Together We RISE: Rewarding Investments through Smart Education

Hello RISE Impact Enthusiasts,

Imagine a world where every investment you make not only grows your wealth but also furthers global sustainability and social equity. At RISE, we turn this vision into reality. We leverage the collective power of our community to invest in ventures that are not only profitable but also pave the way for a better tomorrow.

What if we could approach investing differently? What if impact investing could bridge the gap, offering a pathway to engage with all asset classes in a way that fosters tangible, positive change?

As a reminder, RISE maintains a comprehensive database of private vetted, exclusive, impactful investments that includes everything from startups to established funds and real estate, spanning all areas of impact. These opportunities vary; some have specific participation qualifications, while others are more accessible. We do this because we all have different levels of savings, communities, and can participate in impact at different levels. Either way, as always, let's share this valuable knowledge of values aligned investing with our loved ones, including our children (it's never too early to start!), friends, and broader community. With that said, let's explore this week’s impactful opportunity.

TEACHING IMPACT INVESTING

Family Impact Investment Discussions

The Portfolio Strategy: A Key Approach for Angel Investors

As the founder of an investment community that navigates diverse asset classes, I've had the unique opportunity to witness a myriad of investment strategies employed by our members. While some prefer to invest individually in companies, others opt for the collaborative strength of investing alongside funds(ie VC funds).

Angel investing, for the uninitiated, involves providing capital(money) to startups in exchange for equity or debt. Our community members who engage in this are typically referred to as angel investors. Their common strategy? The portfolio strategy.

The portfolio strategy in angel investing is not merely about spreading one's bets across the board. It's a calculated approach to diversification and risk management. The logic is straightforward yet powerful: invest in a range of startups—typically around 10—with the potential for high growth (sometimes as much as 25x to 50x returns). While the likelihood is that the majority may not achieve their projected potential, the success of one or two can be sufficient to not only recover the initial investment but also achieve substantial profits.

This approach, known as the "portfolio strategy," is quite common among angel investors and venture capitalists. The idea is to diversify your investments across multiple startups to spread risk and increase the chance that at least one will deliver significant returns. Here’s a bit more insight into this strategy:

The Portfolio Strategy Explained

1. Diversification: By investing in multiple startups, you reduce the impact of any single failure. If one startup fails, it doesn’t wipe out your entire investment.

2. High Growth Potential: The goal is to invest in startups that have the potential for exponential growth. These high-risk, high-reward investments can yield returns of 25x or 50x if successful.

3. Expected Outcomes: Statistically, many startups fail. The idea is that even if 9 out of 10 fail, the one that succeeds can provide returns that compensate for all the losses and more. For example, if one startup grows 50x, it can cover the losses from the other 9 and still generate a profit.

Practical Example

Let’s break down a practical example:

• Investment Portfolio: You invest $50,000 each in 10 startups, totaling $500,000.

• Success Rate: You anticipate that only 1 out of the 10 startups will succeed, with the others failing.

• High Return: The successful startup returns 50x your initial investment.

Here’s the math:

• Total Investment: $500,000 (10 startups x $50,000 each).

• Return on Success: $50,000 x 50 = $2,500,000.

• Net Return: $2,500,000 - $500,000 (total investment) = $2,000,000 profit.

Even though 9 startups failed, the one successful investment not only recoups the total amount invested but also provides a significant profit.

Why This Works

• High-Risk Tolerance: Angel investors typically have a high risk tolerance and are prepared for the possibility of many investments failing.

• Due Diligence: While the success rate might seem low, thorough due diligence and market analysis can improve the chances of picking startups with genuine potential.

• Impact of a Single Success: The exponential growth of one successful startup can outweigh multiple failures, leading to overall positive returns.

This strategy relies on understanding that not every startup will succeed, but the ones that do can achieve extraordinary growth, making the portfolio approach a viable method for managing risk while aiming for high returns.

Do you have any questions about applying this strategy to your own investments, or about evaluating potential startups?

Ready to make a real impact with community? Email us [email protected]

._{*Please, it is never too early to share these differentiations with others so we are all educated together allowing us all to have an investor mindset. If you need lists or access to any of the above reply back and we will support with our database.}

New Weekly Impact Insight - June 22 2024

*Every week, we highlight a unique investment opportunity and, most importantly, demonstrate how we analyze it.

