From Myths to Millions: The Truth About Angel Investing with Karen Rands

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The Compassionate Capitalist
Show empowers entrepreneurs and

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investors alike to create wealth
with passion and purpose.

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Join Karen Rands, a best selling
author, for insights on Angel

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investing, crowdfunding,
business growth, and wealth

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creation.
As a seasoned entrepreneur and

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investor herself, Karen engages
in dynamic conversations with

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industry leaders, successful
entrepreneurs, seasoned Angel

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investors, and venture
capitalists as they share their

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proven strategies and lessons
learned.

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Once you listen, you will
understand why this podcast is

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ranked in the top 2 1/2%
globally.

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Subscribe and share and be a
catalyst for the compassionate

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capitalist movement.
There's no giving up and a go in

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back and you must keep an open
mind and you try your best just

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to leave your track and do not
fall too far behind.

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Regret is for the faint of
heart.

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In the end, it's all the same.
Take what the wise I've got to.

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In part.
These are the principles of the

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game.
The principles of the game.

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These are the principles of the
game.

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OK, hello Karen Rands here.
I decided to do a segment on

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this compassionate capitalist
show specific to the reasons why

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and the benefits why and the
myths about Angel investing and

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why those myths exist.
If you have been listening to

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this podcast regularly, you're
likely one of the apparently

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minority of people out there
that know and embrace the idea

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of investing in entrepreneurs as
an asset class.

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It is kind of the whole premise
behind what I do within the

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Compassionate Capitalist
movement and the Compassionate

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Capitalist Show and you know my
book and everything like that.

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But if you're new to this,
because I am gaining a lot of

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new listeners these days or
you're one of those business

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owners out there, those
executives that just like these

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business type topics and never
really thought of yourself as

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being somebody that could be an
Angel investor.

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That's never really been
something that you were like,

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you know, oh, that's something
that other people do.

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Well, this is the show for you.
OK.

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And, and I really hope that you
get great value of it.

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Listen to it all the way
through.

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Give me a comment share it
because we are getting this

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movement for compassionate
capitalist go wing.

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All right, so let's start with
this.

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So I you know ChatGPT all the
rage right?

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Yeah, The reality is that it
doesn't invent anything.

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It isn't smart.
It's just the best crawler for a

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search engine.
It basically knows it goes out

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there to the world of Internet
stuff and pulls the information

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right.
So it's always nice to see if

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like what I think does ChatGPT
agree?

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So I asked it what is an Angel
investor and this is the what he

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came back with.
Angel investing refers to the

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practice of investing money and
startup companies or early stage

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businesses typically in exchange
for ownership, equity or

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convertible debt.
Angel investors are typically

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individuals who have accumulated
well through successful careers

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are looking for high risk, high,
high reward, high return

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investment opportunities.
Well, you know, the irony of

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that is that they obviously have
not got on to the the bandwagon

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of crowdfunding investing and
how the entire marketplace has

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changed.
And that could be because very

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much like what you know, the
reason why most people still

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don't know about Angel investing
is that it was illegal for 90

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years.
I want to talk about that more

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in just a second, but so JOBS
Act passed in 2012.

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That was when they removed 90
years of laws making it illegal

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for non millionaires to invest
in start up at early stage

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companies.
It was even illegal for the

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companies to solicit investment
from non millionaires since

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2012.
The opportunity for anyone with

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disposable income to invest in
private businesses has been

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available.
So about 10 years now.

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It took a few years for it all
to roll out, but the whole idea

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of it, it's like, and I'll talk
more about that in a in a bit,

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but I want to let that settle
in.

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On one hand, you have 90 years
of secrecy behind closed doors,

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right?
Heck, when I was managing, you

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know, the Angel group where I
learned all the stuff that I

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know and I talk about now and I
wrote the book on, I'm going to

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show that you see it right
behind me, right?

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For those that are watching on
YouTube, on my YouTube podcast

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channel, I, when I was running
that Angel investor group and we

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would hold our dinners and pitch
events, we had a requirement of

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the venue to be able to close
the doors.

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I remember this one place here
in Atlanta, Buckhead Club, when

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we were expanding and we needed
a bigger space.

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Their bigger space was in this
loft and it had no doors and we

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couldn't have our meeting there.
We could eat and mix and mingle

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there, but we had to go into
another room and close the door.

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So just on an off chance that
somebody walking by would hear

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the companies presenting to this
group of angels and asking for

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money because that was illegal.
We did not want that company

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founder to go to jail for
violating security laws.

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I mean, it, it, it really was
that way, right?

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And so it's just amazing to me,
right?

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But because what were they
doing?

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If you, if you've been to my
website and you watched me,

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heard me tell the story of the
secret society, that's really

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what it was.
We were a part of a, a secret

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society, a community that would
meet to determine which

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entrepreneurs were worthy of
getting money so that that that

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founder could go on and succeed
and build a company that we

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believe would be successful and
we would make money in that

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process, right.
That's really kind of the, the,

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the premise behind all that to
get a return on that investment.

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And so if you've listened to any
of my shows in the last five

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weeks, you will know that I have
also launched the compassionate

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capitalist wealth maximizing
system.

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It's a live hands on training
digital course, totally

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interactive that maps to the
book I wrote to serve as a

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primer to provide the pathway
right the inside secrets to

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Angel investing, the lighted
pathway for millions of

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American, maybe even those in
faraway lands can learn how to

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be an Angel investor.
Of course, that book, Inside

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Secrets into Angel Investing was
the first step in putting the

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information out there.
Then the rebirth of this podcast

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and then now the launch of a
course.

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And with that, they'll be there
there.

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There are DIY.
You could do it at your own

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pace.
Log in at midnight on Saturday,

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on Friday night when you can't
sleep or Monday morning,

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whatever.
And, you know, be able to do

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your own look at your own thing.
And also the intro courses are

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done on a monthly basis.
And currently that could change

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based on market demand.
I consider myself sort of in a,

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a beta test mode where we're
putting a lot of this out there,

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seeing what works best for the,
the market of, of really the,

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the, the people that are most
hungry for this right now are

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the folks between 25 and 45 that
are in a growth stage in their

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careers and are wanting to see
about how to accumulate wealth,

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particularly the 25 to 35 year
olds.

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They are not afraid of
crowdfunding, not afraid of

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reward based crowdfunding.
So they're, they're hungry for

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this information.
So I'm putting it all together

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to get out there and then I have
a, a whole sort of it that's for

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those people that maybe did one
or two.

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They've done a couple of Angel
investments in the past and just

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really never felt comfortable
that they really had mastered

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it.
Well, maybe they made an

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investment in, lost their money
and they'd like to do more, but

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they want to do it wisely.
And there's quite frankly no

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training out there for it.
Now there's hit and miss this,

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that and the other thing that
people do and there's things

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that happen within a structured
Angel groups, but there's really

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no structured training for this
like there is for real estate

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investing, for example, or stock
market investing.

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So I'm solving that problem if
you want to invest in me.

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No, I'm joking.
All right, so so do you if you

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want to invest in small
businesses and startups.

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I know it sounds intimidating.
I get it.

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Now that I'm out there really
pushing this whole education

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system, I get it.
I get the comments from people

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all the time, but it's actually
a smart and profitable way to

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build wealth.
Investing in entrepreneurs is an

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asset class that's just as valid
and profitable as the real

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estate or the stock market.
Scout's honor.

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In fact, owning a piece of
multiple small businesses can be

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3 times more profitable than
investing in other assets. 3

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times more profitable.
Google it.

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Go ask ChatGPT and they'll tell
you the same thing I found.

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And I found that even successful
business owners, those that

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listen to my show, create
thriving, profitable business

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but never think about investing
in other entrepreneurs.

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I, I, I discovered this when I
would be networking at the

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chamber and stuff.
And these people that own

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$1,000,000 businesses and
they've been invest in real

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estate, in the stocks and never
think about investing in

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entrepreneurs as something for
them themselves to do.

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It's always something that this
mythical super wealthy got money

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to burn type of person becomes
an Angel investor, and that's

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just not the case.
The people that are Angel

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investors are active Angel
investors are thoughtful about

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the process.
They're very conservative with

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their money and they do it,
which I'll talk about in a few

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minutes for a whole other
reasons.

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Yes, make money.
But the compassion side of the

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capitalist side, compassion
side, capitalist is making

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money.
The compassion side is choosing

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to make money in a way that has
greater impact and feels a

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passion that you yourself have.
And that's what I teach.

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All right.
You know, I was naive to think

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that my book was enough when I
first came out with this book

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after the JOBS Act got passed.
And I said my biggest fear had

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been that people would that
would run out there and start

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crowdfunding investing and
they'd lose their money.

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And then it it this, you know,
investing in entrepreneurs would

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have, would have even a blacker
eye right than than what has

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been created by the myths.
Because if you think about it,

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for those 90 some odd years from
1933 to when the Securities and

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Exchange Acts were passed to
2012 when the JOBS Act was

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passed, people needed to make
money.

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Money makes money.
And so all the wealth managers

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are financial planners that
couldn't talk about Angel

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investing.
What they talk about, they

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talked about stock market and
people created education systems

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for the stock market.
And then when the laws change or

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the rules or whatever, the
things changed in the 80s for

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real estate.
Prior to the 1980's, the only

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people that had invested in real
estate were super, super wealthy

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people and institutions.
But then they changed on, you

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couldn't get a loan for
investment properties for a long

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time.
And they changed tax laws to

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allow people that invest in real
estate to write off business

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expenses.
And when those changed, then you

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created the whole cottage
industry of, of how to invest in

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real estate started to happen.
So that that's where I am.

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That's what I'm doing right now.
I am where that real estate

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education investment market was
30 years ago.

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We're starting that right now.
And you're listening to this

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because I'm going to tell you,
I'm going to give you the

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details, the information that
you need to make a decision on

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whether this is something you
want to invest time in learning

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before you even make your first
dollar investment.

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Right 'cause I, I wrote this
book, it's got a step by step

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guide.
Every end of each chapter says

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you know what to do next.
And it has a resource portal

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with the tools that, you know,
any investor would need to make

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decisions about investing in
entrepreneurs.

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But I didn't ever do anything
more than that.

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I didn't know how to, I didn't
know I finally found the right

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person to help me put this
together and and put this out to

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the benefit of the marketplace.
Because you think about it, 150

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million people invest in the
stock market, 7 million people

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in the United State invest in
the real estate.

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In both cases, that's people
that are making just $75,000 a

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year or more.
That's not a millionaire, that's

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a middle class person, OK, That
is putting money into these

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other asset class thinking they
are the best way to create

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wealth and the least risky
because they don't know about

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Angel investing and what they
hear about Angel investing, word

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00:14:09,800 --> 00:14:14,640
on the street, word of mouth is
that it is risky.

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It is like gambling.
It doesn't have tangible assets

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associated with it.
Oh, you can't get your money

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00:14:21,360 --> 00:14:23,040
back.
Oh, all this stuff.

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And I and if we have time, I'll
I'll go into those kind of

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things as well.
But I talked about that in the

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00:14:27,400 --> 00:14:33,440
intro class very much so right.
So in that is the sweet spot of

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00:14:33,440 --> 00:14:37,600
the opportunity that the
government was trying to provide

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00:14:37,600 --> 00:14:42,800
to investors like you and me.
I'm not a millionaire, but I'm a

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00:14:43,040 --> 00:14:48,160
millionaire adjacent, right?
You know, they wanted to give us

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00:14:48,160 --> 00:14:51,800
the opportunity to invest like
millionaires the way the mega

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00:14:51,800 --> 00:14:55,080
rich millionaires have been
investing for 100 years.

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That was the secret again, from
1930, three, 2012.

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And the reason why was because
those Titans of industry, the

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Rockefellers, the Du Pont's, the
Hiltons, the Shell, all of the

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00:15:13,080 --> 00:15:16,360
different things that you hear
that you know about the people

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that were creating and building
America back in the industrial

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00:15:19,440 --> 00:15:23,240
revolution, right?
Back in those days when they

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00:15:23,240 --> 00:15:27,000
passed the security laws that
said you have to disclose,

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00:15:27,240 --> 00:15:29,240
right?
You have to be the the public

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market stuff because of the
Great Depression, the stock

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00:15:32,280 --> 00:15:35,560
market crash, those folks
knocked on the SEC doors and

253
00:15:35,560 --> 00:15:39,120
said, hey, we want you to carve
out exceptions for private

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00:15:39,120 --> 00:15:43,200
transactions because we want to
be able to continue to invest in

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each other's businesses without
having to tell the government

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00:15:45,880 --> 00:15:47,960
about it.
And they said, all right, we'll

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00:15:47,960 --> 00:15:49,960
do that for you.
And so that's what they

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00:15:49,960 --> 00:15:53,760
established the rules that said
no general solicitation.

