Angel Investors: 3 Things you Need to Remember to be Successful
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
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).”
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
National Angel Capital Association (Canadian) https://www.nacocanada.com/events/
Angel Capital Association (U.S.A.) https://www.angelcapitalassociation.org/new-angels/