For centuries, the rich and connected have quietly been making deals that turn small sums of money into fortunes.
Take John S. Gray.
John was a successful banker in Detroit back in the early 1900s.
One day, his nephew asked him to invest $10,000 into a small automobile company.
That company was the Ford Motor Company.
Over the next 16 years, that $10,000 investment paid out $10 million in dividends.
That’s more than a 99,000% return before he even sold his stake.
When his children cashed out his shares after he died… they pocketed another $26 million.
Fast-forward to 1968.
Silicon Valley pioneer Arthur Rock invested $10,000 in a little-known startup.
It was developing the processors that would transform personal computing.
That startup was Intel. And Rock’s investment helped him make the Forbes billionaire list in 2008.
Then in 2003, a Harvard undergrad created a social media website for university students.
An early investor came in and invested $500,000 for a 10% stake.
In 2012, Facebook IPO’ed, and that investor sold those shares for over $1 billion.
Everyone knows the rich and connected have made massive fortunes on these deals.
But what most people don’t know is that everyday people are also striking it rich on deals just like these.
In fact, new millionaires are created every year.
And they get there by investing money in entrepreneurs and their companies.
This is the world of angel investing…
Where you invest small sums of money in private companies sometimes months or years before they potentially go public. And it could turn into millions.
As legendary angel investor Peter Thiel, who grew up as a poor German immigrant, says, “This market is where outsiders go to become insiders.”
And I’ve invited one of those insiders today to pull back the curtain on the lucrative world of angel investing.
Meet my friend, David Weisburd.
Hey, Don, nice to be here.
David, angel investing has the power to transform people’s lives.
I’m talking about the power to turn every $100 into $200,000 just like Peter Thiel did with Facebook from 2004 to 2012.
And it’s not just the super wealthy who are angel investing.
Thanks to a law passed by Congress, normal, everyday people can now get a piece of the action…
Starting with as little as $100.
Back in 2016, they raised over $1 million in 96 seconds from everyday investors.
The average person put in just over $500.
Monzo’s valuation grew to over $2.5 billion just three years later…
So the average person would have seen a 6,216% increase on their investment.
Or take Revolut.
They opened their doors to ordinary investors in the same year as Monzo, setting their minimum investment at just over $10.
By 2018, the company was worth $1.19 billion. That’s a 1,900% return in two years.
And by 2020, the company was worth $5.5 billion.
That means if those investors waited two more years, their 1,900% gain could have been a 12,995% gain at its peak.
These are two of the more extreme examples from recent years. These came from some of the best companies out there, but…
I believe that’s just the beginning. Angel investing has positively exploded over the past few years.
Take Robinhood. Angel investors helped them disrupt the entire stock market industry in just a few short years.
Or take DraftKings. Angel investors helped them transform sports entertainment and fantasy sports.
Or take Palantir. Angel investors helped usher in a new wave for big data analytics.
And that’s why I brought my good friend David Weisburd here.
David, you invested in all three of those companies, correct?
Yes, Robinhood, DraftKings, and Palantir were huge successes for us.
Now, David, for those who don’t know you, you’re a top angel investor.
Today, at the age of 34, you have a net worth of over $20 million.
And you expect to add $10 million to your net worth before the year is out.
Of the 55 startups you’ve invested in…
Only two have gone out of business.
That’s an unparalleled 95% success rate in angel investing.
When you invested in DraftKings in 2017 – it had a valuation of $1.06 billion.
Today, the company is valued at more than $18 billion.
When you invested in Compass Therapeutics back in 2015, the company was taking their first check.
You were able to invest at a $15 million valuation.
Today, the company is valued at $270 million.
And your biggest deal, Palantir, just went public with a $15.7 billion valuation.
You didn’t just double or triple your money on these deals.
You netted MILLIONS in profits, and you did it all within five years…
So can you tell us why right now is such an exciting time for angel investing?
Until recently, if you didn’t have $100,000 or $500,000 to invest… you simply couldn’t get in on these types of deals.
But then in 2015, Congress passed a new law that opened this market back up to the people.
That’s why you’re seeing everyday people who invested in Monzo have a chance to turn $500 into $31,000 in three years…
And the people who invested in Revolut have a chance to turn $500 into $65,000 in four years.
And that’s just $500.
You’re free to put in much more on these deals if you want.
Right. $5,000 into Monzo would’ve been $310,000.
Or $5,000 into Revolut would’ve become $650,000.
Exactly, it’s up to you how much you want to put in past the minimum. But always keep in mind that this is risky investing. It’s possible to lose everything.
So, David, what exactly is angel investing? And what makes it different?
So most people buy stocks, right?
And the earliest you can buy a company’s stock is during their IPO – their initial public offering.
That’s the first day stock becomes publicly available for a company.
So take e-commerce company Shopify, for example.
If you bought on their IPO in 2015, you’d be up 3,700%.
