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Equity
NOVAMET21
Posts: 197 Forumite
Hi,
Would like to know how much return would you possibly get realistically by having equity?
Scenarios with figures would be helpful.
Would like to know how much return would you possibly get realistically by having equity?
Scenarios with figures would be helpful.
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Comments
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From personal experience, close to 100x, but I imagine it varies enormously.
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Yes, just a shame I had a microscopic slice of the pie, but it still blew my expectations out of the water. It's all very much dependent on how pessimistically the business is valued at the start, how rapidly it is able to grow, and what the next investor is therefore willing to pay at the next transaction.NOVAMET21 said:
100 times wow. It seems you had a good experience. I have no idea but thought considering the Private Equity makes 3 times the return on their investment, I thought the sweet equity personnel would make perhaps 10 times the monies invested?masonic said:From personal experience, close to 100x, but I imagine it varies enormously.
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How much would you say to invest as minimum to be worth while?masonic said:
Yes, just a shame I had a microscopic slice of the pie, but it still blew my expectations out of the water. It's all very much dependent on how pessimistically the business is valued at the start, how rapidly it is able to grow, and what the next investor is therefore willing to pay at the next transaction.NOVAMET21 said:
100 times wow. It seems you had a good experience. I have no idea but thought considering the Private Equity makes 3 times the return on their investment, I thought the sweet equity personnel would make perhaps 10 times the monies invested?masonic said:From personal experience, close to 100x, but I imagine it varies enormously.
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With this, and share incentive plans, it can be easy to think along the lines of an investment of only £X isn't worth bothering with, but I know people who went down that path and had some regrets, to say the least. These schemes are designed to incentivise and retain people, and generally provide a rare opportunity to buy in at a very attractive valuation, so if the business is successful, they will generally provide a more than satisfactory outcome. I would not turn sweet equity down no matter how little I was able to invest. If you leave before the next transaction, the cost to you is often minimal.NOVAMET21 said:
How much would you say to invest as minimum to be worth while?masonic said:
Yes, just a shame I had a microscopic slice of the pie, but it still blew my expectations out of the water. It's all very much dependent on how pessimistically the business is valued at the start, how rapidly it is able to grow, and what the next investor is therefore willing to pay at the next transaction.NOVAMET21 said:
100 times wow. It seems you had a good experience. I have no idea but thought considering the Private Equity makes 3 times the return on their investment, I thought the sweet equity personnel would make perhaps 10 times the monies invested?masonic said:From personal experience, close to 100x, but I imagine it varies enormously.
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Sounds like a great advise. Thank you.masonic said:
With this, and share incentive plans, it can be easy to think along the lines of an investment of only £X isn't worth bothering with, but I know people who went down that path and had some regrets, to say the least. These schemes are designed to incentivise and retain people, and generally provide a rare opportunity to buy in at a very attractive valuation, so if the business is successful, they will generally provide a more than satisfactory outcome. I would not turn sweet equity down no matter how little I was able to invest.NOVAMET21 said:
How much would you say to invest as minimum to be worth while?masonic said:
Yes, just a shame I had a microscopic slice of the pie, but it still blew my expectations out of the water. It's all very much dependent on how pessimistically the business is valued at the start, how rapidly it is able to grow, and what the next investor is therefore willing to pay at the next transaction.NOVAMET21 said:
100 times wow. It seems you had a good experience. I have no idea but thought considering the Private Equity makes 3 times the return on their investment, I thought the sweet equity personnel would make perhaps 10 times the monies invested?masonic said:From personal experience, close to 100x, but I imagine it varies enormously.0 -
NOVAMET21 said:Hi,
Would like to know how much return would you possibly get realistically by having sweet equity?
Scenarios with figures would be helpful.Some delicious advice here...
Retired 1st July 2021.
This is not investment advice.
Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."3
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