Top 5 Reasons Private Equity Investing will be the Next HOT Investment Trend

I’m an economist by training and a capitalist by living.   I have been analyzing and assessing market trends for decades and really became a student of it when I discovered my foray into venture capital and early stage investment markets in 2001 was at the downhill slide, not the uptick for that investment trend.  But I rode that wave and have been actively (and successfully) building an angel investor community in Atlanta and helping early stage company get the capital and resources they need to grow.  

This crazy economic roller coaster we are on now only reinforces what I learned in 2002 when I analyzed why the angel investment and venture capital market got so crazy to create the dot.com explosion and ultimate implosion.    Money seeks a way to multiply itself.   Think about every big “trend” where great wealth was created by the market makers and the early adopters, only to have it implode and cost the late entries and followers a lot of money.   S&L bail out, Junk Bonds, dot.com, to the current hedge fund frenzy and the mortgage collapse.    So why do I think that Private Equity Investing will be the Next Hot Thing?  I have 5 reasons:

1.  Sophisticated investors that haven’t yet participated in angel investing have realized that ALL investment classes are risky.  They think:  “With the collapse of the stock market and the real estate market, might as well invest in something I know is risky but I have potential to get 4-8X more ROI!”

2.  Market Makers are going to be looking for new places to put money and the OTC BB market with the new controls recently implemented will be the next favored market place because it easier to directly reach investors to create the market for that stock.

3.  Early stage companies that have received private equity investment from angels will be looking for new ways to exit and the OTC BB public offering is not as expensive as the big exchanges, but still gives access to fund managers for large PIPE investment for growth capital and acquisition isn’t as readily available as it was the past 3-4 years.

4.  Angel Investors already know the early stage company’s value is at the bottom and will only go up or go out of business, but they can more effectively impact the company’s value going up than they can with a public company.

5.  With the advent of strong investor groups forming and investor portals designed specifically for investors to be able to identify, investigate and invest in early stage companies the way eTrade provides that access to public companies, individual investors can have a community to collaborate with on early stage companies.   Visit www.NationalNetworkofAngelInvestors.com (NNOAI) to help build an investor community the way you dream it should be. You can get a free report on the 5 Billionaire Secrets and excerpts from the popular how to book for angels: “Inside Secrets to Angel Investing” when you optin on the NNOAI site.

So watch this space because angel investment will return as one of the best asset classes for sophisticated investors to increase their wealth while the economy enjoys a rebound by early stage companies getting capital to grow and create jobs.

Hear Direct from a Financing Source: Where the Money is today for your Business

Karen Rands’ Compassionate Capitalism radio show for entrepreneurs and investors returns to interview a special guest: Tony Erwin of Skyrocket Financial. Tony is an active member of the angel investor community in Atlanta having found fortune from his role in technology IPO and garnered success from sophisticated stock market investments. Now he helps growing companies with additional sources of alternative finance to fuel their growth with debt against assets to augment their efforts in raising business capital. Tune in to learn more about where to find business capital and investor money for your early stage business. www.skyrocketfinancial.com and www.launchfn.com Formerly SPEC Talk Radio.

Listen Now!

Hear Direct from a Financing Source: Where the Money is Today for your Business

Check out these investment websites: www.kugarandholdings.com, www.launchfn.com, www.nbai.net, www.kyrmedia.com, www.myvirtualangelworld.com, www.entrepreneurblogspace.com and www.dothedeal.org

NEW for 2014:  http://NationalNetworkofAngelInvestors.com and http://AngelInvesting101.com

Listen, Learn, Enjoy and Share with a Business Associate!

Bumper Music by Bryan Hunley of New Whyne Music

CrowdFinance – the brave new frontier for alternative investment products

Heard the words – crowd finance , crowd funded?  It is truly a new frontier, fraught with risks and uncertain rewards.   The good news is that investors have a great opportunity to make a direct impact on bringing innovation to the market and creating jobs —while creating great returns on their investment.  That is the plan, the hope.  With great freedom to invest directly into these early stage exciting companies, comes great responsibility.

We are in a unique place in American history. For the first time, investors and entrepreneurs are experiencing “Disintermediation”the attempt to do away with the intermediary entities between two primary market forces to eliminate the middle man.