Are you kidding? That’s a great return.
And even if you bought Shopify’s stock at the beginning of this year, you’d still be up 173%.
But angel investors are able to buy shares years before the company decides to IPO.
In fact, angel investors who got in on Shopify’s 2010 funding round made over 521,000%.
Wait. So IPO investors made 3,700%, which is an unbelievable return. But angel investors made 140 times that?
That’s the power of angel investing.
Here’s another example, biotech company Moderna.
IPO investors are up 227%.
Investors who bought at the beginning of this year are up 298%.
But angel investors who got in during their 2010 funding round could have made 294,000%.
But I think it’s important to point out that not all IPOs make money.
Just look at Uber’s IPO.
That was one of the most hyped IPOs ever.
And yet IPO investors are down 19%.
But that’s the great thing about angel investing.
You can still make a killing even if a stock falls after its IPO.
In fact, in 10 years, Uber angel investors could have made a crazy 1,557,000%!
Angel investors like Rob Hayes made $2.5 billion on Uber.
Chris Sacca made $1.1 billion.
And David Cohen made $248 million.
I bet they don’t care that Uber’s stock is down 19%.
They sure don’t.
But what about recently, David?
COVID-19 has fundamentally changed the world in ways we could have never imagined.
What about the world of angel investing? Are angel investors taking their foot off the gas pedal right now?
Don, I am investing more money right now than I ever have before.
And every top angel investor I know is doing the exact same.
It’s true that lots of startups, especially in the hospitality, travel, and retail spaces, ARE failing.
But there are other sectors that are exploding right now.
Health care… education… e-commerce… real estate… and video communications are the obvious ones.
And the best part is you can get in at dirt-cheap prices.
Everyone is looking for cash, which means as an angel investor, you have all the leverage.
We can now buy equity in the best startups at levels that, in my opinion, we haven’t seen since 2008.
It’s like buying stocks.
When’s the best time to buy? When the market is down.
Just look at all the people who bought tech stocks like Apple, Microsoft, and Shopify when the market tanked.
They’re up a lot.
Exactly. From where I sit, now’s the time to get in.
Just look at what happened to angel investing in 2008 and 2009.
Back then, the media was screaming to the high heavens that venture capital was dead.
But the top angel investors, the ones who make billions, knew that was the best time to buy.
Just look at companies like Dropbox.
Dropbox’s first seed round was in 2007, with its first venture capital funding round in 2008.
Angel investors were able to get in when it was worth just under $5 million.
Now, they’re worth over $8.4 billion.
That’s a 176,000% return.
That’s a heck of a return for a so-called “dead” market.
Or take Fitbit.
You could’ve gotten into their Series A round in 2008 when it was worth $3.5 million.
In 2015, it was worth $10.68 billion.
That’s a 305,000% return.
It seems like 2008 wasn’t such a bad year after all.
Not for angel investing.
And don’t get me wrong, there are a lot of companies from 2008 that never made it. Many startups went under.
But when you have a great company with a great idea, and it’s run by amazing people, the returns can be astounding.
Let’s take a company I have a lot of personal experience with: Airbnb.
They were also founded in 2008.
The financial crisis sounds like a bad time to invest in a vacation rental company, right?
I’d say so.
Tell that to their angel investors.
Angel investors were able to get in when the company was worth $2.5 million in 2009.
In 2017, they were worth over $31 billion.
That’s over a 1,200,000% return.
David, that number almost sounds made up.
Do angel investors really make a 1,000,000% return?
It’s entirely possible that some angel investors held onto their shares for that long.
But the truth is they probably sold much earlier.
Most are happy with a 20,000% or 50,000% return.
Yeah, when someone offers you $5 million for your $10,000 investment, it’s kind of hard to say no.
Or what you could do in that situation is sell some of your shares early and hold on to the rest for later.
That’s smart. You pay yourself as you go.
But, David, for decades, the normal investor never had access to those kinds of deals.
The kinds that could turn $10,000 into $5 million.
You mentioned Congress changed something recently.
Don, Americans were never meant to be shut out of these deals.
In fact, the entire backbone of the American economy was built on angel investing.
One of my favorite stories is of the B&O Railroad.
Like the one from Monopoly?
It actually stands for the Baltimore & Ohio Railroad.
Back in 1827, the city of Baltimore badly needed a way to connect their city to the expanding Western states.
They decided to build the country’s first-ever steam locomotive railroad.
But they badly needed investors to fund the operation.
So the city of Baltimore asked the American public to invest.
And get this, nearly every single citizen in the city of Baltimore invested.
Over $3 million was invested from everyday citizens looking to own a piece of a potentially massive company.
You can think of them as America’s first angel investors.
It was everyday people who really created the railroad fortunes.
Which were some of the largest fortunes America has ever produced.
That’s how you got Cornelius Vanderbilt.
