Dear Startup Investor,
You already know that angel investing is one of the best and most reliable ways to make huge gains – on average, double what you could make in stocks.
But when you do a quick Google search for “angel investing,” you’re overwhelmed by more than 36 million results – none of which are able to start at the very beginning and personally walk you through the process.
So today, let’s cover what angel investing really means – for you AND the founders you’ll be working with.
First off, an angel investor is a person who sees the potential for greatness in an early-stage startup – think Zuckerberg in his garage – and throws in that first real investment, or seed money, to help the business grow.
Now, this is all happening before a company goes public. That means you’re not going to be buying shares on the Nasdaq or the New York Stock Exchange.
Instead, you’re going to be buying directly into the companies we talk about. (We’ll go over the mechanics of that later…)
As an angel, you’ll be getting in way before typical investors.
That means two big things for you…
- You’ll have a chance at way bigger profits than someone who waited to buy stock when the company went public. In fact, when everyone else is flooding in, we’ll be making our exit and cashing out. (More on this in a few days)
- You will have the opportunity to make real changes and have real impact as a company develops. Imagine buying shares in Tesla right now. Do you think Elon Musk is going to invite you to the board room? No way. But as an Angel, you have a direct line to the founder – you have influence.
Now, here’s why this is such a big deal.
Up until 2016, the world of Angel Investing was reserved for Silicon Valley’s high and mighty… aside from needing all the intimate connections and tight-knit network of CEOs, VCs, and billionaires, you also needed to be an accredited investor. Long story short, you needed a net worth over $1 million to be an angel.
But times have changed. Today, you can get in the game with just a few hundred dollars. Of course, you can invest much more, too – it’s all about what you’re comfortable with.
And the private equity market itself is exploding – there are record levels of capital being exchanged. Last year, investors poured $453 billion into private equity. (And that’s all while the number of public companies has been cut in HALF).
Simply put, private equity is where fortunes will be made in the next few years.
Which is why we’re getting in now…
Until next time,
41 responses to “What Angel Investing is Really About”
March 18 2019