Most people think angel investing is risky and only for the ultra-wealthy, but the real myth is believing you can’t build wealth backing the right entrepreneurs. Karen Rands clears the confusion, showing how everyday people can move from misconceptions to meaningful wealth creation.

Drawing from decades of experience, she reveals the myths that hold people back, the hidden risks in traditional investing, and why private companies often deliver more predictable long-term value than stocks or rental properties. She shares stories and explains how angel investing can provide short-term returns, ongoing income, and long-term “big wins.”

Karen also introduces her Angel Profitability Blueprint and Wealth Maximizer System, guiding investors to evaluate deals, manage risk, and build a diversified portfolio of 10+ high-potential companies, even with modest capital.

If you’ve wondered whether angel investing is “too risky” or “only for the wealthy,” this conversation shows how the right strategy can turn myths into millions.

Takeaways

• Angel investing is a viable asset class for wealth building.

• The Jobs Act of 2012 opened doors for non-millionaires to invest.

• Investing in entrepreneurs can yield higher returns than traditional investments.

• Education is crucial for understanding angel investing.

• Many successful business owners overlook angel investing opportunities.

• Angel investing can be emotionally rewarding and impactful.

• Diversification is key to managing risks in angel investing.

• The perception of angel investing as risky is often based on myths.

• Community impact is a significant benefit of angel investing.

• The compassionate capitalist movement aims to educate and empower new investors.

Chapters

00:00 Introduction to Angel Investing and Myths

02:32 The Impact of the Jobs Act on Angel Investing

05:48 The Compassionate Capitalist Wealth Maximizing System

08:36 Understanding the Profitability of Angel Investing

11:22 The Historical Context of Angel Investing

13:57 The Barriers to Angel Investing Awareness

17:09 Real Stories: The Value of Investing in Entrepreneurs

19:55 The Emotional Aspect of Investing

22:52 The Disconnect in Financial Advisory

25:26 The Comparison with Cryptocurrency and Market Trends

32:41 The Volatility of Cryptocurrency

38:02 Understanding Angel Investing

42:35 The Risks and Rewards of Entrepreneurship

47:38 Real Estate vs. Entrepreneurial Investments

54:25 The Future of Investing in Startups

About Karen Rands

Karen Rands is the founder of The Compassionate Capitalist Movement - bringing to the entrepreneur / investor ecosystem a new generation of 'Compassionalists™" so entrepreneurs have more available capital and people previously shut out of the millionaire wealth creation strategies can build wealth by investing in entrepreneurs for purpose, passion and profit and share in their success without all the risk of being the entrepreneur.

Get the Book that launched a movement: Inside Secrets to Angel Investing: Step-by-Step Strategies to Leverage Private Equity Investment for Passive Wealth Creation

Grab the book that is disrupting the status quo and inspiring a new generation that they have it in their power to leap the wealth gap: Inside Secrets to Crowdfund Investing. Follow Jane’s Journey: See How a New Generation Builds Wealth with Purpose, Passion and Profit.

Get the books - https://amzn.to/47D5Lwz

Sign up for The Compassionalist Academy, COMING SOON, and if you hurry you just might get in on the countdown to launch and claim 25% on an annual license. http://compassionalistacademy.com

Many founders pour all their energy into running a successful crowdfunding campaign, but once the capital comes in, they make the same costly mistake: they stop engaging the very community they worked so hard to build.

In this episode, I sit down with Joey Hayes to unpack what really happens after the raise and why so many entrepreneurs lose momentum once the campaign closes. Joey shares insights from investing in more than 60 crowdfunded startups, breaking down why founders struggle with post-campaign strategy, how to activate their investor community, and the simple habits that make raising the next round dramatically easier.

If you have ever launched a crowdfunding campaign or plan to raise capital, this conversation will show you how to turn your crowd into a long-term strategic asset and not just a one-time source of money.

Takeaways

• Post-campaign strategies are crucial for maintaining momentum.

• Many founders fail to engage their investor community after a raise.

• Investors want to help but often don't know how to engage.

• Asking for help is a skill that can be developed over time.

