Angel Investing

Lane Kawaoka
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  • Investing

From startup investing in Tech into private equity and cash flowing businesses for accredited investors building long term wealth. Join our Community: theWealthElevator.com/angel Hosted on Acast. See acast.com/privacy for more information.

Episodes

  1. 4d ago

    Primary vs Secondary Markets Explained (Using Ticketmaster vs StubHub for Pre-IPO Shares)

    Join our community and get the newsletter and AI Cheatsheet: theWealthElevator.com/angel This episode explains primary vs. secondary markets in private investing using a BTS/Taylor Swift concert ticket analogy. Buying tickets from Ticketmaster represents the primary market, like investing in a company’s seed or Series A/B/C rounds where new shares are issued and money goes to the company. Access is often limited by presales, bots, and relationships—similar to how venture funds, institutions, founders, and well-connected investors get the best allocations. Buying on StubHub represents the secondary market, where you purchase existing tickets (or shares) from a current holder and the proceeds go to the seller, not the company, minus fees. The script also covers SPVs, differences in share classes and rights, comparing prices to the latest institutional round, and accounting for intermediary fees to judge whether pre-IPO access is fair value before IPO retail frenzy. 00:00 Concert Ticket Analogy 00:14 Primary Market Explained 00:36 Why Access Is Limited 01:22 Secondary Market Basics 01:56 Pricing and Fair Value 02:34 SPVs and Share Rights 03:05 Key Questions Before Buying 03:52 Access Costs and IPO Frenzy Hosted on Acast. See acast.com/privacy for more information.

    Primary vs Secondary Markets Explained (Using Ticketmaster vs StubHub for Pre-IPO Shares)

  2. Oct 14

    Angel Investing in SAFEs: Hidden Risks, Valuation Cap Gotchas, and Side Letter Rights

    Join our community and get the newsletter and AI Cheatsheet: theWealthElevator.com/angel After attending Hawaii Tech Week, the speaker shares key angel investing takeaways about SAFEs (Simple Agreement for Future Equity). They explain that “SAFE” doesn’t mean the investment is safe: investors don’t receive shares immediately, SAFEs often have no maturity date or interest, and money can remain illiquid for years or be lost if no qualifying round or acquisition occurs. They warn that simple paperwork can hide complex economics, especially around valuation caps, discounts, dilution, multiple SAFEs, and option pools, and recommend reviewing the cap table and pro forma scenarios rather than relying on headline terms. Finally, they note standard SAFEs may lack information and participation rights, suggesting side letters to negotiate updates or other terms while balancing the reporting burden on early-stage founders. 00:00 Tech Week Takeaways 00:51 What A SAFE Is 02:26 Why SAFEs Feel Risky 03:55 Notes Versus SAFEs 05:36 Caps And Discounts 06:58 Dilution And Cap Tables 09:03 Missing Investor Rights 09:38 Side Letters Explained 10:17 Founder Time Tradeoffs 14:04 Key Questions To Ask 14:42 Active Angel Value Add 16:15 Closing Thoughts Hosted on Acast. See acast.com/privacy for more information.

    Angel Investing in SAFEs: Hidden Risks, Valuation Cap Gotchas, and Side Letter Rights

  3. Sep 23

    Evaluate a Convertible Note Deal (Cap, Trigger, Maturity & Downside Protection)

