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Now more than ever, retail investors are more powerful than the biggest institutions on Wall Street. GameStop Corp. (NYSE: GME), BlackBerry Ltd. (NYSE: BB) - the examples of these investors flexing their muscle are endless now, and they're changing the fabric of the markets as we know them.
But while stock market investors are powerful in their own right, there's one group of investors with access to an entirely different kind of power... the kind of power to help mold a business from its earliest stages to its highest growth potential.
Today, I’m here to tell you how to harness that power yourself – it has the potential to change your life…
The Power of Startup Investing
Startups - and startup investors - are the keys to keeping the economy going. It takes guts to follow through on an idea and build a company from scratch, and it takes guts to invest in that idea... especially when it's at its earliest stages.
It's entirely different than investing in the traditional stock market... and in my opinion, it's even better.
When I launched FUBU, I had just $40 to my name. Today, FUBU is a $6 billion brand, and over the years, we've created thousands of jobs for hardworking people across the country.
Now, I'm not the only one who has achieved that "American Dream" kind of success. Every single company begins with a vision. Behind that vision is an entrepreneur with the drive to build a company into something much, much bigger.
Of course, not every startup founder is that lucky. But those that make it have the power to change the world. Their potential is limitless; they could very well get us through the hardest of economic times and generate billions of dollars in the process. These are all really important to our economy, on a large scale, but they can make an incredible difference on a more personal level.
Startups Can Transform Investors' Lives
Around 120 years ago, when cars were the big "disruptors" shaking up the markets, a man named John S. Gray heard from his nephew about a really promising "startup." Gray decided to invest $10,000 in the small automobile maker... Ford Motor Co. Over the next 16 years, that modest $10,000 stake paid out more than $10 million in dividends. By the time Gray's children cashed out, they'd pocketed another $26 million. You can learn more about that legendary deal and how those kinds of opportunities are now open to regular folks - often for far less than what Gray staked - right here.
That was a long time ago, sure, but imagine if you could have invested in Facebook Inc. (NASDAQ: FB), Amazon.com Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Tesla Inc. (NASDAQ: TSLA), or any other company that dominates headlines - not to mention the entire tech sector - today. Amazon's angel investors, for example, saw returns of more than 14,000,000% - that's fourteen million percent.
But the thing is, that early Ford investor was a banker, and Amazon's early angels sure weren't everyday folks like you. In those days, deep-pocketed private equity and venture capital (VC) firms ran the show - and collected the rewards.
Even today, legendary firms like Sequoia Capital and Andreessen Horowitz, with a combined $1.8 trillion in assets under management, loom large in the startup scene.
But this time, they're not alone, and they're on notice that they're not necessarily running the show, either.
Thanks to some revolutionary changes to the regulations, for the first time, regular investors - the same kind who've taken Wall Street to the mat many times this year - have the chance to share a real part of a startup company's future success story. Investing in the right startup companies can help you create wealth not only for yourself, but for your family, too, for generations to come.
The Power of the Value-Added Service
The "value-add," as it's known in startup circles like the Angels & Entrepreneurs Network, is a deceptively simple idea - the idea that you can add much more to a startup than just capital alone. Your skills, your expertise, and your community can ultimately help launch an early-stage venture into a multibillion-dollar unicorn... more so than a team of One-Percenter VCs.
Today, I'm going to share three of my favorite value-add strategies for all startup investors... whether you're a seasoned angel investor or you're just getting started.
- Test the product and provide feedback. Investors are often a company's best customers and most helpful critics. By testing the product, you can identify areas of strength, pain points, and anything else worth mentioning to the founding team... all from the perspective of a third-party who can give a more objective opinion.
- Spread the word. Social media is a startup company's best friend when they're trying to gain traction. As an investor, even just sharing a company on social media can be a tremendous help. Keep up with the latest news from your portfolio companies, tell your friends and family about your investment, and keep the conversations going online.
- Harness your power. Chances are, you have something to offer your portfolio companies outside of capital, whether it's a special skillset, an area of expertise, some useful connections, or more. Figure out what it is your portfolio company needs and exactly how you can help it achieve unicorn status one day.
How to Take the First Step
To put your newly acquired startup savvy to the test, you'll have to take that leap and make your very first startup investment.
Even a couple hundred bucks can go a long way in helping to turn a startup into a multibillion-dollar venture. You have the power to directly impact a real business - right at the start of its journey - and take a shot at building your own generational wealth along the way.
It's the American Dream, and it starts with Main Street angel investors like you. To help get you started, I've got eyes on a free pick that can help you do just that.
It's part of a comprehensive report put together by my fellow Angels & Entrepreneurs Advisory Board Member, Neil Patel. The report runs through everything you need to know about startups, making your first investment, and making sure you're getting the biggest bang for your buck.
And at the end of the report, Neil's sharing details on one of his very own recommendations, so you can start building out your angel investing portfolio with the help of one of the biggest names in the game.
Just click here to check it out. You'll get the chance to sign up for The Startup Investor, too - a free newsletter that will keep you in the loop on the latest developments, opportunities, and strategies out of the angel investing world.
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