• Regular communication with investors can alleviate anxiety and build trust.

• Founders should thank their investors and keep them informed.

• Understanding investor dynamics can enhance future fundraising efforts.

• Crowdfunding can serve as a powerful marketing tool for startups.

• Building a sustainable investor community requires ongoing effort.

• Service and communication are key to successful investor relations.

Chapters

00:00 The Importance of Post-Campaign Strategy

02:43 Identifying the Gap in Founder-Investor Engagement

05:33 Activating the Investor Community

10:50 Overcoming Emotional Barriers to Communication

14:14 Best Practices for Post-Raise Engagement

17:14 The Value of Crowdfunding in Capital Strategy

21:08 The Importance of Marketing in Capital Raising

22:24 Engaging Investors: Building Community and Trust

24:21 The Post-Raise Gap: Maintaining Investor Relationships

27:06 Setting Communication Expectations with Investors

29:04 Service and Hospitality: Enhancing Investor Experience

31:52 The Power of Consistent Communication

34:51 Best Practices for Entrepreneurs in Capital Raising

About Jooy Hayes

Joey Hayes brings over 15 years of global partnership and commercial growth experience, having worked with major brands like IHG, Hyatt, Hilton, and Booking.com. As an investor in more than 60 crowdfunded startups, he has a deep understanding of the crowdfunding ecosystem and what it really takes for founders to raise capital successfully. Through his company, Thru, Joey helps founders unlock the full value of their investor community and build long-term momentum beyond the initial raise.

To connect with Joey, email: joey at comethru.coLinkedIn: linkedin.com/in/joeyhayes1

About Karen Rands

I'm Karen Rands, founder of the Compassionate Capitalist Movement. I help entrepreneurs prepare to raise capital the smart way and guide investors in identifying startup opportunities that build wealth and make a difference. This show is your roadmap to funding success, from pitch deck to public offering.

📅 Want expert feedback on your pitch? Book a consult with me: bit.ly/KCHcalendar 🔗 Learn more: karenrands.co 🎧 Catch more episodes: thecompassionatecapitalistshow.com 📘 Free eBook: The 4 Ws of Crowdfund Investing: https://bit.ly/FreeCrowdfundInvestingBook 🎓 Join the Academy: bit.ly/CA-prelaunch

Who really gets to invest, and why does it matter?

In this episode, Erik Nelson and I unpack the evolving world of accredited investor definitions and investment rules. We explore how SEC regulations, income thresholds, and state policies shape access to private investments, crowdfunding, and capital raising opportunities.

Together, we look at the balance between investor protection and financial inclusion, and how some of today’s rules may unintentionally widen the wealth gap. We also share insights on practical investment strategies for building financial independence, especially through angel investing and crowdfund investing.

I also reflect on the mission behind my latest book, Inside Secrets to Crowdfund Investing: Follow Jane’s Journey, created to inspire and guide new investors to build wealth with purpose, passion, and confidence.

Key Takeaways:

• The accredited investor rules limit investment opportunities based on income and net worth.

• There is a push to change these rules to allow more individuals to invest in private companies.

• Current regulations are inconsistent, allowing gambling yet restricting investing in entrepreneurs as an asset class.

• Investing in businesses can yield higher returns than traditional stocks.

• The SEC aims to balance investor protection with capital accessibility.

• State regulations can complicate capital raising efforts for businesses.

• A landmark lawsuit is challenging the SEC's accredited investor rules as unconstitutional.

• The future may see tests for investor qualifications to assess knowledge rather than wealth.

• Karen asserts that creating that type of test will be challenging because there are so many factors that can impact a company's success, and therefore contribute to the risk and decision process of investing in private companies, particularly as startups.

• Diversifying investments across multiple companies, and as Karen teaches in her book, variations of investment by stage, industry, and structure of offering can improve the overall performance of an angel investor / crowdfund investor portfolio.

• Investors should only invest in what they understand and no more than they can afford to lose.

