Investing in private companies – before they reach the public markets – can be one of the most lucrative investment strategies in the world. There are famous examples of private investors and venture capital (VC) firms making a fortune with early stage companies. Private investors in Uber, for instance, turned $30,000 into $149 million… $50,000 into $248 million… or even $510,000 into $2.5 billion . >>>Join Here<<< So yes, investing in private deals can be very, very lucrative. However, until now it has been reserved for the ultra-wealthy and the super connected. It’s a sort of a dark art. It involves high-risk decisions every time an investment is made or about to be made. And angel investors have to deal with imperfect and incomplete information. So let me give you Three Simple Rules to become an Angel Investor and you’ll have a better understanding of why being a member of the Angel Business Club is a smart move. Rule One: Understand the Fundamentals The first r
Angel investors invest in early stage or start-up companies in exchange for an equity ownership interest. Angel investing in start-ups has been accelerating. High-profile success stories like Uber, WhatsApp, and Facebook have spurred angel investors to make multiple bets with the hopes of getting outsized returns. Here are my thoughts on frequently asked questions from entrepreneurs about angel financing. 1. How much do angel investors invest in a company? The typical angel investment is $25,000 to $100,000 a company, but can go higher. 2. What are the six most important things for angel investors? Here is what angels particularly care about: The quality, passion, commitment, and integrity of the founders. The market opportunity being addressed and the potential for the company to become very big. A clearly thought out business plan, and any early evidence of obtaining traction toward the plan. Interesting technology or intellectual property. An appropriate valuation with reasonable te