Earning an Annuity as an Angel Investor- Yes, Virginia it can be done

Similar to other investment options, an investment in a private company can produce annuity type income.   When starting out as an angel investor an investor should plan on making multiple investments with diversification of industry and structure as a core principal.  Accredited investors with sufficient liquid capital to make multiple strategic investments over a period of time, will likely diversify their portfolio of private equity stock investments to include multiple types of investment structures.   Similarly to an investor looking to get involved in real estate investments with different targeted outcomes; short term return (flip), revenue producing (rental), and long term (raw land). An angel investor should seek to diversify into multiple types of offerings:  debenture with option to convert (flip); royalty or revenue cycle financing (rental); and traditional equity (raw land).

In this episode of the Compassionate Capitalist Radio Broadcast (REPLAY) http://www.blogtalkradio.com/karen-rands/2014/03/25/earning-an-annuity-as-an-angel-investor  Karen Rands shares her insight into the different types of angel investments and specifically how to identify private alternative investment opportunities that can produce a re-occurring revenue stream.

The conventional wisdom for angel investing is similar to venture capital investing— invest in 10 companies, wait 5-10 years to discover which one or two of the lot produced a big enough return on the investment to make up for the 4 that lost all of the investment and the 2 that broke even and the 2 others that gave you just a teeny return.   It doesn’t have to be that way.   When wealth men and women apply the same discipline they have learned when managing their public stock decisions and their real estate investment choices, and seek to have a long term strategy that calls for diversification of industry and investment type, they increase their odds of a higher rate of return because they have balance and load.

Diversifying by industry and into market areas that an investor already has an interest ensures some level of insulation from the natural economic ebb and flow industries experience.   Diversifying by product / investment type allows for shorter term results off set by long term hold.   For example, an investor just starting out could “loan” money as an investment secured against orders with the option to convert or to have it paid back but with warrants, then they get their money back, but have an option for discounted equity.   After a couple of those types of investments, they begin to accumulate additional liquid capital that could be invested in to an offer for royalty or revenue cycle financing.   This is a type of investment that is made but instead of an equity stake, the investor received a re-occurring revenue stream as a % of revenue until an agreed to multiple on the investment is paid back, usually 4X the investment.  Companies with the potential for long term growth and opportunity to go public are ideal for equity investments where the investor will have their investment capital tied up and illiquid for 5-8 years.   This type of equity investment is the most risky, because a lot can happen in 8 years to cause a company to not succeed, but if they do, then the results can be 10X to even 25X return on investment.    Early investors in Microsoft, eBay, Amazon and many others all experienced this type of return.    Keep in mind though… for every one of those, there are at least 10 that never got that far and never gave a return on investment.   There are some, like the companies that went public with a big splash… Web Van, even Facebook,  that did not hold its value after going public, but the initial angel investors made their money back and them some, probably at least 5X if they sold when it first went public.

You have an opportunity to get more information on this type of diversification by listening to the podcast or buying the Inside Secrets of Angel Investing.    This is the topic discussed in detail in Chapter 5.   You can also sign up for free excerpts from the ebook, Inside Secrets to Angel Investing.

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?  The Join the New National Network of Angel Investors and be a part of the growing community of wealth men and women that want to master their wealth portfolio and learn how to be Compassionate Capitalists  – make money and contribute to the economy at the same time. 

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!

Innovative Entrepreneurs Prepare to Pitch at Investor Forum May 18, 2010

Karen Rands, on the Compassionate Capitalist Radio Hour will interview companies scheduled to pitch the investors at the upcoming Angel Investor Forum in Atlanta on May 18th. Investors are encouraged to attend: http://launchfn.com/id150.html Entrepreneur companies represent industries: High Tech Computer, Software as a Service, Online Gaming (hot Facebook App), Health Care Management Technology– so Tune In to hear these exciting start up and early stage entrepreneur stories

Listen 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.myvirtualangelworld.com, www.entrepreneurblogspace.com and www.dothedeal.org

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

Bumper Music by Bryan Hunley of New Whyne Music

Karen Rands on Seed Stage Venture Capital from Angel Investors

Karen Rands on this Compassionate Capitalist Radio Show will feature the companies that will be participating in the Start-up Round-Up event in Atlanta sponsored by LAUNCHfn, NBAI, and iStanta, a seed stage capital fund. As a special guest, we will feature Matt Oguz of the iStanta Fund to talk about having a VC mentality in the SE Angel Investor Market. We will also hear from a few of the companies that will be showcased at the NBAI Angel Investor Member event the following evening. We’ll explore the difference between investment decisions at the start up and the emerging growth stages.

Listen 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.myvirtualangelworld.com, www.entrepreneurblogspace.com and www.dothedeal.org

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

Selecting The Right Employees and Building Strategic Partnerships Wisely

Karen Rands, during her Compassionate Capitalism show will engage her featured guests on a topic important to all start up and growing companies. When a start-up founder realizes he or her needs to build a team, bring on expertise to compliment their own skills how can they identify those people, confirm they will enhance their business and at the same time, protect the business they founded. They need to know what skills are needed on his/her team, identify the right resource, then negotiate for that person to join the company and protecting the company long term.