  
  

Chapters

00:00 Understanding Accredited Investor Rules

10:13 Pros and Cons of Income-Based Investment Guidelines

25:13 Historical Context of Accredited Investor Regulations

27:57 Understanding Private Funds and Lawsuits

30:01 The Role of ICANN and Landmark Lawsuits

33:10 Challenging SEC Rules and Wealth Inequality

35:56 The Future of Investor Accreditation

40:06 Building a Diverse Investment Portfolio

44:09 The Math Behind Investment Strategies

49:57 Investing Smarter: Beyond Traditional 401(k)s.

About Erik Nelson

Erik Nelson is President of Coral Capital, Mountain Share Transfer, and Sterling Holdings. His teams specialize in helping private and public companies meet their compliance obligations and stay in good standing with regulatory agencies. Erik and I co-host the Capital Conversations podcast, where we unpack the strategies and realities of raising capital, going public, and managing investor relations.

🔗 Learn more about Erik: LinkedIn | coralcapital.com

About Karen Rands

Karen Rands, founder of the Compassionate Capitalist™ Movement, empowers everyday people to build wealth by investing in innovative entrepreneurs through angel and crowdfunding opportunities. Author of Inside Secrets to Angel Investing and Inside Secrets to Crowdfund Investing, she also hosts the top-ranked Compassionate Capitalist™ Show. Through The Compassionate Capitalist Academy™, Karen provides tools and education to help investors fund innovation with confidence.

🌐 kugarand.com

🎓 Compassionalist.Academy

🔗 All things Karen

Get my New Book: https://amzn.to/4gmUFyq

As I talk with entrepreneurs and investors, I often see how easily people overlook the power of strong investor relationships. It’s not just about getting funding, it’s about building trust that lasts.

In this episode, I sit down with Alan Kadish to talk about how founders can build resilience through honest, consistent communication with investors. Alan shares what investors really look for, how transparency earns confidence, and why the best partnerships go beyond money.

If you’re raising capital or managing investor expectations, this conversation will help you see how strong relationships can carry your business through tough times.

Takeaways

• Alan Kadesh has a diverse background in innovation and entrepreneurship.

• Timing is crucial for entrepreneurial success.

• InvestorMatch.ai aims to improve the capital raising process.

• The platform is free for founders, funded by investors.

• Understanding cap tables is essential for startups.

• Navigating regulatory challenges in biomed tech requires expertise.

• ExpertScale.ai allows for the encapsulation of knowledge.

• Investors are increasingly sophisticated in their decision-making.

• AI is transforming the way entrepreneurs connect with investors.

• The importance of due diligence in the investment process.

Chapters

00:00 Introduction to Alan Kadesh and His Innovations

02:34 From Surfboards to Bioparticles: Alan's Journey

06:10 The Importance of Timing in Entrepreneurship

08:52 Introducing InvestorMatch.ai: A New Era in Capital Raising

16:52 Streamlining Connections: The Efficiency of InvestorMatch.ai

20:54 Understanding Cap Tables and Financial Forecasting

28:38 Navigating Regulatory Challenges in Biomed Tech

33:14 ExpertScale.ai: Capturing Knowledge for Future Generations

About Alan Kadish

Dr. Alan Kadish is an innovator, entrepreneur, and active angel investor with decades of experience building and funding breakthrough technologies. He’s the founder of InvestorMatch.ai, which uses AI to connect founders with the right capital partners, and ExpertScale.ai, which creates intelligent digital avatars that mirror your expertise to boost productivity.

With a background spanning biomedical research, bioengineering, and venture capital, Alan brings a unique blend of science, strategy, and mentorship to every venture.

Learn more at InvestorMatch.ai and ExpertScale.ai.

About Karen Rands

I'm Karen Rands, founder of the Compassionate Capitalist Movement. I help entrepreneurs prepare to raise capital the smart way and guide investors in identifying startup opportunities that build wealth and make a difference. This show is your roadmap to funding success, from pitch deck to public offering.

