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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
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
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
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!
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
Then you've doubled your stake
Day One