He was born in New York and had to drop out of school by age 11 to work in his family’s business.
At 16, he borrowed $100 from his mother to invest in a small ferry service.
Adjusted for inflation, that’s just over $2,000.
And by the time he died, he was probably the richest man in America, with an inflation-adjusted net worth of over $185 billion.
Not bad for an initial $2,000 investment.
Not bad at all.
And remember, the entire country was built on the backs of railroads.
It was those angel investors who helped usher in the Industrial Revolution in America.
Not to mention the B&O Railroad was insanely profitable.
Many Americans were able to create better lives for themselves and their country.
So what happened after that? Why haven’t Americans been able to angel invest until recently?
It all comes down to government regulation.
The SEC was formed in 1934. And they made it so you needed to be an accredited investor to do angel investing.
That means unless you’re essentially a millionaire, you were left out.
The type of angel investing like what happened with the B&O Railroad could no longer exist.
For the last 80-plus years, the top 1% got to rig the game.
They set it up so that – by law – regular folks like you and me were barred from these deals.
So they pocketed tens of billions of dollars in gains while we got left out in the cold.
That's changed. Now you've got a shot at getting into the next $10 billion, $20 billion, $30 billion company years before it goes public.
I completely agree. It also doesn’t make financial sense.
JPMorgan says individual American investors have almost $1.5 trillion in cash waiting to be deployed.
And they’re being shut out of one of the most lucrative markets that exists.
But you said something has changed recently?
Silicon Valley realized the sheer investing potential of the American public.
So they lobbied the government to pass the JOBS Act, which in 2015 allowed Americans back into the world of angel investing.
Now for a lot of these deals, especially the ones we’re focusing on, you don’t need to be a millionaire.
In fact, some of these angel deals require as little as $100.
But, David, how do you know what angel deals to invest in?
Angel investing is extremely speculative, with most companies going under before angel investors can make a profit on their investment.
However, you have a 95% success rate in angel investing.
Out of 55 angel deals, only two of them have gone bankrupt.
I don’t think people realize how amazing that is.
Most angel investors are lucky to have a 50% success rate.
What’s your secret? How do you find the best deals?
Don, there is never a sure thing when it comes to any type of investing. Losses are indeed possible. It took a lot of years of hard work to learn how to make tens of millions of dollars in angel investing.
And throughout those years, I developed a special strategy that has allowed me to have that 95% success rate.
I call it my 1,000X Formula.
It helps me determine whether a startup could shoot up 1,000X – or whether it’ll just go up in flames.
But that’s just one piece of the puzzle.
That formula is only effective if you can get your hands on what can be the hottest startup deals.
If you wake up one morning and decide you want to become an angel investor, that doesn’t mean the CEO of the next Airbnb is going to knock on your door and beg for your money.
So you’re going to share your “#1 Secret for Finding Billion-Dollar Deals.”
These are the companies that you see as having the most potential.
Right. And even though we can’t guarantee that the incredible returns we covered are going to happen for every investor… even a fraction of these – even one – can change your life.
Let’s jump right in.
David, basic question: Someone stops you on the street and asks, “What is angel investing?” What do you say?
There are a million ways to answer that – but I have one I really love.
Imagine being one of the first to invest in the next Steve Jobs, the next Bill Gates, or the next Elon Musk.
I’m talking the next generation of visionaries.
They’re out there right now working on ways to cure cancer, conquer artificial intelligence, produce healthy food for a rapidly growing world population…
And you can be right there, at the beginning of their stories – when their companies are called startups because they’re just starting up.
You’re investing before they IPO, if they ever do.
And because you’re there at the beginning, the upside potential can be infinitely greater.
That's angel investing to me.
Love that answer.
I mean, look at Elon Musk’s SpaceX.
They’re still a private company. That means Americans who only invest in stocks are shut out.
And they’re missing out on mind-blowing amounts of money.
Angel investors were able to invest in SpaceX in 2002 when it was worth just $18.8 million.
In 2019, it was worth over $31 billion.
Can you imagine being on that rocket ship as it soared 165,415% in value?
Or what about 23andMe?
You want to spot a possible health risk that could hit you in 20 years so you can prevent it today? You’re using their genetic test.
23andMe jumped from a valuation of $47 million to over $2.5 billion 11 years later.
Angel deals obviously don’t all play out like this. A number of them don’t work out at all.
But when you invest in the right ones, you can get these rare, massive outcomes.
Exactly, just look at Alibaba.
It’s now one of the biggest e-commerce companies in the world.
The earliest angel investors got in when it was worth $10 million in 1999.
It’s reached $814 billion since.
That’s an 8,139,900% return.
Without you as one of those early angel investors, none of this happens.
David, there are so many stories of people launching startups in their garages or basements that go on to become worth tens of billions of dollars.
Jeff Bezos started Amazon in his garage.
In the late 1990s, he had about 20 angel investors at the beginning.