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That's why we had to close the
doors, because if the doors were

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open and the public could hear,
then that was a public

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00:16:01,080 --> 00:16:05,080
solicitation.
When they pitch at these big

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venture conferences, they should
not be saying, and now they can

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00:16:10,000 --> 00:16:12,200
in some ways, but they shouldn't
have been saying.

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00:16:12,200 --> 00:16:15,160
I used to have the rule at my
big pitch events where there

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were, I didn't know.
Everybody in the audience was

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00:16:17,120 --> 00:16:20,280
not necessarily an investor.
They could not say from the

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00:16:20,280 --> 00:16:23,600
stage they were raising capital
and how much they were raising.

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It was clear and obvious that
people were raising capital.

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That's why they were there.
But then they would go and have

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00:16:28,160 --> 00:16:30,360
private meetings to have those
conversations.

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So we stayed within the laws of
the SEC on how to solicit.

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You had to have a relationship
with the person.

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00:16:36,880 --> 00:16:40,560
The Angel GroupMe became the
anybody that with the screening

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00:16:40,560 --> 00:16:42,040
process, that was the
relationship.

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00:16:42,400 --> 00:16:45,880
But that was really the rules of
the day.

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And so in the vacuum, what did
people do?

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00:16:50,840 --> 00:16:54,560
Invest in gold, invest in
stocks, invest in real estate,

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00:16:54,560 --> 00:16:59,320
invest in bonds?
Right now, just on an aside, in

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00:16:59,320 --> 00:17:02,560
the crowdfunding space, there's
a company up in Baltimore that

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00:17:02,560 --> 00:17:07,040
is just fascinating.
They issue bonds on behalf of a

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00:17:07,040 --> 00:17:10,680
company to the community.
The community buys the bonds.

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00:17:10,680 --> 00:17:14,319
They have a guaranteed return,
you know, back on them.

283
00:17:14,319 --> 00:17:16,880
It's, you know, low.
It's like like a way a bond

284
00:17:16,880 --> 00:17:20,880
would be in investing in local
businesses in that community

285
00:17:20,880 --> 00:17:23,520
that are having an impact in
that community and they're doing

286
00:17:23,520 --> 00:17:27,079
it through bonds.
I thought that was brilliant,

287
00:17:27,440 --> 00:17:29,680
right?
There's so many ways that you

288
00:17:29,680 --> 00:17:34,280
can invest in entrepreneurs.
You can be a bank, you can loan

289
00:17:34,280 --> 00:17:38,000
them a little bit of money,
bridge them, you know, help when

290
00:17:38,000 --> 00:17:40,960
they're getting ready to do a
big order, the retail order to

291
00:17:41,000 --> 00:17:44,280
Walmart or something and they
got a go to manufacturing.

292
00:17:44,640 --> 00:17:48,040
They're you they want to bring
manufacturing into their, a $10

293
00:17:48,040 --> 00:17:51,920
million company, a guy, you know
that or gal, you know, from the

294
00:17:51,920 --> 00:17:55,120
chamber and they want to bring
manufacturing into the United

295
00:17:55,120 --> 00:17:58,240
States from offshore.
They can go get an SBA loan for

296
00:17:58,240 --> 00:18:00,440
this amount, but they need this
other amount to higher up

297
00:18:00,440 --> 00:18:03,400
people, you know, do their
marketing for this new product

298
00:18:03,400 --> 00:18:06,640
they're launching.
You could be an investor in that

299
00:18:06,640 --> 00:18:09,040
and it could be structured.
I'm gonna, I'm working with a

300
00:18:09,040 --> 00:18:12,720
company right now on this in a
what they call revenue

301
00:18:12,720 --> 00:18:15,280
financing.
So you get paid back a

302
00:18:15,280 --> 00:18:18,200
percentage of those Rev that
revenue on a monthly, quarterly

303
00:18:18,200 --> 00:18:21,560
or however it gets structured
basis until three times your

304
00:18:21,560 --> 00:18:24,200
money is paid back.
And you know that that company

305
00:18:24,200 --> 00:18:28,280
has the contracts, you know that
that company has the ability to

306
00:18:28,280 --> 00:18:30,880
make money.
So where's the risk in that?

307
00:18:31,680 --> 00:18:36,040
Yeah, there's some risk, but not
as much as there is in the stock

308
00:18:36,040 --> 00:18:39,080
market that you have no control
over and often times in the real

309
00:18:39,080 --> 00:18:40,520
estate market.
And we're going to talk more

310
00:18:40,520 --> 00:18:43,320
about that here as I proceed on
right.

311
00:18:43,320 --> 00:18:45,720
But I, I, I get excited about
this.

312
00:18:45,720 --> 00:18:50,440
I actually have a whole thing.
It's taken me days to write the

313
00:18:50,560 --> 00:18:53,640
show notes for what I want to
Tell with you today, back and

314
00:18:53,640 --> 00:18:56,440
forth, editing it and stuff like
that, and I've already digressed

315
00:18:56,440 --> 00:19:01,640
3 times off of it.
But anyway, so they wanted to

316
00:19:01,640 --> 00:19:05,440
give millions of Americans the
opportunity to invest in the

317
00:19:05,440 --> 00:19:09,240
potential of entrepreneurs and
their growing business, and I'm

318
00:19:09,240 --> 00:19:11,640
going to tell you exactly why in
just a few minutes.

319
00:19:12,080 --> 00:19:17,040
The crazy thing to me is what
little actual understanding and

320
00:19:17,040 --> 00:19:20,920
even basic awareness of the
possibility there is out there

321
00:19:21,080 --> 00:19:24,320
about the value and benefit of
Angel investing, even if you're

322
00:19:24,320 --> 00:19:27,200
only able to invest in
crowdfunding companies.

323
00:19:28,400 --> 00:19:30,160
I mean literally.
And I'm going to give you 2

324
00:19:30,160 --> 00:19:33,120
stories, OK?
I'm going to tell you 2 brief

325
00:19:33,240 --> 00:19:36,200
stories about conversations I've
had within the last couple of

326
00:19:36,200 --> 00:19:38,880
weeks that drives this point
home.

327
00:19:39,040 --> 00:19:43,040
So the goal of the Compassionate
Capitalist Wealth maximizing

328
00:19:43,040 --> 00:19:48,320
system is to shepherd new
investors to the concept of

329
00:19:48,320 --> 00:19:53,040
investing in entrepreneurs and
those that have some experience

330
00:19:53,040 --> 00:19:56,640
at Angel and crowdfunding
investor to get better, to be

331
00:19:56,640 --> 00:20:00,760
more confident through this.
These steps become comfortable

332
00:20:01,040 --> 00:20:05,680
and confident with investing in
entrepreneurs as comfortable as

333
00:20:05,680 --> 00:20:08,320
they are in investing in the
stock market in real estate,

334
00:20:09,040 --> 00:20:12,200
right?
It should not be elusive A myth

335
00:20:12,200 --> 00:20:16,080
or anything.
And by the way, if you want to

336
00:20:16,080 --> 00:20:19,480
sign up for an upcoming intro
class or just get in the queue

337
00:20:19,480 --> 00:20:23,560
to Start learning more about.
The actual interactive training

338
00:20:23,880 --> 00:20:26,720
at the Compassion Capital with
maximizing system, they go to

339
00:20:26,720 --> 00:20:31,520
dothedeal.org. dothedeal.org.
It's also in the show notes.

340
00:20:31,840 --> 00:20:35,840
But do the deal dot.
All right, I said it three times

341
00:20:35,840 --> 00:20:37,880
and I will say it again before
the end of this.

342
00:20:38,400 --> 00:20:41,120
So let me tell you this first
story and I'll tell you the

343
00:20:41,120 --> 00:20:43,880
reasons why Angel investing is
still a secret and what the

344
00:20:43,880 --> 00:20:47,280
myths that discourage it are and
why they exist and the reality

345
00:20:47,280 --> 00:20:50,120
of the benefits of learning how
to invest wisely in

346
00:20:50,120 --> 00:20:52,440
entrepreneurs.
And you may relate to these

347
00:20:52,440 --> 00:20:53,920
stories.
So first is a friend.

348
00:20:53,920 --> 00:20:57,440
She's retired with a good
pension, considering investing

349
00:20:57,440 --> 00:21:00,000
in real estate, open to the
opportunity.

350
00:21:00,000 --> 00:21:02,400
I described she'd been watching
some of the stuff I've been

351
00:21:02,400 --> 00:21:05,840
putting out on Facebook and she
asked me if my friend Jane, she

352
00:21:05,840 --> 00:21:09,200
asked me when she ran into me at
this meeting, She said, why is

353
00:21:09,200 --> 00:21:11,920
it that I'm always talking about
investing in entrepreneurs?

354
00:21:12,400 --> 00:21:16,120
And she wondered how is it
better than investing in the

355
00:21:16,120 --> 00:21:18,960
stock market in real estate?
My favorite question.

356
00:21:19,560 --> 00:21:24,920
I explained to her that
investing in entrepreneurs is my

357
00:21:24,920 --> 00:21:32,240
passion because I love the idea
that somebody sees a problem,

358
00:21:33,640 --> 00:21:38,360
figures out a solution to that
problem just from the

359
00:21:38,360 --> 00:21:42,280
imagination they have and
whatever knowledge they have or

360
00:21:42,280 --> 00:21:45,320
ability to go and find people
that have knowledge and they

361
00:21:45,320 --> 00:21:50,840
create a solution that solves a
problem that changes our world,

362
00:21:50,840 --> 00:21:55,800
makes it better that just the
idea, that basic idea makes me

363
00:21:55,800 --> 00:21:58,280
excited.
I'm just excited about that.

364
00:21:58,280 --> 00:22:04,240
So hell, and I've seen so many
ideas, so many done deals,

365
00:22:04,240 --> 00:22:09,000
things that are that would solve
fundamental problems, save lives

366
00:22:09,840 --> 00:22:14,840
that never get to where they
need to get to make an impact

367
00:22:14,840 --> 00:22:18,520
because they didn't get the
funding, because there's not

368
00:22:18,520 --> 00:22:21,880
enough investors out there.
I gave you those numbers, the

369
00:22:21,880 --> 00:22:25,800
7,000,000 real estate investors.
You know how many investors

370
00:22:25,800 --> 00:22:28,240
there are in entrepreneurs right
now?

371
00:22:28,320 --> 00:22:30,880
We're talking 90 years.
So 90 years that it's been a

372
00:22:30,880 --> 00:22:36,760
secret even with all the the
rise of the dot coms from the

373
00:22:36,840 --> 00:22:42,480
the 80s into the 90s, you know,
OK into the 2000s when the that

374
00:22:42,480 --> 00:22:46,360
crashed.
So even all of that car carian

375
00:22:46,400 --> 00:22:50,440
in an Angel group, about 350,000
Angel investors in the United

376
00:22:50,440 --> 00:22:54,600
States, there's about 7,000,005
to 7 million accredited

377
00:22:54,600 --> 00:22:57,120
investors, those people that
technically could be the

378
00:22:57,320 --> 00:23:00,960
official Angel investor in the
United States, but there's only

379
00:23:00,960 --> 00:23:06,080
about 350,000 that invest in in
entrepreneurs through Angel

380
00:23:06,080 --> 00:23:07,440
groups.
So there's some number that's

381
00:23:07,440 --> 00:23:10,040
not tracked that way.
And then there's some people

382
00:23:10,040 --> 00:23:13,120
that invest in the Reggae Plus
and these other kinds of

383
00:23:13,120 --> 00:23:20,440
offerings, but in crowdfunding
in Reg CF OK, which is probably

384
00:23:20,440 --> 00:23:25,320
the biggest group of
crowdfunding investors in Reg CF

385
00:23:25,320 --> 00:23:33,560
Red crowdfunding 350,000 in
2022, Is it too good to be

386
00:23:33,560 --> 00:23:37,800
people that are making that
$75,000 or or more, right, that

387
00:23:37,800 --> 00:23:39,760
aren't, you know, making
$400,000?

