Missed out on an Amazing VC Deal... Let's talk :(
Hope you're well during these tough times.
I'll keep this short for all my busy folks.
I have been in the CRE Sales/Asset Management space since College and started VC Investing a few years prior. (at the VERY VERY micro level) Simply because VC returns are amazing.
The Story about the VC Investment:
about 4Yrs ago I met a family that grew up not-rich. They worked hard via many blue-collar jobs (Retail service, Truck driving, leasing, etc) for 13+ yrs.
When we spoke they talked about how they are scrapping up $1m to start a franchise restaurant chain company. We were friends and so we talks a great ton about it and gave them insights over the months. They asked me if they wanted to provide capital because they need it to put the $1m as a Down payment. I chickened out for the associated risks of that industry.
Fast forward 4yrs. They have turned their $1m investment into a $100m company .
AMAZING... I was insanely bummed out for weeks.
FYI: 3.5-4yrs ago, $100K was equal to about 9.5% of my total net worth
The Potentials of the VC Investment.
Equity stake = 10%
4Yrs later... Company was doing about $9M - $10M in NOI.
THUS, at an average of 11X - 12X EBIDA multiple, the firm would be worth $100M.
Thus, making it a 10,000% ROI over 4yrs for me....
I am truly upset!!! at my myself.
They wanted $100K - $250K from me for a 10% - 20% stake in the company.
If I listened and invested just $100K for a 10% stake. I would have walked away with $10M today..