Wednesday, February 19, 2020

Live Pitch Event - Up Close and Personal - Royal Oak, Michigan - Money for a Startup - Find up to $5 Million of Funding from Angel Investors - Ren Carlton



Pitch Your Business to Angel Investors!




Location
Royal Oak, Michigan
The exact location will be disclosed to our guests.

Date and Time
Thursday, March 5, 5:30 PM - 7:30 PM, Eastern Standard Time

Format
Casual, private networking event


Our Up Close and Personal pitch events are small, focused networking events designed to quickly build relationships between angel investors and entrepreneurs. There are no formal presentations. Meet, mingle, and watch magic happen.


Note: This is a private event. Space is extremely limited. The exact location will be disclosed to our guests.


Attendees Will Include






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Join Us!




Investors - Email, info@OmegaAccelerator.com, subject: Investor - Royal Oak Pitch Event


Entrepreneurs - send us your 1-page executive summary today - Email funding@omegaaccelerator.com, Subject: Looking for Funding - Royal Oak Pitch Event


Sponsors - are you interested in supporting some of our red-hot business startups? - Email, info@OmegaAccelerator.com, Subject: Sponsor - Royal Oak Pitch Event




Sources

https://www.linkedin.com/in/rencarlton
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegalegacyacceleratorx.com/924-2/https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html



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 any legal, investment, tax, or medical advice. Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties. All stories are based on true events, but are altered to protect the identity of the individuals involved.

All offers will be contingent upon passing our due diligence process.


Wednesday, February 12, 2020

Are you an entrepreneur? Take Ren Carlton’s test and find out!

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”

Theodore Roosevelt, Citizenship In a Republic

Are you an entrepreneur? 

The term entrepreneur gets thrown around pretty freely these days. At the time of writing this article, there are 2,262,442 individuals that consider themselves an entrepreneur according to their Linkedin profile. But how do you know? How do you earn this title? Does working from home twice a week for a Fortune 500 Company make you the next Travis Kalanick? Let’s find out. Time to separate the wanntrepreneurs from those in the arena…

Quick Test

First, a quick test, since real entrepreneurs don’t have time to take the full test. If you answer any one of these questions correctly, congratulations, you are an entrepreneur. By the way, skip this section if you are being paid by your employer while taking this test… and subtract 5 points...
-You responded to a spam email, trying to sell the sender something
-You knew who Travis Kalanick was without googling him
-You started a business knowing you were 99% likely to lose money and fail, but did it anyways
-You have been threatened by someone that invested in one of your businesses
-You have been visited by an IRS agent at your office
-You signed a forbearance agreement from a bank
-You are familiar with the three comma club and you are working towards being a member

Note, if you were offended by any of those questions, you automatically failed the test. You may want to look into some MLM opportunities to get a taste of entrepreneurship.

Full Test

Now for the long-form test. Give yourself 1 point for every yes answer:

-Doing cools stuff and creating things is more important than making money
-Your fear of boredom outweighs your fear of economic loss
-You expect to invest time and MONEY when starting a business or joining a team of founders
-You have worked more than 30 days without getting paid
-You believe there is more risk in working for a single employer then relying on yourself for your income
-You have worked for 100% commission for at least 30 days as your single source of income
-You prefer to work on a 1099 basis
-You expect to be paid based on results, not based on how much time you spend
-You own any form of cryptocurrency
-You cannot imagine working without huge upside potential
-You don’t remember what it feels like to receive a steady paycheck or employee benefits
-You sold someone something while practicing your pitch
-You understand why blockchain, AI, and AR are exciting

How did you do?


Are you looking for investors for your business, contact us today, funding@omegaaccelerator.com.  



Are you interested in angel investing and helping us fund early-stage businesses? Email info@OmegaAccelerator.com. 



https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegaaccelerator.com/
https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html


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 any legal, investment, tax, or medical advice.  Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties.  All stories are based on true events, but are altered to protect the identity of the individuals involved.

