How do you double your money on an investment day one?

It can be done with private companies!

Even with small ticket sizes

Thread on how

1. Let's say you've identified a good early-stage company that you want to buy into.

It's small and risky still, so you don't want to bet the farm

Let's say you put in $10k and buy 1% (valuing the company at $1 mln for those keeping score).

You'd want to sell for 5x minimum

2. Now, I assume you're investing because you know something about the sector.

That means you have some value to add to the company

I.e. you understand marketing, see a good opportunity and can help the company w marketing

3. Or you're a finance professional and can help w raising the rest of the money

That means the company gets funded and is successful

These are services that people will pay for

So...ask for extra equity!

4. In this situation, ask for 1% more of the company as options

Then you've doubled your stake

Day One