Investor Crap Games By William CateAsk not how much money you'll make from a speculative investment. Instead, ask how likely you are to lose your risk capital. Most investors will find better odds wagering their money in Las Vegas, Macao or Monte Carlo than being angel investors to private companies.
Private company speculation is far riskier than betting on stocks to appreciate in value. Your money will be in jeopardy for years. There's no liquidity in a private company speculation. You can't sell it to another investor! Worse still, if you don't meet your private company's expanding needs for risk capital,
company is likely to fail. Angel investors should reflect on Uncle Remus' tale of Brer Rabbit and Tar Baby. The more you put into company, more "stuck" you become.
Even if your private company is profitable, you won't recover as much money as you would from stock speculation, because public shares almost always trade at a multiple of balance sheet value of company.
A Sensible Hedge
If you are considering risking your hard-earned money in a private company speculation, send us a copy of business plan for review. If we can't find anything seriously wrong with it, we won't charge you for review. If we can't suggest ways to reduce your risk, we won't charge you for review. You have nothing to lose in having us review business plan. We can usually save you loss of some or all of your risk capital. If you have invested your money and lost it, we may be able to suggest ways to recover part or all of it.
Public Company Private Placements
As an Accredited Investor interested in high-risk speculations, you are better served risking your money in public company private placements. However, there is no shortage of crooked public company private placement investment opportunities. At best, U.S. Securities and Exchange Commission may act against public company swindlers long after you have lost your money. We can help you avoid swindlers and offer you structuring suggestions that will reduce your risk of loss and enhance your potential profit. The folks seeking money rarely write investment contracts that are favorable to those folks supplying money. It's usually in your best interests to rewrite contract before you write check.
