I was in my early 20’s when I started angel investing.
In a way, starting young was a very good thing. I had my “finger on the pulse,” so to speak – and that helped me identify hot trends that could catapult certain startups towards success.
And, by 25, I already knew a thing or two about running businesses… in fact, I had personally launched a few.
Still, angel investing is a little more intricate than just making assumptions about what people will buy.
Great angel investors consider a myriad of factors before signing the dotted line: market trends, legal obstacles, founder history… the list goes on.
It’s a lot to keep track of, especially when you’re still learning how the system works.
Fortunately, a very successful angel gave me a piece of advice that turned my way of thinking on its head.
I won’t name names, but this angel had it all: incredible properties, fancy cars, and a lifestyle to match.
What I learned is sure to help you just as much as it helped me.
Here’s what that super-successful angel said:
When you’re first starting out, you’re bound to make mistakes.
New investors are full of optimism and excitement. That is a great thing.
But it can also make people impulsive – and investing on impulse is never a good strategy.
So how can you learn the ropes without losing tens of thousands of dollars to bad investments?
Ride on the coattails of other successful angels.
Investing alongside seasoned pros won’t just keep you from making rookie mistakes…
It’ll also make your life easier.
The paperwork, the due diligence, the pitch meetings, the negotiations… this stuff takes time. If you’re doing it right, it is a lot of work.
Experienced players have an edge: their process for investment selection and follow-through has already been streamlined by their years of practice.
They know how to avoid the common pitfalls that ensnare novice investors: fear of missing out, unfamiliar territories, mediocre deal flow, and so on.
Luckily, it’s not too hard to find an experienced mentor. You’ve already found one – and a vast network of other angels to boot.
Stay tuned – next time, we’ll be talking about what it really means to be part of the angel investing.
Until next time,
72 responses to “My Favorite Angel Investing Strategy – and Soon to Be Yours”
April 23 2019