📅 Want expert feedback on your pitch? Book a consult with me: bit.ly/KCHcalendar 🔗 Learn more: karenrands.co 🎧 Catch more episodes: thecompassionatecapitalistshow.com 📘 Free eBook: The 4 Ws of Crowdfund Investing: https://bit.ly/FreeCrowdfundInvestingBook 🎓 Join the Academy: bit.ly/CA-prelaunch

What if your investment dollars could both generate steady returns and help solve one of society’s biggest crises?

In this episode of The Compassionate Capitalist Show, I sit down with Kevin Macho to explore how addiction recovery and mental health facilities can be transformed into powerful investment opportunities.

Kevin shares how NorthStar Recovery Care is pioneering a model that allows everyday investors to earn predictable, real estate-backed returns while expanding access to critical treatment services. This is capitalism with compassion at its core; a pathway to building wealth and changing lives at the same time.

Key Takeaways:

• Compassionate capitalism focuses on investing with purpose and impact.

• Investors can participate in projects that address community needs.

• Real estate can provide a stable investment opportunity in recovery services.

• Investing in addiction recovery facilities can yield both financial returns and social benefits.

• The importance of financial education in making informed investment decisions.

• Investing in oneself and delaying gratification can lead to long-term wealth.

• The role of regulation A funds in democratizing investment opportunities.

• Creating a supportive ecosystem for addiction recovery is crucial.

• Investors should consider the risks and benefits of their spending habits.

• Compassionate capitalism can change lives while generating profits.

Chapter Breakdown:

00:00 Introduction to Compassionate Capitalism

03:44 Kevin Macho's Journey and Background

07:52 The Shift to Investing for Passive Income

13:47 Understanding Investment Strategies and Risks

19:50 Creating Hope through Impactful Investments

22:50 Exploring Nature's Beauty

24:11 Finding Balance: Work and Life

26:04 Investment Opportunities in Addiction Recovery

31:51 Building a Comprehensive Care Ecosystem

37:58 Compassionate Capitalism: Merging Profit with Purpose

About Kevin Macho

Kevin Macho is a textbook compassionate capitalist, a former police chief turned seasoned real estate investor. Today, he serves as Director of Investor Experience at NorthStar Recovery Care, where he helps everyday people generate passive income while making a meaningful difference. NorthStar’s mission is twofold: to provide comprehensive solutions for addiction recovery and mental health treatment, and to create accessible pathways for investors of all walks of life to earn predictable returns.

🔗 Learn more at www.northstarrecovery.care

About Karen Rands

I'm Karen Rands, founder of the Compassionate Capitalist Movement. I help entrepreneurs prepare to raise capital the smart way and guide investors in identifying startup opportunities that build wealth and make a difference. This show is your roadmap to funding success, from pitch deck to public offering.

My newest book in the Inside Secrets series for investors, “Inside Secrets to Crowdfund Investing: Follow Jane’s Journey: See How a New Generation Builds Wealth with Purpose, Passion and Profit,” is now available. It can be purchased as a Kindle, Paperback, or Hardback edition, with an Audible version coming soon.

Find it here: https://amzn.to/4gmUFyq.

📅 Want expert feedback on your pitch? Book a consult with me: bit.ly/KCHcalendar 🔗 Learn more: karenrands.co 🎧 Catch more episodes: thecompassionatecapitalistshow.com 📘 Free eBook: The 4 Ws of Crowdfund Investing: https://bit.ly/FreeCrowdfundInvestingBook 🎓 Join the Academy: bit.ly/CA-prelaunch

As I talk with entrepreneurs and investors, I’m often struck by how many people underestimate the risks tied to crypto investing, especially when it comes to taxes. Right now, the IRS has slowed down audits, but that doesn’t mean the storm has passed. It’s just gathering strength.

Today, I sit down with Janna Scott, founder of DeFi Tax, to pull back the curtain on what’s really happening with crypto tax reporting. Janna shares how she uncovered major flaws in widely-used tax software, why exchange statements can’t be trusted, and how compounded penalties can turn a small mistake into a devastating financial burden.

What I love about Janna’s approach is that she not only sounds the alarm, she has built a blockchain-first solution that ensures accuracy, audit-readiness, and peace of mind.

