally, than any other type of investment.
Wealth can come from any one of these elements…. Income from job or company, Income from real estate and annuities and stocks. But the really wealthy ad the 4th part of the circle for sustainable wealth from multiple streams of income.--- private equity. Quite simply, that is owning a portion of many private companies, owning the stocks of a private company before it is big enough and successful enough to be attractive to an acquirer or the general stock market investor. It is the ultimate capitalist play of buying low to sell high.
When it comes to creating generational wealth, if only by the fact that these names are practically household names, I venture to say that the greatest source of wealth is to be a successful entrepreneur…. Businesses such as those started and led by these entrepreneurs contributed to our world in profound ways. The innovation they brought to the market in products, services, and even ideas and concepts that changed how we live, work, play, and even think, wouldn’t have been possible if it weren’t for their ‘silent partners’… the forward thinking men and women that decided to take the leap of faith and invest in their companies, to invest in their ideas, to invest in the potential they had to bring innovation to the market, to create jobs, to create wealth for themselves and their founders. And for the 13 names I have shown here, there are thousands, if not millions, of lesser known companies that have created generational wealth for their founders and their investors.Do you have a company in your midst that could be the next Home Depot, or Microsoft, or Amazon, or Spanx? Probably. The USF Technology and Transfer office is actively cultivating innovative ideas and providing resources to entrepreneurs to get them to the point that they have potential to thrive and be worthy of angel investment. There are similar such technology and transfer offices around the state at practically every university. We’ll be hearing more from Valery McDevitt the AVP for that program during our panel discussion later. There are a number of incubators and accelerators that both publically funded such as what you find at USF, UCF, UF… the Hight Tech Corridor, or privately operated for profit in south florida Such as Venture Hive in Miami and Tampa has their First Wave acceleratorYou have the Florida Angel Nexus merger with Florida Funders that have been showcasing the companies that are most appealing to the angel groups around Florida, and are believed to be the next big thing… perhaps as big as one of these companies. Unfortunately, with all these great programs and collaborative effort going on in Florida, it has been a very long time since the state or any university has taken a statewide look at the economic impact --- High Tech Corridor did a study in 2016 estimated they had contributed to over 230,000 jobs from 20000 companies---about 11 per company… that is impressive.AND we as business people can make some logical assumptions….of the 67 companies that Florida Angel Nexus has tracked investments in in just the last few years they were formed. Those company could rapidly go from the average 2-3 employees in a startup to the 10, 20, 50 employees an early stage company would have. An economy grows when there are JOBS.
Because with JOBS, comes a paycheck and that means income.
JOBS > INCOME
Even Washington – then in 2012 with the Jumpstart our Business Startups ACT and even today with the monthly focus on the growth in jobs in the market and the reduction in unemployment. We know that availability of good jobs, comes a growth in the economy.
With income, people buy things, it is the ultimate trickle down that creates revenue for those businesses so they can hire more and spend more. And the jobs that come from startup are typically better than the jobs you get from traditional tourist and hospitality sectors that are very strong in Florida. Often it takes two, even 3 in some cases, hospitality jobs to make the income of a tech job or a job that is created by an innovative company, bringing a better mousetrap to market or creating a whole new market sector for something I didn’t even know I needed before it was invented.
The American JOBS Act – Jumpstart Our Business Startup Community sought to trigger JOB Stimulus from the bottom up. In fact, it was born of necessity if you think about what our financial market were like, the massive unemployment…at every level there was a collapse, and that included investments and retirement accounts. It really quite historic in it’s bipartisan support and its embrace of ideas and insights from the business and investor community developed the JOBS Act, passed in 2012 but took another 3 years to fully implement. The JOBS Act has been called
GREATEST STIMULUS FOR JOBS SINCE THE NEW DEAL
And if you correlate the investment capital going into startup and emerging growth companies with the growth in JOBS you can see that the good deal of the trends in job growth we are seeing now is the ripple effect of the freeing up of access to capital and the confidence the investor market had to take that money off the sidelines and to put it into startup businesses.
Not only does A successful startup go from 2 guys in a garage to 25, 50, even 100 employees in a few years, there is the ripple effect of 100 more jobs they support through out source contracting of services and products from companies with their own employees, they need to grow.