Monday, February 3, 2020

Superbowl 2020 - Making Money as an Angel Investor, Valuing Angel Investment Opportunities, and the San Francisco 49ers

Superbowl 2020 brought us Kansas City Chiefs vs. San Francisco 49ers, Hummer EV vs. Genesis SUV, Jennifer Lopez with Shakira, and Tom Brady vs. potential retirement. It also brought us some interesting facts for angel investors and valuing angel investment opportunities.  


Angel Investors, Valuing Angel Investment Opportunities, and the San Francisco 49ers 


The York family bought the San Francisco 49ers in 1977 for $17 million. Forbes estimates the 49ers’ value at $3.5 billion, making it one of the 10 most valuable sports teams in the world. The San Francisco 49ers have not won a Super Bowl since 1995.


Why is this business so valuable? 


The NFL has 32 teams. Every team gets an equal cut of the national revenue that includes money from TV rights, sponsorship, licensing, and merchandise sales. It doesn’t matter how many games each team wins or loses. National revenue is estimated to be more than $8 billion, with each team receiving more than $250 million. This is on top of local revenues, including ticket sales.

These teams obviously have expenses. Player salaries are probably the biggest expense. For the 2019 season, there was a salary cap of $188 million per team, and owners have to spend at least $167.5 million. 


How do we get to a $3.5 billion value?


Calculating a reasonable price, or valuation, for a business can be a challenge for angel investors. Notice I stated that the angel investor should be determining the price. This is the opposite of how most angel investment transactions are taking place. Early-stage businesses typically establish the value and sales price. Some avoid the valuation discussion by delaying the conversation until later using a SAFE note. 

However, angel investors are the ones in control. I estimated there are approximately 30 million angel investment opportunities, but less than 1 million active angel investors. The 21st Century version of the Golden Rule applies here… He (or she) who has the gold, rules…. 

There is no “one size fits all” approach to determining the value of a startup. However, there is a wealth of ideas on how to accomplish this, thanks to a wide array of methodologies created by experienced entrepreneurs and angel investors. It makes sense to consider the most credible methods and define your own approach to valuation. Here are the methods I consider.


Scorecard Valuation Method


The Scorecard Valuation method, created by Bill Payne, is one of the most popular methodologies used by angels. This method compares the startup seeking funding to other funded startups by creating an average valuation based on factors that include region, market, and stage. 

The purpose of Scorecard Valuation is to compare the startup to the perception of other startups within the same region. Payne recommends using these factors:

Strength of the Founder(s) (0–30%)
Size of the Opportunity (0–25%)
Product/Technology (0–15%)
Competitive Environment (0–10%)
Marketing/Sales Channels/Partnerships (0–10%)
Need for Additional Investment (0–5%)
Other (0–5%)


Berkus Method


The Berkus Method was developed by super angel investor David Berkus. His approach assigns a number, a financial valuation, to each major element of risk faced by all young companies and credits the entrepreneur some basic value for the quality and potential of their business idea.

The Berkus Method uses five qualitative and quantitative factors to calculate valuation: 
Sound Idea (basic value)
Prototype (reduces technology risk)
Quality Management Team (reduces execution risk)
Strategic Relationships (reduces market risk)
Product Rollout or Sales (reduces production risk)

The Berkus Method also assigns a monetary value to each factor. The maximum value that can be assigned to each factor is $500K, meaning that the pre-money valuation can total up to $2.5M. Berkus sets the “hurdle” number at $25M, achieved in the fifth year in business, to allow the investment to achieve a ten-times increase in value over its life.


Market Multiple 


This approach is popular with venture capitalists because it gives them a good indication of what the market is willing to pay for a company. The market multiple approach values the company against recent acquisitions of similar companies in the market.

While most established corporations are valued based on earnings, the value of startups is commonly determined based on revenue multiples. Placing a value on young companies requires extensive forecasting to assess what the sales or earnings of the business will be once it reaches maturity. 

The intent of the market multiple approach is to deliver value estimates that come close to what investors are willing to pay. The challenge is that comparable market transactions can be difficult to find, especially in the startup market. Companies that often represent the closest comparisons are early stage, unlisted companies. 


