Tuesday, November 2, 2021

Make Angel Investments That Go 10x, Unleashing Monster Returns for a Family Juice Business

Angel Investing – Entrepreneurs, Founders, Business Startups, Early-Stage Businesses, Lead Investors, Making Your First Angel Investments  - Series 2, Episode 1


I look for angel investments that have the potential to produce a 10x return on my investment in 5 years. Startup investing is one of the more risky investment categories. Therefore, you should expect these businesses to have the possibility of doing well. If you invest in 10 businesses, and nine of them fail, the remaining business needs to give you a 10x return just to break even. Ideally, you will do better than that and enjoy healthy returns.  

Hansen’s Fruit and Vegetable Juices started as a family business in 1935. Decades later, the company was acquired for $14.5 million in 1992. In 1997, it was already listed on the public stock exchange as a NASDAQ small cap. This is when they first entered the energy drink market. In 2002, they made a slight modification that changed the energy market. They started selling energy drinks in a large can. 

This energy drink, “Monster” launched in April 2002. In 2003, their sales passed the $100 million dollar mark. Sales were $98 million in 2002, in 2018, they had $3.8 billion in sales. $3.5 billion of its $3.8 billion in sales were from the Monster line of drinks.

If you invested $10,000 in Hansen, now renamed Monster Beverage Corp, in 2002, your investment would have been worth over $800,000 by 2007. That is over an 80x return on investment in five years for a publicly traded company. Imagine what returns can be achieved from startup investing.

We are looking for active and passive angel investors, no experience required. We also have a sweat-equity program designed for those who want to invest in startups, but do not have money to invest. Opportunities@OmegaDestiny.com

Are you looking for investors? Send us your information today, Funding@omegadestiny.com

Do you have a product or service designed to help business startups? If so, we want to hear from you! Partnerships@omegadestiny.com

Do you want more? 
Youtube https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ 

Sources:
https://www.youtube.com/watch?v=4DOM7nG0W7U 
https://www.globenewswire.com/news-release/2021/08/05/2276050/10193/en/Monster-Beverage-Reports-2021-Second-Quarter-Financial-Results.html 

Disclaimer: This content is for entertainment purposes only. This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering legal, investment, tax, or medical advice.

Tuesday, July 20, 2021

Build Your List of Potential Investors, Pitch Investors Properly, How Kevin Systrom Raised $500,000 in Two Weeks to Launch Instagram - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 12

Build Your List of Potential Investors, Pitch Investors Properly, How Kevin Systrom Raised $500,000 in Two Weeks to Launch Instagram

Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 12



This video is part of my series - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders, learn more by visiting https://bit.ly/3hExYJX


Most startups need funding at some point. Once you have the addressed all of the items in the previous episodes, it is time to build your list of potential investors and start the conversations. They can be friends, family, social network, social media contacts, work colleagues, people in the business industry, etc. Try to put together a list of at least one hundred people. A list of one hundred potential investors may seems like a lot, but the more people you have on the list, the better your chances are of success.

The next step is to talk to people on your list about funding your business. If you want to pitch investors properly, I suggest you do it in a soft, but direct manner. I typically kick off the conversation on a light note. Something along the lines of, “I am starting this business project,” or “I am testing this business concept.” Avoid using salesy language and observe if others show any interest in being a part of your startup business plan.

After starting the conversation in a casual manner, discuss your investment opportunity. Warning, discuss does not mean pitch. These people know nothing about your business. You do not want to overwhelm them with loads of information about your business model. 

Think of fundraising as giving people sips of water. Give them information in bits and pieces so they can process them. It depends on how you phrase your sentences to make the potential investor ask for more sips of water.

One mistake excited entrepreneurs make is sending every business detail to everybody. It is almost like giving sips of water with a fire hose and drowning all your potential investors. It makes you sound desperate and you lose credibility. Be patient. Some investors will come to you, and some will not. If they are interested, they will come to you for more. And when they do, feel free to explain your business to them. For the ones who do not come for more, move on to the next one. Or maybe try again with a different business approach in six to nine weeks.

In 2010, Kevin Systrom went to a party for a startup called Hutch. Kevin met two venture capitalists that were impressed by his App, Bourbon. The purpose of Bourbon was so people could make plans, check in, and share photos from places that had good drinks. Shortly after the party, Kevin decided to quit his job and focus on Bourbon. Within only just two weeks, Kevin raised $500,000 from those venture capitalists at the party. By July 2010, they pivoted Bourbon, focusing just on the photo sharing feature of Bourbon. Bourbon was renamed Instagram. 

