Consider Angel Investing - Tips for Becoming an Investor in Early-Stage Companies

Earlier this month, Laura Baverman wrote an article in USA Today entitled "Time is Right to Consider Angel Investing".  I was tickled with the article because not only did it get the message to many potential angels that angel investing could be a great activity for them, but that it quoted a number of ACA members and friends - such as Dan Mindus of NextGen Angels, John May of New Dominion Angels, the managing team of Golden Seeds (great photo, by the way!), and Rob Wiltbank of Willamette University and the Angel Resource Institute, among others.

If you are new to angel investing or just starting to think about making these investments in innovative startups, I recommend that you talk with people you know who are angel investors, attend an angel group meeting near you to get an idea of how they work, and read up on how angel investing works with articles, posts, and books from experienced angels.  ACA and our members are here to help you as you learn about the fun, adventurous and fulfilling world of investing in and mentoring some really great entrepreneurs.

As the USA Today article says, if you have cash to invest and an appetite for risk, here are some tips for learning how to become an angel investor:

  • Sit down with your financial adviser and spouse and decide how much you have to spend (in the angel asset class)
  • Determine what additional value you might bring to a startup company.
  • Understand what you're buying into.
  • Study the different ways to invest.
  • If you choose to invest on your own, join startup or investor networking groups to meet new companies.
  • Use online resources to study companies and industries.
  • Pick entrepeneurs and businesses you believe in.

Feel free to use the resources of ACA's Web site, and definitely contact the ACA member angel group located nearest you to learn more.