388
00:23:39,760 --> 00:23:45,200
So somewhere in that gap between
75,000 and 300,000, you know,

389
00:23:45,360 --> 00:23:50,400
perfect place for crowdfunding
investors 350,000 and it's been

390
00:23:50,400 --> 00:23:55,600
10 years or are you OK?
So Reg CF was 2015.

391
00:23:56,240 --> 00:23:59,880
All right, Even that seven or
eight years and there's still

392
00:23:59,880 --> 00:24:03,120
only 350,000 in that.
And you know, that's just, it's

393
00:24:03,120 --> 00:24:05,160
like amazing to me.
And I'm going to talk about

394
00:24:05,160 --> 00:24:07,560
something because you're going
to, I know you got a question

395
00:24:07,560 --> 00:24:09,440
coming in there and I'm going to
guess your question here, but

396
00:24:09,960 --> 00:24:15,320
you know, and, and so I told her
that it's my pot, my passion

397
00:24:15,320 --> 00:24:18,360
because of this, right?
And that I do the take the time

398
00:24:18,360 --> 00:24:20,960
to produce this podcast every
week to really help

399
00:24:20,960 --> 00:24:23,720
entrepreneurs and investors
learn about the best practices

400
00:24:23,720 --> 00:24:26,520
for creating wealth by building
successful entrepreneur

401
00:24:26,520 --> 00:24:30,560
endeavors and being an investor
in those ideals without all the

402
00:24:30,560 --> 00:24:32,840
risks.
Because, you know, launching and

403
00:24:32,840 --> 00:24:35,280
growing and successful business
takes a lot of time and money is

404
00:24:35,280 --> 00:24:38,360
risky when you are the 1 putting
in all the time and money.

405
00:24:39,200 --> 00:24:42,400
And I shared with her some
important reasons why investing

406
00:24:42,400 --> 00:24:45,600
in entrepreneurs is a great idea
and what it means for anyone

407
00:24:45,600 --> 00:24:46,800
who's interested in building
wealth.

408
00:24:47,240 --> 00:24:50,520
The first reason, and I said
this before, it's three times

409
00:24:50,520 --> 00:24:53,200
more profitable than traditional
investments like real estate and

410
00:24:53,200 --> 00:24:55,760
stock market.
Three times more profitable.

411
00:24:55,760 --> 00:24:59,080
Hey, why not?
And then the second reason is

412
00:24:59,080 --> 00:25:02,960
that you're investing in
entrepreneurs is no more risky

413
00:25:02,960 --> 00:25:06,160
than other forms of investing as
long as you know how to build a

414
00:25:06,160 --> 00:25:10,400
diversified portfolio.
And I share the statistics,

415
00:25:10,400 --> 00:25:13,720
right.
So if you Google it right and a

416
00:25:13,720 --> 00:25:17,920
chat an average turn on
investment of real estate and

417
00:25:17,920 --> 00:25:21,960
the stocks, they typically they
look at a 10 year rolling span

418
00:25:22,360 --> 00:25:24,640
and it goes up and down a little
bit.

419
00:25:24,640 --> 00:25:30,720
But on average they are between
11 and 13%, right.

420
00:25:31,320 --> 00:25:35,280
It correlate around 11 to 13% of
return on investment.

421
00:25:35,720 --> 00:25:40,440
And that part of that is because
stocks don't jump, they fall,

422
00:25:40,760 --> 00:25:44,760
fall hard and fast, but they
only go up incrementally.

423
00:25:45,960 --> 00:25:50,800
And real estate has a whole lot
of other expenses associated

424
00:25:50,800 --> 00:25:53,400
with it.
So that your actual return on

425
00:25:53,400 --> 00:25:56,880
investment is a very small part
of the total number of what that

426
00:25:57,000 --> 00:26:01,360
that asset might represent.
But the average Angel investment

427
00:26:01,720 --> 00:26:07,000
portfolio, 30% / 30%, actually,
I think it's like 36%.

428
00:26:07,000 --> 00:26:10,360
It's a fact, right?
And I know, I know you're saying

429
00:26:10,360 --> 00:26:14,480
hold up here and hold up here.
And if it's really three times

430
00:26:14,480 --> 00:26:18,560
more profitable, how come I
don't hear about it all the time

431
00:26:18,560 --> 00:26:21,920
like I do, you know, well, want
to learn how to invest in

432
00:26:21,920 --> 00:26:24,800
Bitcoin?
I swear I think I get a message

433
00:26:24,800 --> 00:26:27,360
at least every other every
couple of days from somebody

434
00:26:27,360 --> 00:26:30,720
asking if I want to learn how to
invest in Bitcoin, right?

435
00:26:30,800 --> 00:26:33,920
Or why aren't my friends talking
about getting into crowdfunding

436
00:26:33,920 --> 00:26:36,840
investing like, hey, do you want
a crowdfund?

437
00:26:37,360 --> 00:26:42,800
My daughter even said on an
Instagram thing or whatever or

438
00:26:42,800 --> 00:26:47,240
live stream she was doing 1 New
Year's Eve, she says, Hey,

439
00:26:47,240 --> 00:26:49,480
anybody know how to invest in
Bitcoin?

440
00:26:49,480 --> 00:26:53,520
Hit me up right.
Like, you know, I, I great

441
00:26:53,520 --> 00:26:55,680
question.
I Scott had me scratching my

442
00:26:55,680 --> 00:26:59,200
head too, because when the JOBS
Act passing and making it legal

443
00:26:59,480 --> 00:27:02,560
for anyone with cash on hand to
invest in entrepreneurs, I was

444
00:27:02,560 --> 00:27:04,920
literally afraid that millions
of people rushed to start

445
00:27:04,920 --> 00:27:07,680
investing in the entrepreneur.
I mean, I literally was, I was

446
00:27:07,680 --> 00:27:11,240
panicked that this thing that I
felt so much about, because I

447
00:27:11,240 --> 00:27:13,720
felt like the biggest barrier to
entrepreneurs raising capital

448
00:27:13,720 --> 00:27:15,560
was this general solicitations
restriction.

449
00:27:15,680 --> 00:27:18,360
And we had to work around it all
the time.

450
00:27:18,360 --> 00:27:21,360
Because my Angel investor group,
I had 30 or 40 people in a room

451
00:27:21,360 --> 00:27:25,880
at a time here, but I had 100
plus investors out in the US

452
00:27:25,880 --> 00:27:28,920
that had signed up virtually to
be a part of the Angel investor

453
00:27:28,920 --> 00:27:32,240
group and had given me all kinds
of information about the things

454
00:27:32,240 --> 00:27:34,880
they invested in.
And so the way we had to engage

455
00:27:34,880 --> 00:27:38,240
them, that was actually really
the reason why I started the

456
00:27:38,240 --> 00:27:42,680
podcast to begin with, way back
then was to be able to do an

457
00:27:42,680 --> 00:27:46,600
interview with a entrepreneur
that was raising capital without

458
00:27:46,600 --> 00:27:48,880
saying they were raising
capital, but saying, Hey, they

459
00:27:48,880 --> 00:27:51,240
were just at our Angel investor
event.

460
00:27:52,080 --> 00:27:55,120
And, and you know, we would talk
about their business proposition

461
00:27:55,120 --> 00:27:58,080
and their, and what they were,
you know, all the opportunity,

462
00:27:58,080 --> 00:28:00,680
the problem they were solving
all the stuff without talking

463
00:28:00,680 --> 00:28:03,640
about the raising capital.
And then we would create a

464
00:28:03,640 --> 00:28:07,440
trackable link, send it out to
the entire network of my

465
00:28:07,440 --> 00:28:10,440
investors and those that clicked
on it, then we would follow up

466
00:28:10,440 --> 00:28:13,440
and say, Hey, looks like you
were interested on this, right?

467
00:28:13,440 --> 00:28:17,160
And so that was, that was
literally the main reason why we

468
00:28:17,160 --> 00:28:20,160
did it and SEO backlinks, right?
That was the main reason why we

469
00:28:20,160 --> 00:28:24,520
had we had done it to stay
within the rules of this general

470
00:28:24,520 --> 00:28:28,080
solicitation, right.
And so I was just really worried

471
00:28:28,080 --> 00:28:30,920
that this I called it a
redheaded stepchild.

472
00:28:30,920 --> 00:28:35,120
And no, no offense to redheads
of an asset class, but you know,

473
00:28:35,200 --> 00:28:39,160
they that because the biggest
mistake that all that investors

474
00:28:39,160 --> 00:28:40,600
make when they're first getting
started.

475
00:28:40,600 --> 00:28:45,760
And I myself had made this same
mistake investing on emotion

476
00:28:46,440 --> 00:28:48,600
invest because you love that
particular entrepreneur

477
00:28:48,600 --> 00:28:51,520
investing on emotion without
going through the paces of

478
00:28:51,520 --> 00:28:53,880
deciding whether this company
was really worthy of your

479
00:28:53,880 --> 00:28:56,680
investment.
And I was, I was on a board call

480
00:28:56,680 --> 00:28:58,320
a day with a company that I'm
working with.

481
00:28:58,320 --> 00:29:00,560
I talked to the board of
directors about, you know, where

482
00:29:00,560 --> 00:29:03,360
they are.
So the difference between like a

483
00:29:03,360 --> 00:29:06,640
friends and family and the
easier money that it takes for

484
00:29:06,640 --> 00:29:09,400
an entrepreneur to raise versus,
you know, going to business

485
00:29:09,400 --> 00:29:13,600
angels is that they're typically
people that believe in the

486
00:29:13,600 --> 00:29:16,120
entrepreneur or believe in what
the entrepreneur is trying to

487
00:29:16,120 --> 00:29:17,440
do.
And they're like, oh, I can't

488
00:29:17,440 --> 00:29:19,000
believe somebody hasn't done
this before.

489
00:29:19,000 --> 00:29:21,600
Got to get, I want to see this
this solution in the

490
00:29:21,600 --> 00:29:24,000
marketplace.
So they'll throw money in based

491
00:29:24,000 --> 00:29:26,640
on emotion.
Business angels don't do that

492
00:29:26,880 --> 00:29:29,080
because they've, you know,
they've, they're, and in that

493
00:29:29,080 --> 00:29:32,400
case, when a company is raising
beyond their seed round, they're

494
00:29:32,400 --> 00:29:34,640
competing against all the other
companies that are raising

495
00:29:34,640 --> 00:29:36,880
capital.
And did I not say there's a

496
00:29:36,880 --> 00:29:41,320
finite amount of capital,
350,000 registered card holder

497
00:29:41,320 --> 00:29:46,640
and Angel investors 350,000 that
are invested in Reg CF right.

498
00:29:46,800 --> 00:29:50,000
But there's literally probably a
million companies raising

499
00:29:50,000 --> 00:29:55,880
capital, you know?
And so so anyway, I thought they

500
00:29:55,880 --> 00:29:59,800
needed this book.
And I did not want to give any

501
00:29:59,800 --> 00:30:04,440
more fodder to the financial
advisors out there that have

502
00:30:04,440 --> 00:30:07,720
been spreading the fear,
uncertainty of doubt about Angel

503
00:30:07,720 --> 00:30:12,880
investing to be able to tell
their clients that went off and

504
00:30:12,880 --> 00:30:15,200
did this, that, you know,
they've been saying it's too

505
00:30:15,200 --> 00:30:17,680
risky, you can't do it.
I told you so.

506
00:30:18,600 --> 00:30:21,880
And, and by the way, the reason
why they, they discourage Angel

507
00:30:21,880 --> 00:30:24,840
investing wasn't because they
thought it was too risky.

508
00:30:25,760 --> 00:30:30,200
It's because of the rules of the
SEC set up that required the

509
00:30:30,200 --> 00:30:32,440
only way for them.
They have this thing called

510
00:30:32,440 --> 00:30:36,160
selling away.
And so if they advised a

511
00:30:36,160 --> 00:30:39,680
company, a, a client on
investing in an, in a private

512
00:30:39,680 --> 00:30:43,880
equity transaction because it's
securities, then they couldn't

513
00:30:44,760 --> 00:30:47,200
and it wasn't being run through
their broker dealer.