The Compassionate Capitalist Radio show provides topics relevant to entrepreneurs and investors seeking to create generational wealth through the successful growth of innovative companies. Listen to this segment to learn about the unique opportunities and risks available to investors to gain access to this dynamic asset class – private equity and to entrepreneurs to raise capital directly from qualified investors in the public marketplace through Reg D 506c and Reg A+. We are at the forefront of what many call the effective dismantling of financial apartheid in America. Listen so you can learn how to catch this wave of opportunity.

LISTEN: Blog Talk Radio.com With Karen Rands Compassionate Capitalist showed aired: 2015/09/01 Topic Crowd Finance–the Catalyst for Economic Democracy

By understanding how the new crowd based finance options fit into a capitalization strategy, an investor can better understand the risk vs reward, startup vs expansion, and the potential impact on share value.   Further, an entrepreneur can better understand the role each of these new pathways to potential capital play when creating the strategy for an efficient go to market and lean operation for growth and expansion and maximizing share holder value.

Also available are the videos from the FinFair 2015 conference:  https://www.youtube.com/user/daraalbrightevents/videos

Also available is webinar on mitigating fraud in Crowd Funding and other webinars:  https://www.brighttalk.com/webcast/9407/167837

Special Guest:

Dara Albright is an industry leader and expert in crowd finance movement.  She has spearheaded initiatives to educate, inform, and create a community of collaborators with her renowned conferences and webinars.  Dara is admired and respected by the some of the most prominent figures in the financial industry and legislature as she provides fertile environments for them to come together to understand the unique challenges and tangible concerns of the prime stake holders within this new financial landscape- the investors and the entrepreneurs.
She joins Karen Rands’ Compassionate Capital radio show to share insights into the current state of the crowd finance industry and the terrific opportunity that the new regulations provide for investors and entrepreneurs alike for Economic Democracy. Dara’s FinFair & LendIt conferences are the ‘must attend’ events for industry insiders.

To learn more about Dara Albright and research this topic further, please visit http://daraalbright.com.
Investors seeking more knowledge about how to invest in early stage companies, please visit Karen Rands’ website, KugarandHoldings.com

How Angel Investors can Reduce their Taxes with Tax Credits

Slowly but surely, our Federal and State Governments are recognizing that most new job creation comes from small to medium size companies.  As entrepreneurs launch their businesses, get funding to bring innovation to the market and grow into bigger companies, jobs are created.   Furthermore, they have realized that the primary source of capital to start and grow those businesses are private investors…not the local bank.  Therefore, to provide an incentive to the very wealthy to “give back” to their local economy by investing in local businesses, they provide a tax incentive. By putting their wealth back to work in providing capital to early stage companies, the investor receives tangible benefit in the form of a tax credit against earned income, but they also receive intangible benefits from knowing they have contributed to the creation of jobs and the delivery of innovative goods and services to the market place….ie Compassionate Capitalism.

The Compassionate Capitalist Broadcast covering this topic can be replayed by clicking this link:

http://www.blogtalkradio.com/karen-rands/2014/04/01/compassionate-capitalist-saving-taxes-as-an-angel-investor

This podcast reviewed the various options that investors have to reduce their tax basis by investing in companies that have not yet gone public.   Investing in companies with tax credits associated with them offers two wins…reduced paid in taxes during the term investment tax credit, and return on investment at the point of sale of the equity to a public market or another company.  Twenty-one (21) states now offer tax credits for angel investment.  The Angel Capital Association maintains a list with links for each state to learn what is available in that state.  http://www.angelcapitalassociation.org/public-policy/existing-state-policy/ .

The movie and gaming industry is also a big contributor to local economies.   States have implemented multiple programs to attract companies to produce movies and develop gaming software.  Forty-Four (44) states offer “production incentives” and twenty-eight (28) states offer tax credit incentives to investors in those endeavors.  http://en.wikipedia.org/wiki/Movie_production_incentives_in_the_United_States

For the most part, tax credits are applied against earned income.   If the investor doesn’t earn a “w2” income, the can still gain benefit by selling the credits.  A number of financial firms and legal firms exist to advise investors with tax credits and broker those credits for sale.   This is just one firm that offers good information about selling of tax credits. http://www.taxcreditsllc.com/

It is important to understand the options that are available to you to reduce your tax basis while diversifying your investment portfolio.   As you seek to increase your wealth, it is important to also protect that growth with a reduction in taxes whenever possible.  In most cases the states require paperwork to be filled out in advance by the company to eligible for tax credits.   Some industries may be excluded.   Therefore it is important to become familiar with the programs available in your state and as you look for companies to invest in, take the potential for tax credits into consideration when calculating the Internal Rate of Return (IRR).