Two years later, in March 2012 Instagram had 27 million users. Facebook purchased Instagram later that year for $1 billion. 

Do you want more? 


Previous Post - Faster Traction Through Funding, How Zoom and Eric Yuan Defeated Apple’s Facetime, Microsoft’s Skype, and Cisco's WebEx - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 11

Are you looking for investors? Send us your information, Funding@OmegaAccelerator.com

Would you like to invest in early-stage businesses? Contact us, info@omegaaccelerator.com



Source


Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering legal, investment, tax, or medical advice.

Tuesday, July 13, 2021

Faster Traction Through Funding, How Zoom and Eric Yuan Defeated Apple’s Facetime, Microsoft’s Skype, and Cisco's WebEx - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 11

Faster Traction Through Funding, How Zoom and Eric Yuan Defeated Apple’s Facetime, Microsoft’s Skype, and Cisco's WebEx 

Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 11


This video is part of my series - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders, learn more by visiting https://bit.ly/3hExYJX


You have proven you have a business that works. Now it is time to put the foot on the gas pedal. When you do this, here are some questions you should be considering.
How can you leverage technology? 
Which roles need to be filled? 
Should you hire staff or contractors?
Do you have enough space? 
Where will the money come from? 
Can operational cash flow sustain your business? 
Are you profitable?

If you have not started raising capital, now is the time. If your business created a solution to a problem that can be sold for a profit, you will have competition. You need resources to compete. Resources require capital.

Eric Yuan founded Zoom, originally known as Saasbee, in April 2011. Yuan did this while working at Cisco's WebEx Cisco video conferencing business, after noticing that WebEx was not keeping up with what customers were demanding. 

Eric Yuan raises $3 million in seed funding In June 2011, two months from founding, from TSVC, WebEX founder Subrah Iyar, Matt Ocko, Dan Scheinman and Bill Tai. 

Yuan did this despite massive competitors.
CISCO acquired WEBEX for $3.2 billion in 2009
In early 2011, Apple launched FaceTime
May 10, 2011, Microsoft Corporation acquired Skype Communications for $8.5 billion
 
First customer, at one year and seven months from founding, three months from launch: In November 2012, Zoom signs up Stanford Continuing Studies, Stanford's continuing adult education program, as its first customer.

Product one, at one year and nine months from founding, five months from launch: In January 2013, Zoom releases its Unified Meeting Experience (UMX) cloud service, which allows 25 people to participate at once, either up to 40 minutes with its free version or unlimited with its $9.99 business plan.

Second funding, at one year and nine months from founding, five months from launch: In January 2013, Zoom raises a $6 million Series A from Qualcomm Ventures, Yahoo founder Jerry Yang, Iyar and Dan Scheinman.

"I put the phone down and stared at it intensely. I was transfixed. Sure, I had just learned about Eric’s terrific background as an engineering leader at Webex and an executive at Cisco. However, more importantly, I was totally blown away by Eric’s unique vision on the future of video collaboration. Eric had explained his unique technical approach, and I felt that it was significantly different/better than others I had seen in the industry (from both video startups and Internet giants). Eric essentially had constructed an incredibly well thought-out “First Principles” multimedia approach for this new multi-device, cloud-based world."

Traction, at one year and nine months from founding, five months from launch: In January 2013, Zoom reaches over 500,000 participants, has held over 140,000 meetings, and has 1,000 businesses on the platform in over 2,500 cities around the world. 

Traction, at two years and one month from founding, nine months from launch: In May of 2013 Zoom reaches one million participants. It has connected over 400,000 meetings and 3,500 businesses in over 2,500 cities worldwide.

Traction, at two years and three months from founding, 11 months from launch: In July 2013, Zoom has nearly two million participants, 5,500 meetings/day and 100 million meeting minutes.

Third funding, at two years and five months from founding, one year and one month from launch: In September 2013, Zoom raises $6.5 million in Series B funding led by Horizons Ventures, with Patrick Soon-Shiong and Jerry Yang also participating. Bart Swanson, Advisor at Horizon Ventures, joins the Board of Directors at Zoom.

Traction, three years and three months from founding, one year and 11 months from launch: In July 2014, Zoom reached 10 million participants. 

Fourth funding, at three years and 10 months from founding, two years and six months from launch: In February 2015, Zoom raises $30 million in a Series C round led by Emergence Capital, with participation from Horizons Ventures, Jerry Yang, Qualcomm Ventures, and Dr. Patrick Soon-Shiong.

