How to Turn $5,000 Into $4 Million, the First Three Rules of Angel Investing - Questions and Answers - Ren Cartlon

What is Angel Investing?

Providing Capital for a Business Start-up

When did Angel Investing Become Available to Most Investors?

Title III of the Jumpstart Our Business Startups Act (JOBS) finally entered into force on May 16, 2016. 

Why Should I Care About Angel Investing?

If the first three rules of real estate are location, location, location. The first three rules of angel investing are invest early, invest in the founder(s) not necessarily the idea, and plan on holding long-term. Angel investing offer high risk, high reward potential opportunities.

Targeted Returns: 2.5X in four years, roughly 25% annually.

Which is worse, risk of loss or risk of missing opportunities?

Example: If you invest $5,000 and let it sit untouched for 30 years, here are some possible scenarios:

-Bank, 1% = $6,739

-CDs, Money Markets, Bonds, 5% = $21,610

-S&P 500, Large Cap Stocks, 10% = $87,000

-Real Estate, 15% = $331,000

-Angel Investments, 25% = $4 million

Who Else Cares About Angel Investing?

Jeff Bezos, founder of Amazon, made a $250,000 investment in Google in 1998. It was worth $1.6 billion in 2019

Where Can I Angel Invest? 

Equity Crowdfunding Portals

Private Placements

Business Accelerators and Syndicates

Are There Any Other Success Stories?

$10,000 investment in Uber in 2010 was worth $127 million in 2015
$100 investment in Bitcoin in 2010 was worth $28 million in 2017

Are you looking for funding for an idea or business, send us your stuff and we will take a look, Funding@OmegaSeedFund.com

Are you interested in investing time or money into any of our businesses, Invest@omegaseedfund.com

Are you interested in promoting your product or service to our audience, contact Opportunities@OmegaSeedFund.com

Sources and Links
https://rencarlton.blogspot.com/2020/04/hunting-unicorns-angel-investing-vs.html
https://metrostart.org/blog/2016/07/11/260-return-on-startup-investments/
https://techcrunch.com/2012/10/13/angel-investors-make-2-5x-returns-overall/
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 likely altered to protect the identity of the parties involved. The above figures are possibly estimates based on assumptions that may be proven to be inaccurate or subject to change.

Hunting Unicorns - Angel Investing vs. Other Investments, Risks vs, Rewards, Ren Carlton

How much volatility did your portfolio experience over the last few weeks?

Now is a great time to evaluate your investment strategy and consider angel investing. When comparing angel investing to other forms of investments, here are a few things to consider:
- Liquidity, Startups are typically not liquid compared to other investments. If you need your cash quickly, this is probably not a good option for you.
- Risk of Loss, When you invest in early-stage businesses, you can lose your entire investment. This is why experienced angel investors typically have a portfolio of startups.
- Impact of Global Events and Black Swans - This varies wildly, some startups benefit during changing times, others are destroyed.
- Control and Influence - Most founders welcome help from their investors.
- Potential for Extraordinarily High Returns - It is not outside the realm of possibility for a startup investment to produce an ROI of 10X, 100X, or even more.

Potential High Risks, Potential High Rewards

Let's assume a well-balanced portfolio of startup investments is targeted to yield of an IRR (internal rate of return) of 25%. This is a cash-on-cash return of approximately 3X over 5 years, 9X over 10 years. Again, obviously returns are never guaranteed and it is possible to lose all your investment.

Let's also assume you invest $5,000 and let it sit untouched for 30 years. There is a huge difference in your potential ROI:
Bank, 1% = $6,739
CDs, Money Markets, Bonds, 5% = $21,610
S&P 500, Large Cap Stocks, 10% = $87,000
Real Estate, 15% = $331,000

Angel Investments, 25% = $4 million

Here are some examples of unicorns and their returns:

$250,000 invested in Google in 1998, worth $1.6 billion in 2019
$10,000 investment in Uber in 2010, worth $127 million in 2015
$100 investment in Bitcoin in 2010, worth $28 million in 2017

My fear of missing out on these types of returns far outweighs my fear of loss.

Are you looking for funding for an idea or business, send us your stuff and we will take a look, Funding@OmegaSeedFund.com

Are you interested in investing time or money into any of our businesses, Invest@omegaseedfund.com

Are you interested in promoting your product or service to our audience, contact Opportunities@OmegaSeedFund.com

Sources and Links
https://metrostart.org/blog/2016/07/11/260-return-on-startup-investments/
https://techcrunch.com/2012/10/13/angel-investors-make-2-5x-returns-overall/
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 is only for informational and discussion purposes. 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. Stories shared are mostly based on true events, but may be altered to protect the identity of the parties involved. Any numbers or figures are possibly estimates based on assumptions that may be proven to be inaccurate or subject to change.