This is important for investors considering an investment in a private company.   When a company first starts out, they have limited resources and limited management structure, but as the organization grows, they add people, skills, resources.   Building effective teams and the leadership of those running the company is critical to the company’s success.   In the case of a key person coming on board, either as an active investor — an “Exec with a Check”, or when a key resource is brought in that may share in the equity as part of their compensation, it becomes all that more critical to make sure that there is a good mix for the personalities and to protect the company legally in the event it doesn’t work out as planned.

Guests are Kenneth Darryl Brown of E3C (www.BetterSalesandProfitsNow.com) and Hugh Massie, CEO of DNA Behavior (www.BusinessDNAResources.com) to discuss how a CEO can learn about their leadership and communication strengths and understand what to look for in potential team members. Bob Van Rossum, President of MarketPro, (www.marketproinc.com) the nation’s leading executive search and contract staffing agency specifically focused on marketing, interactive, creative and advertising talent will discuss identifying and qualifying a potential candidate for the management team. Glenn Garnes, Relationship Marketing Center, will discuss protecting your interests when bringing on partners…the subject of his new book:”Let’s Not Be Partners, Things you Must Do Before You Tie the Knot (“not”). Sure to be a dynamic show for all aspiring entrepreneurs.

Listen 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!

What Is Your Business DNA?

Karen Rands will interview special guests: Hugh Massie, CEO of DNA Behavior (www.businessdnaresources.com) and Kenneth Darryl Brown, E3C (www.bettersalesandprofitsnow.com), They discuss the Business DNA Profile and how it can be used to determine an individual’s talents and struggles. As a result, people learn what their strengths are and how to focus them in the area of business where they can excel. Additionally, they learn how they like to communicate with their communicate style.

CEOs need to understand their communication and leadership styles as part of their building a qualified team. We’ll explore how these programs help entrepreneurs understand their team dynamics and what they can do to build the team and put the other elements in place to effectively attract business capital. Lastly, Business DNA can be used as a tool to demonstrate to prove to investors that the company has a team can execute on its business models.

Listen Now!
This show is part of a dynamic and informative session covering one of the many components that Launch Funding Network offers clients seeking capital necessary for raising early stage venture capital and angel stage investment.

Attend the next Art of Raising Capital Workshop on December 15, 2009 at 1pm. (http://launchfn.com/id337.html) At the conclusion of the workshop, graduates will be able to pitch to angel investors at the Network of Business Angels and Investors Capital Celebration at 5pm.

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!

Bumper Music by Bryan Hunley of New Whyne Music

Compassionate Capitalist Radio: Art of Raising Capital

Karen Rands shares with entrepreneurs the Art of Raising Capital. Raising capital for a business is not a skill we are born with. We need to develop those skills to raise seed capital, and yes venture capital. Tune in to learn the key elements necessary to effectively raise capital. This episode is a taste of the full course “The Art of Raising Capital” offered by LAUNCHfn.

If you like to attend “The Art of Raising Capital” on December 15, 2009, visit our web page (http://launchfn.com/id337.html) and register as soon as possible. Only Limited Space available.

Listen to The Art of Raising Capital 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.myvirtualangelworld.com, www.entrepreneurblogspace.com and www.dothedeal.org

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

Is It Possible to Converge Technology In Business: Conversation with Faisal Hoque of BTM

Compassionate Capitalist, Karen Rands, interviews the CEO & Founder, Faisal Hoque, of BTM Corporation. BTM will be presenting at the upcoming NBAI Investor event, so this is a sneak peek of this exciting company.

BTM is forging an entirely new space in the technology sector: Business Technology Convergence & Management. With strong sales, a growing pipeline, and extensive products & IP, this company is one to watch and learn from. Faisal Hogue was recently named one of the top 100 (#55) most influential People in Technology (along with Oracles Larry Ellison, Apple’s Steve Jobs, and Microsoft’s Steve Balmer. BTM has twice been named one of the latest growing technology companies in North America in the annual Deloitte Technology Fast 500. (www.btmcorporation.com www.faisalhoque.com)

Listen Now!

Is It Possible to Converge Technology In Business: Conversation with Faisal Hoque of BTM

Tune In to hear their exciting story and future direction. If you want the full investor story, plan to attend the NBAI meeting on Aug 12 of their follow up briefing the week of Aug 17. Fill out the contact us form on our website http://www.launchfn.com

Alternative sources of Early Stage Capital for Entrepreneurs

Karen Rands interviews Financial Guru, Joe Donovan of Cape Securities about Alternative Ways to Secure Early Stage Capital for high potential companies. This show will benefit both Entrepreneurs and Investors because often times an investor wants to invest in a company but doesn’t have the liquidity to make the investment. We’ll explore options accredited angel investors can use to provide capital to an early stage company without liquidating their assets.  www.capesecurities.com

Listen Now!

Alternative sources of Early Stage Capital for Entrepreneurs

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!

Do You Have a Better Idea? Invention Guru Jim Debetta

Karen Rands, the Compassionate Capitalist, will interview Jim DeBetta, a leading consumer products business advisor to inventors and entrepreneurs alike. As a highly sought-after coach and mentor for aspiring inventors worldwide, his unique methods and experienced insight is transforming the way people “go to market” with their unique products and services. For nearly twenty years, Jim has successfully launched companies and demystified the process of proven sales and marketing methods to world-renowned retailers while selling millions of dollars of products.  www.jimdebetta.com

Listen Now!    Do You Have a Better Idea?  Invention Guru Jim Debetta

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

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

Bumper Music by Bryan Hunley of New Whyne Music