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Are you an investor that is tired of the volatility and unpredictability of the stock market? Are you frustrated that you have little influence to affect the management or operation of that public company? Have you realized that the public stock market is actually pretty risky and the overall return on investment isn’t that great?  Then learning how to invest in private companies, purchasing shares in a company before it goes public, while the valuation is still low, could be the wealth creation strategy for you. Join the National Network of Angel Investors and sign up for the educational newsletter and free excerpts from the “Inside Secrets to Angel Investing”. http://NationalNetworkofAngelInvestors.com

What Keeps 750,000 Accredited Investors from becoming Angel Investors?

What Keeps 750,000 Accredited Investors from becoming Angel Investors?

Karen Rands, covered this topic on her Compassionate Capitalist Radio Show recently.

In a nut shell….lack of knowledge — The men and women who are earning over $350,000 a year in income, as tracked by Census and the IRS, are likely executives in a large company or run small to medium size businesses.  They didn’t make their money in a venture backed high tech company and likely aren’t part of a company that raised capital to get started, or if they are, they weren’t part of the team that founded that company.   They aren’t being encouraged to invest in private companies by their financial planner.  For the most part they aren’t even aware of “angel investing” as a wealth creation strategy and may not know that stock of private companies are available to purchase before they go public.   They are the ones that try to “get in on” the first issue of public stock for the hot company they are hearing about.  They are sophisticated investors so like the idea of having their money work for them.  That is why they often invest in real estate.  Yet if they knew they could apply the same practice they use to decide if a property is a good investment or a public stock is a good buy to the decision to purchase equity in a private company, and have the opportunity to own a % of multiple entrepreneurial endeavors with strong potential, they would choose to include that as part of their wealth accumulation strategy.

According to the US Census, there are an estimated 1,150,000 households that earn over $350,000 a year. Furthermore, there is an estimated 250,000 active angel investors involved in structured groups and actively considering investment in early stage companies as a means to create wealth in their diversified portfolio. And if we assume there are at least 150,000 of the wealthiest that have too much money to be angel investors…they don’t invest directly into companies, they invest in the funds that fund the companies. That leaves an opportunity for the remaining 750,000 to become angel investors.

Listen to the Podcast for the full report.

Whenever there is a shift in the market, there are key factors that trigger it and contribute to a successful shift.  The 3 A’s of Market Movement:

  1. Awareness
  2. Adoption
  3. Access

Awareness of the potential to invest in a high growth company before it goes public or grows in value to attract an acquirer is growing as “crowd funding” news continues to spread around the internet and in the general press.  With the advent of the Jobs Act of 2012, “crowd funding” became a common term bantered around, often within the wrong context, but none the less a phenomena that people were talking about.  Wealthy men and women who consider themselves “sophisticated investors” with an  above average Financial IQ are curious about this as a new “hot” investment platform.  Yet there exists a cloud of confusion around “crowd funding” because although passed by Congress and signed into law by the President, the sale of securities is regulated by the Securities Exchange Commission (SEC).   As of this writing, the SEC still has not issued their rules for the Title III part of the Jobs Act that specifically addresses  how companies will do equity crowd funding at a national federal level.   Currently 4 states offer specific legal guidance and approval for companies incorporated in their state to raise money from investors in their state via crowdfunding methods- Kansas, Georgia, Michigan, and Wisconsin, with Washington, Alabama and South Carolina considering legilsation.   Companies are permitted through Title II to raise capital from Accredited Investors under the Reg D 506c and Reg A, under specific conditions, and market to them via the same means that companies use in rewards based crowd funding.  Learn more about history and status of crowdfunding.