Your speaker last year shared that information from a study conducted by the University of Maryland, that companies that are under a year old, represent 3% of all the companies, and 20% of the gross job creation. Emerging growth companies with 10-500 employees represent 21% of the companies, with 50% of the job growth.Instead of trying to get existing companies to hire more people by providing tax incentives, or to create a bunch of government jobs, our government removed much of the barrier between entrepreneurs and investors, so startups could get access to more capital, AND between investors and entrepreneurs.
This is a two way street:
>>>THE JOBS Act has been said to have been a trigger for economic democratization of the Capital Markets…..
What I mean by that is that yes…..the JOBS Act removed much of the barrier between entrepreneurs and the potential investors they seek to attract that may be outside of traditional angel groups, but it also provided an opportunity for any one, literally anyone that has discretionary income or cash on hand can now invest in a startup.
Even larger established companies that might have a new line of products to launch but lack the extra capital to do so, for example, a $4M profitable company that has been in business 7 or 10 years and has figured out with a $5M infusion of capital, they could launch their new line, expand their marketplace and become a $20 or $30M company in 2 or 3 years….where do they get that kind of cash? They can’t go to a bank for that because it is more than their cashflow, with that revenue their value is too high for traditional angel groups, to having taking that long to reach that revenue disqualifies them for most traditional Venture capital groups, and their revenues and ebitda will be too small for Private Equity funds. The GOOD NEWS IS that with the new methods of raising capital established with the JOBS Act, Those companies can now let their customers, let the community at large– ultra high net worth or not, invest in their success and share in their success.
Because at the onset of the recession, when the values of real estate and the stock market were tumbling, so many americans lost a great deal of what they were depending on for retirement. The drop of the stock market in 2008, took 4 years to get back to their basis points… The real estate I had prior to the recession in Florida, has not fully regained even now. Is it worth more than when I bought it sure, but not as much as what it was believed to be worth then.
There was a phenomenon that we had been experiencing from the likes of KickStarter and Indiegogo…. That people… wealthy to average joes would commit to buying a product before it was built. They would give money to a company, an entrepreneur, an inventor, in the hopes, no guarantee, but the hope that they could have one when it was ready. Decades ago…Crowdfunding… getting funding from strangers…. Was born. It was where 3d Printers got their start, smart watches that could read your heart rate or answer your phone got their first capital, it was where drones first got started. 3 D printer Glowforge raised over $20M from individuals wanting to get the newest innovation…and went on to sell $46M, Drones - Squadrone’s Hexo > $1.3 M, Pebble smart watch raise $10M in 2012….. None of that capital those companies received to start their companies and bring those innovative products to market was for equity. Sure they get equity later, after the greatest risk had already passed. But those thousands of people that have invested hundreds if not thousands into those companies as fans of a product to come would no share in the success of those companies.
The architects of the JOBS act were also acutely aware that there were pockets of great wealth…. But what about the rest of America. This is from the 2013 census, so based on 2012 data of the income by county… Green representing the most wealthy areas, and lighter, paler yellow…. Where there isn’t a lot of wealth. Granted much of the green is in the biggest cities compared to rural area, but if you can’t get a large company… and amazon to move their HQ2 to your neck of the woods to create jobs, how else can you create jobs or even just create wealth in those areas. We had antiquated securities regulations for private companies that were decades old. The notion of asking for money for your company from strangers had been set forth in 1933 with only minor changes since then…. If we removed that barrier called ‘general solicitation’ from the structure of how entrepreneurs raise capital, and allow people other than the most wealthy to invest in company before they went public, when they had their greatest potential increase in value, what would that do for job creation and the accumulation of wealth by more americans.
Could CrowdFunding Change this?
JOBS Act’s 3 Goals
Update securities regs for the new data world we live in
Make it easier to find investors … remove barriers
Give the non wealthy that were already playing in crowd funding a chance at the proverbial next bigthing
A report published 2015 by Goldman Sachs went as far as to label crowdfunding as "potentially the most disruptive of all the new models of finance," with the World Bank predicting that crowdfunding investments will be a $96 billion a year market in developing countries alone by 2025.
My talk today is not about JOBS Act or raising capital through crowdfunding and how all that works… I actually have a whole section in the addendum of my book on regulation that I address this and I talk about how it relates to regular angel investing, we are here to talk about wealth creation through angel investing… in the building of thriving entrepreneur ecosystems. But let me give you an example of how this raising money from the masses can benefit both sides of the table.