Whether you’ve dabbled in crypto, trade regularly, or run a business that accepts crypto payments, this conversation is your wake-up call to get prepared before the IRS comes knocking.

Takeaways

• Popular crypto tax tools often produce wildly different results (35–120% variance).

• Exchanges disclaim responsibility for tax reporting errors, leaving investors liable.

• The IRS already has access to transaction data through John Doe summons.

• Penalties and compounding interest can double or triple liabilities over time.

• State tax authorities are often more aggressive than the IRS.

• Middle-class investors are the most vulnerable when audits restart.

• DeFi Tax uses blockchain data directly, providing audit-ready transparency.

• Having expert representation can mean the difference between resolution and ruin.

Chapters

00:00 Introduction: Why crypto investors face unseen risks

04:12 How Janna discovered errors in crypto tax software

08:45 Why blockchain is the only reliable source of truth

15:30 The IRS admits flawed audits; but investors still pay

27:00 Compounding penalties and the impact on middle-class investors

38:50 State-level tax risks and aggressive enforcement

46:10 How DeFi Tax partners with CPAs and defends audits

53:39 Why crypto taxes (and the IRS) are here to stay

56:08 Final advice: don’t wait for the IRS storm to arrive

About Janna Scott

Janna Scott is a powerhouse in the world of crypto tax compliance and the founder of DeFi Tax. She has worked directly with the IRS and SEC, building DeFi Tax to bring clarity, automation, and audit-readiness to the chaos of crypto profit/loss reporting for tax purposes. Through her tax accounting services and her innovative AI/Blockchain application platform, Janna helps users stay ahead of shifting regulations and out of trouble with the IRS.

🔗 Learn more at defitax.us

About Karen Rands

I'm Karen Rands, founder of the Compassionate Capitalist Movement. I help entrepreneurs prepare to raise capital the smart way and guide investors in identifying startup opportunities that build wealth and make a difference. This show is your roadmap to funding success, from pitch deck to public offering.

📅 Want expert feedback on your pitch? Book a consult with me: bit.ly/KCHcalendar

🔗 Learn more: karenrands.co

🎧 Catch more episodes: thecompassionatecapitalistshow.com

📘 Free eBook: The 4 Ws of Crowdfund Investing: https://bit.ly/FreeCrowdfundInvestingBook

🎓 Join the Academy: bit.ly/CA-prelaunch

In this episode, I share how everyday people can grow wealth and create impact through equity crowdfunding. Drawing from my new book Inside Secrets to Crowdfund Investing: Follow Jane’s Journey, I break down the myths that hold people back from angel investing and show how a diversified, consistent approach can build generational wealth.

You’ll meet “Jane,” a relatable mid-career professional who discovers how to shift from risky real estate to smart startup investing. I also introduce the Compassionate Capitalist Academy, which provides a roadmap for anyone ready to turn passion and purpose into profit.

If you’ve ever thought you’re too old, too busy, or don’t have enough money to invest in entrepreneurs, this conversation will change your perspective.

Key Takeaways

• Equity crowdfunding makes angel investing accessible to everyone, starting with as little as $100.

• Diversification and consistency are the keys to long-term portfolio success.

• Common false beliefs, like “I don’t know enough,” “I don’t have time,” or “I don’t have enough money” are myths that hold people back.

• You don’t need to quit your job to build wealth; you can start small and grow.

• Real estate isn’t the only path; investing in entrepreneurs can often yield greater impact and returns.

• The Compassionate Capitalist Academy and my books offer step-by-step frameworks for new investors.

Chapters

00:00 – Introduction: The power of compassionate capitalism

03:18 – Why invest in entrepreneurs instead of real estate

07:42 – Jane’s story: a mid-career professional’s path to angel investing

12:55 – The myths of investing: “I don’t know enough,” “I don’t have time,” “I don’t have money”

19:10 – Building wealth through diversification and consistency

23:37 – From false beliefs to proven frameworks: overcoming barriers

28:05 – How the Compassionate Capitalist Academy supports new investors

32:21 – Inside Secrets to Crowdfund Investing: making angel investing relatable

36:54 – Promo details: book launch, course discounts, and special codes

41:30 – Call to action: start small, start today, and build your wealth legacy

45:12 – Closing thoughts

About Karen Rands

I'm Karen Rands, founder of the Compassionate Capitalist Movement. I help entrepreneurs prepare to raise capital the smart way and guide investors in identifying startup opportunities that build wealth and make a difference. This show is your roadmap to funding success, from pitch deck to public offering.