514
00:30:47,400 --> 00:30:50,160
They, even if they didn't make
money on it, they, they would

515
00:30:50,160 --> 00:30:52,440
fear that they would lose their
license because they'd be

516
00:30:52,440 --> 00:30:55,600
selling away, whereas real
estate is not a security.

517
00:30:55,880 --> 00:30:59,760
So they could say, yeah, take
10% of your portfolio and invest

518
00:30:59,760 --> 00:31:02,560
in real estate.
You should invest in these kind

519
00:31:02,560 --> 00:31:05,760
of things, that kind of stuff,
you know, rather than you know,

520
00:31:05,760 --> 00:31:08,000
And they might even take a look
at it and give them their two

521
00:31:08,000 --> 00:31:11,160
cents worth.
But it wasn't considered selling

522
00:31:11,160 --> 00:31:15,040
away when but there was.
But early stage companies that

523
00:31:15,040 --> 00:31:20,240
are raising $1,000,000 is not
something that a Merrill Lynch

524
00:31:20,240 --> 00:31:23,360
is going to take on.
They only take on deals that are

525
00:31:23,360 --> 00:31:26,760
raising $100 million because
they have to make it available

526
00:31:26,760 --> 00:31:30,520
to all of their investors, you
know, when they do a private

527
00:31:30,520 --> 00:31:33,800
equity transaction.
And so that is just the nature

528
00:31:33,800 --> 00:31:37,040
was the nature of the beast and
they brokered dealers have to

529
00:31:37,040 --> 00:31:40,560
charge big fees.
They charge 10 grand retainer a

530
00:31:40,560 --> 00:31:43,200
month plus 12% of the
transaction.

531
00:31:43,200 --> 00:31:46,440
No company raising $1,000,000
could afford that.

532
00:31:46,640 --> 00:31:49,880
So there was just this
disconnect, which again, ergo

533
00:31:49,880 --> 00:31:54,600
why the JOBS Act was necessary.
And I think, and I think it

534
00:31:54,600 --> 00:31:57,480
could be because you know,
everybody talks about Bitcoin.

535
00:31:57,480 --> 00:31:59,720
I mentioned that, right?
And people go like, why I hear

536
00:31:59,720 --> 00:32:02,040
about Bitcoin?
Why not?

537
00:32:02,040 --> 00:32:03,960
Why don't I?
Why don't I hear about Bitcoin

538
00:32:03,960 --> 00:32:06,400
investing and I don't hear about
Angel investing?

539
00:32:06,800 --> 00:32:09,640
Well, it's because it's in the
news all the time, good and bad,

540
00:32:09,720 --> 00:32:14,680
but it's in the news, right?
And you can track its value and

541
00:32:14,680 --> 00:32:17,880
it's wild ride.
It swings just like you can the

542
00:32:17,880 --> 00:32:20,200
stock market.
When I was preparing for this, I

543
00:32:20,200 --> 00:32:23,400
went and looked, what is the
latest price of Bitcoin today?

544
00:32:23,400 --> 00:32:26,080
And I could look at what was the
price for the last year.

545
00:32:26,080 --> 00:32:28,040
I could totally see all the ups
and downs.

546
00:32:28,240 --> 00:32:30,640
You can't do that on Angel
investing because they're

547
00:32:30,640 --> 00:32:35,040
private, right?
So it's something that people

548
00:32:35,040 --> 00:32:36,760
can do.
They can Google it, they can see

549
00:32:36,760 --> 00:32:38,760
it, they can do all that kind of
stuff, right?

550
00:32:38,760 --> 00:32:42,920
And you can get involved for
just, you know, like if y'all

551
00:32:42,920 --> 00:32:47,760
watched Super Bowl, not this
last year, but the, the, the

552
00:32:47,760 --> 00:32:55,240
year before when Coinbase did
the ad with the QR code bouncing

553
00:32:55,240 --> 00:32:57,480
on the screen.
This is a Super Bowl ad, right?

554
00:32:57,880 --> 00:33:00,800
And I'm up there and I got it,
the QR code and they gave me

555
00:33:01,080 --> 00:33:07,520
$500 credit, I think to be able
to go and invest in, in Bitcoin

556
00:33:07,520 --> 00:33:09,360
infractions.
You could, you could do it for

557
00:33:09,360 --> 00:33:11,640
500.
I, I get like a tiny piece of

558
00:33:11,640 --> 00:33:15,040
one Bitcoin or I could go find
ones that are in the start up

559
00:33:15,040 --> 00:33:18,960
stage of a, of a cryptocurrency
that I might be able to buy for

560
00:33:18,960 --> 00:33:23,360
$500, you know, And then there's
these news reports of the

561
00:33:23,360 --> 00:33:26,320
teenager that made 10s of
thousands of dollars in just a

562
00:33:26,320 --> 00:33:28,720
few weeks, right?
I, I, when I was looking at

563
00:33:28,720 --> 00:33:31,480
this, I saw he's got a whole
thing of a whole series of

564
00:33:31,480 --> 00:33:33,760
videos now talking about how he
did it right.

565
00:33:34,200 --> 00:33:37,680
And when you have huge
celebrities promoting crypto

566
00:33:37,680 --> 00:33:43,560
like Larry David or Tom Brady or
even Matt Damon during NFL

567
00:33:43,560 --> 00:33:46,840
games, when you have a huge
audience of people that really,

568
00:33:46,840 --> 00:33:49,960
quite frankly, like to gamble
because they're doing fantasy

569
00:33:49,960 --> 00:33:54,200
football, they're, they're able
to do all these things to them,

570
00:33:54,200 --> 00:33:59,720
then it is, is ripe audience
because their level of like, oh,

571
00:33:59,720 --> 00:34:03,920
why not this too?
And Matt says it's good, but

572
00:34:03,920 --> 00:34:07,280
just like the guy in that funny
TV ad, I, I couldn't find out

573
00:34:07,280 --> 00:34:09,000
who it was.
I think it's some kind of job,

574
00:34:09,000 --> 00:34:11,280
like a jobs ad for like Indeed
or something like that.

575
00:34:11,600 --> 00:34:14,560
And you know, one day he's
celebrating, oh, he's a crypto

576
00:34:14,560 --> 00:34:17,639
millionaire and he's going to
like resign his job and he's out

577
00:34:17,639 --> 00:34:21,199
at the clubs at night with the
big champagne and like that.

578
00:34:21,199 --> 00:34:24,120
And then the next day he's back
at work broke because of the

579
00:34:24,120 --> 00:34:27,440
fluctuation of the market.
When Matt Damon did the

580
00:34:27,440 --> 00:34:33,360
crypto.com ad in 2021, Bitcoin
was trading at 60,000 about

581
00:34:33,360 --> 00:34:39,000
$60,000 apiece.
A year later a Bitcoin.

582
00:34:39,080 --> 00:34:46,800
So in 20/22 it was 20,000
dollars. 3770 a year did year to

583
00:34:46,800 --> 00:34:50,719
date on that.
Today is 26,485.

584
00:34:50,719 --> 00:34:54,639
That's I just checked it today.
In fact, in the past year it has

585
00:34:54,639 --> 00:34:58,120
not gone above 30,000.
I call that risky.

586
00:34:59,560 --> 00:35:03,320
And the thing that I think about
Bitcoin that people don't really

587
00:35:03,320 --> 00:35:08,520
get, I mean, sophisticated
investors, you know, people

588
00:35:08,520 --> 00:35:12,080
that, that have worked on their
financial intelligence, you

589
00:35:12,080 --> 00:35:15,600
know, like if you ever looked at
any Robert Kiyosaki's kind of

590
00:35:15,600 --> 00:35:19,240
stuff, Sharon Lecter, you should
watch my podcast with Sharon

591
00:35:19,240 --> 00:35:21,800
Lecter.
But the cash flow quadrant,

592
00:35:21,960 --> 00:35:27,800
EBSI, entrepreneur, service
providers, the sole proprietors,

593
00:35:28,080 --> 00:35:30,680
business owners and investors,
right?

594
00:35:30,960 --> 00:35:35,280
So this side of the equation are
people that have to deal with

595
00:35:35,480 --> 00:35:38,320
money after taxes, taxes are
taken out, right?

596
00:35:38,320 --> 00:35:40,400
And they're, and they're all
about time and money.

597
00:35:40,400 --> 00:35:43,480
Time is exchanged for money,
whereas over here business

598
00:35:43,480 --> 00:35:46,440
owners are building businesses
that operate without them being

599
00:35:46,440 --> 00:35:48,280
there because they have systems
and stuff like that.

600
00:35:48,280 --> 00:35:50,560
So it's like they're making
money in in their sleep.

601
00:35:50,560 --> 00:35:53,560
I was listening to this.
I was talking to a, a friend of

602
00:35:53,560 --> 00:35:55,600
mine today, a lawyer that I was
going to engage.

603
00:35:55,600 --> 00:35:59,200
And he has a side business he
started that is water bottling.

604
00:36:00,280 --> 00:36:03,160
And he has an alkaline water
product that he brought out.

605
00:36:03,160 --> 00:36:07,160
And he said, you know, last
night I sold 10,000 cases in my

606
00:36:07,160 --> 00:36:09,760
sleep because it's out in
Walmart and stuff like that,

607
00:36:09,760 --> 00:36:12,000
right?
That's why business owners, you

608
00:36:12,000 --> 00:36:14,440
know, make the most money.
What business owners are

609
00:36:14,440 --> 00:36:16,400
considered the best way to
create wealth?

610
00:36:16,680 --> 00:36:18,800
But what they don't think about
is the I.

611
00:36:19,240 --> 00:36:23,960
The I is the investor putting
your money to work, investing in

612
00:36:23,960 --> 00:36:25,960
things that make money in your
sleep.

613
00:36:26,240 --> 00:36:28,800
So when you invest in a business
owner that's working their tail

614
00:36:28,800 --> 00:36:31,800
off to create wealth for
themselves and their family and

615
00:36:31,800 --> 00:36:36,240
their generation, you make money
too in your sleep, All right?

616
00:36:36,680 --> 00:36:39,120
That's, that's that piece of it,
right?

617
00:36:39,640 --> 00:36:45,000
And so when you look at when you
look at crypto, what is it?

618
00:36:45,000 --> 00:36:48,360
It's like day trading.
It's very volatile because

619
00:36:48,680 --> 00:36:52,920
although it is in a transaction
like public stocks, right, you

620
00:36:52,920 --> 00:36:57,320
buy and sell stocks in the
public market from another stock

621
00:36:57,320 --> 00:37:00,200
owner.
In crypto, you're buying and

622
00:37:00,200 --> 00:37:05,240
selling from one crypto owner to
a you're the next crypto owner

623
00:37:05,240 --> 00:37:08,760
and and there's a transaction
that goes up until there's a

624
00:37:08,760 --> 00:37:10,680
sell off.
Same thing with the stock market

625
00:37:10,880 --> 00:37:13,600
and there's a sell off.
The stock markets drop.

626
00:37:14,400 --> 00:37:18,360
And sometimes it it can happen
because of very specific reasons

627
00:37:18,360 --> 00:37:23,000
like catastrophes like 911, all
your travel and transportation

628
00:37:23,000 --> 00:37:25,960
stocks dropped, all your planes
things dropped.

629
00:37:25,960 --> 00:37:29,160
Everybody got out of that
sector, but it's usually the big

630
00:37:29,200 --> 00:37:32,160
money markets that are moving.
Hedge funds are moving money out

631
00:37:32,160 --> 00:37:34,880
of a sector and stuff like that.
And I have a theory that part of

632
00:37:34,880 --> 00:37:37,120
the reason why you see a
volatility in the stock market,

633
00:37:37,120 --> 00:37:40,320
if you would just track it with
the sorry for those that are

634
00:37:40,320 --> 00:37:41,720
watching.
I keep messing with my hair

635
00:37:41,720 --> 00:37:43,560
because my fans blowing my hair
on my face.

