$100K Salary Goes How Far?

Where Does One Find Access to Invest in Companies Connected to Raleigh Building the Next Big Thing?

As part of Innovate Raleigh Summit, our team alongside the founders of 6 local companies connected to Raleigh building the next big thing, spun up the site http://investinraleigh.us (#InvestInRaleigh) as awareness and access for people to help newer companies grow as well as for them to have an easy way to find local investment opportunities offered by companies impacting Raleigh.

  1. Regulated funding platform where people can learn more about the offering and choose if they want to invest directly in the company.

Investing in Entrepreneurs in Raleigh Building Cool Stuff is an Education Asset both for Parents and Our Children …Sometimes it also Generates a Return

For example, one of the last Raleigh-based companies we invested some smaller dollars in was https://republic.co/gobe run by a father and wife founding team. GoBe makes a snack spinner which my son will most certainly deconstruct and it was him as we were perusing some of the offerings on NC Grind who said, dad, it’s only $100…let’s invest. So I started to question him a bit on it and asked, how might that team make a return on his $1 alongside mommy and daddy’s money (gotta make it relatable for the kiddo). His response and reaction was quite cool when he realized he might turn $1 to $5, $10, or even more. He didn’t care if he lost the $1. It was more about putting money into something he could relate to. It was quite a cool.

  1. They asked their investors if they had a connection into big retail.
  2. One of their crowd investors, an engineer at Wal-mart, made the connection.
  3. Financing for the Snack Spinners came through another connection in their community of equity investors and fans.

Shark Tank for All

Many people of all ages love Shark Tank. I remember speaking to a class of middle schoolers trying to explain all of what I do to help companies grow and all I could think of that may be relatable to them was Shark Tank. So I asked. How many of you watch Shark Tank. All 20+ of them raised their hands. “Phew, got lucky on that one,” I thought. So I said, “Did you know, now you can be the shark.”

Our Children Are Creators!

Our children love the thought of creating and being part of it. For them, I find it is more about being a creator of something cool that they love 1st, than the cultural influence of becoming a millionaire (or billionaire). As a father with a 5 and almost 9 year old, like many of you with kids, I see the things they love to create and try to think of ways to expose them to related ideas that may help them create something new.

But Where Does One Start to Learn More?

http://investinraleigh.us is one. Check out https://ncgrind.com for education and links to live company offerings connected to NC. Here’s a condensed crazy history lesson…

What are private companies?

  • Your favorite local coffee shop, brewery, distillery, restaurant, the building they sit in, early stage / startup tech companies, etc.. are private companies.
  • 60% of Amazon’s revenue comes from a multitude of ‘3rd party Amazon sellers’ who are mostly all private companies

Let’s Put Things in Perspective — Private vs. Public and Access

To give some perspective of private vs. the stock market (NASDAQ, NYSE, etc.), let’s take one of the greatest private market investing stories of all time. Uber IPO’d (aka became listed on the stock market making it accessible for public investing, IRAs & 401(k)’s for the major of Americans) at a stellar high ~$75 Billion valuation trading at $45/share. As of this article’s date, it’s now at an $82B valuation and share price is around the same (for the majority # of people who have access now).

How’d we do that?

Luck? Kind of. One ‘trick’ is we learned is that ‘seasoned’ sharks (aka “Angel investors”) like Mark Cuban diversify investments over time across a minimum of 20 if not 50+ high growth companies who might have the potential to shoot up:

  • to several $Million or even $Billion in revenue (or Millions of users)

What about Super Local Companies such as Coffee Shops, Breweries, Local Growing Franchises that Offer Revenue Shares and Commercial Real Estate?

We’ve also learned that companies who share in their revenue like those found on sites like MainVest** (coffee shops, franchises, etc.) or investments in house flips (like those on GroundFloor) or commercial real estate (such as multi-family, student housing, spaces for franchises or multiple businesses) typically pay us quarterly or yearly and in general seem to have worked out well for us…even during COVID. These founders used their large crowd investor base to sustain or propel revenue growth.

A New Way of Investing for Possible Early ‘Retirement’

In fact, this may sound crazy, but the majority of our investments are now in local companies. Not only do they provide the backbone of the economy and area we love via hiring and innovation, but we also find investing in them, more relational (aka I’m not looking at a daily share price. I’m looking at value generation over time)…

  • We invest in Main Street. Average returns on revenue share offerings on a site like MainVest are targeted at 10% to 25%/yr. Connections help increase opportunity for higher returns, like Ivyees Everything Honey which generated a 38% IRR (Internal Rate of Return) for a community of investors. These are the very places our friends and family may eat and drink.
  • We invest in local commercial real estate. Every wonder where cost of living increases come from? It’s not just residential housing. A leading indicator is often commercial real estate which historically there have been opportunities to generate 6% to 8% cash per year with overall returns of 15% to 25% IRR (aka the investment period may be 3 to 5 years. After being sold to another investor, the rest of the cash associated with the annual IRR target above the yearly cash per year is realized). These are the buildings housing new families that we all say “Welcome Y’all” to or buildings the businesses we eat, drink, and shop from are housed.

So What Will the Future Hold for Raleigh and Our Children’s Children?

At the 2021 Innovate Raleigh Summit, the keynote, Johnny Hackett, Jr. (serial entrepreneur, CEO & Founder of The Black Dollar Corp) stated “As founders… as business owners, we have the duty to help youth find out what they’re called to do.” Johnny walks the talk. They have a 14 year old paid employee who is amazingly talented and is living out part of his calling.

So Why Did We Create #InvestInRaleigh?

Additional Disclaimers, Disclosures, and Additional Context Referenced

Incolo Disclosures & Disclaimer

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