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 butyour long-term profitability as an Angel Investor depends on a few critical components to help youweather the storm. Here we list three of what we believe are the most salient attributes of successfulangel investors.In a recent LinkedIn Article Sara Weinheimer, Founder/Executive Producer ofBroadMic www.broadmic.com shared what she believes "Every Woman Needs to Know about AngelInvesting".  In her article, she highlights the importance of remembering that as an Angel you are bettingon the jockey, not the horse. She also stresses the need to “diversify, diversify, diversify” as well as tokeep in mind that you are in this for the long haul. She states, “you should assume that everyinvestment 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 titled "6  Important Habits of a Successful Angel Investor".  In addition todiscovering great companies and keeping track of your investment portfolio, Angels benefit by owning adiverse portfolio, having realistic expectations for the timing and size of exits and realizing youare “investing in the financial AND human capital.”Based on these two articles, and our own members’ experience investing in over 50 companies over thepast 5 years, we have listed 3 key points that we feel are necessary for anyone considering adding AngelInvesting to their portfolio:·         Remember the Human Component – You’re betting on the team behind the company, not just thecompany’s products. Do your due diligence to be sure the investment is sound “on paper”, but don’tforget that you are getting into a relationship with the Founders as well. Get to know them and beprepared to help.·         Be Realistic – Big wins may not look like big wins right away, and once you invest you should beprepared to see the company through many ups and downs. Continually provide support, guidance andadvice long after the cheques are written.·         Diversify – You’re better able to manage your risk and likely to see profits if you pepper yourinvestment dollars over a wide range of companies.Keeping these three points at the forefront of your investment decisions will help drive your success andenjoyment in Angel Investing.  There are lots of resources available as a benefit of membership in Angel One. Here are just two ofthem:National Angel Capital Association (Canadian) https://www.nacocanada.com/events/

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