5 Reasons Why Angel Investment is Not Just About Money
A high risk business with an even higher probability of no return is how a typical investor would define angel investing. Putting the hard earned cash into a company that probably doesn’t even exist or is putting its baby steps into the game sounds like madness. Yet, year on year, the number of angel investors in the world has been increasing at an astonishing rate. One cannot help but wonder why is this the case? Billions of dollars have been invested by seasoned entrepreneurs, businessmen or men with wisdom. This indicates there’s much more to the game than mere money and here are top five reasons, persuading anyone to angel invest.
The learning curve is huge:
Being an angel investor exposes you to some of the most ambitious and innovative businesses out there. Building a network of smart people who are working on things to make an impact is something money can’t buy. Often successful companies suffer from stagnating growth rates, an angel investor is pitched with loads of new ideas which can be used for his own firm to take the next big leap.
Diversifying experiences:
Being in the same business for so many years can lead to burnout. Getting a taste of something different broadens the horizons and brings the much required thrill. Getting to see different companies in making and empowering them through experience, expertise and capital is a different journey altogether, an angel investor gets to experience. It keeps your mind kicking and keeps you young
Technological revolution:
The question whether we are living in a tech bubble or not is making rounds over the past months. Well, only time will tell. Though there’s a revolution coming, sectors like automation are experiencing hyper growth, for an investor the time cannot be more apt to become a part of the upcoming tech companies and watch how the technological breakthroughs change the world.
The Big Picture:
Gone are the days when people would just look forward to a few key players to bring the next big thing. The entrepreneurial mindset is spreading like wildfire getting more and more people to hustle. SpaceX for instance is taking the entire aerospace industry by storm. What NASA could not achieve in decades, they did within a few years. Startups are going to play a key role in the evolution of the entire human race and an investor providing them with the necessary means is the biggest enabler for this community.
Although rare but big fat returns:
The early investors of Instagram got a 312x return within a matter of few months, investors of Google multiplied their money by 70,000x. Although rare but such unicorns and mega unicorns exist and once you learn the art of angel investing, it can potentially become the most successful investment strategy way ahead than stock market or mutual funds.