Chicken Soup for the Soul…. I would expect that all of you have heard of Mark Victor Hansen and the series of feel good books that tell uplifting stores. Well the company and their intellectual property was bought a fellow, Bill Rouhana in 2008. he had tried to expand beyond the feel good books into consumer products… by 2016 they were an $8M revenue company. They had substantial market brand awareness, 70,000 web email subscribers, millions of facebook likes… They raised $30M in a Reg A+ offering in under 6 months, with 2.5 M shares offered at $12 a piece to create a warchest to create feel good TV & Movies …. No fan of chicken soup for the soul who had received or given one of those books for Christmas or for ‘Chicken Soup for New Mothers” to that first time mom…whatever could ever have participated in a traditional IPO. But here for $12 a share they could spend $60 and buy 5 shares for every grandbaby…. Whatever… and every time a successful movie comes out, they get a dividend check… not to mention the value of that stock over time as a now public company. In fact the public company Chicken Soup bought Ashton Kutcher’s media company last year.
It is the great economic democratization of the capital market.
So to my earlier point with the map of income in the US…. Not surprising those areas with the most green, have also been the locations with the most active angel investor community.
According to FUNDz, these are the amount of money invested in tech companies by angel groups during the period of 2015 to 2017. Not surprising that NW California… Silicon Valle and the surrounding areas have invested $1B, Half a billion down in Southern Cal. Northeast in Boston you have about a half a billion, Atlanta gets into the game with about $30M, ups to about $35M when you go broader into outlying areas…. But I have to tell you, the ecosystem that you are creating here in Florida is shaping up nice. I sence that Florida almost collaborates across the whole state as angel groups are formed, and are nurtured by other angel groups. Bridge Angels are a new group, that is getting support from the community and the other angel groups like the Florida Nexus consortium and even the long standing New World Angels out of South Florida. Look at this… 90M in the SE of Florida, $24M in NE FL and $42 M in central and west coast FL. That is over $150M has been invested by angels in Florida in tech startups in the last 2 years! You are on your way from shifting from an agricultural, tourism, and hospitality dominate economy as a foundation, but potential strong growth from tech startups if this level of investment and collaboration continues. And if you will learn how to integrate intrastate crowdfunding, REG CF, and the growth capital programs of REg 506c and RegA+ to help spur the microcap companies to becoming bigger stronger companies, and to foster angel investing at all the levels, the future is very bright for Florida’s economy.
Crowdfunding becomes crowd investing when Geographic Limits on Access to Capital Removed --- companies located anywhere can theoretically raise capital from anywhere
Levels the Playing field for Women and Minority Owned Businesses, and non-tech companies that traditionally have struggled to raise capital from traditional angel groups.
Potential to Join Real Estate & Stock as Portfolio Asset and Wealth Creation Strategy for Anyone with Disposable Income
Significant Oversight on the Intrastate – Floridas’ was passed in 2015 and operates much like the national crowdfunding porgram Reg CF because those are the ones that a
Mandates a minimum amount must be raised before the company can get their funds. A big risk in startups is that they can’t raise all the money they need. These programs tried to minimize that risk. and RegA+ companies have the oversight of the SEC like a company going public, but without all the expense. They shift their expense to the creating market awareness that not only grows their revenue but also identifies the investors and creates an after market for their stock once it is public.
“Stock Market Investors” & real estate investors can Can Play the game … get their Sea legs for example with small crowd funding level investments or with these companies that are beyond the most risky stage to a growth stage, even if they don’t have the time to participate in a traditional angel group OR aren’t located near an angel group… such as in the panhandle or in central Florida. They can become angel investors Independent of time and geography constraints
And it Effectively Reduces Risk for Traditional Angel Investors by either having a company get further along with reward based crowedfunding, or as a means to extend the investment an angel group has made and that company, for whatever reasond, hasn’t been fortunate to raise their next round from the VC market. They now have options to get capital and continue to grow their business, in effect protecting your investment as an angel group.
So one way to think about all the option for Crowd Finance:
Reward CF is like SBIR grants, or University Grants
Get a product developed but not a business fully built
Equity Reg CF is like the F&F round,
contained, small dollar, but gets the company to a proven spot
Intrastate is really perfect for economic development
Investment from community
Local angel groups can consider it like a local syndication
Reg D 506c can be a replacement for a VC
less likely for a cram down
Reg A+ is like a Private Equity round
but you aren’t being bought out
for organically grown companies that could never raise capital from Angel groups or VCs.
