Have you ever taken the opportunity to be part of an angel investment? In an angel investment, a group of investors comes together to build a pot of money that they will use to invest in a high-potential company or business idea.
I recently had the chance to take part in an angel investment opportunity with a group of nearly 30 other investors. These investors ranged from the heads of tech companies to veteran fund managers.
Together, our team built a sense of camaraderie, community, and generally loved the chance to work together to fund the next great idea.
Two Lessons From An Angel Experiment
Like any experiment in the realm of investing, the lessons you learn are often unexpected and quite different from what you expect. When it came to my experience with angel investment, I discovered two unique lessons:
1. How Companies Sell Themselves
It is fascinating to watch how companies, startups, and entrepreneurs pitch their ideas to investors. The popularity of shows such as Shark Tank has brought the concept of pitching to investors into the pop-culture consciousness, and pitches have continued to evolve and adapt in an increasingly competitive market.
2. How Investors Make Decisions
Probably the most fascinating lesson I learned with the team of angel investors was how these men and women make money decisions. Each investor came to the table with their own experiences, wealth, and wisdom. Watching them work together to make a decision on the best investment was both inspiring and challenging as a professional wealth coach.
Fighting Decision Quicksand
So, which company won the nearly $150,000 angel investment? The big winner wasn’t the shiniest or most innovative pitch. Actually, it was a company that was already established. They were functioning, generating revenue, and they were able to articulate how they were in control of the revenue-generating aspects of their business model.
The group of investors, despite their differences in background and experience, all had one thing in common: they wanted to avoid risk. These angel investors took the necessary steps to avoid what is known as decision quicksand.
With decision quicksand, you can find yourself unable to make a decision and move forward as you struggle through the could-happens.
Instead, by doing due diligence to make sure you have considered all aspects of a potential investment, you can narrow down your options quickly by clearly identifying the what-ifs first.
Here’s a pro tip when it comes to investing - angel or not. Quite often, the things that are the shinest are the ones that have the most amount of risk. If you are able to uncover a lot of the what-ifs and complete your due diligence, you can make a qualified decision.
So, ready to boost your chances of seeing an all-around quality return on an investment? Give an angel investment opportunity a try!
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