Investor Connect Podcast

Asset Allocation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In angel investing, it’s important to set aside funds for startup investments.

In most cases, investors dedicate 5%-15% of their discretionary funds to angel investing.

There are several issues with asset allocation for angel investing compared to publicly-traded stocks, bonds, and mutual funds.

Startup investments are illiquid as there’s no market for reselling.

Transferring stock is greatly limited due to SEC rules.

To achieve a gain, you must hold the stock for up to 7-10 years in most cases.

Many startups fail completely and are tax write-offs.

Determine upfront how much you want to invest based on 5%-15% of your portfolio.

Divide by ten to get the total number of startups you can invest in. 

Divide the investment amount by 2 to get the initial investment per startup, leaving the second half for a follow-on round. 

Here’s an example:

Let’s say I have a portfolio of $3.5M 

15% of $3.5M yields $525K to invest in startups

Dividing $525K by 10 gives me $52K per startup that I can invest in.

Dividing the $52,500 by 2 means I can invest $26K for each startup leaving another $26K for each follow on investment.

Start with 3 investments per year.   

It’s important to be selective.

After a few years and some gains, you can re-invest some of the profits into more startups.  

There are tax laws that make it attractive to roll your gains from one startup investment into another. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Music courtesy of Bensound.

Direct download: Asset_Allocation.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Pete Mohr, Founder of Simplifying Entrepreneurship and host of the Simplifying Entrepreneurship Podcast.

Headquartered in Elora, Ontario, Pete helps entrepreneurs transform their frustrations into freedoms by using a variety of frameworks that help them cut through the chaos of running a business. Being a business owner isn’t easy. That’s why he coaches entrepreneurs using tools and systems that he’s developed for Simplifying Entrepreneurship.

With over 27 years as a business owner, he's refined many of his tips, tools, and techniques in the trenches within his own businesses. 

Pete bought a bathroom remodeling franchise fresh out of university in 1994 and has been virtually unemployable since! He has owned and operated more than one business for almost his entire career. He’s bought businesses, built businesses, sold businesses, and closed businesses. He has owned service-based businesses as well as retail (and for the last dozen years has owned shoe stores in Ontario called Shoetopia).

Last year, Pete started the Simplifying Entrepreneurship Podcast. They’re short 20-minute episodes that help entrepreneurs tackle some of their worries and transform them into wins! There’s always a great takeaway to make their lives or businesses even better.

Pete discusses the 5 Ps of business, some of the most important lessons he has learned over the years, a common myth amongst some entrepreneurs, and more.

You can visit Simplifying Entrepreneurship at https://simplifyingentrepreneurship.com/, and on LinkedIn at www.linkedin.com/company/simplifyingentrepreneurship.  

You can listen to the Simplifying Entrepreneurship podcast at https://simplifyingentrepreneurship.com/simplifying-entrepreneurship-podcast/  

Pete can be contacted at pete@mohr.coach, and on LinkedIn at www.linkedin.com/in/petermohr/

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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Pete_Mohr_of_Simplifying_Entrepreneurship.mp3
Category:general -- posted at: 6:00am CDT

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