THE
ANGELS &
ENTREPRENEURS
S U M M I T
https://pro.angelsandentrepreneursinfo.com/p/AGNLNCHL/EAGNV602/Full?
src=robert&h=true&fbclid=IwAR1L73B8721xP7q5y2g7ydg6Xon9aBXzFYMERLQmqHkTpTa
RskqGagpvl0Q

 
Shark Tank's Robert Herjavec
Serial Entrepreneur, Neil Patel

Mike:

Welcome to the Angels & Entrepreneurs Summit.

I’m Mike Ward.

Joining me for this historic event are Robert Herjavec and Neil Patel. 

Gentlemen, welcome.
Robert:

It’s a pleasure.

Neil:

Glad to be here, Mike.

Mike:

For hundreds of years, a secret market has existed.

Where the wealthy and powerful gained privileged access to the most
lucrative business deals the world has ever seen.

And in doing so, they changed the course of human history.

Around the dawn of the 20th century, J.P. Morgan invests in Thomas
Edison. Edison’s light bulb would soon illuminate homes, businesses,
and cities from coast to coast.
And Morgan’s windfall would help launch the iconic company, General
Electric.

A few years later, Cornelius Vanderbilt invests in two brothers – Orville

and Wilbur Wright – who ignited an era of flight that would eventually
usher in the age of space travel.    

Without Vanderbilt’s investment, the Wright Company would

have never become a part of the $249 billion aviation firm,
Boeing.

Fast forward to 1968. 

Using this secret market, Silicon Valley pioneer Arthur Rock

invests $10,000 in a little-known startup. It was developing the
processors that would transform personal computing. 
That startup was Intel. And Rock’s investment made him a
billionaire.

Less than a decade later, another man who became a millionaire from
Intel backs a brash founder, whose own legacy will stand the test of
time.

That angel investor: Mike Markkula.

That founder: Steve Jobs.  

And his Apple II personal computer launched America’s first $1

trillion company.
In 1980, when Apple IPO’ed, Markkula’s shares were worth $203
million.
A return of 220,552%. 

In the decades that followed, the rich continued to use this secret
market. 
Securing stakes in the hottest startups long before they IPO’ed. 

Long before Amazon, YouTube, and Facebook became household

names. 

And the average American was locked out of these life-changing

deals. 
But not anymore.

A powerful Congressional act has

now unleashed one of the biggest
financial shifts in U.S. history.
Finally, everyone can capitalize on this secret market.
Where startups go from obscurity to being worth billions of
dollars in the blink of an eye.
Where one deal can transform a small amount of money into
millions. And, for some, even more.
The next Alibaba, the next Uber, the next
Google is out there.
And now, two of the most successful angel
investors in the world are going to help you
find them.

Robert, you’re the founder of the Herjavec Group – your cybersecurity

firm that generates $250 million a year in revenue.   

But that’s not why most folks know you.

You also star in the Emmy Award-winning TV show, Shark Tank.

Robert:

Unbelievable, isn’t it?

Never in a million years did we think a show about angel

investing would become such a hit.

Mike:

It’s pretty clear you tapped into something.

People have wanted to get a

glimpse inside this world of angel
investing – it’s exciting – a little
mysterious.
They’re constantly seeing stories about this person or that person
making an absolute fortune from some unknown startup, suddenly
becoming a household name like Uber, Airbnb, Space X, or Bird
scooters.
And when you look at all the money flooding into these deals – it’s
astounding.

Neil:

It really has become a craze.

 Back in 1995, $8.1 billion was invested in
startups.
Early 2000s, you’re looking at a little
over $15 billion.
Now it’s $99.5 billion. 
Robert:

And Mike, that’s just in the United States.

You start adding in Europe and Asia, you’re over $204 billion.

Mike:

There's clearly a lot of buzz around angel investing – but despite that,
a lot of folks still aren’t exactly sure what it means to be an angel
investor. 

Or how to become one.

Robert:

That’s why we’re here.

Mike:

So you're going to show them all of that. 

And that's in addition to the extraordinary angel investing examples

we've already covered... 

Neil:

Right – and even though we can’t guarantee that the incredible returns
we covered are going to happen for every investor every time... even
a fraction of these – even one – can change your life.

Robert:

That’s right.

Mike:

We’ve got a lot of ground to cover today.

For the beginners watching, we’re going to discuss Angel Investing

101.

We’re going to talk about how much more

lucrative it can be to back startups versus
stocks.
And how easy it is to get started.
We’re also going to talk about the risks, because these are
speculative investments.

Neil:

They absolutely are.

Mike:

That’s why you’ve developed what

you call your “1,000X Formula.”
It helps determine whether a startup could shoot up 1,000X – or
whether it’ll just go up in flames.

Neil:

But that’s just one piece of the puzzle.

That formula is only effective if you can get your hands on the hottest
startup deals.

If you wake up one morning and decide you want to become an angel
investor, that doesn’t mean the next Airbnb is going to knock on your
door and beg for your money.

Mike:

So you’re going to share your “#1 Secret for Finding Billion-

Dollar Deals.”
And you already have the scoop on two angel deals that made
the cut.

Neil:

We do.

Mike:
Let’s jump right in.

Robert, basic question: Someone stops you on the street and asks,
“What is angel investing?” What do you say?

Robert:

A million ways to answer that – but I have one I really love.

Imagine being one of the first to invest in the next Steve Jobs, the next
Bill Gates, or Elon Musk. 

I’m talking the next generation of visionaries. 

They’re out there right now working on ways to cure cancer, conquer
artificial intelligence, produce healthy food for a rapidly growing world
population… 

You can be right there, at the beginning of their stories – when their
companies are called startups because they’re just starting up. 

You’re investing before they IPO, if they

ever do.

And because you’re there at the

beginning, the upside is infinitely
greater.
That's angel investing to me.

Mike:

Love that answer.

Neil – like Robert, you’ve amassed a great deal of wealth as an angel

investor.

Something else you both have in common: You’re two of the most
successful entrepreneurs alive today.
You created one of the top 100 most brilliant companies in the world.

That’s according to Entrepreneur magazine.

You’ve made the White House’s list of the top 100 entrepreneurs
under the age of 30.

Then the United Nations’ list for top 100 entrepreneurs under the age
of 35.

Tough getting older, isn’t it?

