An Angel's Perspective: Waverly Deutsch

Hi 👋 Welcome to the Angel Insights newsletter from VITALIZE.

Once or twice a month, we’ll be featuring angel investor interviews to give you unique perspectives, tips, and strategies on early stage angel investing. Feel free to share with a friend who may want to subscribe.

This edition features Waverly Deutsch - a seasoned angel investor backing startups for over 20 years. She does a couple deals per year. Waverly invests in technology, healthcare, consumer, and services at the startup stage.

How did you become an angel investor?

I started by investing in my goddaughter's dad's company many years ago. We created the largest digital database of off-copyright books in the world, and the company failed. It was the 1990s. There were no e-readers. Laptops weighed 15 lbs. No one wanted to read on a computer. We were WAY ahead of the market. I primarily invest in people. People I believe in and want to see have a shot at bringing their vision to life. I have to buy into the opportunity but I don't get excited by ideas - I get excited about entrepreneurs.

What is your favorite thing about being an angel investor?

Working with the entrepreneurs and seeing them grow.

Any advice you would give to a new angel investor?

Don't invest in startups solely to make money. Have other motivations - learning, supporting people, giving back... That way you will always get an ROI.

What is the most important part of your diligence process and why?

Any adjustments you've made after angel investing for awhile that made a difference?

I typically invest with other people now, like with VITALIZE Angels. In the very early days, I would be the first or only check in a deal. I don't do that anymore. I want other smart people looking at and believing in the founder and the company.

What do you think the future of angel investing will look like?

Historically 5% of the population has given/lent/invested money to someone other than themselves to help start a business - that is one in twenty people. I think this will rise with the advent of crowdfunding, the popularity of entrepreneurship in the media and online, and the ability for people to put smaller amounts into companies. Whenever a big new pool of money becomes available to entrepreneurs, like when pension funds were allowed to invest in venture capital funds in the 1990s, a lot of people lose money before it settles out and folks learn some lessons. That's one reason I recommend that if you want to start angel investing you find a group to learn with.

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Thanks for reading, and I hope you’ve been inspired today! 🙂

Peace, love, and angel checks,
Gale