As this community of sophisticated investors who would easily qualify as “accredited investors” via the certification process by providing copies of their W2 or past tax filings become aware of the opportunity to invest in private companies they must learn to adopt the mentality of an angel investor.  Angel investors think differently than regular investors who are simply wealthy.  Angel investors have to have vision and imagination.   Entrepreneurs seeking angel investment must be able to cast a vision that the potential angel investor believes can be a reality.  They must imagine the potential results that the management team will be able to produce with the product and strategy they are offering that is at the core of their investment opportunity.  If the entrepreneur is successful in conveying that story and it is better than the one the investor just heard or will hear the next day, then they will be the lucky one to get that angel investor’s money.   Traditional investors look at the history of a public stock to anticipate a trend, the market comps on a real estate to predict a trend… all with the intention of buying low to sell high.  None of that really exists with private companies.   That is where an investor has to “think outside of the box” and think about the company beyond just what has been done so far and grow to understand that buy adding private equity investment to their portfolio they have an opportunity to produce a greater return…if they don’t lose the entire investment.   Investment in private companies is by its nature very risky.   It is an illiquid investment and sometimes the return doesn’t come for many years down the road.   So as sophisticated investors adopt private equity investment in early stage companies as a strategy to grow their portfolio, they must also be extremely patient.  They also must take the time to learn about the legal requirements to make this type of investment.

With knowledge that they can own pieces of many companies, and the desire to become an angel investor, all that is left is access to the deals and the due diligence.  Traditional angel investors join groups that help with the screening and due diligence process. Committees are formed to screen deals so only the best get a chance to pitch to the group at large.   Committees are formed to conduct due diligence on the company and report back to the group of investors so they can decide to participate in a pool of funding for that company.   They may have an obligation participate on a committee periodically and to attend the monthly pitch meetings and follow up meetings.  They can spend this time because they typically don’t have a day job.  They are wealthy because they had an exit from a company or an investment that provided them with disposable income to invest.   They “self certify” in traditional angel investments so as to avoid full disclosure on their actual net worth and sources of income.  The 750,000 accredited investors we are talking about here, that are void in the marketplace now, are too busy to participate in those groups and participate on a committee that requires time, even if the group is actually located in the city they live in.  They have access to public stocks through stock portals to do the research and trades whenever they want, 24/7. They have real estate agents find them investment properties.   Their financial planner won’t find them private company investment opportunities because of the rules they have to adhere according to FINRA.  So gaining access to a variety of opportunities to consider that also have full disclosure and due diligence information available is critical as the final trigger in the market shift.

Kugarand Capital Holdings, LLC is launching a secure portal to provide the opportunity and the due diligence necessary for this type of sophisticated accredited investor.   The 22 year old NBAI is being transformed into The National Network of Angel Investors comprised of small regional groups forming virtually around the country based on regional or special interests.  Education is provided on an ongoing basis through articles, white papers, podcasts and videos.  Sophisticated Accredited Investors seeking to understand how to become an Angel Investor…how to adopt the mentality, but also learn the ropes of being an angel investor… applying the knowledge of stock market and real estate investment to private equity investments will purchase the book “Inside Secrets to Angel Investing” as their road map.

Are you an investor that is tired of the volatility and unpredictability of the stock market? Are you frustrated that you have little influence to affect the management or operation of that public company? Have you realized that the public stock market is actually pretty risky and the overall return on investment isn’t that great? Then the time is now to participate in this market shift….  Then learning how to invest in private companies, purchasing shares in a company before it goes public, while the valuation is still low, could be the wealth creation strategy for you.   Tune in to learn how to join the world of compassionate capitalism

Find us on Facebook:  https://www.facebook.com/thenationalangelinvestornetwork
Follow us on Twitter: https://twitter.com/nnoai

The National Network of Angel Investors

Angel Investors tap Alternative Finance sources to mitigate risk

This is a common scenario for early stage companies.   They raised an initial round that got their product to market, got them selling, and now they have the orders, but they can’t deliver because they don’t have the capital to build the widgets or fund the salaries of their workers while the project is being implemented or software installed.   They can try to go back out to their existing investors to get more money by selling more equity, or try to attract new investors and sell equity.   The problem is that that want to sell it at a higher valuation so they can minimize the dilution of their own shares and their initial investors.  Unfortunately without the new revenue and completely proving the business model, they may find it hard to justify a significantly higher valuation and that means more time to raise the capital.   Time that they don’t have if they have a customer waiting on the product, service, or application to be delivered.   It is the proverbial – Rock and a Hard Place.

What are their other options?

