But fits squarely into the "5% of investible assets" category, aka HIGH RISK.
Two things about angel investing I wish I'd had a better grip on when I made my first handful:
1 - Very high risk and almost impossible to pick winners out of a pool even for established investors. Wins are extremely concentrated, and most positions lose - aka it's more akin to roulette unless you have a distinct advantage. Most "professionals" - aka established super angels like Calacanis or new entrants like Ryan Hoover via weekend.fund - target 30 - 50 investments per "fund" to mitigate this reality.
2 - Successful angel investments, even when they pay off, are usually illiquid for 5 - 9 years. Secondary markets are still being established and unless you manage to invest in Uber it's unlikely that you'll even have that opportunity.
So as with the desperation of crowdfunders retweeting themselves every 15 minutes to the same followers across multiple platforms, instead of requiring those who have looted the most from society to pay their share, the burden of actual financial responsibility must fall on the shoulders of the masses.
But fits squarely into the "5% of investible assets" category, aka HIGH RISK.
Two things about angel investing I wish I'd had a better grip on when I made my first handful:
1 - Very high risk and almost impossible to pick winners out of a pool even for established investors. Wins are extremely concentrated, and most positions lose - aka it's more akin to roulette unless you have a distinct advantage. Most "professionals" - aka established super angels like Calacanis or new entrants like Ryan Hoover via weekend.fund - target 30 - 50 investments per "fund" to mitigate this reality.
2 - Successful angel investments, even when they pay off, are usually illiquid for 5 - 9 years. Secondary markets are still being established and unless you manage to invest in Uber it's unlikely that you'll even have that opportunity.