Neil:

Yeah, I guess so.

Mike:

Robert explained what angel investing means to him.

Why don’t you give us your answer?

Neil:

Mike, when we were kids, we all dreamt about what we wanted to be

when we grew up.

Some of us wanted to be doctors, or professional baseball players, or

policemen. I wanted to be an astronaut.

Most of us never became what we dreamt

of as kids.

But as angel investors, in a way, we

can make our dreams come true.
Will I ever walk on the moon? No.

But what if I was one of the first people to invest in SpaceX?

SpaceX is building rockets that carry cargo and eventually astronauts

to the Space Station. 

They’re planning missions to Mars.

The money I used to back SpaceX in those early days, no matter how
small, would be helping make all of that happen.

Mike:

And let’s not kid ourselves. You could make a lot of money from being
there at the very beginning.

Neil:
Mind-blowing amounts of money.

SpaceX doesn’t go from being

worth $18.8 million to $30.5
billion without their early angel
investors.
Can you imagine being on that rocket ship as it soared 162,234% in
value?

Or what about 23andMe?

You want to spot a possible health risk that could hit you in 20 years
so you can prevent it today? You’re using their genetic test.

23andMe jumped from a valuation of $47 million to over $2.3 billion.

That’s 4,894%.
Angel deals obviously don’t all play out like this. Some don’t work out
at all.

Others, you can get these rare, massive outcomes.

Look at Alibaba.

It’s now one of the biggest e-commerce companies in the world. 

The earliest angel investors got in when it was worth $10 million.

It’s reached $542 billion since.
That’s 5,419,900%.
Without you, as one of those early angel investors, none of this
happens.

Robert:

Mike, there are so many stories of people launching startups in their

garages or basements that go on to become worth tens of billions of
dollars.

Jeff Bezos started Amazon in his garage.

He had about 20 angel investors at the

beginning.

If they held on to their shares, last year

they would’ve each made $7 billion.
 A return of 14,000,000%. 
Reid Hoffman started LinkedIn out of his apartment.

His startup went from being worth roughly 10 million to $26.2 billion. 

Neil:

Pierre Omidyar launched eBay from his living room.

In 1997, eBay was worth $20 million. 

By 1998, $21 billion.
That’s 105,000% in a year.
If you’ve never been an angel investor, a company growing that fast is
impossible to fathom. 

Mike:
We’re watching this play out right now with Bird scooters.

Robert:

Oh my goodness, talk about a startup that exploded. 

You can’t walk around a major U.S. city without seeing people zipping
up and down the sidewalks on these scooters.

Grandmas, teenagers, everybody’s doing it.   

Neil:

Bird is a force to be reckoned with.

They took an old technology – scooters – modernized it…

And they used it to solve a big problem. 

In busy cities, it can take a long time to travel short distances in a car.

But a scooter on a sidewalk? You can get where you’re going pretty
fast.

In under a year, they went from being worth

about $25 million to $2 billion.
 That’s a 7,830% jump.
Robert:

Doesn’t that sound exciting? 

Who doesn't want to be a part of that?

Mike:

For a long time, though, most Americans couldn’t become angel

investors.

Robert:

That’s true.

For most of history, this was a private market, or as you put it earlier –
a secret market, exclusively for the rich and powerful.
If you couldn’t invest $50,000 or $1 million into each deal – tough luck
for you.

That all went out the window when Congress passed the JOBS Act. 

It had a specific clause in it – Title 3 – that changed everything.

Neil:

It instantly, like that, made 240

million Americans eligible to become angel
investors.

Basically, anybody over the age of 18.

Now you can invest $50, $100,

maybe $500 or more in a startup
and it can change your life.  
Robert:

What’s wild is the vast majority of people have no idea this happened.

They’re missing out on one of the greatest drivers of wealth creation

that’s ever existed.

Neil:

They are.
 I mean, the reason I got into angel
investing is it allows the little guy –
the underdog – to become a
multimillionaire.
Robert:

A buddy of mine – Chris Sacca – perfect example of that.

Forbes estimates angel investing took him from a net worth of

basically nothing to $1.2 billion.

Chris was one of the first to cut checks to Twitter, Uber, Instagram,
Kickstarter, and WordPress.

Mike:
He’s been on Shark Tank a few times. 

Robert:

Yes, he has.

Neil:

Wears that same cowboy shirt every time too.

Robert:

It’s kind of “his thing.”

But when you reach that level of success, you can wear whatever you
want. 

Mike:

You both have gone from rags to riches as well.

Robert, anyone who watches Shark Tank has probably heard you tell

the story of your childhood; your early years were no picnic.

You, your mom, and your dad had to escape communist Yugoslavia…

Robert:

Look, it wasn’t easy back then.

Dad was a political prisoner. 

He had the courage to speak out against communism – and that got
you arrested in those days.

They locked him up 22 times.

After that 22nd time, they told him, “Come here again, you’re never
getting out. It’ll be the last time anybody sees you.”

Mike, when you’re facing that kind of nightmare – yeah, you’re

doing whatever it takes to escape.
That’s what we did – with $25 to our name and one suitcase
between us.

We snuck over the border into Italy and got on a boat called the
Cristoforo Colombo – named after the explorer.

Mike:

We found a picture of that boat. 

Robert:

You did?

Mike:
Yeah, check it out.

Robert:

Wow, that’s it!

Mike:

This ship took you to Canada, right?

Robert:

And we didn’t speak a word of English when we got there. 

We had no money, and we lived in a friend’s basement for 18 months.

Dad was working two to three shifts back to back to back for any job
he could get.

It was really tough.

I learned my work ethic from my parents. I didn’t want their sacrifices

to go to waste.

Mike:

And look at everything you’ve accomplished.

Robert:

I’ve been very fortunate. 

When I started my first business, I wasn’t looking to get rich. 

I just knew I didn’t want to be poor ever again.

Mike:
Neil – like Robert, you’ve already experienced enough success for
three lifetimes.

Which is remarkable, considering you also came from very humble

beginnings. 

Tell us about your early years.

Neil:

Sure thing.

I was born in London, but when I was really little, my parents decided
they wanted to give me and my sister a shot at the American Dream.

We ended up in Orange County, California, living in low-income

housing.

Money was really hard to come by.

My dad worked in a print shop. My mom was a teacher, but when we

got to America, nobody accepted her degree.