  1. Offer a Bridge Loan to their private investors — go back to their most ardent investors and ask them to provide a 90 day or 120 day note secured by the order and earn pure interest – reg lender rates + .5%.  Roughly pay them 1.5% each 30 days on the loan.
  2. Seek Alternative Financing – Purchase Order or Contract Financing linked with Accounts Receivable Financing — In this scenario, an alternative lender provides a “letter of credit” for the “Cost” portion of the order.   It is  is tied to the order and the credit rating of the company issuing the order.   The company draws down on that letter of credit to pay the specific things related to the order.   When the order is shipped or delivered and billed to the customer, the financier flops the switch on the ‘factoring’ the receivable and pays off the letter of credit and advanced capital to company that is the difference between the letter of credit amount and the amount that equals 85% of the value of the full order.   When the customer pays, the remaining 15 % is paid to the company less their financing and processing fees, usually about 10-12% more.

Learn more about how this works from an Angel Investor who is also a source for Alternative Capital from a previously recorded Podcast on the Compassionate Capital Radio Show:

http://kugarand.podomatic.com/entry/2009-05-03T06_08_15-07_00

Get more of the Inside Secrets to Angel Investing at http://AngelInvesting101.com

Join the National Network of Angel Investors on Facebook

 

 

How to Create Wealth through Angel Investing

Angels are the financial fuel of the economy. Before Venture Capitalists get involved, before banks will loan a company an unsecured note; Angel Investors provide the capital that fuels the entrepreneurial spirit and helps inventions become products and ideas become reality.  They take the greatest risk, but also have the potential to reap the greatest rewards.   The return on investment for an affluent person who invests in a company at the early stage can be as much as 10 or 20 x.   The original investors in Microsoft, Amazon, Google, and even traditional non-tech businesses like Home Depot all made huge returns.  The logic behind it is quite fundamental….buy low, sell high.  But unlike buying a public stock at say $1 a share and it going to $20 a share are rare.   When an investor buys a private company’s stock at an early stage of their development, the likelihood of that stock increasing to reflect the growth in value from a start up to a revenue producing profitable company is much more likely to go from $1 privately to $20 as a public offering.

I like to refer to Angel Investors as Compassionate Capitalists. “Compassionate” because they have figured out that even though they can lose all their money, by providing investment capital to an entrepreneur with passion and purpose to see his or her company succeed, they are providing a hand up, not a hand out, that will fuel the economy by creating jobs and potentially whole markets by bringing innovation to the market. “Capitalists” because they aren’t donating to a charity, they are investing in a risky venture that banks won’t loan to and venture capitalist won’t even look at, with the intent of creating a big return on their investment. High net worth men and women become angel investors to create great wealth, never with the intent to lose money.

Angels are wealthy individuals who provide seed capital and growth capital to companies in the start up and early stage of their company’s life cycle. Their capital can be offered in exchange for equity in the company or as some specialized form of debt facility. Investing in this stage of company is the most risky, but it can also be the most rewarding. Rewards come not just from the financial returns, but also from experiencing the purest form of capitalism…bringing value to the market by supplying a product or service to satisfy a market demand. There is a definite sense of pride and accomplishment from being able to say you were an early investor in a block buster like Microsoft or Starbucks, and surprisingly, there is little regret from the early stage investors in the near misses like WebVAN and PETS.com because they got their sizable returns when those companies went public. It was the investors that followed the advice of their stock broker or financial planner to invest when those companies went public that saw a decline in the value of their investment because they bought at “retail” hoping that the value would increase over time. Angel investors buy stock when the company is still private, and reap their rewards when the company then sells that stock to another buyer or to the public stock market. They learned early in life that profit is made when buying at wholesale and selling at retail. That is how it works for the wise angel investor.

Investing or buying Private Equity of early stage companies is one of the secrets the wealthy use to create more wealth. As Robert Kiyosaki wrote in his best seller book, Rich Dad’s Retire Young, Retire Rich on page 127:

“the rich invest in shares of a company when the company is still a private company”.

To become a successful angel investor, it is important that individuals learn how to identify and screen opportunities for early stage private equity investing. In the eBook Series “How to Be an Angel Investor”, investors are taught how to take what they know from investing in public stocks and real estate and apply to making investment decisions about private equity investments.  You can subscribe to free excerpts of those books by going to this web page:  How To Be an Angel Investor