    Join our community and get the newsletter and AI Cheatsheet: theWealthElevator.com/angel In this episode, the host walks angel investors through a simplified hypothetical convertible note deal for a revenue-generating, bootstrapped company raising about $1M, mostly filled by a VC, with room for smaller passive checks. He explains key terms including a 7% simple interest rate, five-year maturity, an automatic conversion trigger tied to a future equity raise of at least $1.5M, and a low seven-digit valuation cap, illustrating how a cap (e.g., $10M) can create favorable conversion pricing in a higher-priced next round. He stresses that no single term (like the cap) determines attractiveness, and investors must evaluate how terms work together, whether a discount exists, and whether the cap is justified via fundamentals and comparables. He clarifies that “downside protection” on an unsecured note is limited, maturity dates may be meaningless without cash, and liquidation preferences only help if proceeds exist. He also warns against groupthink around credible lead investors and emphasizes personal due diligence, appropriate check sizing, and diversification. 00:00 Welcome and Setup 00:42 The Hypothetical Deal 01:23 Convertible Note Terms 02:32 Valuation Cap Basics 03:40 Discounts and Conversion 04:35 Is the Cap Reasonable 07:01 Comparables and Deal Flow 08:02 Downside Protection Myth 11:00 Maturity Date Reality 11:48 Lead Investor and Groupthink 13:12 Risk Luck and Wrap Up Hosted on Acast. See acast.com/privacy for more information.

    Evaluate a Convertible Note Deal (Cap, Trigger, Maturity & Downside Protection)

  4. Sep 2

    Good Earn-Outs vs Bad Earn-Outs: Structuring Deals to Protect Buyers and Motivate Sellers

    Join our Community: theWealthElevator.com/angel This episode breaks down good versus bad earn-outs and why they exist, explaining that earn-outs are primarily used to protect buyers by tying part of the purchase price to future performance to reduce risks and hidden issues. It contrasts buyer benefits with seller concerns, including loss of control after handing over the business and the perceived unfairness of shifting risk onto the seller, especially when outcomes aren’t fully within their control. The script highlights scenarios like customer concentration risk and fast-changing SaaS markets where products can be quickly displaced, making escrowed or deferred payouts risky for sellers. It also shows how earn-outs can align incentives and “grease” a transaction when both sides share goals, emphasizing the importance of choosing the right KPIs (top line vs bottom line) and encouraging investors—especially early-stage—to add value through active support and aligned incentives. 00:00 Earn Outs Overview 00:37 Why Earn Outs Exist 01:53 Buyer Risk Examples 02:17 Seller Concerns 02:57 SaaS Disruption Risk 04:05 Aligning Both Sides 04:29 Investor Value Add Earn Outs 05:08 Commission Incentives Example 05:58 Pay For Performance Mindset 07:00 Negotiation And KPIs 07:26 Top Line Vs Bottom Line 08:16 Closing Thoughts For Investors Hosted on Acast. See acast.com/privacy for more information.

  5. Aug 12

    The Sweet Spot for Pre-IPO Investing: Picking the Right Series Round (B–D vs C–F)

    Join our Community: theWealthElevator.com/angel In this short episode, the host shares his perspective on the “sweet spot” for investing in pre-IPO rounds, explaining how later funding rounds generally offer less upside but lower risk. Using his experience investing in SpaceX (which he entered around the F round), he argues the ideal entry for many companies is often between B and D, while for mega-cap pre-IPOs it may translate more to C through F (or even D through G). He cautions that earlier rounds like A and B can offer huge potential multiples but carry high failure risk and slower “velocity of money,” and he contrasts these tradeoffs with real estate development versus value-add strategies. He emphasizes there’s no hard rule, encourages understanding what each round means, invites topic requests via email, and notes this is not financial advice. 00:00 Pre-IPO Sweet Spot 00:40 Rounds and Risk 01:13 Early Round Pitfalls 01:37 Velocity of Money 02:31 Real Estate Analogy 03:19 Mega Caps vs Angels 03:56 Nuance Over Rules 04:17 Wrap Up and Disclaimer Hosted on Acast. See acast.com/privacy for more information.