So every morning, she would push me and my sister in a stroller to

school and then teach there for free – no paycheck.

She did this for six months, hoping they’d give her a paying job. And
they did.

My parents taught me you have to bust your butt in this country

to make it – nobody is going to hand you anything.

Mike:

Would you say they were your inspiration when you launched your
first business?
Which, correct me if I’m wrong, you did before your 16th birthday.

Neil:

They definitely inspired me.

And yes, I was almost 16 years old.

I was working at Knott’s Berry Farm – that’s an amusement park.

I was making $5.75 an hour picking up trash. They told me if I’d clean

the toilets, I could make an extra 50 cents an hour.
I was like, “Woah, $6.25 is way better than $5.75.”

Mike:

Give me that toilet scrubber!

Neil:

I wasn’t above cleaning toilets to earn a paycheck.

Still, I wasn’t satisfied. I was searching Monster.com at night for better

jobs.

Then I discovered Monster.com was making hundreds of millions of

dollars.

I was like, “This is just a website that lists jobs, I can create something
like this.”

And I did.

Suddenly, I’m getting over 100,000 visitors a month. I realized I

was pretty good at this internet stuff.
So I launched a consulting company. Ad agencies were hiring me
to work with major brands.
At 16, I was making $20,000 a month and I didn’t look back.

Mike:

And today you’ve become a secret

weapon for Fortune 500 companies.
Your client list is a who’s who of multibillion-dollar firms.

And somehow you found the time to write the book Hustle.

The title perfectly describes your life. You've been hustling for quite
some time.

And not surprisingly, it became a New York Times bestseller.

Neil:

It’s been a fun ride, that’s for sure.

Robert:

Neil’s story, it goes to show you, this is America – this is the land of
opportunity.

His parents wanted to give him a chance at the American Dream. A lot
of people have different ideas about what that means.

For me, it’s about being in control of my own destiny.

That's what I love about angel investing.

It gives me control of my own destiny, because I’m right there – with

these companies – at the very beginning of their stories. 

When you invest in a startup, the founders will probably know your
name.

They’ll ask your opinion on their strategies,

growth plans – you’re essentially one of
their partners.
 And that’s not just because I’m on Shark
Tank. It’s programmed into the DNA of the
startup community.
As an angel investor, you can have some control over the future of
every startup you back. And that’s really exciting.

This doesn’t happen with publicly traded companies.

Say you buy shares of Netflix.

Do you ever expect to get a call from Reed Hastings – the founder
and CEO – and he’s like, “Mike, I got a big-budget movie I want to
green light.

“It’ll cost me $100 million. I love it, but my guys in accounting think I’m
crazy.

“I’m sending you this script to get your take.” 

Mike:

No chance.

He’s got millions of shareholders.

Robert:

Neil just mentioned SpaceX – one of Elon Musk’s companies.

What about another, Tesla?

If you buy shares of Tesla’s stock, do you expect to hear the phone
ring, you pick it up and it’s Elon on the other end going, “Mike, what do
you think about the design of this new prototype I’ve been working
on?”

He’s not making that call.

Neil:

Didn’t Elon build you a custom Tesla?

Robert:

Yes, incredible car, too, but I know Elon.

And I know he leaned heavily on his angel investors in the early

days.  

At one point, they were debating whether they could realistically take
on the big boys like Ford and Mercedes. Or whether Tesla should just
sell them the software and motors.

They decided, “We’re going to build the best electric cars.” And they
did.

Mike:

Despite all the drama in the news, they made the right decision.

When Tesla was a startup, it was worth $7.5

million.
Today it’s a publicly traded firm on the
NASDAQ and has reached a valuation as
high as $64.8 billion.
 Those early angel investors clearly
played a role in this company
soaring 863,900%. 
A lot of folks aren’t sure what to make of Elon Musk. 

Is he being controversial to get press? Is he maybe a little crazy? 

If you’re one of his angel investors – does it even matter?

Neil:

No, it doesn’t. He made them a lot of money, so his angel investors

should love him. He was a great partner.

Mike:

Okay, but when you talk about partnering with these founders, you
don’t have to sit at a desk in an office or punch a clock. 
There’s no 9-to-5 grind.

Robert:

No, no, no. Angel investing is the furthest thing from a job.

Don’t get me wrong, I love running my business.

I hear my alarm ring at 5 a.m., I jump out of my bed like “Woohoo! I’m
ready to put in a hard day’s work.”

But I got into angel investing because I can potentially make the same
returns as I would from my own companies.

Look at it this way.

I started my first company with $100. Eight

years later, I sold it for over $30 million.

That’s a 300,000X return.
I took $100,000 from that deal and launched the Herjavec Group.
Now it’s generating $250 million a year in revenue. Incredible
return. 
Only angel investing can deliver windfalls like this.

Neil:

Robert hit the nail on the head.

Outside of starting your own business, where else can you

potentially turn $50 or $100 into a life-changing windfall?

Mike:

Actually, that’s a perfect segue to what I want to talk about next.

Check out this headline from Inc. magazine.

It says that…

If you’re investing in stocks – specifically tech stocks – you’re

missing 95% of the gains. 

Neil:
That’s pretty accurate.

Mike:

I know, but if this is the first time you’re hearing this, it’s shocking.

Most investors rely on stocks for their 401(k)s or IRAs.

And Wall Street has created a lot of wealth for people over the years.
Probably a lot of people watching this.

But now we’re telling them, “That’s peanuts. There’s this private
market out there where angel investors are taking 95% of the
winnings off the table before YOU ever get YOUR shot.”

In the old days, most Americans couldn’t

get into this private market. Now they can.
So, big question: How do they make
money from angel investing?
Robert:

There are three main ways. They’re called “exits.”

The first type of exit: you invest in a startup, it takes off.

And down the road, it IPOs on the NASDAQ, New York Stock
Exchange, or wherever.

Mike:

Those three letters, I-P-O… they generate a lot of excitement.

Because for most, this is the earliest they can invest in a company. It’s
as big as it gets.

Robert:

Not for angel investors. And I only need four letters to prove it.

R-O-K-U… Roku.

It’s hard to find somebody who doesn’t know what their remote looks
like.

Neil:

If a room in my house has a TV, my wife has bought a Roku for it.  

Robert:
That’s because people are cutting their cable cords. They’re picking
and choosing which channels they like. And using streaming services.

