Authors Matt Bennett
Helpful tweets + people to help make it happen:
Buying/financing:
Firmly believe the most certain path to building a high net worth ($10M plus) is buying a small business at a relatively young age. Here\u2019s a model:
— Brandon Laughridge (@laughridge) July 13, 2020
Paths of funding:
What\u2019s an easier path to wealth?
— Andrew Wilkinson (@awilkinson) June 3, 2020
PATH 1: VENTURE STARTUP
- 95% chance of $0
- Tiny personal income while building startup until IPO/scale
- Massive dilution (most founders end up owning 5-15%). $1BN market cap = $50-$150MM for founder.
OR...
1st time fundraise learnings:
I had no experience at a VC fund, no significant angel investing, no Silicon Valley connections before launching @earnestcapital. Raised Fund 1 remotely (while living in Brazil) now on Fund 2.
— Tyler Tringas \U0001f1fa\U0001f1f8 (@tylertringas) October 22, 2020
AMA on launching a fund?
Capital raising (real estate):
A thread on how most real estate folks structure deals with outside investors.
— Nick Huber (@sweatystartup) October 21, 2020
Most GPs utilize the "preferred equity" structure when they raise money from outside investors. They "syndicate" deals.
Here's the basics: