You may be wondering how investing works or how to get started, so today I’m sharing an investment I made back in 2018.
This was one of my first private equity deals, so I hope this helps shed some light on how YOU can get started with investing.
If I can do it, you can do it 🙂
The deal looked like this:
Engineering consulting company.
They helped billion-dollar companies that had unfinished robotics projects finish their prototypes.
(For context, if a company has spent millions trying to make a working prototype they are over on time and out of money, it could really bad when they have to report to shareholders that they “wasted” millions).
So the company I invested in finished the robotics projects and saved the client’s money and image.
One deal could range from $100k-$5,000,000 per project to do this.
I invested in them as a startup.
I put $10k into the company and got 7% “ghost” equity.
The valuation of the company when I bought it was just under $200k.
In year one they grew by 26%.
My $10k investment at then end of year 1 = $13,000.
In year 2 they grew by 300%.
My $10k investment after Year 2 = $39,000.
Year 3 they grew by 542%.
My investment after Year 3 = $211,000.
In three years my $10k turned into $211k.
Completely passively.
(Okay, okay… Except for a handful of phone calls).
Now I can “sell” my 7% stake in the company back to the owners and take my money back (worth $211k).
I won’t, because they are on track to hit another massive year and I like to see my money growing.
Now I’m no expert with 20 years experience… But I am really good at taking complex things and making them doable for the general population.
And I do like to share these nuggets of how I have built a small wealth portfolio for myself over the last few years.
Hope this helps!
–Jeweliet Tangen
&The Wealth Map Team
PS- I ROUNDED some of these numbers to make the math easier for teaching. But in general, these numbers are accurate within a 3-5% margin.