Father’s Day Advice From the Four Co-founders of Urban Capital Network

10 Vital Lessons To Teach Kids About Investing

We understand that parents play a key role in teaching their children about finances. As fathers, venture capitalists, and role models within the investment community, we believe that it’s vital to create positive financial habits that will set our kids up for success. 

In recognition of Father’s Day, we’d like to share the Top 10 Lessons that we teach our kids about investing:

  1. Invest In Yourself. Apply education and experience to build a business. Invest a portion of your income in a portfolio that generates passive income to build long-term wealth.
  2. Take Risks. It may be difficult to step outside of your comfort zone, but you will gradually become comfortable with taking calculated risk. As a young adult, you have time to fail, recover, and learn from past mistakes. Know that with persistence, you will prevail.
  3. Pay It Forward. Address societal problems and help those in need. Use your wealth to give back through philanthropy and your knowledge to mentor and guide future generations.
  4. Invest In Relationships. Everything in your life revolves around relationships. Make a conscious effort to build quality relationships. Your relationship capital is worth far more than your financial capital. It is the key to unlock exclusive opportunities.
  5. Learn Delayed Gratification. Have patience during difficult times as you work towards a goal. When you learn to resist the temptation for immediate reward, you gain a greater sense of self-control which can help you achieve long-term goals faster.
  6. Keep It Simple. You’ll never lose with simple investment strategies. Understand where your money is placed, how much you’re paying for an asset, and how you will earn your return.
  7. Invest In Community. Invest in opportunities that fulfill basic human needs, such as food, shelter, connection, and other things we cannot live without. Realize that opportunities exist when you serve the needs of others.
  8. Plan Accordingly. Investing is equivalent to life management. Success is directly correlated to your willingness to be prepared, your ability to consistently make good decisions, and your understanding of how to effectively manage risks and rewards.
  9. Build Upon Assets. When you’re young, trading your time for income will be a requirement to survive, but passive income from assets will provide increased flexibility to dramatically improve your quality of life and secure financial freedom.
  10. Prepare For Rainy Days. Anticipate the unexpected, as rainy days can happen. And, if they do, know that they will be your responsibility, not your parents, friends or co-workers. 

It’s never too early to start teaching kids about money matters. We talk to our kids about many aspects in life – money and finances should be one of those ongoing conversations. An early understanding of finances allows them to be better prepared financially and more savvy as they approach investment opportunities. Teaching kids about fiscal responsibilities can help set the next generation on the road to building their wealth. 

What lessons are you teaching your kids about finances?

Seven Tips to Become an Angel Investor

Investing in startup companies can be one of the most lucrative opportunities available today.  Just think of all those millionaires who were made by making early stage investments in companies like Google, Facebook, Uber and other now iconic brands. Early stage investment opportunities could potentially be life changing and create multi-generational wealth. It’s also a rewarding way to help entrepreneurs innovate, and to accelerate additional opportunities within diverse communities.

Yet breaking into the world of angel investing isn’t always easy.  You may wonder: How does one really get started as an angel investor?  And how do you know it is right for you?

I recommend that you first educate yourself about this segment of the financial market, and learn how to gain access into the various types of investment circles that can help broaden your financial future. Here are some thoughts on how to do that. 

  1. Educate Yourself:  Read books and articles, watch videos, and attend online or in-person workshops and other events where you can meet entrepreneurs, watch their pitches, and gain a sense of how investors assess a deal. A good place to start is with local innovation hubs which are popping up in local cities throughout the U.S. and across the globe.
  2. Access Innovation Hubs:  These geographic concentrations of various co-working spaces and resources focus on bringing together entrepreneurs, community partners, academic institutions, industry-leading scientists, engineers, talent, and leading investors to form thriving innovative ecosystems. They also provide such investor resources as education, matching and connecting with entrepreneurs, and access to vetted start-up opportunities.
  3. Leverage Your Connections:  Your professional and personal network can be an excellent source for investment opportunities. It can also be a conduit to building a team of experienced professionals who have direct or indirect connections to help evaluate deals, advise entrepreneurs, and aggregate additional capital. Your network may also have experience and knowledge in various industries and markets to assess trends, opportunities and risks, which are essential to evaluating start-up investment opportunities.
  4. Volunteer / Mentor:  Seek out volunteer and mentorship opportunities within the early stage start-up ecosystem. This provides an opportunity to support something you believe in while staying close to the entrepreneurs who are building the brands of the future. Depending on the extent of your involvement, it’s possible to secure a board seat or equity in exchange for professional services with the emerging companies. At the very least, you’ll be one of the first in line with access to invest in these start-ups.
  5. Join an Angel Investor Group:  There are approximately 400 angel groups in the U.S. with many variations, including membership size, investment focus and fee structures. You may find that some groups have extensive waiting lists for new memberships. This is most likely due to its member base having more capital to deploy than quality deals to invest in. Angel groups often provide the best source of vetted deal flow and lower investment minimums. They benefit from having a consistent pipeline of deal flow, aggregated capital and an experienced network of individuals to form the appropriate due diligence teams.
  6. Do Your Due Diligence:  Angel groups typically implement a screening and review process to filter deals that are deemed worthy and generate enough interest to proceed to the due diligence phase. A very time consuming process, this due diligence requires a diverse skill set that includes financial analysis, marketing, and respective industry knowledge. Collectively, investor groups that contribute more time, oversight and analysis improve their odds of yielding higher returns.
  7. Understand The Risks:  There are always risks involved in any type of investing. Before getting started with angel investing, you need to determine how much money you’re willing to risk. Then understand that without risk, there is no reward. Angel investing can generate superior returns – often better than public markets – especially when a portfolio approach of angel investments and good practices are applied.

There’s much to learn about angel investing but it boils down to two critical components: Education and Access. Reach out to us to learn more about UCN’s educational resources and our access to premium portfolio companies so that you can start investing in unique opportunities today.