Roku makes this easy.

They announce they’re going public. Their IPO is a hot ticket. But
guess what?

From IPO to peak, Roku’s stock has jumped 264%.

Not bad.

Now guess how much – you already know the answer.

Mike, guess how much Roku has jumped since its startup days.

Mike:

How much?

Robert:
48,481%.

It’s stunning. 

Neil:

Another way to think about it. Picture one of those pie charts.

The whole pie – that’s 48,481%.

That’s what was there for angel investors.
Then you have this tiny, little sliver. That’s what was left over for
everybody else.
Everybody who had to wait until IPO day to invest.

Mike:

Long story short, if you’re waiting until a company goes public to

invest, you risk settling for crumbs.

Robert:

So don’t wait until an IPO to invest.

Target startups that could
eventually IPO.
If and when they do, you are going to be a
legend.
Neil:

That’s how Dropbox’s story played out.

If you need to send somebody a large document or a 1 terabyte video,

you can’t attach it in an email. It’s too big.

You need a company like Dropbox.

Their IPO was a headline grabber. But should it have been?

IPO day: Dropbox was already worth over $11 billion.

Robert:

When a company is already worth that much before they go public,

you have to ask yourself – can they continue to multiply in value?

Neil:

Apparently not.

Since IPO day, Dropbox has only gone up as much as 51%.

Not exactly the kind of money that has you shopping for a beach
house in the Hamptons.

Dropbox’s angel investors might have been, though.

They had the chance to get in when the company was worth $5
million.
$5 million to $11 billion – that’s 336,300%. 
Robert:

Forget about a small beach house

in the Hamptons. Now you’re
mansion shopping.
Mike:

Or private island shopping.

Seriously though, ahead, you’ve got something that could help our
viewers uncover angel investments with that kind of potential.

Your “#1 Secret for Finding Billion-Dollar Deals.”

You’re also going to walk everyone through your 1,000X Formula.
It helps you quickly analyze every angel deal.
 Most importantly, we have two
startups ready to showcase that
have passed that formula. They
each have the potential to deliver
a 1,000X return.
But right now, I want to stay on the topic of IPOs. We’ve seen a pretty
major shift happen.

In that there’re fewer IPOs now compared to the late ’90s and early
2000s.

More companies are just choosing to stay private.

Why do you think that’s the case?

Robert:
There’s no reason to go public to raise cash.

We already shared the numbers – the money being invested in

startups is insane.

Now founders can just keep their companies private. No worrying

about hostile takeovers.

No worrying about chaos in the stock market bringing down the value
of their companies.

I get it, when someone hears there are fewer IPOs, they may think,
“Well, how am I supposed to earn a return now?” 

That’s why the second exit opportunity is

so big. 

M&A – mergers and acquisitions.

Right now, big firms are buying startups left and right – and
paying hefty premiums.
In the ’80s and early ’90s, $300 billion, $400 billion, or $500 billion a
year was being spent on mergers and acquisitions.
 Now it’s around $4 trillion, give or
take.
There are tons of companies with oodles of money on the hunt for
startups to buy.

Famous story: March of 2010 – two guys from Stanford pitch a photo-
sharing app to angel investors. They’re valuing their company at $2.1
million.

For the next seven months, they’re tinkering with their app, working
out the bugs.

Only 80 people have downloaded it. Not even enough to fill a movie
theatre.

Then they catch fire.

Two months later, their app – Instagram – has over one million
users. It’s exploding.

Mike:

Becomes a household name.

Robert:

And then Facebook comes calling. They buy Instagram for $1

billion.
From startup days to acquisition, the value of Instagram jumped
47,519%.
They didn’t need to go public. And their angel investors made a
ton of money.

Facebook, Microsoft, Cisco, Amazon, Google – the big guys – they

have the cash to buy just about anybody they want.

And that’s what they’re doing.

Neil:

I don’t know if this has ever happened to you, but sometimes you can
get the best of both worlds – an acquisition and an IPO.

Robert:

Absolutely. You have a story to share here, don’t you?

Neil:

I sure do.

So, Mike, I was an angel investor in a startup called Walk Score.

It was founded by two former Microsoft engineers.

Walk Score patented a way to measure the value of the schools,

parks, restaurants, and a long list of other perks in a
neighborhood.

They combined all these things into a score, 0 to 100.

Founders build their prototype, send it to 15 people. They shared it

with their friends.

Within 24 hours, 150,000 people had tried out Walk Score.

Soon Zillow, Trulia… altogether, 30,000 real estate websites

began to use it.
But one decided they needed to own Walk Score – Redfin.
They opened their checkbook and asked the founders, “How
much?”

Robert:
And how much was it?

Neil:

I can’t tell you, but I can say it was a lot of money.

So I invested a tiny amount in Walk Score early on.

When Redfin bought them, I was handed a check, I believe it was

for around $40,000.

But as a kicker, they also tossed in Redfin shares. 

Robert:

How nice of them.

Neil:

Wasn’t it?

At the time, Redfin was a private company.

Then it IPO’ed.

I sold those shares and made another $88,000.

 So a tiny investment transformed
into a $128,000 windfall.
Robert:

Mike, if Redfin never IPO’ed, that doesn’t mean Neil would’ve been
stuck holding those shares.

When you have a piece of a hot startup, most likely a large

venture capital firm or even another angel investor will offer to
buy your shares.
That’s the third type of exit.

Neil:

This is a very, very common outcome.

I was just paid $8.5 million for an investment I made around three
years ago.
It was a return of more than 8,400%.
At this moment, I have another angel deal
in my portfolio that is up 8,200% in about
two years.
I’ve got an offer to sell my stake in that one too.

Mike:

So you’re talking about making...

Neil:

Eight figures on that deal.

Mike:

Over $10 million.

Neil:

Conservatively.

Robert:

Why don’t you sell?

Neil:

I believe I can make even more if I wait.

Or maybe I never sell. 

There are situations where it doesn’t make sense to.

If you know how to access the right deals, you can collect
dividends.
And not those pathetic dividends stocks pay. They’re averaging,
what, like 2% a year?

Mike:

That’s about right.

Neil:

I’ve got an angel deal in my

portfolio that’s paying investors up
to 110% a year in dividends.
Robert:

Mike, earning 110% on your money just on the dividends… all I can

say is “Wow.”

