DO YOU HAVEWHAT IT TAKESTO BE AN ANGEL

INVESTOR?

Larry Scheinfeld

AS FASCINATION WITH THE STARTUPWORLD CONTINUES TO RISE, AS DOESTHE APPEAL OF BECOMING AN ANGEL

INVESTOR.

Here are some factors toconsider before becoming an

angel investor...

PsychologyPatience is a must. Once you arein as an angel investor, you are infor the long term. Expectationsshould be held in check as resultsmay not be seen for several years.

Any investment is a gamble,especially when dealing withstartups. Per the U.S. CensusBureau, an average of 50% of allstartups go under within a fewyears. Even if the company isprofitable, only a small fractionprovide the returns angels arelooking for.

Payoffs could potentially behuge... but the inherent risks mustbe considered beforehand.

Invest WhereYou Know

Staying in a familiar territory andinvesting in industries you arealready familiar with provides acertain amount of comfort.

Many angel investors are repeatangels, meaning they haveexperience and knowledgepertaining to what worked, whatdidn't, and what to watch out for.

As a new investor, it would bewise to seek the help of aseasoned angel as well as spend agreat deal of time researching andgetting acquainted with the space.

MoneyIn spite of the other skillsnecessary to be successful, anangel investor must have atminimum $1 million in liquid networth.

Investing in young startups isalways a risky gamble. As such,having more than the minimumliquid net worth would be smart,allowing you to afford to take aloss.

Silicon Valley dominates United States angelinvesting with 39% of over $7bn invested in theU.S., but don’t pack your bags and move before

you have all the facts.

Almost anyone with money and insight canbecome an angel investor, but the ones who

survive the sometimes unstable landscape ofinvesting in startups need a lot more than just

liquidity to succeed.