If they held on to their shares… last year, they could’ve each made $7 billion.
A return of 14,000,000%.
Exactly. Another example is Reid Hoffman, who started LinkedIn out of his apartment.
His startup went from being worth roughly $10 million in 2003 to $26.2 billion in 2016.
Pierre Omidyar launched eBay from his living room.
In 1997, eBay was worth $20 million.
By 1999, $21 billion.
That’s a 105,000% jump in two years.
If you’ve never been an angel investor, a company growing that fast is impossible to fathom.
We’re watching this play out right now with Bird scooters.
Bird is a force to be reckoned with.
They took an old technology – scooters – modernized it…
And they used it to solve a big problem.
In busy cities, it can take a long time to travel short distances in a car.
But a scooter on a sidewalk? You can get where you’re going pretty fast.
In under a year, Bird went from being worth about $15 million to $2 billion.
That’s a 13,000% jump.
For a long time, though, most Americans couldn’t become angel investors.
That all went out the window when Congress passed the JOBS Act.
It had a specific clause in it – Title 3 – that changed everything.
It instantly made 240 million Americans eligible to become angel investors.
Basically, anybody over the age of 18.
Now, you can invest $50, $100, maybe $500 or more in a startup, and over time, it can change your life.
What’s wild is the vast majority of people have no idea this happened.
They’re missing out on one of the greatest drivers of wealth creation that’s ever existed.
I mean, the reason I got into angel investing is it allows the little guy – the underdog – to become wealthy.
And nobody is more of an underdog than you.
You were telling me your family escaped from Soviet Russia back in the late 1980s.
Can you tell us more about that?
I was four years old when my family fled the Soviet Union.
We had $600 to our name and spoke no English.
My mother was a doctor in the USSR, but her credentials didn’t transfer over when we came to America.
She had to work two minimum-wage jobs while raising my sister and me.
And my father, who had been a well-paid software engineer, was forced to take positions meant for 22-year-old college grads.
It was like decades of their hard work were erased in an instant.
I saw them struggle and make sacrifices to provide a better life for my sister and me.
I learned my work ethic from my parents. I didn’t want their sacrifices to go to waste.
And look at everything you’ve accomplished.
I’ve been very fortunate.
I remember first meeting legendary angel investors like Peter Thiel and Naval Ravikant during private dinners and thinking, “Wow, this is crazy.”
I never thought in a million years I’d make it this far.
It just goes to show that in America, hard work and dedication pays off.
Speaking of hard work, how much hard work is angel investing?
Are you stuck at your desk all day from 9 to 5?
No, no, no. Angel investing is the furthest thing from a job.
Don’t get me wrong, I love putting in a good day’s work.
But I got into angel investing because I can potentially make the same returns as I could from starting my own companies…
Without putting in the 100-hour weeks.
I mean, outside of starting your own business, where else can you potentially turn $50 or $100 into a life-changing windfall in the years that follow?
That definitely doesn’t happen in stocks.
Actually, that’s a perfect segue to what I want to talk about next.
Check out this 2016 headline from Inc. magazine.
It says that…
If you’re investing in stocks – specifically tech stocks – you’re missing 95% of the gains.
That’s pretty accurate.
I know, but if this is the first time you’re hearing this, it’s shocking.
Most investors rely on stocks for their 401(k)s or IRAs.
And Wall Street has created a lot of wealth for people over the years. Probably for a lot of people reading this.
But now we’re telling them, “That’s peanuts. There’s this private market out there where angel investors are taking 95% of the winnings off the table before YOU ever get YOUR shot.”
In the old days, most Americans couldn’t get into this private market. Now they can.
So the big question: How do they make money from angel investing?
There are three main ways. They’re called “exits.”
The first type of exit: You invest in a startup, it takes off…
And down the road, it IPOs on the Nasdaq, New York Stock Exchange, or wherever.
We already talked about IPO gains versus angel investing gains.
Like with Shopify, Moderna, and Uber.
But that’s just the beginning of it.
When you start looking at the numbers, there’s no comparison.
Just look at Roku.
It’s hard to find somebody who doesn’t know what the Roku remote looks like.
If a room in my house has a TV, my wife has bought a Roku for it.
That’s because people are cutting their cable cords. They’re picking and choosing which channels they like. And using streaming services.
Roku makes this easy.
So they announced they’re going public. Their IPO was a hot ticket. But guess what?
From the IPO in 2017 until today, Roku’s stock has jumped 1,483%.
Again, that’s an amazing return.
But, Don, guess how much Roku has jumped since its startup days in 2008.
Another way to think about it: Picture one of those pie charts.
The whole pie – that’s 475,000%.
That’s what was there for angel investors who have held on.
Then you have this tiny, little sliver. That’s what was left over for everybody else…
Everybody who had to wait until IPO day to invest.
Long story short, if you’re waiting until a company goes public to invest, you risk settling for crumbs.
