Angel Investors: 3 Things you Need to Remember to be Successful

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There’s no such thing as risk-free Angel Investing as there will always be good and bad investments but

your long-term profitability as an Angel Investor depends on a few critical components to help you

weather the storm. Here we list three of what we believe are the most salient attributes of successful

angel investors.

In a recent LinkedIn Article http://bit.ly/2kGupTg Sara Weinheimer, Founder/Executive Producer of

BroadMic www.broadmic.com shared what she believes “Every Woman Needs to Know about Angel

Investing”.  In her article, she highlights the importance of remembering that as an Angel you are betting

on the jockey, not the horse. She also stresses the need to “diversify, diversify, diversify” as well as to

keep in mind that you are in this for the long haul. She states, “you should assume that every

investment you make won’t yield returns for at least five to seven years (usually closer to 10).”

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These key points are also highlighted in a recent article written by the Seraf team

http://bit.ly/2lM8x9Y titled “6  Important Habits of a Successful Angel Investor”.  In addition to

discovering great companies and keeping track of your investment portfolio, Angels benefit by owning a

diverse portfolio, having realistic expectations for the timing and size of exits and realizing you

are “investing in the financial AND human capital.”

Based on these two articles, and our own members’ experience investing in over 50 companies over the

past 5 years, we have listed 3 key points that we feel are necessary for anyone considering adding Angel

Investing to their portfolio:

·         Remember the Human Component – You’re betting on the team behind the company, not just the

company’s products. Do your due diligence to be sure the investment is sound “on paper”, but don’t

forget that you are getting into a relationship with the Founders as well. Get to know them and be

prepared to help.

·         Be Realistic – Big wins may not look like big wins right away, and once you invest you should be

prepared to see the company through many ups and downs. Continually provide support, guidance and

advice long after the cheques are written.

·         Diversify – You’re better able to manage your risk and likely to see profits if you pepper your

investment dollars over a wide range of companies.

Keeping these three points at the forefront of your investment decisions will help drive your success and

enjoyment in Angel Investing.

 

 

There are lots of resources available as a benefit of membership in Angel One. Here are just two of

them:

National Angel Capital Association (Canadian) https://www.nacocanada.com/events/

Angel Capital Association (U.S.A.) https://www.angelcapitalassociation.org/new-angels/