Why Don’t More People Make Angel Investments?

Just in case you have not heard the news, almost anyone can be an angel investor. See What Qualifications are Required to be an Angel Investor for further details. We also explored Why Angel Investors Fund Startups in another article.

What inspires people to become angel investors? I will examine some key reasons below.   

They are Looking for an Extraordinary Return on Investment (ROI)

According to Techcrunch.com, Angel Investors can expect to earn a gross multiple of 2.5X their investment in about four years. That is a 250% ROI. Investors that are comfortable with the risks of angel investing may be able to enjoy this type of return.

They Want to Become a Mentor

They relish in the idea of being a mentor to the younger generation of startups. If you have the income and you want to make this type of impact, maybe start making angel investments.

They are Business-Minded Entrepreneurs Who Want to Network

If you’ve made it far enough in your professional career to have the time and money to consider investing, then you are probably already pretty good at networking. angel investors take this to the next level. You can gain unique opportunities to network with people from a totally different perspective. When you are at a networking event, people will find you to pitch ideas.

They Care About Innovation

High-tech angels often care just as much about ROI as they do about introducing high-tech and innovative solutions into the world. These investors might even care more about the mission or impact of a company. If you want to make a difference in the world of medical tech, fintech, or any other industry that has the potential to make a huge impact, then you should consider making angel investments.

They are Looking for Something New

Angel investing is an easy way to give you access to the world of entrepreneurship. This often includes access to new ideas, events, and opportunities. Boredom was one of the reasons I quit my job as a CFO to become a full-time entrepreneur. I have not been bored a day since that decision!

But only 8% of the people that can make angel investments actually do it according to angelcapitalassociation.org. Why?

We have identified several challenges associated with angel investing, including:

-How do I select angel investments to evaluate?
-How can I screen angel investments that interest me?
-How do I monitor my angel investments?
-How can I help my angel investments succeed?
-How do I value an angel investment?
-When will we receive returns on this investment?
-When can I do if the founders you funded wants to quit?
-When can I do if the business fails?

We will address these concerns in future posts. Ultimately you will need to decide whether the benefits of being an angel investor outweigh the risks.

Are you interested in investing in startups today, but are struggling with some of the concerns listed above?  Learn how we can help, email info@OmegaAccelerator.com.

Are you looking for angel investors or accredited investors for your business? Contact us today, funding@omegaaccelerator.com 

Sources:
https://rencarlton.blogspot.com/2019/12/why-dont-more-people-make-angel.html
https://rencarlton.blogspot.com/2019/09/what-qualifications-are-required-to-be.html
https://rencarlton.blogspot.com/2019/09/why-angel-investors-fund-startups18.html
www.angelcapitalassociation.org
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.

How to find Accredited Investors and Angel Investors

Experts estimate that there are close to 4 million Angel Investors in the U.S. Angel Investors are everywhere.  Friends, family, networking connections, and coworkers are all potential Angel Investors.  Since Angel Investors need to have the money available to invest in your business, you probably want to target people with a high net worth.  There are also a number of portals that may be able to help you find investors, e.g. Gust, Angels List.

Working with a placement agent or meeting someone through a warm introduction have been the most effective tactics for me. I have also met investors through networking events, social media, and golf. Below is some additional information about Angel Investors.

Entrepreneurs Become Angels 

More than half of angels (54.8 percent) have experience as entrepreneurs and often advise the startups they invest in, informally or as board members. Angel investors with entrepreneurial experience write bigger checks, with an average of $39,000 vs. $28,000 for angels without entrepreneurial experience. They also have more companies in their angel portfolios and see better returns.

More Women are Becoming Angels 

Women comprise 22 percent of angel investors in the study – and that number is growing. Among respondents who began investing since 2015, 30 percent are women. In comparison, studies have shown 5 to 8 percent of U.S venture capitalists are women.