  6. Jul 22

    Royalty Deals vs Equity Moonshots: When to Use Royalties, Notes, or Preferred Returns

    theWealthElevator.com/angel In this episode, the host explains why the accrued interest rate on SAFE notes (e.g., 8–12%) often doesn’t meaningfully affect outcomes in angel investing, since it only matters if there’s a liquidity event, conversion, or priced round—and most startups fail. Instead of fixating on the coupon-like rate, the discussion highlights deal-structure terms that more directly determine investor friendliness: valuation caps, how notes convert on a sale, seniority and whether the investment is secured or unsecured, maturity dates and what happens at maturity, qualified financing thresholds, and investor rights such as pro rata and information rights. The host encourages investors to understand governing documents, use AI to model good and bad scenarios, and approach angel investing as a high-risk, upside-driven activity rather than a cash-flow or fixed-income substitute, while noting a community at thewealthelevator.com/club. 00:00 Why Structure Matters 00:19 SAFE Interest Myth 02:28 Angel Risk Reality 03:24 Valuation Cap Basics 03:57 Sale Conversion Terms 04:34 Seniority And Security 05:22 Maturity Date Mechanics 05:37 Financing Thresholds 05:49 Investor Rights Checklist 06:07 Use AI To Review 06:39 Final Thoughts And Community Hosted on Acast. See acast.com/privacy for more information.

  7. Jul 1

    Angel Investing SAFE Notes: Why Interest Often Doesn’t Matter (What Terms Actually Do)

    theWealthElevator.com/angel In this episode, the host explains why the accrued interest rate on SAFE notes (e.g., 8–12%) often doesn’t meaningfully affect outcomes in angel investing, since it only matters if there’s a liquidity event, conversion, or priced round—and most startups fail. Instead of fixating on the coupon-like rate, the discussion highlights deal-structure terms that more directly determine investor friendliness: valuation caps, how notes convert on a sale, seniority and whether the investment is secured or unsecured, maturity dates and what happens at maturity, qualified financing thresholds, and investor rights such as pro rata and information rights. The host encourages investors to understand governing documents, use AI to model good and bad scenarios, and approach angel investing as a high-risk, upside-driven activity rather than a cash-flow or fixed-income substitute, while noting a community at thewealthelevator.com/club. 00:00 Why Structure Matters 00:19 SAFE Interest Myth 02:28 Angel Risk Reality 03:24 Valuation Cap Basics 03:57 Sale Conversion Terms 04:34 Seniority And Security 05:22 Maturity Date Mechanics 05:37 Financing Thresholds 05:49 Investor Rights Checklist 06:07 Use AI To Review 06:39 Final Thoughts And Community Hosted on Acast. See acast.com/privacy for more information.

  8. Jul 1

    Welcome to the Angel Investing Podcast: Due Diligence, Risks, and Building an Asymmetric Portfolio

    Join our community: theWealthElevator.com/angel Lane Kawaoka introduces the Angel Investing Podcast, focused on high-risk, high-reward angel investing and the challenges of due diligence in pre-revenue deals where traditional financials may not exist. He explains that investors must rely more on qualitative factors like the sponsor, go-to-market strategy, competitive advantage, and moat, while setting expectations that many investments may lose money despite the potential to “change the world” and achieve outsized returns. Lane shares his background from engineering to building a rental portfolio starting in 2009, moving into syndications and private placements, surpassing $1B in assets acquired by 2020, and learning the hard lesson of overconcentration in commercial real estate, which drove him to diversify into angel investing. He cautions newly wealthy investors against indiscriminately writing many small checks, highlights the importance of education and deal access, and invites listeners to email him and join his investor group. 00:00 Welcome Investors 00:06 Angel Investing Basics 00:25 Due Diligence Without Revenue 01:19 Lane's Investing Journey 01:49 Diversify Beyond Real Estate 02:29 Avoid the Angel Trap 02:59 Accredited Investor Mindset 03:27 Access Deals Community 03:35 Wrap Up and Next Steps Hosted on Acast. See acast.com/privacy for more information.

  • 8 Episodes

About

From startup investing in Tech into private equity and cash flowing businesses for accredited investors building long term wealth. Join our Community: theWealthElevator.com/angel Hosted on Acast. See acast.com/privacy for more information.

Information

  • Creator
    Lane Kawaoka
  • Years Active
    2026
  • Episodes
    8
  • Rating
    Clean
  • Copyright
    © Lane Kawaoka
  • Show Website
    Angel Investing