Angels can come in all shapes and sizes now. First step in becoming an angel investor is to decide you want to learnStudies have shown that the internal rate of a return of angel portfolio is between 26 & 30% over a 10 year period of time, compared to residential real estate investing at about 7% and stock market at 12%. But as you may have experienced yourself. If you aren’t familiar with the language, the process, the paperwork, everything… you are reluctant to jump in and stroke that first $25K check. I saw this with my angel group when I was in the rebuild mode and I wrote the original version of my Book Inside Secrets to Angel Investing. Then it was called “How to be an angel investor”. I released my book last year with the sincere intention to provide a tool, a road map for anyone that wanted to learn how to become an angel investor would have a tool they could use at their own pace, with tips, and step by step how to, and a resource portal with thousands of dollars worth information and templates. So the first step in joing the Compassionate Capitalist Movement, where men and women of all ages, and income levels, will strive include investing in the entrepreneurs endeavers… whether through their liquid cash or through their self directed IRA, to including private equity as an asset in their wealth creation strategy, in their investment portfolio…… Become a Compassionate Capitalist. First step is to buy my book ---- available on amazon or signed in the back at the end of the program for the giant sum of $20 --- If you think you know what you need to know to be an angel investor, and you already are a compassionate capitalist… then buy it for someone that needs that information. Buy it for a mellinial that doen’t believe in the preparing for retirement system or that executive you know that it itching to leave his good paying job with all the benefits and luxury of time, to go start a business…
You don’t have to be an entrepreneur if you can invest in an entrepreneur and share in the excitement of the innovation and the benefit of the wealth created.
My shameless plug is done
Because --- taking two quotes from my book….
David Rose says There is a way for private investors to take part in… investing supporting a company from its beginning…. Sounds like compassionate capitalism right?And Naval Ravkant of Angel.co declares… Innovation is the evolution of knowledge derived from the prior invention and understanding…. That is to say, if you do what experienced angels advise… and what I prescribe in the book….
Make a plan to invest in a minimum of 5 companies in 5 years, or even better 10 companies in 5 years…. Some of those will fail. Period. Fact of life. But the emotion side of the reward from being a compassionate capitalist is what Naval is talking about… think about it.. From space flight to electric cars to augmented reality to even the eveolution of the modern airplane…. There has been innovation that came before what we have today that failed but what was learned from that failure became the foundation for eveolutoin to something that worked.
When you make the commitment to invest in multiple companies over time, you determine how much cash you have to invest and what your level of risk is. Bridge Financing – Be the BANK--- back that new customer order to be manufactured.
Royalty/Revenue Financing ---- invest through a self directed IRA then those revenue payments will go into your retirement account tax free
In an Angel Fund or With a Group like bridge angels and get the benefit of the group think and the years of industry experience and those that have experience as angel investors.
Convertible Note / SAFE Note --- These will be your riskiest because if the company never raises their next round there is nothing to convert to
Straight Equity and then you have straight equity that we have talked about
Reg CF
Reg A+
Reg D
So as I start to wrap up let me leave you with this…. If investing in a startup, Don’t go it Alone – join a group or form a small group of trusted advisors.
The Fundamental profit model…. Of capitalism applies here
Buy at Wholesale, Sell at RetailDon’t buy based on emotion… the fundamentals have to be there for a solid business with potential to grow… how to do that is a whole other presentation
Asset Class that out performs Real Estate, Stocks, Bonds…..Remember WebVan? Pets.com? ---- The angel investors were the ones that made money on those companies , not the people that jumped onto the IPO bandwagon.
Risk vs Reward
Compassionate Capitalism
So as I set the stage for our panel…
I want to bring up a point that Chris last hear made taken from Kauffman Foundations Entreprneurial ecosystem playbook.
Entreprneurship is not just about building companies, it’s about giving individuals a means to take charge of their economic destinies
We seek to empower the makers, the doers, the dreamers….And we do that at scale by building entrepreneurial communities or ecosystems.
Thank you. With that I’d like to welcome to the stage
Tim ____ from Rewired solutionsValerie McDevitt from UCF technology transfer department and
Allen Johnson from Bridge Angel Group.
INTRODUCTIONS
Questions…