🌟 Pioneering Water-Soluble Packaging to Reduce Plastic Waste

📍 Overview: This innovative startup is addressing one of the planet’s most pressing environmental issues—plastic pollution. Their flagship product, a water-soluble packaging solution, dissolves in water without leaving harmful residues. This technology offers a sustainable alternative to traditional plastic packaging, aligning with global efforts to reduce plastic waste.

🚀 Mission: Committed to revolutionizing the packaging industry, the company aims to provide environmentally friendly alternatives that significantly reduce the ecological footprint of businesses and consumers.

♻️ Impact Goals:

• Plastic Reduction: Drastically cut down on plastic waste by offering a viable, eco-friendly alternative to single-use plastics in various industries, including retail and food services.

• Water Conservation: Ensure that the dissolution process of their packaging is efficient, requiring minimal water and no energy.

• Public Health and Safety: Eliminate environmental and health hazards associated with plastic waste, contributing to safer ecosystems and communities.

👩‍💼 Female Leadership:

• The leadership team includes a high percentage of women, with numerous female engineers and scientists involved in key research and development roles.

💡 My Thoughts:

• With a management team that expertly combines environmental dedication and robust business strategies, the company is well-positioned to capitalize on the growing demand for sustainable packaging solutions.

• The market potential for environmentally friendly packaging is significant and expanding, fueled by increasing regulatory demands and consumer preferences for sustainable alternatives.

🏷️ Tags: #EcoFriendly #SustainablePackaging #PlasticFree #WomenInLeadership #InnovationForSustainability #EnvironmentalImpact

Questions to Consider:

• How scalable is this technology in larger markets such as the EU and US, where regulations on plastic use are stringent?

• What are the cost implications for businesses transitioning from conventional plastics to this water-soluble solution? Is it competitively priced to encourage broad adoption?

• Considering the company’s current achievements and strategic plans, what is the projected growth trajectory over the next five years?👉 Login To View Company Name & Listing & Returns👈

_{It's not my rule—it's just how the finance industry works I cannot share private investment opportunities to the masses that are on this email list. Some private investment opportunities are reserved, please log in. I'm a firm believer that knowledge and community power financial growth for everyone. Irregardless of where we are in our investment journey, we all need this knowledge and discuss with our families.}

Look around at the real estate and businesses out there—there are ones that prioritize making the world better for you and your generation, and some that don't. We want to support those that prioritize these principles. We look for solid plans with great people leading.

P.S. Whenever you’re ready here are a few ways for us to work together:

1. RISE The Movement Impact Circle:

   Join the RISE The Movement Impact Circle, a network where we collaborate, learn, and dive into vetted, exclusive, private, impact investment opportunities. We share two opportunities from businesses, funds, and real estate - all impact presented by women to women. Next monthly meeting - August 13th. Ready to be a part of this circle of change-makers? Join Us. 

2. Impact Investing Education Program:

   Not ready to invest? Begin the world of impact investing with our 12-week Impact Investing program, designed for women who want to make a difference.

3. Partner with RISE the movement:

   Do you share a commitment to making a positive impact? Our RISE community is a vibrant mix of entrepreneurs, investors, and finance professionals. While our individual values may differ, our shared belief in investing for a better tomorrow unites us. We invite you to collaborate with us and showcase how your organization can empower us to excel in impact investing. 

   Together, we're not just investors; we're changemakers.

   Until next week, keep making an impact!

   Warmly,

   ^Tanaha

@risethemovement

www.risethemovement.com

At R.I.S.E (Rewarding Investments Smart Education) we are committed to educating and providing community for women investors at every stage of their impact investment journey. We believe the key to success lies in education, informed decision-making, and using investments to make an impact.

_{Disclaimer:R.I.S.E. the Movement is an educational platform designed to provide informative resources and foster discussions related to personal finance and investing. We are not registered financial advisors, and the content presented on our platform should not be construed as investment advice. Any information shared or discussed on this platform is for educational purposes only and should not be considered as a substitute for professional financial advice. It is important to conduct thorough research and consult with a qualified financial advisor or professional before making any investment decisions. R.I.S.E. the Movement does not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any actions taken based on the content presented. By engaging with R.I.S.E. the Movement, you acknowledge and agree to release the platform, its creators, and contributors from any liability arising from your use of the information provided.}