What are the pros and cons of angel investing?

What are the pros and cons of angel investing?

Angel investing can provide significant benefits, such as high potential returns and the opportunity to support startups. However, it also comes with risks like the possibility of losing your investment and the lack of liquidity.

Can you elaborate on the potential returns?

Certainly! Angel investors can earn returns that are much higher than traditional investments, sometimes exceeding 20% annually, especially if the startup becomes successful.

What risks should I be aware of?

Key risks include the high failure rate of startups, lack of control over business decisions, and the long time frame before seeing returns.

How can I mitigate these risks?

You can mitigate risks by diversifying your investments across multiple startups, conducting thorough due diligence, and investing in industries you understand.

Is there a minimum amount I should invest?

While there's no strict minimum, many angel investors start with amounts ranging from $10,000 to $50,000 per investment.