Business Angel

How to start investing like an angel?

Everybody has heard of Facebook, Twitter or Google.  These companies have literally change our lives and modified the way we communicate, work and even more. But this is not the only reason why startups are getting more and more attention.

Twitter-Facebook

Some young CEO’s becoming billionaire before turning 30, companies created less than 5 years ago which are sold at hundreds of million dollars have also helped to build awareness around startups. If people were skeptical by the time Facebook or Twitter were created, a lot of them are now whishing they have had the chance to invest in these tech companies when they were still unknown and not making any revenues.

No time for regrets

If by that time you were not a millionaire, there was no chance you would have been invited to participate in what is now multinational profitable companies. Again don’t worry, things are changing in the investment landscape.

Startups are no more restricted to wealthy people, these type of investments are now accessible to mainstream, thanks to the proliferation of equity crowdfunding platforms such as Bee Invested. You don’t need to have a million aside to start investing in startup, few thousands shall be enough to build a diversified portfolio of promising startups.

Start with your investment strategy

How much are you willing to invest on a yearly basis? In how many startups are you willing to invest? Do you want to invest an equal amount on each of them ? Are you more interested in early stages startups, in more mature ones or in both? What are the sectors that you are more interested in?

These are all equally important questions that you need to ask yourself before envisaging angel investing.

Invest in industries you know

You are an expert in finance? Start investing in fintechs !   This is serious, you should first stick to the industry(ies) you understand and know the best. The better you understand the core business of the startup, the better you will be able to judge the challenges and opportunities ahead and whether the startup has the right team to face them.

Most importantly this will allow you to bring your expertise and insight of the industry to the startup you invested in.  Maybe you can also put your network at disposal and help the startup to connect with key customers, opinion leaders or partners. See it as an investment too, research shows that the more interactions angels have with their startups, the greater the financial return is.

Diversification is key

Diversification is a key to any investment strategy. Don’t put all your eggs in the same basket. Whether you diversify your portfolio across industries or different stages of development, invest only if you understand the business model of the company. If you are wondering which startups to include in your portfolio, have a look to our first selection on Bee Invested and decide which startup will be proposed for investment on our platform.

Hope you enjoyed the reading and feel free to leave your comments below

Bee Invested Team

Leave a Reply

Your email address will not be published. Required fields are marked *