Publicly traded stocks aren’t paying you that.

Then you have more dividends coming next year. Plus, the potential
for a large exit down the road too.

Neil:

I’d be more than happy to just sit back and collect those kinds of
checks year after year.

Mike:

The numbers we’ve been throwing around today are nearly

incomprehensible.
And when you’re talking about transforming small amounts of money
into six figures or millions of dollars… one word comes to mind: risk.

You can’t have this kind of upside without the dreaded “R” word.

What do you say to people who think angel investing is risky?

Robert:

I say, “Yes. Yes, it is.”

Angel investing is speculative.

And it’s certainly riskier than buying shares in blue-chip stocks.

But this comes down to diversification.

A lot of these startups don’t make it.

So if your goal is to invest in one angel deal and call it a day,

yeah, you are opening yourself up to a lot of risk. 
Mike:

That’s the case with any strategy that involves putting all your eggs in
one basket.

Robert:

So don’t put all your eggs in one basket!

There’s no reason to.

You don’t have be rich to build a diversified portfolio of startups

anymore.
You don’t have to
invest $50,000 or $100,000 or more
in each deal.

If you only have $500 to play with,

you can now take that, divide it up
 into smaller pieces, and invest it in
10 different startups.
Neil:

I’d argue a diversified portfolio of startups is less risky than a portfolio

of… maybe, NASDAQ stocks?

Sounds crazy, but hear me out.

There have been…

What do you think, at least 10 studies comparing stock market returns

to angel returns?

Robert:

Ten that we know about.

Neil: 

And they all came to the same conclusion.

The Federal Reserve studied angel investments over a 35-year

period.

According to the Fed’s data… and I have two piles of money to

demonstrate this. 

Robert:

You brought props?

Neil:

I did, didn’t you?

Robert:

I wish I had now.

Neil:

This first pile – technically, it’s not a pile – just a single dollar bill.

For every dollar you could’ve made in the stock market…

Angel investors could’ve made what’s in this second pile from
backing startups: $1,650.

Robert:

I’ll take that second pile.

Neil:

It’s about to get pretty big too.

 If you had invested $500 in angel
deals, you would’ve been sitting on
over $165,000. 

That’s just over the first 10 years of the Fed’s study. 

After that, the numbers are astronomical.

Robert:

Of course, there’s a wild card.

If you strike gold and one of your angel deals becomes a unicorn, the
math changes big time. All bets are off at that point.
Mike:

That term you just mentioned: unicorn.

Let’s make sure everybody knows what you mean.

Robert:

Definitely not talking about some mythical horse with a horn on its
head.

“Unicorn” means a startup worth $1 billion or more.

“Decacorn” – that’s a startup worth at least $10 billion.
I’m not sure they even have a nickname for one worth $100 billion.

Neil:

They should just call it private-island

money, because if you invest in a startup
that reaches a $100 billion valuation…
Robert:

Start shopping for that private

island – it’s true.
Mike:

When you’re in the position where you have all of these exciting deals
at your fingertips, you need a way to determine which could be
winners – and which are nothing more than hype.

It’s your 1,000X Formula.

Tell us about it.

Neil:

Why don’t you kick this one off?

Robert:

Sure thing.

It is very simple.

Smart company + big problem + big market = big

money.
Invest in smart companies that
solve big problems in big markets.
When I say “smart,” I mean a company that’s stable. 

The founders aren’t flying by the seat of their pants.

They have a clear vision and a plan for executing.

This formula helps us target startups that are more predictable – in

that, we believe we can count on them to pay a hefty return.

Neil:

This isn’t the time to be shy. Angel investing is about swinging for the
fences.

It’s called
the 1,000X Formula because you
want to find startups that could pay
you a 1,000X return.
And you want to immediately eliminate the deals you shouldn’t touch
with a 10-foot pole.

Quick story: Recently, I was offered the chance to invest in a company

that hopes to build luxury hotels.

Mike:

A lot of competition in that area.

Neil:

Not where they’re planning to build them. 

Try to keep a straight face when I tell you this… 

Outer space.

Robert:

Seriously?
Neil:

What are the chances of that actually happening?

Robert:

One in a billion.

Neil:

Mike, this is exactly the kind of deal newer angels chase.  

What big problem does it solve?

Mike:

Not enough luxury hotels in outer space?

Neil:

Wait… it gets worse. 

They’re planning to sell tickets for up to $60 million a pop. 

Who’s dying to fork over that kind of money to stay in a space
hotel?

Mike:

Maybe Martians?

Neil:

Maybe.

This startup fails the formula in seconds.

Believing you’ll earn 1,000X your money on that deal is like a 90-
year-old man marrying a 22-year-old bikini model and fooling
himself into thinking it’s true love.
For me, I’ll take a smart startup that solves a big problem in a big
market every day of the week.

Mike:

Such as?

Neil:

Off the top of my head… Remitly. 

Years back, they set out to change the way we wire money.

It used to be that if I wanted to wire money to my relatives in India, I’d

have to walk into my local Western Union, take cash out of my pocket
– like physical cash – then hand it to a window teller.

Well, that office takes a piece of that transaction. And that’s just the
beginning.

Next, Western Union is going to send my money to a local bank

they’ve partnered with.

Then it’s going to what’s called a “correspondent bank” in America.

Then to another bank in India. 

Finally, it lands at the Western Union over there.

Robert:

And every step of the way, somebody took their piece of the action?

Neil:
You know it.

Depending on where I send my money, I could lose 25 cents out

of every dollar to all these middlemen.

What’s left goes to my family who had to make the trek to pick it up in
person.

And it would take days, even weeks, for my money to reach them.

So this guy, he was a top exec at Barclays Bank. He says, “There’s

gotta be a better way to wire money.”

Mike:

He wants to invent a better mousetrap.

Neil:

He was the right guy to do it too.

At Barclays, he oversaw their mobile banking projects. He realized he
could cut out a lot of these middlemen…

Using a smartphone.

He launches Remitly. And he builds an app that allows me to wire

money directly from my phone to someone in my family.

The money can be deposited in their mobile wallet, or their bank

account, or they can still go pick it up. All for a fraction of the
cost. 

And instead of days or weeks, the money can arrive instantly.

Robert:

What a great business idea.

And Mike, it passes the formula with flying colors.