So don’t wait until an IPO to invest!
Target startups that could eventually IPO.
If and when they do, you’re going to be a legend.
But, David, there have been fewer IPOs now compared to the late ’90s and early 2000s.
More companies are just choosing to stay private.
Why do you think that’s the case?
There’s no reason to go public to raise cash.
We already shared the numbers – the money being invested in startups is insane.
Now founders can just keep their companies private. No worrying about hostile takeovers.
No worrying about chaos in the stock market bringing down the value of their companies.
I get it, when someone hears there are fewer IPOs, they may think, “Well, how am I supposed to earn a return now?”
That’s why the second exit opportunity is so big.
M&A – mergers and acquisitions.
It seems like you can’t go a day without seeing some multibillion-dollar acquisition in the news.
Uber just bought delivery service Postmates for $2.65 billion.
Amazon bought autonomous driving startup Zoox for $1.2 billion.
Visa bought fintech startup Plaid for $5.3 billion.
There is a lot of money being thrown around right now, and angel investors make a killing on those deals.
In fact, the entire M&A market in 2018 was around $4 trillion, give or take.
Here’s a famous story.
March of 2010 – two guys from Stanford pitch a photo-sharing app to angel investors. They’re valuing their company at $2.5 million.
For the next seven months, they’re tinkering with their app, working out the bugs.
On the first day, they get 25,000 people downloading their app.
But then they catch fire.
One week later, it’s up to 100,000 people.
Two months after that, their app – Instagram – has over one million users. It’s exploding.
Becomes a household name.
And then Facebook comes calling. They buy Instagram for $1 billion.
From startup days to acquisition, the value of Instagram jumped 40,000%.
They didn’t need to go public. And their angel investors made a ton of money.
Facebook, Microsoft, Cisco, Amazon, Google – the big guys – they have the cash to buy just about anybody they want.
And that’s what they’re doing.
So what happens if your company doesn’t IPO or get acquired? Are you stuck holding your shares?
Not at all.
There’s a third type of exit.
It’s when a large venture capital firm or even another angel investor may offer to buy your shares.
We mentioned Revolut before.
After two years, their angel investors were offered a 1,900% return on their shares.
They could’ve taken that deal if they wanted.
Or they could’ve held on longer and turned that 1,900% into nearly 13,000%.
The numbers we’ve been throwing around today are nearly incomprehensible.
And when you’re talking about transforming small amounts of money into six figures or millions of dollars… one word comes to mind: risk.
You can’t have this kind of upside potential without the dreaded “R” word.
What do you say to people who think angel investing is risky?
I say, “Yes. Yes, it is.”
Angel investing is speculative.
And it’s certainly riskier than buying shares in blue-chip stocks while also waiting longer to see a return.
But this comes down to diversification.
A lot of these startups don’t make it.
So if your goal is to invest in one angel deal and call it a day, yeah, you are opening yourself up to a lot of risk.
That’s the case with any strategy that involves putting all your eggs in one basket.
So don’t put all your eggs in one basket!
There’s no reason to.
You don’t have to be rich to build a diversified portfolio of startups anymore.
You don’t have to invest $50,000 or $100,000 or more in each deal.
If you only have an extra $1,000 to play with, you can now take that, divide it up into smaller pieces, and invest it in 10 different startups.
When you’re in the position where you have all of these exciting deals at your fingertips, you need a way to determine which could be winners – and which are nothing more than hype.
It’s your 1,000X Formula.
Tell us about it.
It is very simple.
Smart company + big problem + big market = big money.
Invest in smart companies that solve big problems in big markets.
When I say “smart,” I mean a company that’s stable.
The founders aren’t flying by the seat of their pants.
They have a clear vision and a plan for executing it.
This formula helps us target startups that are more predictable – ones that we believe have the most potential to pay a hefty return.
This isn’t the time to be shy. Angel investing is about swinging for the fences.
It’s called the 1,000X Formula because you want to find startups that have the potential to pay you a 1,000X return.
A 1,000X returns is an impressive number.
How long do angel deals that reach 1,000X typically take to reach that number?
Don, sometimes you get lucky with companies like eBay and Instagram, and it happens in a year or two.
But remember, as an angel investor, you are usually investing for the long haul.
We are typically targeting companies with massive potential that could go from a startup with a few employees to a Silicon Valley juggernaut.
That takes time, typically five to 10 years to see its full potential.
Makes sense. After all, Rome wasn’t built in a day.
That’s why we created the 1,000X Formula.
To target those startups with that type of growth potential.
And you want to immediately eliminate the deals you shouldn’t touch with a 10-foot pole.
Quick story: I once heard of a company that wanted to build luxury hotels. Sounds pretty normal, right?
But guess where they wanted to put them?
What are the chances of that actually happening?
One in a billion.
Don, this is exactly the kind of deal newer angels chase.