Traction, at three years and 10 months from founding, two years and six months from launch: By February 2015, Zoom has 65,000 companies, 40 million individuals, over 1 billion meeting minutes and 2,500 educational institution customers.

Zoom went public on April 18, 2019, valuing the company at nearly $16 billion by the end of its IPO. 

As of March 2020, Zoom has a market cap of $38.52 billion.

None of this would have been possible without funding.

Do you want more?

Previous Post - Making Money With Your Business, Profit and Cash Flow, Five Sustainable Companies That Make a Lot of Money - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 10

Sources 


Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering legal, investment, tax, or medical advice.




Tuesday, July 6, 2021

Making Money With Your Business, Profit and Cash Flow, Five Sustainable Companies That Make a Lot of Money - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 10

Making Money With Your Business, Profit and Cash Flow, Five Sustainable Companies That Make a Lot of Money

Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 10


This video is part of my series - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders, learn more by visiting https://bit.ly/3hExYJX

It is time to make money! You have been through a couple of rounds of market testing now you feel like you are on to something. The next step is to run the numbers to make sure that the business is sustainable. There are two sides to making money, profitability and cash flow.

Profitability is the difference between the expenditures of a business and its revenues. Typically, businesses sell their products or serviced for more than their purchase price or costs. The difference between revenue and expenses is profit. For example, if you buy a car for $5,000 and sell it for $7,000, you make a $2,000 profit.

Positive cash flow is different. It means more money is coming in than going out, and you have enough cash in your business bank account to pay your bills. There is a significant difference.

In the previous example, you bought a car for $5,000 and sold for $7,000. If you purchased the car using a credit card and sold the car immediately, your current cash flow would be $7,000. You sold the car before you paid for it. When you pay off the car, your cash flow will match your profit of $2,000. This is assuming no interest expense. 

If you did keep a balance on your credit card or did not pay off the car immediately, your interest expense will reduce your profitability and cash flow, If you never pay your credit card, your cash flow from the transaction will remain $7,000. 

Cash flow can be used to repay creditors, pay dividends and interest to investors, 
engage in buybacks, investments in acquisitions for inorganic growth, investments in innovation for organic growth, or debt reduction. More cash allows for more maneuverability for a company. This can allow for positive growth during economic booms and flexibility during an economic downturn, regardless of the cause of those bad times, e.g. the broader market, the industry, or the company itself.

Here are five examples of companies that have consistently make a lot of money.


Company Name
Free Cash Flow (FCF)
Debt to Equity Ratio (D/E) 
1-Year Stock Performance
Dividend Yields

Apple (APPL)
$7.17 billion (TTM ended in 06/20) 
0.61 (for the three months ending 06/30/20)
55.38% (since 12/31/19)
0.71% (as of 8/13/20)

Verizon (VZ)
$2.11 billion (TTM ended in 06/20)
1.94 (for the three months ending 06/30/20)
-4.39% (since 12/31/19)
4.20% (as of 8/13/20)
 
Microsoft (MSFT)
$4.52 billion (TTM ended in 06/20)
0.57 (for the three months ending 06/30/30)
32.47% (since 12/31/19)
0.98% (as of 8/13/20)
 
Walmart (WMT)
$1.84 billion (TTM ended in 04/20)
0.85 (for the three months ending 04/30/20)
11.58% (since 12/31/19)
2.85% (as of 8/13/20)
 
Pfizer (PFE)
$1.26 billion (TTM ended in 06/20)
0.78 (for the three months ended in 06/30/20)
 -2.86% (since 12/31/19)
3.99% (as of 8/13/20)


Do you want more? 

Previous Post - Starting to Grow, How Rushing to Market Turned Crystal Pepsi Into One of the Worst Product Fails of All Time, Even After Half a Billion of Sales in Its First Year - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 9

Are you looking for investors? Use this link to send us your information. https://register.omegadestiny.com/register-business-for-funding
  
Use this link if you have a product or service that will help our early-stage businesses. https://register.omegadestiny.com/register-to-market-to-our-companies

Sources


Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering legal, investment, tax, or medical advice.

Tuesday, June 29, 2021

Starting to Grow, How Rushing to Market Turned Crystal Pepsi Into One of the Worst Product Fails of All Time, Even After Half a Billion of Sales in Its First Year - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 9

Starting to Grow, How Rushing to Market Turned Crystal Pepsi Into One of the Worst Product Fails of All Time, Even After Half a Billion of Sales in Its First Year

Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 9


This video is part of my series - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders, learn more by visiting https://bit.ly/3hExYJX


As your business starts to grow, what do you see? Is everything running smoothly? Or are there hiccups in your business operations? When everything seems okay, you grow confident and start to take on more and more customers.