Smart company + big problem + big
market.
Neil:

Huge market. $642 billion a year and growing.

Mike:

As an angel investor, I assume this added up to big money.

Neil:

I got into Remitly pretty early on.

I made a $25,000 investment and I

cashed out with a $425,000 payday.

Mike:
So definitely a yes.

You invested alongside the World Bank, as well as billionaires,

Jeff Bezos from Amazon and Eric Schmidt, who ran Google.

Neil:

Paul Allen’s firm too. He and Bill Gates founded Microsoft.

Mike:

You’re talking about some pretty heavy hitters.

Robert:

That’s just another thing to love about angel investing. Look at the
incredible people you can connect with.

When you invest early, you can grow your network with some of
the world’s most successful investors and founders – the
brightest minds in Silicon Valley and around the globe. 

Eventually, they may start bringing you deals.

I know some of my best angel deals have come from networking with
other angel investors.

Mike:

Neil’s startup, Remitly, clearly made the cut with your 1,000X

Formula.

Robert, why don’t you share one of your angel deals that did as well.

Robert:

I love Hungry Harvest.

Really smart company with an incredible founder – a young guy
named Evan.

Decides he wants to start an online business that sells ugly fruits and
vegetables.

Why would anyone in their right mind want to do that?

It solves a big problem. One-third of all food produced goes to

waste.

Adds up to 1.3 billion tons a year.

Farmers grow these perfectly tasty carrots, or apples, or tomatoes.

Because of some minor speck, the grocery stores won’t buy them.
They end up at the landfill.

Evan says, “Wait – there is nothing wrong with this food. And I bet a
lot of people agree with me.”
He goes to local farmers, buys up all their so-called ugly produce
and delivers it to customers every week. And get this…  
For every package he delivers, he delivers another to a homeless
shelter or foodbank.

Mike:

So smart company + big problem.

Robert:

Check and check.

And this is a big market.

Online food delivery is an industry that’s on track to reach $365

billion a year.

And Mike, this is so important to remember: You want to invest in

founders like Evan.

They take your money and it’s like pouring kerosene on a fire.

Before I invested in his company, Evan barely had any customers – a

few hundred.

Today, Hungry Harvest has so many people dying to become

customers, they can’t take them all. They have a waitlist of like
30,000 people.
And sales are through the roof,
up 25,714%!
Mike:
So did this equal big money?

Robert:

I haven’t exited yet.

I’m holding on to my shares. 

I want to see where this ride takes me!

Mike:
This 1,000X Formula of yours – it’s simple and it’s brilliant.
It helps you quickly determine whether a startup has the potential
to become a unicorn or better. But it doesn’t work on its own.
You also need your #1 Secret for
Finding Billion-Dollar Deals.
Neil:

This is what separates the legends from the leftovers.

Mike:

Let’s hear it.

Neil:

Are you ready?

DEAL FLOW! DEAL FLOW! DEAL

FLOW!
Robert:
Neil, you forgot something… DEAL FLOW!

The biggest challenge for any angel investor is getting access to the
best deals.

Sure, you can search around the internet and you’ll find startups
begging for money.

And there’s always somebody in your town who wants to open a bar
or restaurant. 

Those are desperation deals – that’s not deal flow.

When the founders of the NEXT

Uber, Airbnb, Facebook, or SpaceX
personally ask YOU to be one of
their first angel investors – that’s
deal flow.
Nothing is more valuable. It’s priceless. 

Neil:

I know of a guy; his name is Jason.

Big-time angel investor. He was handed the deal of a lifetime on a

silver platter.

Young founder comes to him and says, “I have two Lincoln Town Cars
driving around San Francisco. 

“When somebody wants to ride in one of them, they hit a few buttons
on my app. Minutes later, they’re picked up.”

Obviously, I’m talking about Uber.

Back when they only had two cars driving around San Francisco,
Uber was valued at $5 million.
Jason had the connections – he had the network.
That’s why he was invited to be one of Uber’s first angel
investors.

Robert:

A while back, when news started to break that Uber was going public
– the valuation being tossed around for IPO day was $80 billion.

Neil:

It’s so rare to get the chance to invest in a startup that goes from
being worth $5 million to $80 billion – that’s 1,599,900%.

Robert:

That’s why it’s all about DEAL FLOW, DEAL FLOW, DEAL FLOW!

Neil:

And DEAL FLOW!

Robert:
Ya know, we’re at this amazing moment in time.

The walls have finally come down; you don’t have to be rich, or
famous, or powerful to become an angel investor.
But I’ll tell you, it doesn’t matter if Congress opened the doors
for everyone.
With the hottest startups, the next Uber or Bird Scooters, you still
need someone to open another door, so those founders invite
you to invest.

Neil:

We’re here today, because we want to help open those doors for
as many people as possible.

Because…

Angel investing presents the best

opportunity for someone to
transform a small amount of money
into potentially millions upon
millions of dollars.
Mike:

With that, we have a major announcement to make.

Today, we are officially launching

the…  
This is a first-of-its-kind venture. And it’s going to be big.

Neil:

Yes, it will.

We’ve created something that’s going to unite our members with

some of the most successful angel investors on the planet.
Folks like myself, we have the expertise. Most importantly, we
have what we just talked about: deal flow.
We’ve arranged for the founders of the most coveted startups –
the ones with unicorn potential – they’re going to pitch their
angel deals right to our members.

Mike:

Putting myself in the shoes of someone watching this at home…

I’m intrigued. But I’d have a lot of questions.

The first of which being: I join the Angels & Entrepreneurs Network,

what happens?

Neil:

Great news, you just became a Founding Member.

Every month, our team is vetting hundreds of angel deals.

99% of them, we throw away immediately.
They fail the 1,000X Formula. And that’s the point.
From those that do make the cut, every month, we’re going to
select two startups and showcase them.
For each, you are going to receive
what’s called a Due
Diligence Package. 
Robert:

So a Due Diligence Package sounds fancy and official – because it is.

Founders place their most sensitive information in them.

You’ll see their pitch deck – that’s their official investor

presentation.
You’ll also see documents revealing their business plan, their
projections, any proprietary technology they’re developing, every
deal they have in the works… it’s all in there.

I take a magnifying glass to every detail in a Due Diligence Package.

You’re playing the role of detective. 

Could this be the next billion- or multibillion-dollar startup?