Women Invest Differently than Men

51 percent of women respondents consider gender of business founders to be important when making investment decisions (compared to 6 percent of men). “This indicates that women are seeking to support women entrepreneurs,” says lead researcher Laura Huang. Another gender difference: twice as many women as men reported they strongly consider social impact of a startup when making investment decisions (33 percent for women vs. 16 percent for men). Both men and women angels agree that the quality of the founding team is the most important consideration when investing.

Eyes-Open Risk Takers

Angels said an average of 11 percent of their portfolio yielded a positive return. “That number is consistent with other studies that have shown 5 to 10 percent of angel investments yield a positive return for angels,” says Huang. “A deeper dive shows that where startups have been sold or gone public, 39 percent yielded positive returns for the angel investor.”

Do you need help finding an angel investor or accredited investor for your business? Contact us today, funding@omegaaccelerator.com 

Are you interested in working with a placement agent to find the business that is right for you?  Email us today to learn how we can help, info@OmegaAccelerator.com.

Sources:
https://www.angelcapitalassociation.org/faqs/
https://www.genglobal.org/united-states-gban/new-research-individual-angels-provides-insights-startup-ecosystem
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.

X7 - What Do You Do? Answering This Question When Raising Money for Your Business Startup – Writing the Perfect Tagline

How do you answer the question what do you do when raising money for your business startup - tagline

One of the toughest things to answer when you own your own business is "What do you do?" 

In a previous post, I warned Remember, when someone asks you the question “what do you the fire hose? When someone asks you the question  Sips of water... It is a big mistake to try winging this. You need to have a script and a plan. The solution is having a tagline. This isn't an elevator pitch, but if it is well executed, it will lead to you giving elevator pitch.

What is a Tagline?

A Tagline describe the company in 50 characters or less. Simple English, no marketing jargon. It should provide a compelling sense of what we are doing and make people want to ask "How are you going to do that?"

If and when they ask this question, you have permission to go into your elevator pitch. If not, stop. They may ask again later. Maybe not during this exchange, but maybe another day, week, month, etc. Maybe a phone call. Maybe an email. Maybe never. This is critical. You don't want to be annoying. People don't invest in annoying.

If they don't ask you for more information, you are done. They may not be the right target. Your tagline may just need work.

Sips of water.

This is why a tagline is so important. It needs to spark interest. Your tagline should focus on a pain point of your customer, not necessarily the solution you are providing. The tagline needs to focus on something people will want.

Examples

It’s Amazing What Soup Can Do! - Campbell Soup
Simplifying home and life - Costco
Everything’s $1 - Dollar Tree
We bring good things to life - General Electric
Fuel Your Fire - Monster Beverage
Accelerating Financial Freedom Through Angel Investing - Omega Accelerator

Notice the difference between our tagline, Accelerating Financial Freedom Through Angel Investing, versus those of the billion-dollar companies listed. Our tagline needs to be more specific until we are a billion dollar company. This is simply due to the budgetary constraints of our marketing budget relative to the others.

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, info@omegaseedfund.com

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

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. 

Sources and Links
https://kopywritingkourse.com/company-slogans/
https://copywritingcourse.com/how-to-create-a-great-tagline/

https://medium.com/@zreitano/the-yc-application-broken-down-and-translated-e4c0f5235081
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.faceboyok.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html

Live Pitch Event - Ferndale, Michigan - Money for a Startup - Find up to $5 Million of Funding from Angel Investors - Ren Carlton

Pitch your business ideas directly to angel investors!  Ren Carlton will host the event.

Location

Incubizo
1938 Burdette
Ferndale, MI 48220

Date and Time

Wednesday, December 18, 2019, 1:00 PM-4:00 PM, Eastern Standard Time

Schedule 

1:00 - Registration Opens
1:30 - 4:00 Pitches

This is an invitation-only event.  If you would like to pitch your business, please send us your 45 second pitch video as soon as possible. Click here for instructions.

