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  • Angel Gambino

Make a Positive Impact and Outsized Returns as an Angel Investor



As an angel investor, you have the opportunity to not only make a positive impact on your community and society at large, but also earn significant returns. In this post, we'll explore how you can get started as an angel investor and some of the key considerations to keep in mind. Read on to learn more about how you can make a difference - and money - as an angel investor!


Making angel investments can be a great way to actively participate in entrepreneurship and support startups. It allows you to get in on the ground floor, providing an early influx of cash for a company before it hits the mainstream. Beyond simply helping the business grow, you are also potentially giving yourself access to exciting new opportunities – many of the most successful companies began with small angel investments. When investing as an angel, your money is supporting something that could end up being world-changing and life-altering; it’s more than just another financial commitment, but rather an act of entrepreneurship itself. Consider opening your wallet and becoming an angel investor -- not only will you benefit from the potential upside, but you are also joining a community of entrepreneurs and high net worth individuals striving to make the world a better place. During difficult economic times, you can often get good deal terms for your investment and feel great that you are one of the risk takers investing in improving the economy. If you're looking for a unique source of dealflow you can sign up here. Entrepreneurship is the backbone of any healthy economy. You’re investing in the future you want to see today.


Building companies from the ground up brings immense potential for reward and growth, but entrepreneurship isn’t for everyone. For those looking to get involved in the world of innovation and entrepreneurship, angel investing is a great option for those who don’t want to become founders themselves (many founders are also angel investors). Through their investments, angels become an integral part of early-stage startups, providing them with tangible means to propel business growth while also participating in lucrative networking opportunities. An investment in a startup can start small, allowing you to minimize risk while also experiencing the thrill that comes with funding budding entrepreneurs when no one else will! Angel investing is a great way to get involved in entrepreneurship without giving up your full time job. If done well, it can provide meaningful financial rewards down the line - after all, entrepreneurship is risky enough without having to go all-in! Unlike investing in the public markets, it typically takes ten years to make a return as an angel investor, so it’s better to get started now!


Are you interested in taking the exciting leap into entrepreneurship by becoming an angel investor? First, determine if you qualify as an accredited investor and then decide how much capital you want to deploy annually into early stage startups. You can use my general rule of thumb of 15% up to 50% of your overall cash reserved for investments. Angel investing is a great way to diversify your investment portfolio, but it can feel daunting if you are new to early stage investing and entrepreneurship. Fortunately, the startup world is becoming increasingly accessible and opportunities to invest in promising startups abound. Because there are so many different kinds of investment opportunities, it’s important to find your focus and develop an investment thesis. For example, I focus on startups that make the world healthier and happier. In this blog post, we will explore other key steps to help you get started as an angel investor. From understanding what angel investing is and why it’s so attractive, to evaluating potential investments and mitigating risk, we have all the insider tips on what you need to know before you take the plunge into angel investing. This should not be your only source of truth, however. You should consume as much credible information and insights as you can and in Angel Club, we also have Mentors who have been angel investing for decades into hundreds of companies to help you on your journey.


The landscape of entrepreneurship evolves quickly, and oftentimes it’s hard to know how you can get involved. Well, for starters, venture capital and angel investing differ in terms of capital provided. Venture capital investments come from a venture capital fund made up of a pool of investors and the investment amounts are typically much larger than what individual investors, such as angel investors, provide. VCs are usually investing other people’s money such as endowments or family offices who invest in VCs trusting them to deploy the capital responsibly to make the greatest returns according to their investment focus as a way to diversify their investments. Angel investments are impactful for many reasons, but one reason is that they help to de-risk VC investments by enabling startups to build momentum and traction and thus value before a VC invests. Angel Investors can also become limited partners in venture capital funds and invest into the fund rather than directly into the startup. These are typically much bigger investments for more seasoned angel investors. However, some funds also have angel investor syndicates who can invest alongside the fund. For example, I invest with FJ Labs, Hustle Fund, and WhatIf Ventures and I am part of the Vitalize Angel community. Angel investors are immensely helpful to a startup's capital needs and can offer additional access to mentorship or introductions to talent or customers and partners to help a startup grow bigger faster. Angel investments promote entrepreneurship by allowing investors the opportunity to support business ideas or products with their own funds - with or without receiving equity in exchange (more on types of investments in a future post). Although angels are individual investors who invest directly into startups at the earlier stages unlike VC funds, many angels get started by investing through syndicates or angel groups. You can try both to determine which approach you prefer. In Angel Club we support an angel investor’s ability and success either way.


Through this blog post and Angel Club, our startup community-focused on creating more economic mobility and equity through entrepreneurship, we hope to help encourage and guide people to make angel investments into startups so that the dreams of entrepreneurs can become a reality we all benefit from! With entrepreneurship on the rise, it's no surprise that more and more investors are considering angel investments for their portfolios. But what makes these types of investments so attractive? As someone with experience in startup communities, the answer is clear: it's all about the relationships. Angel investing allows you to invest your money into an enterprise not just because of its potential returns, but also because there is a real connection to people who have shared visions and ambitions. With this type of investment, you become part of a community - one with plans to make a mark on the world by building something meaningful and worthwhile together. To anyone looking to get involved in entrepreneurship and make impactful investments, I'd recommend considering angel investments over the stock market or in addition to the public stock markets - the rewards go beyond monetary profits! While the risks are usually greater with angel investments due to the early stage nature of investment and while you can lose more often than you win, when you do win it’s typically a substantial return compared to the stock market.


Investing in startups can be an exciting but nerve-wracking experience. It requires taking a leap of faith and making decisions with limited knowledge - all while hoping to come out on the other side better off than before. But when it comes to entrepreneurship and angel investing, those risks can be rewarded by the potential for an unbeatable feeling. The rewards for making the right investment can be life-changing; becoming part of a successful startup is akin to finding buried treasure. With enough research and foresight, you could reap rewards you never thought possible - and make entrepreneurship even more meaningful. If you join communities like Angel Club that supports non-accredited and accredited investors, you can learn as you go and get access to great dealflow you might otherwise not hear about until it’s too late. Hot deals can be very competitive to get into, so belonging to a community of aligned investors helps you edge your way into great deals.


To wrap, angel investing can certainly be a great way to bolster one’s own portfolio as well as help kickstart the dreams of an individual or established business. While it may require more effort upfront – such as researching opportunities and vetting potential investments – the return on investment may be worth your while in both financial and personal terms. That being said, there are certainly risks involved that you’ll need to educate yourself about before taking plunging into the world of angel investing. Stock market investments may still seem like a safer route for those who want to remain somewhat removed from the process. However, if you’re willing to put in the legwork required, angel investments could pay big dividends financially and beyond; after all, what better reward than helping someone accomplish their goal? To take your first steps into this new realm, why not join Angel Club today? With our inclusive community of accredited and unaccredited investors and founders, curated introductions, mentorship and fun informative events, you’ll get access to experienced investors and entrepreneurs. Through Angel Club, you will have access to great networking and knowledge necessary for targeted angel investing success. Get started with Angel Club today and make sure you follow due diligence when assessing any potential opportunity! Yeah, we can help with that too!


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