You’re looking for clues, a trail of evidence to follow, that gets you to a
“yes” or “no.”

Neil:

We’re going to help with that.

For every startup, we’re adding

our Angel Investor Action Plan to
the mix.
We’re going to give you our independent analysis and research on
that startup.

I’m also going to film a Deep Dive Video. I’ll go through the deal,
assess all the risks, and explain what I like and dislike.

I’ll discuss whether it's a startup that could IPO, get acquired, or
eventually kick out enormous dividends to its early investors.

And if you decide you want in on that angel deal, you’ll receive step-
by-step instructions.

You just follow the instructions – it’s very easy.

Mike:

And we have a pretty big surprise.

We’ve already selected two startups to showcase.

Neil:

We most certainly have.

Mike:

Two potential unicorns?

Neil:

Mike, you don’t become an angel investor to find deals that could
make you 10%, 50%, or even 100%.
You can take your chances with the stock market for that.
You should only be seeking deals
that could pay you 1,000X or more.
That way, if they deliver only half… or one-tenth… heck one one-
hundredth of that – you’re still going to make a lot of money.

Take Remitly – it had 1,000X potential.

I transformed my $25,000 investment into a $425,000 payday.
I just had another deal pay me $8.5 million.
Neither were a 1,000X return, but I’m still really happy about how
things played out.
And I’ve got another deal that is up 8,200%. I’m really happy
about the idea of making eight figures on that too.

Mike:
So each of the startups we’re showcasing today could pay out
a 1,000X return?

Neil:

What’s great is we’re giving members the information and research

they need to answer that for themselves.

But to answer your question: Yes, in my opinion they do.

Robert:

Mike, there’s another major difference between investing in a startup

versus a publicly traded company.

Time is on your side with angel deals. The terms are already set. 

That startup has a valuation that isn’t subject to the whims of the stock
market.

This gives you the luxury of time.

Neil:

We’re going to take advantage of it.

We built this incredibly robust, members-only website. It’s our

Virtual Boardroom. 

Once you get the details on a startup – you can spend the next week
participating in a series of debates with members about it. 

Does this startup have what it takes to become the next unicorn?
Debate that, discuss it with each other.

Let’s pretend it’s 2015 and you have the opportunity to invest in
Desktop Metal. It’s a startup that wants to be the leader in 3D-printing
technology.

You’ve gone through all of the information in the Due Diligence

Package; the pitch deck looks incredible.

But there’s a catch.

The founders placed a hefty price tag on their startup – a little

over $32 million.

Mike:

So if I was thinking about investing $50, or $500, or $5,000, I

better make sure this startup has the potential to become worth
billions.

Robert:

Every angel deal, no matter how much you like it at first, you must pick
it apart and punch holes in it.
If you can do all of that and still come away excited, you may have a
winner on your hands.

Neil:

With Desktop Metal, you would have.

In under two years, that company went from roughly a $32 million
valuation to over $1 billion.
Then it kept going, hitting over $1.4 billion.
It soared 4,474%. 

Mike:

Time to pop the champagne.

Neil:
Exactly, and we want you to have the opportunity to do just that.

So one week after you’ve received all the information on a

startup, we’re going to put the founders through a Hot Seat
Session.

This is a live video chat.

You can submit your questions in advance and the founders are going
to answer the most popular ones.

Robert:
You’re looking for those personality traits you can’t quantify on a
spreadsheet.

I look for people with great purpose.

Starting a business is hard. 

There is going to be a lot of pain. These founders are going to get

knocked down. 

The question is, do they have what it takes to get back up?

Tipsy Elves is one of my favorite angel deals because I knew right

away the founders were winners.

One was a doctor, the other a dentist.

They gave up their careers to start a company that makes funny and
inappropriate shirts for Christmas, St. Patrick’s Day, and so on. 

You’re either nuts or a genius to take such a risk.

Something about the founders just clicked with me. I invested when
the entire company was worth $1 million.

They’ve done over $100 million in

sales since. And they’re still
growing!
Mike:

Members should use these Hot Seat Sessions so they can

determine if the founders are winners – like Robert’s guys.
He did pretty well with that deal.

Neil:
Yes, that’s the purpose of each Hot Seat Session.

And when it’s finished, we release our Hot Seat Briefing. It’s a

summary of all the questions and answers.

The goal is to arm you with so much information, you’ll be able to

make a smart decision about whether or not you want to invest.

Mike:

Yes, and once you invest, it can be a pretty wild ride as a startup goes
from an early-stage company to hopefully a billion-dollar unicorn.

Talk about how we’re going to keep members updated on every

development.

After all, startups are notoriously secretive. 

Robert:

For good reason.

They have to keep what they’re working on under wraps, so

competitors don’t try to rip them off.
Neil:

Which is why, normally, founders don’t offer smaller angels “Investor

Updates.”
By “smaller angels,” I’m talking about people who invest less than
$50,000.

That’s not happening with us.

It doesn't matter if you invest $50 or $50,000 – or you don’t invest

at all.
You will receive Investor Updates for every startup we showcase.

Mike:

Explain Investor Updates.

Robert:

They’re like progress reports.

Founders prepare them every month or quarter.

They document where they stand with revenue, new deals they’ve
inked.

They’re transparent about any setbacks they’ve experienced because

even the best startups face challenges along the way.

Neil:

Here’s a little secret about these updates.

Sometimes you can use them to get free shares in a startup.

It’s kind of standard for founders to ask for advice on their advertising
or hiring or if you can introduce them to a potential client.

If you really help them, they may give you free shares.
I couldn’t even tell you the value of the free shares I’ve received over
the years.

Mike:

Over a million dollars’ worth?

Neil:

Easily.

Mike:

Not a bad perk.

Neil:

These Investor Updates are so important – I’m going to cover

them in our Virtual Boardroom Meetings every month.

I’m also going to talk about them in our Momentum Report.

It’s a streamlined briefing that sums up the major developments with

these startups. 
We’ve also built a Deal Flow Tracker.
When a startup announces a new valuation, we’ll automatically
update it.
Every quarter, we also prepare The
State of Angel Investing report. It’s
got the major statistics and trends
in it. 
Mike:

And what are the hottest trends in angel investing?

Robert:

A lot of excitement around A.I. – artificial intelligence.

Neil:

Machine learning.

Robert:

Machine learning is huge.