Meet our Hosts

Ren Carlton

Ren Carlton has spent his career starting, growing, selling, and funding businesses. After graduating from Oakland University, Ren earned his CPA license and served as the CFO of a Tier 1 manufacturing company. His passion for business led him to leave his CFO position to pursue several entrepreneurial opportunities. Ren now actively funds, launches, grows, and sells businesses. One of his key business priorities is to encourage and help entrepreneurs pursue bold, fearless goals. Along the way, Ren hosted an award-winning business reality network radio show and wrote Profitpreneurship: Creating a Business that Produces Outstanding Financial Results.

Haroon Bhatti MBA/MSF

Haroon’s reputation for business success has been earned the old-fashioned way: through hard work, recognizable results, and performance that consistently gives his clients a competitive advantage. Haroon specializes in Brokerage and Valuations for Mainstreet and Lower Middle Market companies. His company’s consulting division helps entrepreneurs develop exit strategies and get their businesses set up to be saleable so they can get the highest value in the market. He also owns two successful companies of his own in the Automotive Industry. Additionally, he holds a Masters of Business Administration and also a Masters of Science in Finance.

Aurore Henze, ND

Aurore is the founder of Health-Media Star, which create unique branding platforms healthcare companies. Services include copy-writing, journalistic SEO, major news network PR, internet show, podcast, video, website development, networking opportunities and social media (design and build). Aurore also speaks on a variety of topics: Easy Wellness Tips to Increase Immunity, Overcoming Addiction, Sensible Weight loss, Look Young and Feel Young: Anti-Aging. Aurore attended Clayton College of Natural Health and received a Bachelors of Science / Doctorate of Natural Health. Aurore studied Eastern Medicine, Nutrition, body mind. biology, structural therapy, wellness, alternative therapies, and pain relief.

Send us your video today for a chance to find up to $5 Million of Funding from Angel Investors, funding@omegaaccelerator.com.

Format

Founders that are invited to pitch at our event will have about a minute to setup. After delivering their 45 second pitch, we will ask clarifying questions. Then we will discuss the opportunity privately. After our discussion we will invite the founder back and we may:

-Offer to invest
-Make strategic introduction(s)
-Offer to help find funding
-Other?

If you are unable to attend our live pitch event, we will review your video and follow the process remotely.

Pre-Registration - Reserve Your Spot Early to Receive Preferential Treatment

-Email us Ideas@moneyforastartup.com
-We ask that you use the following email subject line to avoid our spam filters, “MFAS - Pre-Registration - Live Pitch Event - [INSERT YOUR NAME HERE]" to avoid our spam filters.
-Click here for more information about how to send us a winning pitch video

Are you an investor or entrepreneur interested in helping us host a live pitch event?  Click here for more information.

Are you interested in marketing to our participants, audience, and network of over 20,000 funding sources and entrepreneurs?  Email Info@omegaaccelerator.com for details. 

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.

How to Invest in Small Businesses - Looking for Angel Investors to Co-Host our Live Pitch Events - Money for a Startup

We are looking for entrepreneurs and investors interested in helping us host our live pitch events. This is a great opportunity for both experienced investors and individuals interested in learning how to invest in small businesses.

Our co-hosts receive the following benefits:
-Equity in our accelerator, giving you ownership in all of our accelerator Participants
-Invitation to invest in cutting-edge ideas, products, and services before they hit the market

-Invitation to host at least one live pitch event  

-Invitation to attend all of our live pitch events
-Access to our network of over 20,000 funding sources and entrepreneurs
-And more!


Contact us to learn more about becoming one of our co-hosts, info@OmegaAccelerator.com .  We are also looking for passive investors.  Please contact us using the same email address if that interests you.


Are you looking for funding?  Click here to learn how you can send us your pitch for a chance to find up to $5 Million of Funding for your business.

Sources
https://www.linkedin.com/pulse/how-invest-small-businesses-looking-angel-investors-ren-carlton
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.