636
00:37:43,680 --> 00:37:48,160
The stock market a, you know, if
you, you correlate between a

637
00:37:48,160 --> 00:37:52,160
drop in Bitcoin or dropped in
the ICO markets and the Ethereum

638
00:37:52,160 --> 00:37:56,080
and those kind of stuff.
And you would see correlation of

639
00:37:56,080 --> 00:37:59,560
the big market makers, the big,
big, big market movers moving

640
00:37:59,560 --> 00:38:04,120
money out of their stock
holdings to offset their losses

641
00:38:04,160 --> 00:38:07,880
in crypto to keep their
investors whole and the overall

642
00:38:07,880 --> 00:38:11,280
performance of their fund
strong, right?

643
00:38:11,320 --> 00:38:15,560
Just sort of my theory.
You know, the thing about it to

644
00:38:15,560 --> 00:38:19,280
consider with crypto is that
there's no financial performance

645
00:38:19,280 --> 00:38:23,440
of a company to consider or the
assets own or anything that

646
00:38:23,440 --> 00:38:27,720
might give the market makers
reasons to want to buy the stock

647
00:38:27,720 --> 00:38:30,320
and drive the price back up,
right?

648
00:38:30,320 --> 00:38:35,360
When it comes to to crypto, what
drives it back up its demand.

649
00:38:35,920 --> 00:38:40,240
But you know, if there's it's,
it's like the ultimate Ponzi

650
00:38:40,240 --> 00:38:45,560
scheme and, and World Economic
pressures aside right there.

651
00:38:45,680 --> 00:38:47,680
I believe that there's an inner
relationship.

652
00:38:47,680 --> 00:38:50,480
There's lots of just things that
have like caused the stock

653
00:38:50,480 --> 00:38:53,080
market to drop in different
areas and different sectors.

654
00:38:53,480 --> 00:38:57,440
But it's just, you know, I know
friends of mine that that they

655
00:38:57,440 --> 00:38:59,720
did get in early, so they have
made money.

656
00:38:59,720 --> 00:39:03,200
And even with that drop of 60
that they didn't buy at 60, they

657
00:39:03,200 --> 00:39:05,960
bought at 10.
So even at 20, they're still

658
00:39:05,960 --> 00:39:08,560
making money.
But they get up at 2:00 or 3:00

659
00:39:08,560 --> 00:39:11,360
in the morning to make a
transaction because it's not

660
00:39:11,360 --> 00:39:13,280
even a fixed price of the
transaction.

661
00:39:13,480 --> 00:39:16,160
The actual cost of transaction
varies on demand.

662
00:39:16,280 --> 00:39:19,360
So everything about it is
variable.

663
00:39:19,520 --> 00:39:23,080
That's about the pure definition
of risk I could possibly imagine

664
00:39:23,080 --> 00:39:27,600
compared to Angel investing.
And don't get me wrong, my

665
00:39:27,600 --> 00:39:32,440
disrespect for crypto does not
apply to blockchain or even

666
00:39:32,440 --> 00:39:37,120
NFTS, non fungible tokens.
Because crypto is an application

667
00:39:37,120 --> 00:39:41,440
on blockchain.
Just like smart contracts, the

668
00:39:41,440 --> 00:39:44,160
stuff that do it in real estate,
supply chain management.

669
00:39:44,360 --> 00:39:47,600
Lots and lots of great things
happening on blockchain that

670
00:39:48,160 --> 00:39:52,000
fundamentally is shifting and
advancing business in ways that

671
00:39:52,000 --> 00:39:56,760
we couldn't even imagine before.
And NFTS, they at least have

672
00:39:56,760 --> 00:39:58,720
something of value attached to
it.

673
00:39:59,120 --> 00:40:01,960
And and even if it is art and
it's subjective and you may not

674
00:40:02,200 --> 00:40:06,120
feel like why would I do a why
would I want to get a cartoon of

675
00:40:06,120 --> 00:40:09,480
a monkey?
There's a whole other area that

676
00:40:09,480 --> 00:40:14,440
it is, it is tracking where I've
seen opportunities where it's

677
00:40:15,200 --> 00:40:21,120
they're using NFTS, non fungible
tokens to track assets of like

678
00:40:21,120 --> 00:40:24,560
when people.
By a limited release of

679
00:40:24,560 --> 00:40:29,200
something and they want to prove
that asset of value that it

680
00:40:29,200 --> 00:40:33,840
can't be plagiarized or copied,
they put an NFT on it and so it

681
00:40:33,840 --> 00:40:38,320
could be very well-being a
tangible something of value that

682
00:40:38,320 --> 00:40:42,040
has an NFT, not even a digital
market of something.

683
00:40:42,040 --> 00:40:47,800
I have a vision that as I build
this virtual network of Angel

684
00:40:47,800 --> 00:40:52,880
investors through this program,
I will be offering and it as

685
00:40:52,880 --> 00:40:54,800
part of a membership in that in
the future.

686
00:40:54,800 --> 00:40:56,880
I've got it all mapped out on
how I'm going to do that.

687
00:40:56,880 --> 00:41:01,680
So yeah, I'm, I like NFTS and I
love blockchain, all right, It's

688
00:41:01,680 --> 00:41:05,560
very different than crypto.
So back to my story about Jane.

689
00:41:06,400 --> 00:41:09,960
So I told her about how you make
investments in increments of

690
00:41:09,960 --> 00:41:14,160
hundreds or thousands of dollars
even or, and own a small piece

691
00:41:14,160 --> 00:41:17,640
of multiple businesses, right?
Like this, right?

692
00:41:18,040 --> 00:41:22,040
And then those businesses are
run by passionate entrepreneurs

693
00:41:22,040 --> 00:41:24,920
who are bringing an innovation
to market that use your money to

694
00:41:24,920 --> 00:41:28,240
grow their business.
And eventually they build it to

695
00:41:28,240 --> 00:41:31,920
sell the company to a large
company or go public or sell

696
00:41:31,920 --> 00:41:34,160
their stock and sell their stock
on the open market.

697
00:41:34,400 --> 00:41:36,160
And then you get your return on
investment.

698
00:41:36,280 --> 00:41:38,960
But as I mentioned before,
there's all kinds of different

699
00:41:38,960 --> 00:41:40,760
ways.
The thing that I had called the

700
00:41:40,760 --> 00:41:46,520
Angel Profitability Blueprint is
designed to help you build a

701
00:41:46,520 --> 00:41:51,040
portfolio of 10 companies.
So that will produce different

702
00:41:51,040 --> 00:41:53,240
types of, of returns on
investment.

703
00:41:53,800 --> 00:41:56,120
So have you heard that you can
create great wealth as an

704
00:41:56,120 --> 00:41:59,800
entrepreneur?
And then by default, you must

705
00:41:59,800 --> 00:42:03,280
know that you can create great
wealth as an investor in those

706
00:42:03,280 --> 00:42:06,000
successful on the, on the on in
entrepreneurs.

707
00:42:06,480 --> 00:42:09,720
It it's just a fact.
It's just logic because the

708
00:42:09,800 --> 00:42:12,640
companies that you know of that
you buy their products for all

709
00:42:12,640 --> 00:42:15,760
that kind of stuff, then
currently that's what they do.

710
00:42:17,040 --> 00:42:19,880
They, you know, there were Angel
investors in those companies.

711
00:42:20,120 --> 00:42:24,000
One of the topic objection
objections about Angel investing

712
00:42:24,000 --> 00:42:26,160
is that it's too risky because
the odds of the business

713
00:42:26,160 --> 00:42:29,560
feeling, oh, you know what?
Data from the Bureau of Labor

714
00:42:29,560 --> 00:42:32,840
Statistics show that 20% new
businesses failed during the

715
00:42:32,840 --> 00:42:36,960
first two years of being open,
45% during the first five years

716
00:42:37,240 --> 00:42:43,120
and 65% during the first ten
years, and only 25% of new

717
00:42:43,120 --> 00:42:45,800
businesses make it to 15 years
or more.

718
00:42:46,720 --> 00:42:49,960
You know what, In the 20 years
that I have been working with

719
00:42:49,960 --> 00:42:53,520
entrepreneurs over 20 years or
even to my IBM days ready

720
00:42:53,520 --> 00:42:56,640
getting them ready to attract
capital and coach them on how to

721
00:42:56,640 --> 00:42:59,880
raise their seed round, those
stats have not changed.

722
00:43:00,120 --> 00:43:03,120
They have pretty much been the
same statistics, yet

723
00:43:03,400 --> 00:43:05,800
millionaires still invest in
them.

724
00:43:06,720 --> 00:43:10,440
They can invest in anything they
want, but they still invest in

725
00:43:10,440 --> 00:43:14,040
entrepreneurs.
And being an investor in a

726
00:43:14,040 --> 00:43:18,600
business is not as risky as
being the founder of that

727
00:43:18,600 --> 00:43:21,920
business.
Yes, you may lose the money, but

728
00:43:21,920 --> 00:43:24,320
you don't lose everything else,
right?

729
00:43:25,360 --> 00:43:28,760
And that's the reason that's and
I would venture to say part of

730
00:43:28,760 --> 00:43:32,800
the reason why those companies
fail after that five years,

731
00:43:32,800 --> 00:43:35,720
stuff like that is because of
lack of access to capital.

732
00:43:35,720 --> 00:43:40,120
The very problem that the JOBS
Act was was trying to solve

733
00:43:40,120 --> 00:43:44,600
access to capital, unlocking the
check accounts, the 4K's and the

734
00:43:44,600 --> 00:43:48,680
self-directed Iras of those 7
million potential accredited

735
00:43:48,680 --> 00:43:51,960
investors and the 7 million
people that invest in real

736
00:43:51,960 --> 00:43:55,920
estate and the 150 million
people that invest in the stock

737
00:43:55,920 --> 00:43:57,360
market.
Because they could all be

738
00:43:57,360 --> 00:44:01,840
investing in entrepreneurs if
they knew they could and if they

739
00:44:01,840 --> 00:44:05,920
knew how.
All right, Yep, that's right.

740
00:44:06,080 --> 00:44:13,440
So it's the Angel profitability
blueprint is my, my element of

741
00:44:13,440 --> 00:44:16,120
success on this.
And I'm actually going to offer

742
00:44:16,120 --> 00:44:20,520
it up as a, a, a free download,
something that's available just

743
00:44:20,520 --> 00:44:23,480
for free for those people that
sign up for the intro classes,

744
00:44:23,480 --> 00:44:25,960
because I think it's important.
It's an important take away.

745
00:44:26,720 --> 00:44:32,320
So it's designed to give you a
short term returns that you get

746
00:44:32,320 --> 00:44:36,360
money back in the few months,
you know, within a year, as well

747
00:44:36,360 --> 00:44:39,440
as income producing returns,
just like rental investment

748
00:44:39,440 --> 00:44:44,760
property and long term big wins
like your traditional IPO or, or

749
00:44:44,760 --> 00:44:47,480
if you were investing in real
estate for a long haul, or you

750
00:44:47,480 --> 00:44:49,880
thought you were investing in a
Blue Chicks chip stock.

751
00:44:49,880 --> 00:44:51,600
And we're just going to keep it
in your portfolio.

752
00:44:51,960 --> 00:44:56,920
My dad gave my daughter when she
was born a very little about 10

753
00:44:56,920 --> 00:45:01,200
thousand $20,000 worth of stocks
in blue chip companies, UPS,

754
00:45:01,200 --> 00:45:08,760
Coca-Cola and maybe it was just
those two and and Delta, well

755
00:45:08,760 --> 00:45:13,320
Delta got hammered in with 911
and UPS something else,

756
00:45:13,440 --> 00:45:16,760
Coca-Cola something else.
Anyway, those, the stocks went

757
00:45:16,760 --> 00:45:21,840
up and down, but they did not
retain their value that of what

758
00:45:21,840 --> 00:45:23,760
he gave them.
They were never back.

759
00:45:24,240 --> 00:45:26,880
They, they did not get back to
that value.

760
00:45:27,440 --> 00:45:31,520
You know, maybe now 25 years
later, they are and they're more

761
00:45:31,520 --> 00:45:33,120
than that because they go and do
stuff.

762
00:45:33,120 --> 00:45:36,040
But it just, you know, it's
really quite amazing that, you

763
00:45:36,040 --> 00:45:38,120
know, you think that, but that's
it.

764
00:45:38,320 --> 00:45:41,400
It the stock market is just as
you don't lose your money if you

765
00:45:41,400 --> 00:45:43,120
don't sell.
So you just hold on to it.