What big problem does it solve?
Not enough luxury hotels in outer space?
Wait… it gets worse.
They’re planning to sell tickets for up to $60 million a pop.
Who’s dying to fork over that kind of money to stay in a space hotel?
This startup fails the formula in seconds.
Believing you’ll earn 1,000X your money on that deal is like a 90-year-old man marrying a 22-year-old bikini model and fooling himself into thinking it’s true love.
For me, I’ll take a smart startup that solves a big problem in a big market every day of the week.
Off the top of my head… Remitly.
Years back, they set out to change the way we wire money.
It used to be that if you wanted to wire money, you’d have to walk into your local Western Union, take cash out of your pocket – like physical cash – then hand it to a window teller.
Well, that office takes a piece of that transaction. And that’s just the beginning.
Next, Western Union is going to send your money to a local bank they’ve partnered with.
Then it’s going to what’s called a “correspondent bank” in America. Then to another bank in the country you're' sending it to.
Finally, it lands at the Western Union over there.
And every step of the way, somebody took their piece of the action?
You know it.
Depending on where you send your money, you could lose up to 25 cents out of every dollar to all these middlemen.
And it could take days, even weeks, for your money to reach them.
So this guy, he was a top exec at Barclays bank. He says, “There’s gotta be a better way to wire money.”
He wants to invent a better mousetrap.
He was the right guy to do it too.
At Barclays, he oversaw their mobile banking projects. He realized he could cut out a lot of these middlemen…
He launches Remitly. And he builds an app that allows you to wire money directly from your phone to someone in your family.
The money can be deposited in their mobile wallet, or their bank account, or they can still go pick it up. All for a fraction of the cost.
And instead of days or weeks, the money can arrive instantly.
What a great business idea.
And it passes the formula with flying colors.
Smart company + big problem + big market.
Huge market. $642 billion a year and growing.
As an angel investor, I assume this added up to big money.
Remitly went from an $11 million valuation in 2012 to a $1.5 billion valuation in 2020.
That’s a 136X return.
Not quite 1,000X. But Remitly isn’t done yet.
It’s entirely possible this number could grow much higher.
And if not, then angel investors still made a killing.
This 1,000X Formula of yours – it’s simple, and it’s brilliant.
It helps you quickly determine whether a startup has the potential to become a unicorn or better. But it doesn’t work on its own.
You also need your #1 Secret for Finding Billion-Dollar Deals.
This is what separates the legends from the leftovers.
Let’s hear it.
Are you ready?
DEAL FLOW! DEAL FLOW! DEAL FLOW!
The biggest challenge for any angel investor is getting access to the best deals.
Sure, you can search around the internet and find startups begging for money.
And there’s always somebody in your town who wants to open a bar or restaurant.
Those are desperation deals – that’s not deal flow.
Right, what you want is the founder of the NEXT Uber, Airbnb, Facebook, or SpaceX personally asking YOU to be one of their first angel investors – that’s deal flow.
Nothing is more valuable. It’s priceless.
For example, I know of a guy; his name is Jason.
Big-time angel investor. He was handed the deal of a lifetime on a silver platter.
Young founder comes to him and says, “I have two Lincoln Town Cars driving around San Francisco.”
“When somebody wants to ride in one of them, they hit a few buttons on my app. Minutes later, they’re picked up.”
Obviously, I’m talking about Uber.
Back when they only had two cars driving around San Francisco, Uber was valued at $5 million.
Jason had the connections – he had the network.
That’s why he was invited to be one of Uber’s first angel investors.
A while back, when news started to break that Uber was going public – the valuation being tossed around for IPO day was $80 billion.
It’s so rare to get the chance to invest in a startup that goes from being worth $5 million to $80 billion – that’s a 1,599,900% jump.
And keep in mind, that was 1.6 million percent in nine years. It didn’t happen overnight.
But if you had the chance to turn $100 into $1.6 million, nine years doesn’t exactly sound like a long time.
That’s the power of deal flow.
You know, we’re at this amazing moment in time.
The walls have finally come down; you don’t have to be rich, or famous, or powerful to become an angel investor.
But I’ll tell you, it doesn’t matter if Congress opened the doors for everyone.
With the hottest startups, the next Uber or Bird scooters, you still need someone to open another door, so those founders invite you to invest.
I’m here today because we want to help open those doors for as many people as possible.
Angel investing presents the best opportunity for someone to transform a small amount of money into a small fortune.
That’s why we’ve teamed up with the Angels & Entrepreneurs Network.
This is a first-of-its-kind venture. We already have 90,000 subscribers, and it’s growing every day.
We’ve created something that’s going to unite our subscribing members with some of the most successful angel investors on the planet.
Folks like myself, we have the expertise. Most importantly, we have what we just talked about: deal flow.
We’ve identified the founders of the most coveted startups – the ones with unicorn potential – to pitch their angel deals right to our members.