A survey of active angel investors revealed a startling and little known fact.   Most angel investors learn how to be angel investors by losing their investments….learn by doing and losing!  Oops won’t do that again. Investors can take classes on real estate investment and stock market investment, but rarely is there a class on angel investment.  Some new investors are fortunate if they have a mentor that will lead the way or if they are near an angel group that they can join to provide an environment to identify, vet, and co-invest with.  Many more potential investors are not located in an area where there is an angel investor group or they don’t want to be tied down to the commitments of a group.   The Center for Venture Research of New Hampshire University found in their survey of angel groups, 66% of the angel investors that could invest, didn’t.   They were called “latent” investors.  Here they are, part of an angel group, with full intentions of making investments into early stage and start up companies, but don’t actually stroke the check.  Why? It doesn’t make any sense until you learn that they hesitate because they are unfamiliar with the process.  Buying a public stock is easy….just call your broker, or go online and point and click.  Buying private stock involves signing paperwork; not really sure what you actually bought; how to measure the growth in value; when do you get to sell; do you get a piece of paper like a stock certificate for your $30,000???? and so on.   Even though broker/dealers are the ones authorized to sell private stock, most don’t because their costs to the companies are prohibitive for a pre-revenue company, and they discourage their wealthy clients from making those types of investments because of the fear of the SEC slapping them with a “selling away” charge and yanking their license.   What is a millionaire to do?

The ebook series described above was written for this very purpose.   Years of research, volumes of information, and scores of books were summarized for the consumption of a millionaire wanting to learn how to be an angel investor.

The Real Nature of Money – One Compassionate Capitalist’s Perspective

Recently I broadcast an episode of my Compassionate Capitalist radio show about the events leading up to the economic malaise we have been experiencing, the realities of the “fiscal cliff”, and some good things that might just occur in the coming year.

Broadcast:  Compassionate Capitalist Radio Show – Economic Perspective and Outlook

It prompted a question from an entrepreneur:

If the SNP goes to 700, how will this matter?

If the SNP goes to 700, what is the best way to truly know what people with money are waiting for?

Interesting question Rick.   Not sure if I am the best person to answer it for a number of reasons…..  I know a lot of wealthy people took their money out of the stock market when all of this mess started.   The ones that think long term either took it out and have it “sitting on the sidelines” as I have said, happy with the 1-2% they might get or moving it into Bonds where the interested rates are playing to their advantage.   If they missed getting out of the market when it first started to tank,  they have already excited or are in the process of exiting…causing the slide itself.   When it hits that mark, smart investors that are still in the market will sit and wait for the rise, because they realize the only ACTUALLY lose money if they sell at that point.   Unless they need the capital loss to offset a capital gain.  The people that make money on a fall like that are the institutional investors and hedge funds that play the margin and bet the market will fall so they get paid for winning that bet.  But in this day and age, harder to get the “seller” for those types of bets.  Hitting 700 may be the trigger that gets some of those investors on the sidelines to get back into the game.

Good companies with solid operations and profits can easily have an undervalued stock when the stock market is in a free fall—or even a flat bear market, and then when it rights itself, that stock will regain it’s value, creating a windfall of capital gains for that savvy investor.   The reality is that the market goes up and down.   It has and always will.   Economic factors will contribute to it the start and the stop and the length of a bear or bull market, but inevitably there will be a change in course.   Just as I spoke of in my radio show last Friday….no market can forever go up, nothing grows in value forever, and the reason the economic factors that later become defined as a “bubble” is by its very visual image….something that will grow until it pops by it’s own unstable nature.

If the market hits 700, and that is not to say it will or won’t, it won’t be because of a clear indicator of economic malaise or any fiscal cliff…those are contributing factors, but it will be because of the people that buy and sell and large institutional traders that are making large hedged bets that can shift a market and cause corrections in the market.

I found this interesting article that talks about the cycles and shifts of the market decades and maybe it will bring a little solace to your concerns…. http://www.tradingonlinemarkets.com/Articles/Trend_Following_Strategies/History_of_Stock_Market_Cycles.htm

AND yes it will be bad, but it won’t last forever, part of that is out of our control. And don’t let the idea of it being out of your control cause fear….. because remember fundamentally…. the money doesn’t go away.  It just moves.   It is all still there.   The challenge for the entrepreneur is to find that investor, and convince him that his opportunity is a more profitable…and potentially safer…. investment.   If the market goes to 700 and the investors that have potential to be angel investors are out of the market, along the way a light bulb will have gone off that says…. INVEST IN PRIVATE COMPANIES….you have more control over their success than you ever had in that public stock that you held that went up and down and all around.

….just one gal’s opinion.

Hope you have a Happy and Prosperous New Year.