766
00:45:43,120 --> 00:45:45,360
But it it takes a while And
I'll, I'll talk some more about

767
00:45:45,360 --> 00:45:48,120
that, too.
So my friend said she had been

768
00:45:48,120 --> 00:45:50,720
planning on investing in real
estate, but the market has just

769
00:45:50,720 --> 00:45:52,960
risen.
The prices have been rising.

770
00:45:53,200 --> 00:45:55,800
The mortgage rates are higher
than she expected for the

771
00:45:55,800 --> 00:45:57,920
investment property.
Yeah, they're about two points

772
00:45:57,920 --> 00:45:59,600
higher than what they are for
real estate.

773
00:46:00,120 --> 00:46:03,000
I mean, for, for private, your
own personal home.

774
00:46:03,040 --> 00:46:06,000
And, you know, there are other
benefits to investing in

775
00:46:06,000 --> 00:46:09,200
entrepreneurs.
It just seems so risky because

776
00:46:09,200 --> 00:46:12,440
there isn't anything tangible
like a house associated with it.

777
00:46:13,040 --> 00:46:15,880
And that's where you, you, once
you understand the structure,

778
00:46:16,080 --> 00:46:19,160
once you understand things, you
understand that you can make

779
00:46:19,160 --> 00:46:21,480
those decisions and you can see
the value.

780
00:46:21,760 --> 00:46:24,960
It is in what the company is
doing, the product that they're

781
00:46:24,960 --> 00:46:27,680
building, their intellectual
property that's protecting the

782
00:46:27,920 --> 00:46:31,360
that property, that product from
competition.

783
00:46:31,720 --> 00:46:34,880
Those are the assets, right?
It is what they're building.

784
00:46:34,880 --> 00:46:36,920
The company itself becomes the
asset.

785
00:46:38,320 --> 00:46:41,040
And yes, I said it, I get it.
This is the same boat a lot of

786
00:46:41,040 --> 00:46:43,080
people are in.
And here's the thing, one of the

787
00:46:43,080 --> 00:46:46,360
reasons why the JOB Act was
passed bipartisan in Congress

788
00:46:46,720 --> 00:46:50,080
2012 was because if you recall,
the financial collapse of the

789
00:46:50,080 --> 00:46:53,200
mortgage-backed securities real
estate bubble had crashed in

790
00:46:53,200 --> 00:46:57,000
2000 and nine 2010 time frame.
I doubt much of the real estate

791
00:46:57,000 --> 00:47:00,280
holdings of the investors plus
the received equity value of

792
00:47:00,280 --> 00:47:04,720
their primary residence.
You see, what makes real estate

793
00:47:05,040 --> 00:47:08,120
investment risky and expensive
is that investors, most of those

794
00:47:08,120 --> 00:47:13,360
7 million with the income of
$75,000 or more, are not buying

795
00:47:13,360 --> 00:47:17,000
real estate.
They're taking out a loan with a

796
00:47:17,000 --> 00:47:23,360
bank and they are a, A sure they
are a, they're a person that

797
00:47:23,680 --> 00:47:27,400
could own that, but they own it
with the bank until the bank's

798
00:47:27,400 --> 00:47:30,840
loan is paid off.
And, and anybody that owns real

799
00:47:30,840 --> 00:47:33,840
estate knows that.
So you got to make enough money

800
00:47:33,840 --> 00:47:38,720
on your your rental to cover
that mortgage plus the repairs

801
00:47:39,080 --> 00:47:43,360
when the the floor is flooded
because a pipe busted during the

802
00:47:44,040 --> 00:47:49,000
crazy frozen time we had in
December or the septic tank is

803
00:47:49,000 --> 00:47:51,720
full.
And now you got to pay 3 1/2,

804
00:47:51,880 --> 00:47:56,080
three, $3500 to have somebody
come in and pump that out.

805
00:47:56,200 --> 00:48:01,280
Those things come out of pocket.
And if you're only making $500

806
00:48:01,280 --> 00:48:04,040
profit on that particular
because of your mortgage on in

807
00:48:04,040 --> 00:48:06,720
that particular property, well,
guess what?

808
00:48:07,000 --> 00:48:11,240
You just ate up how many months
of income paying for whatever

809
00:48:11,240 --> 00:48:14,840
that is.
So you know, you're it, it, it's

810
00:48:14,840 --> 00:48:16,880
just the nature of it.
Or if you don't have the

811
00:48:16,880 --> 00:48:19,240
insurance that covers it or it's
not something that's covered by

812
00:48:19,240 --> 00:48:21,560
insurance, you have to come out
of pocket.

813
00:48:22,600 --> 00:48:25,400
And so that is what when your
tenant moves out and you got to

814
00:48:25,800 --> 00:48:28,800
fix it up, put new pet carpets
in there and paint it so you can

815
00:48:28,800 --> 00:48:31,800
put it, you can charge more and
get another tenant in there.

816
00:48:31,960 --> 00:48:34,960
You got 3-4 months where you're
making no income and just

817
00:48:34,960 --> 00:48:37,640
spending money.
So those are things that don't

818
00:48:37,640 --> 00:48:40,240
factor in when they talk about
how real estate.

819
00:48:40,240 --> 00:48:45,080
But that is that's factored in
when the world of of return on

820
00:48:45,080 --> 00:48:48,960
investment says on average, real
estate portfolios produce a 10

821
00:48:48,960 --> 00:48:53,000
or 11% return on investment
because it's not just an asset

822
00:48:53,000 --> 00:48:56,000
that's $350,000 that you own
outright.

823
00:48:56,200 --> 00:48:59,800
You own it with the bank and you
had to put 50 grand down in

824
00:48:59,800 --> 00:49:02,040
order to buy it right or to fix
it up.

825
00:49:02,920 --> 00:49:06,680
So if you are sitting on So what
that means to you If you have

826
00:49:06,680 --> 00:49:10,600
10s of thousands of dollars
saved up because you were going

827
00:49:10,600 --> 00:49:13,040
to buy another piece of rental
property or get started

828
00:49:13,040 --> 00:49:16,400
investing in real estate.
The rising cost of real estate

829
00:49:16,400 --> 00:49:18,720
is shut you out of owning that
rental property.

830
00:49:18,960 --> 00:49:22,040
Investing in entrepreneurs might
be a great option for you.

831
00:49:22,320 --> 00:49:25,680
That 30,000 you saved up for
your first or second real estate

832
00:49:25,680 --> 00:49:30,560
property, you could invest in
10/15/20 crowdfunding and

833
00:49:30,800 --> 00:49:34,800
companies with that truly make a
diverse portfolio and do other

834
00:49:34,800 --> 00:49:36,240
things like what I've been
talking about.

835
00:49:36,800 --> 00:49:40,560
I even told Jane about how to
unlock the capital in her four O

836
00:49:40,560 --> 00:49:43,800
1K so that she could direct her
four O 1 K through a

837
00:49:43,800 --> 00:49:48,160
self-directed IRA or Roth IRA to
invest in entrepreneurs instead

838
00:49:48,160 --> 00:49:51,720
of those low yield mutual funds
or the volatile stock market

839
00:49:51,720 --> 00:49:54,520
that you might have when you,
you know, say, oh, I'm going to

840
00:49:54,520 --> 00:49:58,960
put 50% in the stock market and
50% in this, you know, mutual

841
00:49:58,960 --> 00:50:02,920
fund, right?
Speaking of the stock market, my

842
00:50:02,920 --> 00:50:05,440
other friend, the the other one
I'm telling you about now, my

843
00:50:05,440 --> 00:50:09,200
friend Bob, he's a well paid
employee with a substantial

844
00:50:09,200 --> 00:50:13,120
stock market portfolio, very
proud of his stock market.

845
00:50:13,320 --> 00:50:16,680
In fact, it drives a whole lot
of his decisions on everything

846
00:50:16,680 --> 00:50:20,040
else in his life is what will
make my stock portfolio go up.

847
00:50:20,840 --> 00:50:24,560
It's how he votes, right?
I actually, and he actually had

848
00:50:24,560 --> 00:50:30,200
purchased my book when I first
came out and read it and even

849
00:50:30,200 --> 00:50:32,200
shared it with many of his
friends.

850
00:50:33,200 --> 00:50:34,600
Yeah.
When we were together recently,

851
00:50:34,600 --> 00:50:39,080
he said he asked me why invest
in private company versus public

852
00:50:39,080 --> 00:50:42,520
companies.
I had to, like, keep my poker

853
00:50:42,520 --> 00:50:44,840
face on because I was just
stunned that he was out.

854
00:50:44,840 --> 00:50:49,280
He read my book, and here he was
asking that question.

855
00:50:50,120 --> 00:50:52,120
And I share with him the
fundamental difference.

856
00:50:52,480 --> 00:50:57,280
When you buy a public stock,
again, you buy it from another

857
00:50:57,280 --> 00:51:01,840
stock investor, not the company.
It is a transaction between two

858
00:51:01,840 --> 00:51:05,160
people or the institution that's
selling it, like a hedge fund

859
00:51:05,560 --> 00:51:09,360
that's selling that stock.
The only benefit to the company

860
00:51:09,440 --> 00:51:12,880
when their stock goes up is that
they can leverage that for

861
00:51:12,880 --> 00:51:16,200
acquisition or debt financing,
right?

862
00:51:16,200 --> 00:51:19,360
They can leverage that and it's,
it's, it's, you know,

863
00:51:19,360 --> 00:51:23,440
shareholder value is a, is a big
deal when it comes to their

864
00:51:23,440 --> 00:51:26,840
financial strength of their, of
their portfolio of what they

865
00:51:26,840 --> 00:51:31,280
have, right?
And so, but the biggest

866
00:51:31,280 --> 00:51:34,280
challenge start-ups, small
business owners have getting the

867
00:51:34,280 --> 00:51:37,040
capital they need to start and
grow their business before cash

868
00:51:37,040 --> 00:51:40,200
flow and profits sufficient to
fool the growth on their own.

869
00:51:40,280 --> 00:51:43,000
Angel investors, crowdfunding
investors, community investor.

870
00:51:43,000 --> 00:51:44,520
That's kind of a new thing
that's happening.

871
00:51:44,520 --> 00:51:48,840
Investing in the companies in
your community invest, invest in

872
00:51:48,840 --> 00:51:54,080
that sweet spot spot between an
ID and bankable or if this in in

873
00:51:54,080 --> 00:51:56,600
the programs that are expanding
business.

874
00:51:56,600 --> 00:51:59,440
I kind of talked about that like
you're investing your, your,

875
00:51:59,640 --> 00:52:02,280
your fellow friends business,
right?

876
00:52:03,680 --> 00:52:06,800
Like through the Interstate
exemption or Reg A+.

877
00:52:07,200 --> 00:52:10,640
It is the capital a company
needs that exceeds what they can

878
00:52:10,640 --> 00:52:13,760
get from a bank.
That money comes for those

879
00:52:13,760 --> 00:52:17,200
private investment funds and the
jobs will be created, The

880
00:52:17,200 --> 00:52:19,720
products will be invented to
solve a problem in the

881
00:52:19,720 --> 00:52:23,720
marketplace and expands the the
economy because of the ripple

882
00:52:23,720 --> 00:52:27,120
effect it has for those
investors that grow into what I

883
00:52:27,120 --> 00:52:29,120
call business angels.
People in the business of

884
00:52:29,120 --> 00:52:32,480
investing in entrepreneurs as a
regular part of their life.

885
00:52:33,680 --> 00:52:37,640
It's like a hobby that they,
they work on getting better and

886
00:52:37,640 --> 00:52:40,440
better at with each investment
decision, right?

887
00:52:40,440 --> 00:52:42,360
It's something that they become
interested in.

888
00:52:42,360 --> 00:52:43,760
They want to learn about it.
They want to do it.

889
00:52:43,760 --> 00:52:47,080
So like if you wanted to learn
how to become a skier, you don't

890
00:52:47,080 --> 00:52:50,400
just jump out and start skiing.
You take a training course, you

891
00:52:50,400 --> 00:52:54,160
practice and then you go down
the, the big, big black

892
00:52:54,160 --> 00:52:56,400
diamonds, right?
You don't just do that to start

893
00:52:56,400 --> 00:52:57,800
with.
Just because you can doesn't

894
00:52:57,800 --> 00:53:00,000
mean you should without the
proper training.

