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Start Up Companies

Technology

Why You'll Want to Say Goodbye to the Fortune 500 Company and Invest in Startups

If the world's largest corporations don't take action soon, they risk dying out altogether.

It all has to do with one thing: innovation.

The Fortune 500 list was first published in 1955 by Fortune Magazine. Since then, 88% of the list's original companies no longer exist, having merged, gone bankrupt, or fallen from the ranks, according to the American Enterprise Institute.

The list has seen near constant turnover since its founding, with brick-and-mortar companies like Armstrong Rubber, Pacific Vegetable Oil, and Riegel Textile being replaced by tech-focused companies like Facebook, Microsoft, and eBay.

In fact, Forbes Magazine reports that only 50 years ago, the average Fortune 500 life expectancy for a company was 75 years. But today, it's only 15 years… and it's getting shorter.

This tells us a few things:

  1. The public markets change quickly, and they're insanely competitive. Both of these characteristics contribute to high corporate turnover rates.
  2. Even if a company is pulling in major revenue today, there's no guarantee that it'll do the same tomorrow as industries keep changing.
  3. A company's progress and revenue go hand in hand with innovation. If a company isn't willing to develop new, outside-the-box ideas, it won't be able to keep up.

It may sound like a brutal ecosystem… but a dynamic market is a good thing… Full Story

It may sound like a brutal ecosystem... but a dynamic market is a good thing... Full Story

IPOs

Is Lemonade Stock a Buy After It Had the Biggest IPO of the Year?

With the start of July came the latest FinTech IPO, and it's generating lots of buzz.

You might be asking whether you should invest in Lemonade, Inc. (NASDAQ: LMND) today.

The Lemonade stock has popped significantly since its IPO on July 2.

It's up to $80.11, a whopping 176% from its initial price of $29.

The company issued 11,000,000 shares of common stock at that price for a total of $319 million raised.

You missed the IPO.

But does Lemonade stock still have room to gain?

Read more...

Technology

How to Pick the Next Billion-Dollar Company

One of the most common questions our David Weisburd is asked is what the hottest new startup sector is.

Many investors have very strong opinions on these spaces, and stake their entire careers on the belief that they know the right answer.

These types of investors are called thematic investors – and some of the top venture capitalists in Silicon Valley fall into this group.

Here's the thing about being a thematic investor: There's a small chance you will be very rich, and close to a 100% chance you will lose all your capital.

Which is why the strategy David prefers is an investment style called generalist investing.

Here's what he means by that - and why it's so profitable...

Technology

Three "Must-Haves" I Look for When Investing at the Earliest Stage

One of the most frequent things our David Weisburd gets asked is about how to invest into startups at the earliest stage.

This is because early stage investing offers the highest potential return on capital of any stage of investing.

All things being equal, investing in a seed-stage company at a $5 million valuation can produce a return 20X larger than investing in the very same company once it's worth $100 million (Note: dilution can decrease the former return by 20-25%).

That being said, investing in startups at a very early stage has a very high level of difficulty.

So how do you go about picking the best early stage startups?

The short answer is that you can never know which early stage startup will bring you the highest return, but there are certain signals that can help you increase your chances of success.

Here are the three signals David relies on the most when making the decision to invest...

IPOs

Is Pershing Square Tontine Holdings Stock a Buy After the IPO?

Pershing Square Tontine Holdings (NYSE: PSTH.U) filed for an IPO Monday, June 22.

The company is offering 150 shares for $20, to raise a total of $3 billion.

This is a new blank-check company a la Bill Ackman, the hedge fund manager who effectively told CNBCthe world was ending in March before shorting the market and turning $27 million into $2 billion.

But don't invest in the Tontine IPO before you consider the strategy we have for you today...

Technology

The Angel Investing Advice I Give My Parents and Friends

Five years ago, my parents decided that they also wanted to start investing into some of the top startups in Silicon Valley. They were beginners, and needless to say, I had plenty of advice to share.

Since then, they've been investing alongside me. So far, they have had quite a good run.

If early indicators are to be believed, their portfolio will outperform 90% of professional venture capitalists – and with a little luck, may even land them into the coveted top 5% of professional investor territory.

That's not bad considering my mom (a nurse) and my father (an engineer) spend less than two hours a week on their investments…

These three tips are what I've hammered into my parents since day one. They didn't just help my parents achieve great returns as angel investors; they showed them how to do so in a predictable manner.

These rules are the same ones I wish someone had shared with me when I was starting out.

Of course, I'm no longer a beginner, but I revisit these rules every single week and consider them as I make any new investment. And I shared one of the most important ones with you just last week.

Continuing to follow these tips has allowed me to separate the winning investments from the duds. Today I'm sharing them with you… Full Story

Technology

Unlocking Big Venture Capital Profits Started with This One Lesson

David Weisburd, a serial entrepreneur, Co-Head of venture capital at 10X Capital, and the newest member of the Angels & Entrepreneurs advisory board has been an angel investor for 12 years, a venture capitalist for five, and has reviewed more than 2,000 startups throughout his career.

Through all those years and all of those deals, he's learned a multitude of lessons – many of which we'll be talking about in the next few days and weeks.

But today, he wants to cover the single most important lesson he wishes he knew when he first started investing.

In fact, if he had known this piece of information back in 2008, he would've avoided many restless nights and missed opportunities.

By sharing it here with you today, David's goal is to make sure that you do not miss any opportunities, either.

And not missing out on a single great opportunity is the key to finding the next Facebook or Google.

Let's get started...

Technology

How Tech Startups Are the Key to Adapting to a Pandemic-Altered World

The ongoing coronavirus pandemic has changed life as we know it.

And even after we get through this, many aspects of our lives will completely change or be altered.

Such as the way we dine out, travel, shop, work, and learn.

That means the global community will have to change some of their lifestyle habits to adapt to a pandemic-altered world.

But the good news is, many tech startups will rise to face the challenges of the world's changing needs by offering solutions other companies simply can't.

That's why today, our Neil Patel is going to dig deep into some of these areas where tech startup firms could immensely help us in adapting to the global changes brought on by the coronavirus.

These will be the areas most exciting - and successful - for investing...

Technology

The Secret to Spotting a Billion-Dollar Idea

I recently talked to you about how important it is to choose a star founder with the power to execute their unique vision.

But that's only half the battle. This founder must also have a billion-dollar idea.

When you find someone who can transform their great ideas into products customers need, you've struck gold.

Today, I'll show you how to spot a billion-dollar idea once you feel confident that you've nailed down a winning team.

The idea and the founder go hand-in-hand. You can't have one without the other.

Long before I was an angel investor, I sat on the other side of the table as a startup founder. I've personally founded four successful businesses. And let me tell you – it is seriously grueling work.

It was all worth it, though – and not just because I ended up making money.

More than anything, I'm glad I did it because each business started with an amazing idea. And what's better than watching an amazing idea come to life?

World-changing ideas are the bedrock upon which the startup world is built. Every successful business starts with one. And once you find a winning team to work with, you have to see whether their idea is any good.

But what does a great idea really look like?

How do you tell the difference between a founder with a billion-dollar idea… and one who's just blowing smoke? I'll show you… Full Story

How do you tell the difference between a founder with a billion-dollar idea... and one who's just blowing smoke? I'll show you... Full Story