Best Regards,

Karen Rands

To get the full economic assessment and story behind both the broadcast and the answer to the question,  please read my (long – but thorough) article blog post on Entrepreneur Blog Space

Bottom Line-

Want to take back control of the economy, your wealth, our country?  Become a Compassionate Capitalist.

What is a Compassionate Capitalist – besides something we need more of?
A compassionate capitalist is someone who invests Time, Resources, Knowledge and Money into entrepreneurial endeavors to bring innovation to the market, to create jobs and to create wealth for the founders and investors. It is the ultimate trickle down economic recovery plan. Because, if you invest in building up companies that can thrive in the new economy, then jobs will follow, and income from those employed will be spent in the marketplace and those old traditional companies producing goods and services will also gain economic stability and keep employees and maybe even expand with purchase of equipment or the addition of employees. You can’t control what our politicians do.  You can’t control what a President of a public company does or how the market trends will impact their value.  You can’t control how the bank will value your property .  YOU CAN Control if a company with innovation can build a good company that creates REAL Value and real jobs.

New Year’s Resolution….. Become a Compassionate Capitalist!

Career Transitions: Interview Thomas Ellsworth, author of The Rat, the Race & the Cage & MORE!

Karen Rands, the Compassionate Capitalist will interview two leading experts in the field of helping successful people make career transitions that move them into fields and roles they can love. Whether you or someone you know has had to make a career change out of desire for something different or were forced to make a change as a result of a right-sizing or closing of a company, you will benefit from listening to the insights offered from these two expert guests.

A core topic we will cover is when does it make sense to stop being an employee and to start being a boss. First up will be Thomas Ellsworth, author of The Rat, The Race, and The Cage www.ratracecage.com. Tom will share his insights into how high achievers can make career transitions to get to a place that they LOVE what they do, whether that is to a new job or to become an entrepreneur.

Also, joining us will be Jim Duepree of DBM (Drake, Beam & Morin www.dbm.com). Jim will share the insights gained from working directly with executives in transition as his firm helps them determine whether to pursue a similar career in their chosen field or find fulfillment from starting or acquiring a business. With unemployment at its recent highest levels this is a timely topic and listeners will gain insights about the following: -Cities where jobs are hot now and the best fields to be in -How to identify your workplace personality and build a Personal Career Compass -How to transfer your existing professional skills to a new industry -How to build a career “back-up plan” -How to determine if you should start a business or acquire a company -How to bring passion back to what you do Join us and tell others to turn in for this show.

Listen Now!

Replays and more indepth written information will be posted on Karen Rands blog: http://EntrepreneurBlogSpace.com

Check out these investment websites: Karen’s twitter page: @Karen_Rands, www.kugarandholdings.com, www.launchfn.com, www.nbai.net, www.kyrmedia.com, www.myvirtualangelworld.com, www.entrepreneurblogspace.com and www.dothedeal.org

Listen, Learn, Enjoy and Share with a Business Associate!

Karen Rands 2010 Kickoff of the Compassionate Capitalist Radio Show!

Karen Rands kicked off the first Compassionate Capitalist Radio Show for 2010 with an overview of industry predictions regarding sourcing of early stage business capital for innovative start up companies and emerging growth companies. This is the dawn of a new decade and there seems to be a lot of optimism regarding the rebounding of investment markets. This segment will cover the availability of seed capital, angel capital, venture capital and alternative finance based on Ms. Rands’ economist background, market research and practical experience in working with entrepreneurs and early stage capital investors on a daily basis.

The University of New Hampshire reports in their Venture Capital Research Report that angel investment is down significantly year to year, more companies are looking for money, less are getting capital and of those that get capital, they are getting fewer dollars.   However, the National Association of Venture Capitalists started the year with optimistic reports on investing and likelihood of investing.   Venture Capital firms saw an uptick in investment as 2009 drew to a close setting the stage to bring forth the capital in 2010 that not only helps companies survive and thrive, but also brings comfort to those angel investors that hesitate to invest due to worry that the next round of finance may not be there to help the company they invest in survive and thrive.

Listen to Karen’s Commentary Now!

Check out these investment websites: Karen’s twitter page: @Karen_Rands, www.kugarandholdings.com, www.launchfn.com, www.nbai.net, www.kyrmedia.com, www.entrepreneurblogspace.com and www.dothedeal.org Listen, Learn, Enjoy and Share with a Business Associate!