895
00:53:00,000 --> 00:53:03,240
That's why I'm, I'm doing what
I'm doing right now, right?

896
00:53:03,400 --> 00:53:06,360
So they do it because they also
do it.

897
00:53:06,360 --> 00:53:09,560
Angel investors also do it
because of these feelings of

898
00:53:09,560 --> 00:53:13,880
contribution, the impact their
that their money has when their

899
00:53:13,880 --> 00:53:16,920
money goes into a company that's
solving a problem that they're,

900
00:53:17,440 --> 00:53:19,960
they care about, that they're
passionate about.

901
00:53:20,360 --> 00:53:22,640
It could be something that's
that's in their own life.

902
00:53:22,640 --> 00:53:25,200
It could be a problem that they
wish they had a solution for.

903
00:53:25,200 --> 00:53:28,640
It could be, you know, I see it
all the time, you know, and if

904
00:53:28,840 --> 00:53:31,360
I, when I was running my Angel
group, we would have companies

905
00:53:31,360 --> 00:53:34,120
that the people would say, oh,
I'm a soft software investor.

906
00:53:34,440 --> 00:53:37,520
But then somebody would come in
and they would have, there's

907
00:53:37,520 --> 00:53:41,000
this company that they would
have a solution where it was a

908
00:53:41,200 --> 00:53:44,440
pill dispenser that could be
connected through Internet or

909
00:53:44,440 --> 00:53:47,320
things for home health.
And you would know whether your

910
00:53:47,320 --> 00:53:50,760
mom was taking her medications
even though you weren't there.

911
00:53:50,760 --> 00:53:53,640
And the nurse could check in on
her, you know, through a

912
00:53:53,640 --> 00:53:56,320
telecall, you know, to be able
to check on her.

913
00:53:56,360 --> 00:53:59,760
And because their mom was, you
know, in that situation, they

914
00:53:59,760 --> 00:54:02,280
would be like, I want to invest
in that, right?

915
00:54:02,280 --> 00:54:04,840
So that was the emotion.
They were passionate about a

916
00:54:04,840 --> 00:54:07,800
problem that was being solved
that they hadn't really thought

917
00:54:07,800 --> 00:54:09,200
about.
And and that's that

918
00:54:09,200 --> 00:54:11,520
compassionate capitalist part of
it, right?

919
00:54:12,120 --> 00:54:15,400
And so and they get this, this
sense of satisfaction watching

920
00:54:15,400 --> 00:54:18,760
these companies grow, watching
their money being put to work

921
00:54:19,040 --> 00:54:22,000
for a company to get to a whole
nother stage of business.

922
00:54:22,320 --> 00:54:26,520
It actually Angel investing,
investing actually satisfies the

923
00:54:26,520 --> 00:54:30,120
six fundamental human hierarchy
of needs.

924
00:54:30,120 --> 00:54:32,920
And I did a whole series of
videos on what that is and why

925
00:54:32,920 --> 00:54:34,560
those is.
And they're, they're part of the

926
00:54:34,680 --> 00:54:36,120
now part of the maximizing
system.

927
00:54:36,120 --> 00:54:37,920
And you could still go to
YouTube and find them.

928
00:54:37,920 --> 00:54:40,040
If you go find this on YouTube,
you go to the compassionate

929
00:54:40,040 --> 00:54:42,600
capitalist channel, they're
listed there's, but you don't

930
00:54:42,600 --> 00:54:44,280
get those feelings in the stock
market.

931
00:54:44,280 --> 00:54:46,600
You're just buying and selling.
It's a transaction.

932
00:54:46,840 --> 00:54:50,640
I mean, you, you get feelings
of, Oh, my money's going up and

933
00:54:50,640 --> 00:54:53,440
your money's increasing in
value, but there's no other

934
00:54:53,440 --> 00:54:56,600
sense of, of reward and
fulfillment in that.

935
00:54:57,000 --> 00:54:59,120
And you don't get that when
you're buying real estate for a

936
00:54:59,120 --> 00:55:01,440
rental company.
Maybe in a flip because you saw,

937
00:55:01,760 --> 00:55:04,840
you know, this ugly house turned
beautiful, right?

938
00:55:04,840 --> 00:55:06,680
And that's a sense of like, oh,
it's done.

939
00:55:06,680 --> 00:55:08,120
But it's really more like it's
done.

940
00:55:08,400 --> 00:55:11,640
It's like, it's a thank God it's
done and now I can make money on

941
00:55:11,640 --> 00:55:13,960
it.
It's not because you're watching

942
00:55:13,960 --> 00:55:17,600
something grow, right?
And it's not that you're solving

943
00:55:17,600 --> 00:55:21,360
a problem that affects millions
of people or changes the world

944
00:55:21,360 --> 00:55:23,440
because a whole new market has
been created.

945
00:55:24,720 --> 00:55:28,320
Many people think of investing
in entrepreneurs as too risky,

946
00:55:28,640 --> 00:55:32,360
but it again, it's no more risky
than real estate or the stock

947
00:55:32,360 --> 00:55:35,640
market when you know how to
build a diversified portfolio.

948
00:55:36,560 --> 00:55:38,840
I mentioned about the real
estate crash and this at the

949
00:55:38,840 --> 00:55:40,760
same time the stock market crash
and tumbled.

950
00:55:41,160 --> 00:55:45,760
It took 10 years for those
values of where they were just

951
00:55:45,760 --> 00:55:50,520
to get back to the spot they
were when it crashed. 10 years,

952
00:55:51,320 --> 00:55:54,280
really 10 years when you looked
at the, the, the market in

953
00:55:54,280 --> 00:55:55,560
general.
Now, obviously there's

954
00:55:55,560 --> 00:55:58,360
exceptions and in certain
markets here, but it and by and

955
00:55:58,360 --> 00:56:00,760
large it was, it took them ten
years.

956
00:56:00,760 --> 00:56:03,560
And and so technically you don't
lose your money if you don't

957
00:56:03,560 --> 00:56:05,840
sell.
But this idea that Angel

958
00:56:05,840 --> 00:56:09,080
investing is illiquid because
you might have to hold it for 10

959
00:56:09,080 --> 00:56:11,800
years.
Well, I just showed you there

960
00:56:13,240 --> 00:56:16,880
that you know you if you lose
the value in your stock market,

961
00:56:16,880 --> 00:56:19,160
in your real estate, if you're
able to continue to make the

962
00:56:19,160 --> 00:56:22,440
payments on that real estate,
you will have to hold it 10

963
00:56:22,440 --> 00:56:24,400
years to get it back.
At least that's what it took.

964
00:56:24,840 --> 00:56:28,560
OK, now we have a surge, another
bubble that we're in the middle

965
00:56:28,560 --> 00:56:32,160
of because of of a whole nother
reason why you talk about that.

966
00:56:32,160 --> 00:56:36,720
But the key difference in both
those cases is that the factors

967
00:56:36,760 --> 00:56:39,840
for the real estate in the stock
market collapse were outside of

968
00:56:39,840 --> 00:56:42,720
your control.
The value is set by the buying

969
00:56:42,720 --> 00:56:45,960
and selling like crypto, it
takes time and demand demand to

970
00:56:45,960 --> 00:56:49,040
regain that value.
Where with startups and grow

971
00:56:49,040 --> 00:56:52,720
states, companies, the money
that you along with hundreds of

972
00:56:52,720 --> 00:56:55,680
others, maybe thousands of other
investors are going directly

973
00:56:55,680 --> 00:56:59,120
into growing the value of that
company, bringing out products,

974
00:56:59,120 --> 00:57:02,200
new products that will grow the
revenue, increase the value of

975
00:57:02,200 --> 00:57:06,240
the company.
And that's not not because of a

976
00:57:06,240 --> 00:57:10,320
transaction, but because they're
building something of value.

977
00:57:10,680 --> 00:57:14,120
It's the company.
Remember, investing in

978
00:57:14,120 --> 00:57:17,440
entrepreneurs has a long history
of success among the wealthiest

979
00:57:17,440 --> 00:57:19,800
investors in the world,
including the DuPont,

980
00:57:19,800 --> 00:57:21,760
Rockefellers.
Nearly every company that is

981
00:57:21,760 --> 00:57:25,240
public now or household name had
Angel investors.

982
00:57:25,240 --> 00:57:28,440
And at some point, Home Depot,
Amazon, Microsoft, Facebook,

983
00:57:28,440 --> 00:57:33,440
Dell, the JOBS Act not only
intended to Open Access to

984
00:57:33,440 --> 00:57:37,480
capital for entrepreneurs, but
also for those investors that

985
00:57:37,480 --> 00:57:40,680
had lost that retirement and
their real estate and the stock

986
00:57:40,840 --> 00:57:42,840
crash.
They've lost their real estate.

987
00:57:42,840 --> 00:57:45,320
The industry lobby Congress to
change the laws.

988
00:57:45,320 --> 00:57:50,160
And they did because they saw
the rewards, the results of

989
00:57:50,160 --> 00:57:53,120
reward based crowdfunding.
Think about it.

990
00:57:53,200 --> 00:57:56,000
You didn't know that you don't
know this I talk about in the

991
00:57:56,000 --> 00:57:57,160
book.
If you haven't read my book, if

992
00:57:57,160 --> 00:57:59,240
you haven't heard me talk about
this because you don't have a

993
00:57:59,440 --> 00:58:06,120
follower of me on stuff, but 3D
printing, drone VR headsets,

994
00:58:06,120 --> 00:58:09,480
even fidget widgets, I'm holding
one for those that are watching

995
00:58:09,520 --> 00:58:12,000
right.
Even fidget widgets all came to

996
00:58:12,000 --> 00:58:15,160
market because of reward based
crowdfunding.

997
00:58:15,560 --> 00:58:21,200
That was what was around for 20
years before we had equity based

998
00:58:21,200 --> 00:58:23,080
crowdfunding.
Literally 20 years.

999
00:58:23,480 --> 00:58:26,360
OK, that's how a lot of films
music got done.

1000
00:58:26,360 --> 00:58:29,880
Reward based, right?
I got early access to something,

1001
00:58:29,880 --> 00:58:35,440
I get a reward, I get something
in exchange for my money, right.

1002
00:58:35,680 --> 00:58:38,520
So they pre purchased these
products even before in some

1003
00:58:38,520 --> 00:58:40,240
cases they hadn't even been
made.

1004
00:58:40,240 --> 00:58:42,680
They were they they you didn't
even know for certain.

1005
00:58:42,680 --> 00:58:44,600
They I have a prototype.
They knew it worked, but they

1006
00:58:44,600 --> 00:58:47,320
hadn't made any kind of a lot of
them, right?

1007
00:58:48,000 --> 00:58:51,560
And so they would put hundreds
or even thousands of dollars

1008
00:58:51,560 --> 00:58:54,440
into these companies and these
companies raised millions of

1009
00:58:54,440 --> 00:58:56,640
dollars in reward based
crowdfunding.

1010
00:58:56,640 --> 00:59:00,520
And then they went on to raise
VC money and sell their company

1011
00:59:00,760 --> 00:59:05,280
or like Oculus headset, right?
They got first got 100 million

1012
00:59:05,320 --> 00:59:08,200
or something from VCs and and
Facebook and then Facebook

1013
00:59:08,200 --> 00:59:09,760
bought them for billions of
dollars.

1014
00:59:10,560 --> 00:59:14,360
You know, the reward, the people
that had bought those original

1015
00:59:14,360 --> 00:59:18,480
versions of those Oculus
headsets made nothing on that.

1016
00:59:19,000 --> 00:59:23,520
They gave them the seed capital,
you know, hoping to get a

1017
00:59:23,520 --> 00:59:26,360
product, right?
And those companies got

1018
00:59:26,360 --> 00:59:29,480
launched, but they made no money
on that.

1019
00:59:30,280 --> 00:59:32,960
And it wouldn't, it wouldn't be
like you, you would have made 50

1020
00:59:32,960 --> 00:59:37,680
grand on $1000 investment, but
you might have made 5K, right?

1021
00:59:38,360 --> 00:59:40,880
You at least would have had
something different.

1022
00:59:40,880 --> 00:59:43,040
You might have had the product
and equity.