📅 Want expert feedback on your pitch? Book a consult with me: bit.ly/KCHcalendar

🔗 Learn more: karenrands.co

🎧 Catch more episodes: thecompassionatecapitalistshow.com

📘 Free eBook: The 4 Ws of Crowdfund Investing: https://bit.ly/FreeCrowdfundInvestingBook

🎓 Join the Academy: bit.ly/CA-prelaunch

Raising capital is one of the biggest hurdles for entrepreneurs. Many capital raising campaigns fail because founders fall into common traps.

In this episode of the Compassionate Capitalist™ show, I talk with Karl Dakin, Founder of Dakin Capital, about what it really takes to succeed. We clear up the myths around crowdfunding and share practical strategies entrepreneurs can use to connect with investors.

Karl explains his Know, Trust, and Buy framework, helping founders build credibility so investors feel secure, making returns the “icing on the cake.”

We also explore Reg CF, Reg D 506(c), and Reg A+, what they are, how they’ve evolved, and why Reg D 506(c) has become a hot tool for attracting high-net-worth investors.

Entrepreneurs will learn how to:

• Craft pitches that inspire confidence.
• Build trust with transparency and storytelling.
• Leverage social media to drive momentum.
  

Whether you’re new to crowdfunding or experienced, this conversation gives you actionable insights to raise capital with strategy and confidence.

Takeaways

• Crowdfunding is a powerful tool for raising capital.

• The potential of crowdfunding is still largely untapped.

• Understanding the different types of crowdfunding is crucial for entrepreneurs.

• Customers can be valuable investors in crowdfunding campaigns.

• Reg CF allows non-accredited investors to participate in funding.

• Building a crowd before launching a campaign is essential for success.

• Reg D 506C offers flexibility for accredited investors.

• Reg A+ provides opportunities for larger fundraising efforts.

• The cost of raising capital through crowdfunding can be significant.

• Investors should conduct due diligence before investing in crowdfunding campaigns.

Chapters

00:00 Introduction to Equity Crowdfunding

04:00 The Evolution of Crowdfunding and Its Potential

09:50 Karl Dakin's Journey into Crowdfunding

16:35 Understanding Different Types of Crowdfunding

21:10 The Importance of Community in Crowdfunding

27:19 Navigating the Interstate Exemption

30:35 Reg CF: The Sweet Spot of Crowdfunding

38:56 Understanding Regulation A and 506C

41:44 The Wild West of 506C Offerings

45:28 Strategies for Raising Capital

54:11 Exploring Regulation A+

57:15 The Importance of Due Diligence in Crowdfunding

01:09:29 Customer-Centric Investment Strategies

About Karl Dakin

Karl Dakin is the Founder and Operator of Dakin Capital, LLC, where he guides entrepreneurs in raising capital through equity crowdfunding. With decades of experience as a Startup Business Designer and Growth Strategist, Karl offers proven methods that combine investor psychology, compliance, and practical fundraising tactics.

Learn more at dakincapital.com

About Karen Rands

I'm Karen Rands, founder of the Compassionate Capitalist Movement. I help entrepreneurs prepare to raise capital the smart way and guide investors in identifying startup opportunities that build wealth and make a difference. This show is your roadmap to funding success, from pitch deck to public offering.

📅 Want expert feedback on your pitch? Book a consult with me: bit.ly/KCHcalendar

🔗 Learn more: karenrands.co

🎧 Catch more episodes: thecompassionatecapitalistshow.com

📘 Free eBook: The 4 Ws of Crowdfund Investing: https://bit.ly/FreeCrowdfundInvestingBook

🎓 Join the Academy: bit.ly/CA-prelaunch