$25K Becomes $30M Investment
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Sam Parr shares a story about his friend who made $30M from a single angel investment in a former employee's company.
"I was talking to a friend yesterday who casually mentioned making $30M from an angel investment. He was president of a smallish startup that wasn't doing well, and a 22-year-old employee quit to start his own company. Though initially frustrated, he saw the kid was promising and invested $25,000 at a $3M valuation. The company went public a year or two ago at a $15B market cap.
At the time of investing, my friend only had $75,000 total and decided to invest all of it into startups in chunks of $10-25K. He said he invested because he knew this kid was strong and wanted to be part of whatever he was doing. He wanted to surround himself with young people and thought the founder was promising. That one $25K check turned into $30M. He had another investment that made a 10x return as well."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.