Development Stage Valuation 


The development stage valuation approach is often used by angel investors and venture capital firms to generate a rough range of company value. Investors set these values based on their experience and values vary depending on the company’s stage of development. The further the company has progressed along the development pathway, the lower the company's risk and the higher its value. Here’s an example of a valuation-by-stage model: 

Estimated Company Value Stage of Development
$250,000 - $500,000 The business idea or business plan exists
$500,000 - $1 million The management team is in place to execute the plan
$1 million – $2 million A final product or technology prototype has been developed
$2 million – $5 million Strategic alliances, partners or customers are in place
$5 million and up Revenue growth and a pathway to profitability is imminent

Oftentimes, private equity firms will create milestones for providing additional funding. For example, the first round of financing may be dedicated to employee wages while a subsequent round of funding is designated to mass produce and market the product or service. 


Conclusion


The startup valuation process is as much art as it is science. Determining the value of a young company is challenging because the factors contributing to success are uncertain. The good news is that the startup community offers many talented and well-established investors who have accumulated very valuable experience and are willing to share their knowledge. New angel investors will benefit from doing their research and listening to the more experienced investors they meet along the journey. 


Contact Info@omegaaccelerator.com if you are interested in making angel investments.



Are you looking for investors for your business? Contact us at funding@omegaaccelerator.com.




Sources:

https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html




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 any legal, investment, or tax advice.  All stories are based on true events, but are significantly altered to protect the identity of the individuals involved.


Monday, January 27, 2020

New Opportunities for 2020 - Launch Announcement and Omega Accelerator Update

We are excited to announce a number of exciting new opportunities for 2020!

2019 Update - Omega Legacy Accelerator X


In 2019 we launched Omega Legacy Accelerator X. Our 2020 goal is to enroll another 100 companies into this accelerator. You can learn more by visiting https://omegalegacyacceleratorx.com/.








Are you looking for investors for your business? Contact us at funding@omegaaccelerator.com.




New Opportunity - Ecommerce Business Accelerator

Here is your chance to live the entrepreneurial life and get in on the ground floor of our next accelerator. We are looking for founders for our new Ecommerce Business Accelerator. We have remote, part-time positions with flexible working hours available. Email Opportunities@omegaaccelerator.com to learn more.

Are interested in a passive investments? Omega Legacy Accelerator X is preparing for its next round of growth. Email info@omegaaccelerator.com to learn more.



Sponsors interested in reaching our network of over 20,000 entrepreneurs and funding sources can email info@omegaaccelerator.com.


Sources
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegaaccelerator.com/
https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html




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 any legal, investment, tax, or medical advice.  Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties.  All stories are based on true events, but are altered to protect the identity of the individuals involved.





Monday, January 20, 2020

How to Screen Potential Angel Investments - Doing Your Research as an Angel Investor

Angel investors can earn high rewards, but it is not without risk. There are 400,000 businesses started in the U.S year. How can you choose the right ones for investment? Here are my selection criteria:
- Scalable
- Fast path to profitability and positive cash flow
- Not a lot of hard assets
- 10X potential return in 3-5 years
- Moat to protect against competition
- Unfair advantage
- Access to capital
- Likable founders with skin in the game
- Hot industry
- Low regulation
- Avoid companies with legal risks, especially ones with risk of imprisonment
- Low startup costs
- Ability to leverage technology

Geographic convenience and industry familiarity are also nice. It is also important to note that not all of my investments meet all of the above criteria. It is not much fun being an entrepreneur if you cannot break some rules--even if those rules are self-imposed.

Traditional due diligence methods are often ineffective when analyzing early-stage businesses because you are frequently investing in the future. Reviewing financial information and customer data is not possible when they don’t exist.

Before investing, we evaluate several aspects of the company or concept: the business model, the game plan, the leadership and the potential return. Key goals during the evaluation process include confirming that the entrepreneurs are exceptionally talented and that there is a need in the marketplace for what they offer. Here are a few things to keep in mind:

What’s being offered? 

