Hall Martin, storied angel investor from Texas, returns to the Compassionate Capitalist Podcast show with host Karen Rands to talk about his novel approach to negotiating a guaranteed ROI when investing in private companies. Both entrepreneurs and investors often focus their attention on the potential ROI of an investment based on an acquisition exit in 5 years. More times than not, that type of exit doesn't materialize because the company doesn't maintain the rate of growth originally forecasted to achieve the 4X in 5 years. As time goes on, the IRR - the Internal Rate of Return, lowers compared to a straight ROI multiple calculation. Under Hall's 3X in 3Years model, investors and entrepreneurs establish a contracted guaranteed return for the investor if the entrepreneur doesn't hit their milestones, misses their next round of venture finance and therefore fails to scale as originally proposed. This method benefits the entrepreneur to add incentive to their first money in investors, and benefits the investors because they know they have the option to get a return in 3 years that can be put back to work in the community. Karen and Hall cover many additional topics too.

Karen Rands, the leader of the Compassionate Capitalist Movement and author of the Best Seller, Inside Secrets to Angel Investing, is an authority on creating wealth through investing and building successful businesses that can scale and exit rich. Visit http://KarenRands.co to learn why Investors hire her firm to identify the red flags of deal before you invest or try to raise capital, and entrepreneurs trust her to advise and manage on their capital campaign.

To learn more about the programs and services that Karen and her team offer to entrepreneurs and investors, visit http://karenrands.co

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