But, David, some folks might be wondering about how; what happens when they subscribe to the Angels & Entrepreneurs Network research service?
Let me answer that.
First of all, great news, you just joined one of the largest networks of angel investors on the planet.
Every month, our team is examining hundreds of angel deals.
99% of them we throw away immediately.
Right, they fail the 1,000X Formula. These are deals I wouldn’t touch in a million years.
And that’s the point.
From those that do make the cut, every month, we’re going to select two startups and showcase them.
For each, you are going to receive what we call our Due Diligence Package.
So our Due Diligence Package sounds fancy – because it is.
Founders place their most sensitive information in them.
You’ll see their pitch deck – that’s their official investor presentation.
You’ll also see documents revealing their business plan, their projections, any proprietary technology they’re developing, every deal they have in the works… it’s all in there.
I take a magnifying glass to every detail in a Due Diligence Package. We’re playing the role of detective.
Could this be the next billion-dollar or multibillion-dollar startup?
You’re looking for clues, a trail of evidence to follow, that gets you to a “yes” or “no.”
We’re going to help with that.
For every startup, we’re adding our Angel Investor Action Plan to the mix.
The independent research team is going to give you their independent analysis and research on that startup.
I’m also going to film a Deep Dive Video. I’ll go through the deal, assess all the risks, and explain what I like and dislike.
I’ll discuss whether it's a startup that could IPO, get acquired, or eventually kick out enormous dividends to its early investors.
And if you decide you want in on that angel deal, you’ll receive step-by-step instructions.
You just follow the instructions – it’s very easy.
And we have a pretty big surprise.
We’ve already selected two startups to showcase.
We most certainly have.
Two potential unicorns?
Don, you don’t become an angel investor to find deals that could make you 10%, 50%, or even 100%.
You can take your chances with the stock market for that.
You should only be seeking deals that have the potential to pay you 1,000X or more.
That way, if they deliver only half… or one-tenth… heck one one-hundredth of that in five to 10 years – you’re still going to make a lot of money.
So each of the startups we’re showcasing today has the potential to pay out a 1,000X return?
What’s great is subscribing members get the information and research they need to answer that for themselves.
But to answer your question: Yes, in my opinion, they do.
We also built this incredibly robust, members-only website. It’s our Virtual Boardroom.
Once you get the details on a startup – you can spend the next week participating in a series of debates with members about it.
Does this startup have what it takes to become the next unicorn? Debate that, discuss it with each other.
Let’s pretend it’s 2015 and you have the opportunity to invest in Desktop Metal. It’s a startup that wants to be the leader in 3D-printing technology.
You’ve gone through all of the information in the Due Diligence Package; the pitch deck looks incredible.
But there’s a catch.
The founders placed a hefty price tag on their startup – a little over $32 million.
So if I was thinking about investing $50, or $500, or $5,000, I better make sure this startup has the potential to become worth billions.
Every angel deal, no matter how much you like it at first, you must pick it apart and punch holes in it. You need to scrutinize everything carefully, and that includes their offering documents as well.
If you can do all of that and still come away excited, you may have a winner on your hands.
With Desktop Metal, you could have.
In under two years, that company went from roughly a $32 million valuation to over $1 billion.
Then it kept going. In a little over three years, it hit over $1.4 billion.
It soared 4,275%.
Time to pop the champagne.
Exactly, and we want you to have the opportunity to do just that.
So one week after you’ve received all the information on a startup, we’re going to put the founders through a Hot Seat Session.
This is a live video chat.
You can submit your questions in advance, and the founders are going to answer the most popular ones.
You’re looking for those personality traits you can’t quantify on a spreadsheet.
I look for people with great purpose.
Starting a business is hard.
There is going to be a lot of pain. These founders are going to get knocked down.
The question is, do they have what it takes to get back up?
Members should use these Hot Seat Sessions so they can determine if the founders are winners.
Yes, that’s the purpose of each Hot Seat Session.
And when it’s finished, we release our Hot Seat Briefing. It’s a summary of all the questions and answers.
The goal is to arm you with so much information, you’ll be able to make a smart decision about whether or not you want to invest.
Yes, and once you invest, it can be a pretty wild ride as a startup goes from an early-stage company to hopefully a rare billion-dollar unicorn.
Talk about how we’re going to keep members updated on every development.
After all, startups are notoriously secretive.
For good reason.
They have to keep what they’re working on under wraps, so competitors don’t try to rip them off.
Which is why, normally, founders don’t offer smaller angels “Investor Updates.”
By “smaller angels,” I’m talking about people who invest less than $50,000.
That’s not happening with us.
It doesn't matter if you invest $50 or $50,000 – or you don’t invest at all.
You will receive Investor Updates for every startup we showcase.
Explain Investor Updates.
They’re like progress reports.
Founders prepare them every month or quarter.