The startup’s product or service should be clearly differentiated relative to competitors. It should fulfill an important customer need and compete in a market that has solid potential. Most importantly, the target audience should be excited about the product and be able to articulate how the product will make their lives better.

Does the game plan make sense? 

The startup should have a business plan with reasonable goals. The plan for investing angel funds should make sense and be based in sound logic. The startup should have a scalable model and attractive unit economics. You need to ensure that the amount of cash raised will be enough to cover the length of time required to firmly establish the business. A startup that runs out of cash will surely fail.

How competent is the leadership? 

Successful startups are led by a founder or a team with the right experience, talent, and vision. Important character traits include confidence, fortitude, creativity and determination. Having the ability to identify talent and build a strong team is critically important.

What’s the potential return? 

Tanya Prive, the co-founder of 1000 Angels, provides some helpful perspective on the returns you should expect from your startup investments: “We focus solely on highly curated direct investments and aim to offer a well-balanced portfolio selection with startup investments that can yield an IRR (internal rate of return) of 25% or a cash-on-cash return of approximately 3X over 5 years and 9X over 10 years. Again, returns are never guaranteed and it is possible to lose all of your investment. Angel investing can yield binary results, meaning you can either enjoy a healthy return or lose everything. This is why it is important to build a diversified portfolio of startup investments that help mitigate the risk.”

Before making any investment decision, you may also want to talk to a CPA, attorney, and/or financial planner.





Do you need help screening your angel investment opportunities?  Our team can help you, Info@omegaaccelerator.com.


Have you dreamed of being on Shark Tank? Now is your chance.  Click here for more information.




Sources
https://www.angelcapitalassociation.org/blog/how-to-become-an-angel-investor/
https://www.wired.co.uk/article/how-to-become-and-angel-investor
https://www.forbes.com/sites/tanyaprive/2016/04/28/what-returns-can-i-expect-from-startup-investing/#304808477964
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegaaccelerator.com/
https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html


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 any legal, investment, tax, or medical advice.  Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties.  All stories are based on true events, but are altered to protect the identity of the individuals involved.

Saturday, January 11, 2020

Money for a Startup - Win Equity and Prizes

Have you dreamed of being on Shark Tank? Now is your chance to be a shark.


Help founders succeed and receive equity and prizes in return at Money for a Startup


Here is how it works:
- Watch founders pitch their business ideas
- Offer your insights, advice, and assistance
- Receive Equity Points every time you complete a challenge correctly or help our founders
- Get enough Equity Points and redeem them for equity and/or prizes
- The more you participate, the more you can win

Register today at http://moneyforastartup.com 




Are you looking for investors for your business, contact us today, funding@omegaaccelerator.com.  


Would you like to invest in early-stage businesses before they go to market? Email info@OmegaAccelerator.com


Sources
https://www.linkedin.com/in/rencarlton 
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegaaccelerator.com/
https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html

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 any legal, investment, tax, or medical advice.  Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties.  All stories are based on true events, but are altered to protect the identity of the individuals involved.

All offers will be contingent upon passing our due diligence process.

Tuesday, January 7, 2020

Is Writing a Business Plan a Waste of Time? - Acquiring Business Funding and Writing a 1-Page Executive Summary for Angel Investors

“I didn't have time to write a short letter, so I wrote a long one instead.”
Mark Twain

Information is everywhere. It is no longer an advantage. Almost anyone can learn anything with a few minutes and a decent Wifi connection. This makes entrepreneurship and funding your business very different than it was 10 years ago. Information used to be a competitive advantage, now it is just a starting point.

These days, entrepreneurship is all about execution.


Is Writing a Business Plan a Waste of Time?


Business plans are mostly obsolete when raising capital from angel investors. We see thousands of deals a year. We are scanning your materials, trying to find something that meets our preferences. It’s not personal, there is just not enough hours in a day to digest all of the details. The time you spend writing a business plan can be spent on creating, testing, pivoting, selling, etc. The best way to succeed in business is to be in business.

“Failing to plan is planning to fail,” has been replaced by “If you aren’t embarrassed by the first version of your business, you launched too late.”

But execution requires resources and funding... 