With more customers come more operational challenges. Challenges such as customer service, human resources, delegating roles, etc. It is also important for entrepreneurs to anticipate future challenges and their respective solutions. It is also important to ask yourself if you still like your business. You have options.
-Evaluate your business model and make some changes
-Focus on taking your business to the next level

You also need to watch profitability and cash flow. Initially, you do not need to be overly concerned about money because there are many ways to monetize a good business. But as your business grows and takes on more customers, it becomes imperative that your business makes money for it to stand on its own. Most of us do not have enough wealth in our bank accounts to lose money forever. 

If there is a market for your business idea you will make money, you will probably move on to the next step. If not, you should probably go back to the drawing board. If it doesn’t make money, it doesn’t make sense. 

You also need to make sure you have your product or service ready for mass scaling before you grow too much.

Crystal Pepsi was poised to become a billion-dollar idea. Instead, it was a colossal flop. Less than a year after the commercial hit the airwaves, the soda was yanked from the shelves. It became a cultural laughingstock.

How did Crystal Pepsi go from pop culture darling to the beverage world’s biggest fail? 
-A rush to launch before the recipe tasted right. 
-Spoilage from using clear bottles with a clear liquid, apparently colas are brown for a reason

In April 1992, the drink launched in Boulder, Colorado, and was soon flying off the shelves. But the clock was ticking. They wanted the soft drink to launch nationally in time for the Super Bowl on Jan. 31, 1993, as part of a $40 million ad campaign.

All told, Crystal Pepsi was rolled out across America at breakneck speed -- just nine months after initially pitched. By contrast, It took three years to launch Slice. It wasn’t enough time to accurately test Crystal Pepsi’s shelf life.

After the Super Bowl commercial, sales of $1.50 six-packs soared. The company sold $474 million of Crystal Pepsi by March 1993, according to The New York Times.

Unfortunately, Cases of Crystal Pepsi were being displayed sitting out in the direct sunlight. As predicted, ultraviolet rays caused the soda to spoil. Reports began pouring into Pepsi headquarters from customers saying that Crystal Pepsi tasted strange.

By 1994, less than a year after Crystal Pepsi’s big launch, it was discontinued. Two decades later, in 2014, the soda was named one of the “10 Worst Product Fails of All Time” by TIME Magazine.

Do you want more?

Previous Post - Why Competition Is Good For Entrepreneurs and How Blockbuster’s $50 Million Mistake Helped Reed Hastings and Netflix Destroy a $6 Billion Empire- Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 8

Are you looking for investors? Use this link to send us your information. https://register.omegadestiny.com/register-business-for-funding .

Use this link if you have a product or service that will help our early-stage businesses. https://register.omegadestiny.com/register-to-market-to-our-companies 

Sources cited

Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering legal, investment, tax, or medical advice.

Tuesday, June 22, 2021

Why Competition Is Good For Entrepreneurs and How Blockbuster’s $50 Million Mistake Helped Reed Hastings and Netflix Destroy a $6 Billion Empire Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 8

Why Competition Is Good For Entrepreneurs and How Blockbuster’s $50 Million Mistake Helped Reed Hastings and Netflix Destroy a $6 Billion Empire 

Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 8



This video is part of my series - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders, learn more by visiting https://bit.ly/3hExYJX


When battling for resources or investment, early-stage entrepreneurs may believe that competition is a bad thing. On the surface, they are correct. There are a limited number of angel investors willing to provide a finite amount of venture capital to founders.  

However, is competition a good thing for business startups?

Competition is not always a bad thing for entrepreneurs. If you have a brand new startup with an innovation that nobody's heard about, you may not have any competition. However, this may cause a challenge getting customers or angel investors. Why? Because your audience will likely be confused by your solution business. 

When you sell something that is truly new, your first step will be to educate your audience. People cannot buy something before it exists. It is tough to attract startup funding when investors do not understand your solution. It is even harder if there is no proof that there is a market for what you are doing. This is often the case for innovative startups, because it is hard to prove if your target market will pay for something they never had. 

This leads us to another benefit of competition. If you need to compete with other businesses in order to win customers, at least you have proof that a market does exist for your startup.

Doing a competitive analysis is critical for your business to succeed. It will give you an opportunity to see the lay of the land. However, it will also help you to avoid a common startup trap that costs millions of entrepreneurs countless hours and dollars. Creating something that already exists.