They document where they stand with revenue, new deals they’ve inked.
They’re transparent about any setbacks they’ve experienced because even the best startups face challenges along the way.
These Investor Updates are so important – I’m going to cover them in our Virtual Boardroom Meetings every month.
I’m also going to talk about them in our Momentum Report.
It’s a streamlined briefing that sums up the major developments with these startups.
We’ve also built a Deal Flow Tracker.
If a startup announces a new valuation, we’ll automatically update it.
Every quarter, we also prepare The State of Angel Investing report. It’s got the major statistics and trends in it.
And what are the hottest trends in angel investing?
There’s a lot of excitement around AI – artificial intelligence.
Also, big growth with smart-home technology.
Anything in cloud computing immediately catches my eye.
Initially, most of the deal flow can come from these startups you’re showcasing.
But we’ve also created private forums where members can share deals they’ve found with each other.
We’re expecting a lot of entrepreneurs to join our ranks as well.
We have a Founder’s Corner for them, where they can talk about their businesses.
Maybe the idea for the next unicorn is hatched there. That could mean more deal flow for our members.
We also want our angels and entrepreneurs networking in the real world.
They can just push a couple of buttons and launch a local chapter in their town or city.
We’ve made it easy to organize meetups at restaurants, bars, or any other spot.
The network effect is very real.
The more people in your network – the more connections you have – the more opportunities you’ll be presented with.
The more you’ll learn too.
Without a doubt.
I love angel investing because I can continually learn from some of the brightest minds, and that makes me a better person.
So every month, I’m hosting an Angel Investor Master Class with one of the legends.
They’re going to tell you their secrets. They may even share a deal that you can participate in.
That means more deal flow!
And the Angels & Entrepreneurs Network is all about deal flow.
This was created for everybody.
Even if you’ve never invested in a startup before – you can now join forces with the legendary angels and the legendary entrepreneurs.
We’re bringing everybody together.
And you’re going to receive this incredible welcome package. It includes our Angel Investor’s Boot Camp.
It’s a video series – like a 101 course.
There’s also an Angel Investor’s Cheat Sheet. It’s a set of questions every founder needs to answer before you invest in them.
We’re tossing in a Deal Flow Notebook as well.
Perfect for writing down any thoughts you have during those Hot Seat Sessions.
So let’s get down to business.
We’re officially inviting you to join the Angels & Entrepreneurs Network.
Down the road, the retail price to subscribe is going to be $599 a year.
Not for today’s new members, though.
Their discount: 50%, 60%, 70%, 80% off – it’s better than all of that.
We don’t want this research service to be so expensive only the wealthy can join.
If they’d like, members can take their savings and use it however they want, maybe even put it into their first angel deals.
You can click the button below to see our special membership rate.
So, David, any last thoughts before we go?
Just a few.
No matter who you are, there's some point in your life where you arrive at a crossroads.
Go right, that’s the unknown path. But it may make your life a lot better.
Go left, that’s the safe route – you’ve been down that road many times.
And your first instinct is to take the safer route. That’s just human nature.
Angel investing can be this new adventure. There will be risks along the way, no doubt.
But you have the opportunity to grow, to learn, and to see success.
If you take that first step on this path, it can help change your life.
David, thank you for being here today.
I had a great time! Thanks for having me.
You know, Don, I came from extremely humble beginnings to where I am now, and I owe so much of my success to angel investing.
Sure, I’ve done quite well. I can afford the finer things in life; I’m grateful for that.
But what angel investing has really given me is freedom and control.
I’ll never forget how hard my mom and dad worked – all those late hours – just so my sister and I had clothes on our backs.
When I made it, I said, “You guys are now retired. You don’t have to worry about a thing.”
Giving my parents financial freedom – that’s what matters to me.
Angel investing made all of this possible. It’s been life-changing.
I want our subscribers to experience this for themselves.
What a great way to end this summit.
David, thank you.
I’m ready to go to work!
And I have your Membership Card here.
To claim your spot in the Angels & Entrepreneurs Network, click the button below.
It’ll take you to a brief subscription form.
Fill it out, and you’ll be rushed two Due Diligence Packages for two startup recommendations – each has billion-dollar potential.
And if you like what you see, you can follow our simple instructions to invest in both of them. It’s extremely easy.
Click the button below, and we’ll tell you more about them.
And that’s just the beginning.
Every month, you’ll receive the details on two new startup recommendations.
That means two more opportunities every month where you could collect a windfall.
In addition, many of the legends of angel investing and Silicon Valley can also be helping you build your deal flow.
I’m so excited to see what the future holds for you.
So let’s not waste another moment.
If you have any questions about the research service and how it works, I encourage you to contact our reliable customer service team at 866-310-1498 or 443-221-6766 (for international calls) and mention Priority Code: WAGNWC14.
David, I want to thank you for joining us.
I’m Don Yocham.
Have a great day.