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Why I started Angel Investing?
What is Angel Investing?
Angel Investing is the act of putting money into earliest investment rounds of a private business with the goal of getting back more money than you put in — much more than you can return in a safer, more established investment vehicle. The businesses angel invest in are typically less than three years old, have little or no “traction”, and are trying to find something we call product/market fit. If these businesses didn’t look completely crazy, then everyone would want to invest in them and there would be no need for angels. In fact, the term “angel” is used because angel investors are the ones who come to a founder’s rescue in their hour of need — when nobody else believes in them.
Disclaimer: Angel Investing is a very risky investment category and is only available to accredited investors. One should not invest in Angel Investment unless they are willing to lose all the money they invest.
Characteristics of an Angel
The best angels in the world have the following four qualities:
- They can write a check (money)
- Brainstorm with founders over important issues (time)
- Provide meaningful connections (network)
- Give actionable advise that saves founders time and…
