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We all know that angel investing produces better returns than the stock market.

A well-equipped angel portfolio has an average annual return of 25 to 30 percent. That’s 2 or 3 times better than your money would fare in the S&P 500.

The best part?

As an angel, your investments aren’t subject to the volatility of the Nasdaq or the New York Stock Exchange.

You won’t be left biting your nails each time tax reform or trade law comes up on the political agenda.

Investing in the stock market does have the benefit of being liquid – you can take your money back out of the system at any time, if you want to.

But in the stock market, you are powerless. You can buy, sell, and wait. That’s about it.

The same cannot be said for startup investing. In fact, as an angel investor, you have a tremendous amount of power.

The best angels use that power to steer startups towards success…

And, as a result, they make better and more consistent returns than angels who simply watch from the sidelines.

So, if you know that you can provide value to the companies you support financially… you absolutely should.

For example, my area of expertise is digital marketing. I’ve helped companies like Amazon, Microsoft, and Google grow using these skills.

So when I invest in a startup that’s struggling to gain market traction, do you think I just watch helplessly and hope they’ll figure it out?

No way.

Here’s the thing: just like you’re choosy with your investments, startup founders try to select investors who have more to offer than just money. (Click here to read more about becoming a commodity to founders.)

Lots of startup founders even look up to their angels.

And why shouldn’t they? If you’re investing in startups, you have probably already achieved some level of success in life.

That makes you particularly qualified to help “steer the ship,” so to speak.

Luckily, there are several ways you can contribute, beyond just providing cash.

For starters, you can sit on the board of directors or act as an advisor to the founders and chiefs.

Your unique perspective can help identify any weaknesses in the business that those too close to the project may be blind to.

Believe me – as a startup founder myself, I can tell you that there are unlimited opportunities to help founders make important decisions.

As an angel, you should give feedback and provide input any time you’re asked (within reason, of course).

Don’t be pushy about it – sometimes founders won’t heed your advice, and that’s okay. You aren’t here to run their company… just to help out when help is needed.

Sometimes that help comes in the form of wisdom.

Other times, the best way to add value is to facilitate connections between startup staffers and your own key contacts.

These connections can help bolster a startup in all stages of growth.

Maybe the business needs a new software developer, and you happen to know one.

Or maybe, down the line, your personal and professional contacts will help fill in a funding round.

Either way, the combined forces of all the equity holders’ contact lists can be immensely powerful – transforming a small operation into a galloping project with nearly global reach.

And you’ll be rewarded; by contributing your wealth, work, and wisdom, you are increasing the odds of a favorable exit.

That means more money in your bottom line. And, in most cases, founders will reward supportive angels by letting them in on future deals.

More wins… more satisfaction… more money.

That’s the power of investing more than just your cash.

Until next time,


Neil Patel


Comments

21 responses to “This is Why YOU Are More Valuable Than Your Money”

  1. hey neal i wanna help you with your startups im an experienced tshirt entrepreneur if you want to put some of your companies logos on tshirts im your guy lets talk terms

  2. So Im confused: If im going in on my brokerage account such as the example with the GSCV ticker and I purchase contracts (or stocks, whatever they are referred to) what is the difference between simply buying the stocks and being an angel investor? How is it that lets say the GSCV (again) how does that company know that I am an angel investor, as opposed to just a somebody that is simply just purchasing stock as usual or normal?? Anybody at all please help explain to me?? and Thanks so much!

    • Good question. How will they know? I sure wish someone would answer the questions we have. This is exciting yet I feel left hanging.

  3. You are investing in a company that is able to invest in other companies at a much larger volume. By investing in GSV Capital, you get to reap the rewards of their performance that they may or may not get by investing in late-stage private companies.

    Check out their website below:

    http://gsvcap.com/about/

  4. Hello,
    I’ve been with a lot of investment firms but, all they do is tell you which stocks to buy and the returns are measly.
    Question:
    Will you show us how to and when to invest in a company?
    If buying into a company, you need to know someone in that company to invest money.
    Like other investment firms, it is up to the individual to buy
    stocks from a stock trader and the returns are very small.
    I’ve been selling all the stocks I have and may be willing to join Angels, if you tell us how to trade or buy into a company and when to pull back.
    Sorry for this long story.

    Thank you,
    Roy Yamamoto

  5. Hello Neal, Edmond I seem to be getting potential investment tips that I am not sure is from you or your due diligent picks. how do I handle it

  6. Please connect me to those ten opportunities I signed on to invest in, $50 to $100 into ten start-ups, so my money can start earning, or losing, while I learn what I am interested in learning and not repaying you over and over for more ‘education’ when you have not delivered on the first offering of a common man’s investment portfolio. Let’s get started already! If I like what I see over the next year or so I may invest more in your other offering, so far my investment in A&E hasn’t lead me to even one investment you are willing to let me accomplish. Let’s get started, I have a life to live and a retirement close at hand. Let’s go!

  7. So far most of what I’ve received is more emails wanting me to join them. Why? I joined the Angels & Entrepreneurs to get me started. I don’t have hours every day to watch a video just so at the end I can spend more money to invest in someone else. Waiting for some ideas to invest in other than the few I’ve gotten over the last month.

  8. I’m trying to figure out where to invest in like the 10 companies I was told about when I joined, to old to sit and read and figure out what I’m suppose to do or how. When I joined I thought someone would be telling which companies were good to invest in?
    Thanks
    Angie

    • Hi Angie,

      All startup recommendations can be found on our sister website, angelsandentrepreneurs.com.

      Hope this helps!
      Neil

  9. Just like the letter below. I paid for your advise and all I get is buy more information. buy more information. how are we supposed to make money when we are giving it to you. I would life a refund for my purchase. plus because of my income I am only allowed to invest $2000. which i believe is not enough to make my $500 back. please advice as to how I can get my money refunded, i send email and I get it back saying it;s not readable

    Please connect me to those ten opportunities I signed on to invest in, $50 to $100 into ten start-ups, so my money can start earning, or losing, while I learn what I am interested in learning and not repaying you over and over for more ‘education’ when you have not delivered on the first offering of a common man’s investment portfolio. Let’s get started already! If I like what I see over the next year or so I may invest more in your other offering, so far my investment in A&E hasn’t lead me to even one investment you are willing to let me accomplish. Let’s get started, I have a life to live and a retirement close at hand. Let’s go!

    • Hi Alicia,

      All investment opportunities can be found on our sister website, angelsandentrepreneurs.com. This website, The Startup Investor, is a free, educational resource we use to teach people the basics before they start investing.

      Hope this helps!
      Neil

  10. Hey everybody, Go to the website, angelsandentrepreneurs.com, Register and sign in and the companies that Neil is recommending is there. You can look at the ones that you are paying for. Founders can see the ones that say founder at the top of each company. VIP Founder or Elite founder, same thing. If there is a locked padlock above the company to invest in, that means you are not a member of that service. No padlock, you are good to go. just click on the company name the info will pop up for that company. I have VIP Founder for life and Lifetime Elite Founder. I have invested in 4 companies through Republic, 100.00 each and 2 companies through Start Engines. All the info you need is in there when you click on the business name. Remember, these are start up companies. If they make it big, you can make lots of money. But, if they do not succeed, can can lose that 100.00 or whatever you invested. It is not like a stock unless it goes public. All these big companies
    in the stock market were all start up businesses before they went big. But, back than we could not invest unless we were rich or had connections. Hope this helps.

    • I’ve used Republic already; but not Start Engines. Is Start Engines similar to Republic? Do they have better companies?

  11. My question is, the 3 real estate I chose I see they started show how much money they already rise do my money included in it?

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