1023
00:59:43,040 --> 00:59:44,560
That's the way a lot of them are
doing it now.

1024
00:59:44,960 --> 00:59:48,560
So Congress said, why not let
the middle class get to invest

1025
00:59:48,560 --> 00:59:51,880
like the ultra high net worth
people and start to bridge this

1026
00:59:51,880 --> 00:59:54,200
wealth gap.
This is particularly keen for

1027
00:59:54,200 --> 00:59:59,160
women and people of color that
have not have long, long, long,

1028
00:59:59,160 --> 01:00:02,040
long, long time not had a seat
at the table.

1029
01:00:02,960 --> 01:00:06,240
Pull up a chair.
I say pull up a chair.

1030
01:00:06,560 --> 01:00:09,800
And get and Start learning about
how to invest in this asset

1031
01:00:09,800 --> 01:00:11,880
class.
And when that company goes

1032
01:00:11,880 --> 01:00:18,080
public, excuse me, even even in
the.com bomb, right or so we

1033
01:00:18,080 --> 01:00:22,280
need real, real tell investors
jump into the market on jump on

1034
01:00:22,280 --> 01:00:25,040
a stock.
We saw this with Facebook, we

1035
01:00:25,040 --> 01:00:29,720
saw it big time with Snapchat.
And so say the the strike price

1036
01:00:29,720 --> 01:00:34,320
is at $15 a share and it rises
to $20, you know, and it's going

1037
01:00:34,320 --> 01:00:37,160
up and up and up and then all of
a sudden it starts to fall and

1038
01:00:37,160 --> 01:00:40,440
it goes down to $10 or something
in a matter of weeks.

1039
01:00:40,440 --> 01:00:43,400
After the initial IPO.
The people that invested when

1040
01:00:43,400 --> 01:00:47,040
that company was starting up and
growing, those people that put

1041
01:00:47,040 --> 01:00:50,400
that money at risk but saw the
future potential of what that

1042
01:00:50,400 --> 01:00:53,160
company was going to do and the
impact it was going to have and

1043
01:00:53,160 --> 01:00:54,720
the revenue it was going to
generate.

1044
01:00:55,400 --> 01:00:58,520
And then they put that money in
and they might have started out

1045
01:00:58,520 --> 01:01:01,200
at $0.50 a share or a dollar a
share.

1046
01:01:01,880 --> 01:01:08,080
OK, when, when that company IP
owed at $15 and then they sold

1047
01:01:08,080 --> 01:01:12,040
the stock at $20, they've made
20 times their investment.

1048
01:01:13,360 --> 01:01:17,360
But those got people that got in
at $15 a share and thought, oh,

1049
01:01:17,360 --> 01:01:20,240
yeah, yeah, it's going to go.
And then just a couple of weeks

1050
01:01:20,240 --> 01:01:26,160
later it drops to 10.
They've already lost $5 a share.

1051
01:01:26,240 --> 01:01:29,880
All right, everybody like, so by
the time you hear about it to

1052
01:01:29,880 --> 01:01:33,200
buy it in the stock market, it's
too late to make money on it.

1053
01:01:33,880 --> 01:01:37,040
I mean, you could, you will make
money on it, but still there's a

1054
01:01:37,040 --> 01:01:39,400
way for Angel investors, some of
these Angel investors, there's

1055
01:01:39,400 --> 01:01:43,880
organizations that you can buy
stock in a company like 23,

1056
01:01:43,880 --> 01:01:46,760
23andMe, Airbnb, all these
companies that are getting ready

1057
01:01:46,760 --> 01:01:50,080
to go public.
You can go and buy stock in

1058
01:01:50,080 --> 01:01:51,560
those companies.
Now you have to be accredited to

1059
01:01:51,560 --> 01:01:55,280
do it, but you can buy stock in
those companies and you won't

1060
01:01:55,400 --> 01:01:58,560
get them because you're buying
them from employees that have

1061
01:01:58,680 --> 01:02:00,800
that have the stock right now.
So you're not going to get it at

1062
01:02:00,800 --> 01:02:04,120
a dollar a share if their strike
price is going to be $15 a

1063
01:02:04,120 --> 01:02:06,240
share.
You might get it for $8 a share

1064
01:02:06,440 --> 01:02:10,200
or $10 a share, but you'll still
be able to sell it when it first

1065
01:02:10,200 --> 01:02:13,240
goes public and you got it and
you still have a basis point

1066
01:02:13,440 --> 01:02:17,120
that's a lot lower than you know
what people that buy it after it

1067
01:02:17,120 --> 01:02:19,520
goes public.
And not every company is going

1068
01:02:19,520 --> 01:02:22,480
to do that, right?
But but it is why you have a

1069
01:02:22,480 --> 01:02:26,240
strategy for diversifying based
on state industry and type of

1070
01:02:26,240 --> 01:02:30,480
offering that I call the Angel
profitability blueprint.

1071
01:02:30,480 --> 01:02:32,960
Ioffer it in this wealth
maximizer system.

1072
01:02:34,040 --> 01:02:37,440
All right, so I want to
encourage you.

1073
01:02:37,560 --> 01:02:40,080
I I thank you for listening for
as long as I've been talking.

1074
01:02:40,080 --> 01:02:42,520
I was going to get into
furthermore into risks.

1075
01:02:42,520 --> 01:02:44,800
I guess you'll just have to sign
up to learn more about how I

1076
01:02:44,800 --> 01:02:52,480
overcome risk or, or please to
go and follow me at go follow me

1077
01:02:52,480 --> 01:02:56,560
on Facebook and on LinkedIn and
stuff like that because I do put

1078
01:02:56,560 --> 01:03:00,520
out videos on these topics.
But go to dothedeal.org,

1079
01:03:00,520 --> 01:03:04,800
dothedeal.org and you can sign
up for a free intro class.

1080
01:03:05,160 --> 01:03:09,280
You'll get in, you'll get a free
book called the 12 secrets of

1081
01:03:09,280 --> 01:03:12,920
innovation and wealth on that
will be given to you as well as

1082
01:03:12,920 --> 01:03:15,120
part of that.
And you'll get, you'll start to

1083
01:03:15,120 --> 01:03:20,640
get my video tips that I talk a
lot about this stuff and I you

1084
01:03:20,640 --> 01:03:24,080
know, you'll get, you'll learn,
you'll do the first step that

1085
01:03:24,080 --> 01:03:27,000
says this something that you
want to invest more time in

1086
01:03:27,160 --> 01:03:31,560
learning and do you want to
invest money into, like getting

1087
01:03:31,560 --> 01:03:35,560
into a more in depth training.
You know, you'll learn how to

1088
01:03:35,560 --> 01:03:38,680
make investments in increments
of hundreds or thousands of

1089
01:03:38,680 --> 01:03:40,240
dollars.
You'll learn how to use the

1090
01:03:40,240 --> 01:03:44,440
Angel profitability Blueprint to
find deals, evaluate them, and

1091
01:03:44,440 --> 01:03:47,160
build a profitable portfolio of
at least 10 investments.

1092
01:03:47,840 --> 01:03:51,960
You get started on the path to
learn the inside secrets to

1093
01:03:51,960 --> 01:03:55,400
Angel investing.
And you'll be able to invest in

1094
01:03:55,400 --> 01:03:58,440
businesses where passionate
entrepreneurs are bringing

1095
01:03:58,440 --> 01:04:01,640
innovation in the market.
And you share their passion and

1096
01:04:01,640 --> 01:04:05,000
you have the feeling of impact
and contribution.

1097
01:04:05,760 --> 01:04:09,520
Just I, I see it when I've had
with some of my Angel investors

1098
01:04:09,520 --> 01:04:11,920
and some of the things they'd
walk in the room and they'd have

1099
01:04:11,920 --> 01:04:15,640
a pep in their stuff because I
could, I, I decided for those 45

1100
01:04:15,640 --> 01:04:19,240
year olds that were becoming my
Angel investors at the time, it

1101
01:04:19,240 --> 01:04:22,280
was like, better than a midlife
crisis, you know what I mean?

1102
01:04:22,280 --> 01:04:27,120
They could go spend 100 grand on
a fancy new car, sports car, or

1103
01:04:27,120 --> 01:04:29,960
they could invest in
entrepreneurs and they got a

1104
01:04:29,960 --> 01:04:32,160
greater sense of joy.
You didn't need to go have an

1105
01:04:32,160 --> 01:04:36,400
affair to bring it, you know,
spice back into your life.

1106
01:04:36,680 --> 01:04:39,920
Go invest in something you're
passionate about, a problem

1107
01:04:39,920 --> 01:04:42,240
you're solving somebody.
So there's somebody out there

1108
01:04:42,240 --> 01:04:44,960
trying to solve a problem that
you think needs to be solved.

1109
01:04:45,160 --> 01:04:50,920
I promise you there is.
OK, So again, dothedeal.org in

1110
01:04:50,920 --> 01:04:52,920
order, this is the right kind of
a thing for you.

1111
01:04:52,960 --> 01:04:57,480
Don't and join this growing
community of compassionate

1112
01:04:57,480 --> 01:04:59,840
capitalism.
With that, I'll say onwards and

1113
01:04:59,840 --> 01:05:02,600
upwards.
Thank you so very much for

1114
01:05:02,840 --> 01:05:06,880
tuning in and listening and
please share this very much.

1115
01:05:07,040 --> 01:05:10,520
If there's ever a podcast to
share or video to share, this

1116
01:05:10,520 --> 01:05:13,760
would be it.
So Kieran signing off, onwards

1117
01:05:13,760 --> 01:05:15,400
and upwards.
Have a great day.

1118
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Thank you for listening to this
podcast, The Compassionate

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01:05:19,480 --> 01:05:23,320
Capitalist Show, brought to you
by Cougar and Capital Holdings

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with Karen Brands as host.
You are encouraged to visit the

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01:05:29,960 --> 01:05:34,880
website cougarand.com to learn
more about how Karen and her

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01:05:34,880 --> 01:05:38,800
team help investors and Angel
groups make money by avoiding

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01:05:38,800 --> 01:05:43,120
investing in deals that suck,
and how the Cougar and Capital

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01:05:43,120 --> 01:05:46,520
companies and partners help
entrepreneurs breakthrough their

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01:05:46,520 --> 01:05:49,480
barriers to capital and live
their dream by building

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01:05:49,480 --> 01:05:52,720
companies that can scale and
create generational wealth for

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their founders and investors.
If your business could benefit

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01:05:56,920 --> 01:06:00,880
from exposure to our audience of
business executives,

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01:06:01,120 --> 01:06:04,480
entrepreneurs, and investors, we
are seeking financial partners

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01:06:04,480 --> 01:06:07,080
and sponsors for The
Compassionate Capitalist Show to

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01:06:07,080 --> 01:06:11,120
help us take this podcast beyond
our 150,000 listeners and

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01:06:11,120 --> 01:06:14,040
amplify the message of the
compassionate capitalist

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01:06:14,040 --> 01:06:18,200
movement by making this a Top 50
business podcast.

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01:06:18,760 --> 01:06:21,360
The Compassionate Capitalist
Show is available on YouTube,

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01:06:21,360 --> 01:06:25,560
Apple podcast, iTunes, TuneIn,
Stitcher, Spotify, Pandora, and

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01:06:25,760 --> 01:06:29,640
Google podcast.
Contact us at karenrance.co to

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01:06:29,680 --> 01:06:32,520
learn more.
And as a listener, you can do

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01:06:32,520 --> 01:06:34,600
your part of the Compassionate
Capitalist movement by

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01:06:34,600 --> 01:06:39,200
subscribing wherever you listen
to podcasts and sharing this

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01:06:39,200 --> 01:06:42,000
show with your friends and
colleagues.

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01:06:42,240 --> 01:06:46,840
Be sure to pick up your copy of
Karen's bestseller that launched

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01:06:46,840 --> 01:06:48,400
the Compassionate Capitalist
Movement.

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01:06:48,640 --> 01:06:50,760
Inside secrets to Angel
investing.

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01:06:51,040 --> 01:06:54,680
A step by step strategies to
leverage private equity

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01:06:54,680 --> 01:06:57,040
investment for passive wealth
creation.

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01:06:58,760 --> 01:06:59,720
Thank you for listening.