At least 20% of the pitch decks I see are promoting a business or technology that has already been created. Competing with powerful incumbents is already tough enough. But creating a clone of something that already exists without powerful differentiators is a suicide mission. Why spend time, money, and energy building a YouTube-type business technology when YouTube already exists?

However, you can attack a powerful incumbent with technological innovation. Early in 2000 Blockbuster was a $6 billion giant that dominated the home entertainment business with almost nine thousand rental stores around the world. That year, Netflix founders Reed Hastings and Marc Randolph offered to sell the company to their major Blockbuster for $50 million. Blockbuster turned them down. 

In 2002, two years after that meeting, we took Netflix public. Blockbuster was still a hundred times larger $5 billion versus $50 million. 

How did Netflix compete?

“It was not obvious at the time, even to me, but we had one thing that Blockbuster did not: a culture that valued people over process, emphasized innovation over efficiency, and had very few controls. Our culture, which focused on achieving top performance with talent density and leading employees with context, not control, has allowed us to continually grow and change as the world, and our members’ needs, have likewise morphed around us.

Netflix is different. We have a culture where No Rules Rules.”

Reed Hastings and Erin Meyer, Netflix Founders


Do you want more? 
 
Previous Post - Market Testing for Better Decisions and Results, How Lego’s New Business Strategy Doubled Sales Overnight - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 7


Are you looking for investors? Use this link to send us your information. https://register.omegadestiny.com/register-business-for-funding.  

Use this link if you have a product or service that will help our early-stage businesses. https://register.omegadestiny.com/register-to-market-to-our-companies


Sources

Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering legal, investment, tax, or medical advice.




Tuesday, June 15, 2021

Market Testing for Better Decisions and Results, How Lego’s New Business Strategy Doubled Sales Overnight - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 7

Market Test for Better Decisions and Results, How Lego’s New Business Strategy Doubled Sales Overnight 

Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders – Episode 7 



This video is part of my series - Find Angel Funding & Venture Capital for Business Startups, Entrepreneurs, & First Time Founders, learn more by visiting https://bit.ly/3hExYJX


Market testing is simple. Go out and try to sell. Calls, emails, social media, digital ads, networking are all easy ways to test your business plan. 
 
After finishing your first set of market tests, you need to evaluate the results. It helps you determine whether your business strategy is working or not. It also saves you money down the road if you are not pursuing the right opportunity.

When it comes to assessing your results, you need to evaluate:

Market Reaction - What do people think about your product or service?
Sales Performance - How many leads turned into customers who bought your product or service?
Return-on-Investment (ROI) - Are you profitable?

Ask yourself the following questions while going through this exercise.

What worked? 
What did not work?
What were the strengths and weaknesses? 
What did I like? 
What did I not like so much?
What should I change about my business strategy? 
Which part of the business is perfect the way it is?

After you thoroughly evaluate your test results, you can make an informed decision about your business strategy and next steps. Do you need more market testing? Should you consider a pivot? Are we ready to move forward?

This really depends on you. If you feel like there is too much room for improvement, keep working. However, this can take days, weeks, months, or even years if you let testing and perfecting get out of control. I suggest get comfortable with an area you are making traction and move to the next step. 

Remember the famous statement by Reid Hoffman, founder of LinkedIn and a member of the Paypal Mafia, if you are not embarrassed by the first version of your product than you waited too long.


Through market tests and customer feedback, Lego discovered that only 9% of their users were girls in 2008. This obviously excluded about 50% of the children’s toy market. In 2012, Lego came out with a product line known as “Friends.” These figurines were slightly larger to accommodate accessories such as handbags and hairbrushes. They were also more colorful to appeal to young girls. It turned out to be a great success, and sales for that year were double of what was projected!

Do you want more? 


Previous Post - How Entrepreneurs Create a One-Page Executive Summary for Finding Angel Investors, TaskRabbit One-Pager, $38 Million Funding Success Story – Episode 6

Are you looking for investors? Use this link to send us your information. https://register.omegadestiny.com/register-business-for-funding.  

Use this link if you have a product or service that will help our early-stage businesses. https://register.omegadestiny.com/register-to-market-to-our-companies


Sources
http://www.duartepino.com/blog/5-ways-to-evaluate-your-marketing-plan
https://fuelcycle.com/blog/market-research-done-right-how-market-research-gave-lego-a-facelift/


Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering legal, investment, tax, or medical advice.