Angel Investing: From Risk to Reward

The Fulfilling Role of an Angel Investor

Author

Gale Wilkinson
May 18, 2023

Quick Reminder— Applications for this month’s VITALIZE Angels cohort are closing on May 25th! Don’t miss out and learn more if you’re interested:

Angel investing is not just about financial gains but also about joy & fulfillment!

In an insightful post from Ben Yoskovitz, he shared a gold mine of reasons on why and how you should angel invest, but this part stands out:

I love angel investing. Sourcing deals, helping founders, writing checks. It’s all fun. Well, losing money sucks, but that’s part of the game.

The best part for me is helping founders. I think that’s true for a lot of angel investors, because doing it exclusively for a return seems pointless. Sure, you can get a 100x return on something, but those odds are very small. As an angel investor I see myself as a facilitator and supporter of someone else’s dream, and I do what I can to help them accomplish it.

… Angel investing at an early stage is almost exclusively a bet on the founders. 

Ben Yoskovitz, Founding partner, Highline Beta

The journey of angel investing is not without its share of risks and uncertainties. As Yoskovitz points out, losing money is an unfortunate possibility.

However, the passion for supporting founders and contributing to their success outweighs the occasional setbacks. Angel investors are driven by the opportunity to be part of something greater, to play a role in empowering talented entrepreneurs.

This tweet from David Hoang builds on that and holds true for most angel investors:

There is only one reason I angel invest—contributing back to the startup ecosystem that empowered and supported me. Be an early believer in founders.

David Hoang, Replit

Both of these sentiments are good reminders in the current market where it is easy to drown in hesitation and anxiety.

At the end of the day, angel investing is a thrilling journey and a chance to support visionary founders, contribute to the growth of innovative startups, and shape the future of industries.

So, if you're currently, or considering, venturing into the world of angel investing, remember that it's not just about the numbers.

You may get the chance to make a difference and find fun and fulfillment in the process.

Thanks for reading today!

What topics would you like us to cover next? Reply to this email or ping me on Twitter to let me know.

Have a great week,
Gale