Raising Capital without a Business Plan


The 1-Page Executive Summary has replaced the business plan in our 140-character-or-less world. It hits all of the major areas of a business. It demonstrates a business' potential, while leaving enough flexibility for possible changes and pivots. Although there are many formats, I find this one to be compelling:

1. The Grab: You should lead with the most compelling statement of why you have a really big idea. This sentence (or two) sets the tone for the rest of the executive summary. Usually, this is a concise statement of the unique solution you have developed to a big problem. It should be direct and specific, not abstract and conceptual. If you can drop some impressive names in the first paragraph you should—world-class advisors, companies you are already working with, a brand name founding investor. Don’t expect an investor to discover that you have two Nobel laureates on your advisory board six paragraphs later. He or she may never get that far.

2. The Problem: You need to make it clear that there is a big, important problem (current or emerging) that you are going to solve. In this context you are establishing your Value Proposition—there is enormous pain out there, and you are going to increase revenues, reduce costs, increase speed, expand reach, eliminate inefficiency, increase effectiveness, whatever. Don’t confuse your statement of the problem with the size of the opportunity (see below).

3. The Solution: What specifically are you offering to whom? Software, hardware, service, a combination? Use commonly used terms to state concretely what you have, or what you do, that solves the problem you’ve identified. Avoid acronyms and don’t try to use this opportunity to create and trademark a bunch of terms that won’t mean anything to most people. You might need to clarify where you fit in the value chain or distribution channels—who do you work with in the ecosystem of your sector, and why will they be eager to work with you. If you have customers and revenues, make it clear. If not, tell the investor when you will.

4. The Opportunity: Spend a few more sentences providing the basic market segmentation, size, growth and dynamics—how many people or companies, how many dollars, how fast the growth, and what is driving the segment. You will be better off targeting a meaningful percentage of a well-defined, growing market than claiming a microscopic percentage of a huge, mature market. Don’t claim you are addressing the $24 billion widget market, when you are really addressing the $85 million market for specialized arc-widgets used in the emerging wocket sector.

5. Your Competitive Advantage: No matter what you might think, you have competition. At a minimum, you compete with the current way of doing business. Most likely, there is a near competitor, or a direct competitor that is about to emerge (are you sufficiently paranoid yet??). So, understand what your real, sustainable competitive advantage is, and state it clearly. Do not try to convince investors that your only competitive asset is your “first mover advantage.” Here is where you can articulate your unique benefits and advantages. Believe it or not, in most cases, you should be able to make this point in one or two sentences.

6. The Model: How specifically are you going to generate revenues, and from whom? Why is your model leverageable and scaleable? Why will it be capital efficient? What are the critical metrics on which you will be evaluated—customers, licenses, units, revenues, margin? Whatever it is, what impressive levels will you reach within three to five years?

7. The Team: Why is your team uniquely qualified to win? Don’t tell us you have 48 combined years of expertise in widget development; tell us your CTO was the lead widget developer for Intel, and she was on the original IEEE standards committee for arc-widgets. Don’t just regurgitate a shortened form of each founder’s resume; explain why the background of each team member fits. If you can, state the names of brand name companies your team has worked for. Don’t drop a name if it’s an unknown name, and don’t drop a name if you aren’t happy to give the contact as a reference at a later date.

8. The Promise ($$): When you are pitching to investors, your fundamental promise is that you are going to make them a boatload of money. The only way you can do that is if you can achieve a level of success that far exceeds the capital


One more thing. 1-Page Executive Summaries need to be one page!

This is a good starting point for every funding campaign. It helps you clarify your thoughts and communicate your vision. If it cannot be explained in one-page, you should work on it more before you start pitching investors.


Are you looking for investors for your business, contact us today, funding@omegaaccelerator.com.  


Are you interested in angel investing and helping us fund early-stage businesses? Email info@OmegaAccelerator.com. 




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 any legal, investment, tax, or medical advice.  Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties.  All stories are based on true events, but are altered to protect the identity of the individuals involved.

All offers will be contingent upon passing our due diligence process.