How do I Find an Investor? - Creating a 45-Second Pitch Video for Angel Investors - Money for a Startup - Ren Carlton

How do I find an investor? As our workplace becomes more offsite, remote, and virtual, sending a pitch video is becoming one of the standards for talking to investors. The challenge is that your video pitch cannot gauge a response or answer questions. How can you make an effective pitch when sending a video recording is your only way in? After listening to thousands of videos, I have accumulated a number of tips for founders interested in pitching their ideas to investors.

How do I find an investor using a video?  First the basics:

-Decent video and sound quality - this does not need to be perfect, but your video should be easy to see and hear
-If you are going to use slides or text, use illustrations or 10-15 words max per slide
-Practice your pitch until you have it nailed
-Be interesting
-Be concise, clear, and conversational

45-Second Pitch Video for Angel Investors 

-Avoid jargon, complexity, jargon, and platitudes
-Meet the submission requirements (e.g. when we ask for a 45 second pitch video, do not send us a 3 minute pitch video.)
-Upload your video to YouTube, without password protection
-Email your pitch with the YouTube link and the actual video file as an attachment
-We encourage you to send us any supporting information you have about your business with your video pitch, e.g. website, social media links, videos, slide deck, business plan, projections, 1-page executive summary.
-Email address:  Funding@OmegaAccelerator.com
-Email subject:  45 Second Pitch Video - Company Name

Your 45 second pitch video should include the following:

-Your name
-Your company name
-What your business does
-The problem you are solving
-Your solution
-Why we should take you and your solution seriously
-How much progress/traction you have made so far
-How much money you need
-Why you need the money
-Show your product or service, when possible

Send us your pitch today for a chance to find up to $5 Million of Funding for your business, Funding@OmegaAccelerator.com

Do you need help developing your pitch and fundraising strategy? Click here to schedule your one-on-one planning session with me.

Sources

https://www.linkedin.com/pulse/how-do-i-find-investor-creating-45-second-pitch-video-ren-carlton
https://www.linkedin.com/in/rencarlton 
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton

https://youtu.be/KykN9MFlrtw

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.

Qualifications for Angel Investors

Previously, the Securities Exchange Commission (SEC) required Angel Investors to meet their definition of an accredited investor. The general rule was that an Angel had to have a net worth of at least $1 million and make $200,000 a year.
The concept that the SEC released states that an accredited investor is someone who has the “financial sophistication and [the] ability to sustain the risk of loss of investment.”

They went on further to add that an accredited investor can be one of the following (among other various requirements):

• A bank, registered broker-dealer, an insurance company, a registered investment company, or a business development company.
• A private business development company.
• A tax-exempt charitable organization, corporation, or partnership with assets in excess of $5 million.

On top of these new changes, there have also been changes to equity crowdfunding rules through the JOBS Act. Because crowdfunding has become so popular, it means that small startups no longer have to rely on accredited investors to receive funding.

Now, companies can accept up to $1 million in funding through equity crowdfunding. To protect investors, individuals can only invest up to 10% of their annual income or net worth. There isn’t a minimum amount required in order to invest this way.

What do all of these changes mean? Practically anybody who has the wealth to make investments and wants to reap the benefits can technically become an Angel Investor.


Are you ready to make your first angel investment?  Learn more by contacting us at info@OmegaAccelerator.com

Sources:
https://www.upcounsel.com/jobs-act
https://www.sec.gov/fast-answers/answers-accredhtm.html
https://www.sec.gov/rules/concept/2019/33-10649.pdf
https://www.linkedin.com/feed/update/urn:li:activity:6594924500104593408
https://rencarlton.blogspot.com/2019/09/what-qualifications-are-required-to-be.html
https://youtu.be/S5OIlNgrixA
https://www.facebook.com/TheOmegaAccelerator/
https://twitter.com/RenCarlton
https://www.instagram.com/omega.funding/



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.