Also, big growth with smart-home technology.

Neil:

Anything in cloud computing immediately catches my eye.

Robert:

That’s a hot ticket too.

Mike:
Initially, most of the deal flow will come from these startups you’re
showcasing.

But we’ve also created private forums where members can share
deals they’ve found with each other. 

Neil:

We’re expecting a lot of entrepreneurs to join our ranks as well.

We have a Founder’s Corner for them, where they can talk about
their businesses.

Maybe the idea for the next unicorn is hatched there. That could mean
more deal flow for our members.

We also want our angels and entrepreneurs networking in the real

world.

They can just push a couple of buttons and launch a local chapter in
their town or city.

We’ve made it easy to organize meetups at restaurants, bars, or any

other spot.

Robert:

The network effect is very real.

The more people in your network – the more connections you have –
the more opportunities you’ll be presented with. 

Neil:

The more you’ll learn too.

Robert:
Without a doubt.

I'm going to drop a big name.

A long time ago, I met Oprah Winfrey. 

I was like, “Oh my God, it's Oprah!”

Whenever I meet somebody that's successful at something – and not

just celebrities – I always ask them, “Can you give me a piece of
advice?”

Oprah said great leaders – and people who achieve greatness – are
great learners.

If you want to get somewhere quickly, go with someone who's already

been there.

Neil:
I love angel investing, because I can continually learn from some of
the brightest minds, and that makes me a better person.

So every month, I’m hosting an Angel Investor Master Class with

one of the legends.
They’re going to tell you their secrets. They may even share a
deal that you can participate in.

Robert:

That means more deal flow!

Mike:
And the Angels & Entrepreneurs Network is all about deal flow. 

We created this for everybody.

Even if you’ve never invested in a startup before – you can now

join forces with the legendary angels and the legendary
entrepreneurs. 

We’re bringing everybody together.

And you’re going to receive this incredible welcome package. It

includes our Angel Investor’s Boot Camp. 
It’s a video series – like a 101 course.

There’s also an Angel Investor’s Cheat Sheet. It’s a set of

questions every founder needs to answer before you invest in
them.
We’re tossing in a Deal Flow Notebook as well.

Perfect for writing down any thoughts you have during those Hot Seat
Sessions.

Neil:
Don’t forget the entrepreneurs.

We have a copy of my book, Hustle, for them. 

Mike:

And that’s a New York Times bestseller.

Neil:

It is.

Mike:

So let’s get down to business.

We’re officially launching the Angels & Entrepreneurs Network.

And these are Founder’s Memberships, which means they are special.

Down the road, the retail price to subscribe is going to be $599 a year.

Not for our Founding Members, though.

 Their
discount: 50%, 60%, 70%, 80% off –
it’s better than all of that.
Neil:

We don’t want this to be so expensive only the wealthy can join it.

If they’d like, members can take their savings and put it into their first
angel deals.

Mike:

Great idea.

You can click the button below to see our special Founder’s
membership rate.

Neil:
Before they do, Mike, we have one more surprise.

Every year, we’re hosting

our Angels & Entrepreneurs
Retreat. 

Miami, San Diego, the Cayman Islands – it’ll always be somewhere

sunny.

Members can network with each other. We’ll have founders come in
and pitch their startups – everybody in one place.

Mike:

It’s really just an excuse to throw a big party, isn’t it?

Neil:

Yes, it is.

There will be cocktail parties with champagne toasts, incredible food,

probably a lot of golf, the whole nine yards.

It’s going to be a lot of fun.

Mike:

Robert I’d like to present you with a Founder’s Membership Card to

the Angels & Entrepreneurs Network.

Robert:

Amazing, thank you!

Mike:

 Any last thoughts before we go?

Robert:

Just a few.

No matter who you are, there's some point in your life where you
arrive at a crossroads.

Go right, that’s the unknown path. But it may make your life a lot
better.

Go left, that’s the safe route – you’ve been down that road many
times.

And your first instinct is to take the safer route. That’s just human
nature.
Angel investing can be this new adventure. There will be risks
along the way, no doubt.
But you have the opportunity to grow, to learn, and to see
success.

If you take that first step on this

path, it can change your life.
Mike:

Robert, thank you for being here today.

Robert:

I had a great time! Thanks for having me.

Mike:

Neil, I have your Founder’s Card too.

Neil:

I’ll carry it with me everywhere. And I’d like to add to what Robert said.

I came from extremely humble beginnings to where I am now,

and I owe so much of my success to angel investing.
Sure, I’ve done quite well. I can afford the finer things in life; I’m
grateful for that.
But what angel investing has really given me is freedom and
control.

I never forgot how hard my mom and dad worked – all those late
hours – just so my sister and I had clothes on our backs.
When I made it, I said, “You guys are now retired. You don’t have to
worry about a thing.”

Giving my parents financial freedom – that’s what matters to me.

My wife and I launched our foundation… we’re funding education and

nutrition programs in developing countries.

Angel investing made all of this

possible. It’s been life-changing.
I want our members to experience this for themselves.

Mike:

What a great way to end this summit.

Neil, thank you.

Neil:

I’m ready to go to work!

Mike:

And I have your Founder’s Membership Card here. 

To claim your spot in the Angels & Entrepreneurs Network, click

the button below.

It’ll take you to a brief subscription form. 

Fill it out, and you’ll be rushed two Due Diligence Packages for

two startups – each has billion-dollar potential.
And you can follow our simple instructions to invest in both of them.
It’s extremely easy.

And remember, both startups have passed our 1,000X Formula, so

they both have the potential to pay you a 1,000X return.

Click the button below and we’ll tell you more about them.

And that’s just the beginning.

Every month, you’ll receive the

details on two new startups.
That means two more opportunities every month where you
could collect a life-changing windfall.
In addition, many of the legends of angel investing and Silicon
Valley will also be helping you build your deal flow.

I’m so excited to see what the future holds for you.

So let’s not waste another moment.

If you have any questions about the service and how it will work for
you, I encourage you to contact our reliable customer service team at
866-310-1498 or 410-501-5876 (for international calls) and mention
Priority Code: EAGNV602.

For Robert Herjavec and Neil Patel, I want to thank you for joining us.

I’m Mike Ward.

Have a great day.

Mike Ward
Co-Founder,
Angels & Entrepreneurs Network
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