01- Oct2015
Posted By: Vanessa
114 Views

4 Reasons to Invest in Startups

growing a startup

Why should you invest in startup companies?

Here are four areas where investing in startups and the private markets is superior to investing in Wall Street:

Access

Investing in a Startup gives you unmatched access to the company and its affairs. You get to see minute details that you could only guess in a public company.

 

Legal Insider Information

According to Jason Cohen, “They  say the only way to consistently make money on Wall Street is to have insider information. Unfortunately it’s not a joke,  and although it’s illegal (and people sometimes go to jail for it ), those in the know will tell you it’s the norm.” Remember the Martha Stewart Case anyone?  Investing in an startup gives you legal insider information on a level that could send you to jail on Wall Street.

 

Arbitrage

Simply put, arbitraging is buying in one market and selling in another while taking advantage of price differences. For savvy investors, startups present opportunity to buy low and sell high when the company is either acquired by a bigger competitor or it goes public through an IPO – which is simply a process designed  for early investors to cash in on their investment.

 

Present at Creation

A startup is a creative force. At best, it is an innovative engine designed to push the limits of current dogmas. Startups investors are the grease that keeps this creative engine moving and they get to be present at the inception of such creative endeavors. America runs on innovation, startups thrive on innovation and startup investors fund such an innovation.

This article is based on an article first published on 2011 by Joe Alvarez Jr

 

 

 

12- Aug2015
Posted By: Joe
133 Views

MYTH: ANGEL BUSINESS INVESTMENTS DON’T DELIVER RETURNS

Million dollar myth: Sydney Angels co-founder Hamish Hawthorn says as little as $15,000 can get you access to an angel investment opportunity, and it’s not only grey-haired men that participate.

business investments

 

MYTH: ANGEL INVESTMENT DOESN’T DELIVER RETURNS

Angel business investments are certainly a high-risk area. Half of all startups, even after good screening, due diligence and post-business investments help, will fail to return what was invested. But these losses can be more than compensated by the few that return 10-30x the initial investment. The key to making returns is to have a portfolio of enough investments to contain some of these big winners. Those who use a disciplined investment process to build portfolio can see extraordinary returns from the startup sector over time.

A large-scale study undertaken by the Kauffman Foundation and NESTA found that angel investors in the US and UK generated an average return of 2.5 times the amount invested in a mean time of four years from investment to exit, equating to a very healthy 26% internal rate of return. “

 

 

Excerpt taken from article:  “We’re not all retired blokes, and 4 other angel investor myths busted” by Sydney Angels co-founder Hamish Hawthorn  http://www.brw.com.au/p/entrepreneurs/hamish_busted_sydney_angels_retired_O6yEoclYtKcIHAJ0S1n56H

 

 

 

 

Women – next wave of Angel Investors

Women – next wave of Angel Investors

http://www.forbes.com/sites/kauffman/2015/04/21/women-the-next-wave-of-angel-investors/

Except from the article by Alicia Robb:

“Females have historically made up less than 15% of the angel investors in the United States. The University of New Hampshire’s Center for Venture Research estimated that women angels represented 19.4% of the angel market in 2014, which was a significant increase from the 12.2% number from just two years prior. Women-owned ventures accounted for 23% of the entrepreneurs that were seeking angel capital and 19% of those entrepreneurs that received angel investment in 2013.”

Women – next wave of Angel Investors, Entrepreneur Magazine

1)      On a macro level, the biggest impact for getting more women on the investing side is to create more women entrepreneurs. Entrepreneurs are more likely to invest in other entrepreneurs, and the risk profiles of entrepreneurs match well to investing

2)      Highlight women investors more often. Every time she sees an opportunity to talk about angel investing, she makes sure women are speaking, which also brings more women.

3)      Any efforts to educate people outside of the startup community about angel investing would attract both men and women, and this would bring in investors who aren’t entrepreneurs.

New Tender Watch Video

 Tender Watch Video

Tender Watch is a proactive monitoring system that allows family members to keep track of elderly and handicapped loved ones who choose to live alone. This short video describes how the system works and the benefits of it’s use. Tender Watch is currently looking for strategic partners to help bring this innovation the world on a larger scale. Enjoy!