“As someone working in tech, how can I get into angel investing?”
I’ve made ~10 angel investments the past months and here’s how I went about it (thread)
1. Big tech alumni. After I quit Uber I got invited to the Uber alumni investment club. Huh? So apparently these exist
I’ve made ~10 angel investments the past months and here’s how I went about it (thread)
1. Big tech alumni. After I quit Uber I got invited to the Uber alumni investment club. Huh? So apparently these exist
1. (Cont’d) Facebook has one, Uber has one, and a bunch of other companies (even smaller ones). They’re places you can see deals come in, and put in from very small checks.
Granted this was lucky, but seeing dozens of pitches over months was helpful in learning on the side.
Granted this was lucky, but seeing dozens of pitches over months was helpful in learning on the side.
2. Help founders/startups without expectations.
My first investment came well after I talked with a founder from my network, offering advice, help and feedback as it was an area I was experienced in. When they later raised, I offered to join in, and it made perfect sense.
My first investment came well after I talked with a founder from my network, offering advice, help and feedback as it was an area I was experienced in. When they later raised, I offered to join in, and it made perfect sense.
3. Know what you bring to the table. I only invest in companies where on top of believing in the team, I can help with something: experience, hiring or network. What do you bring to the table, beyond a small amount of money?
4. Know why you do it.
I invest with the expectation that I can lose all my investment. I invest in companies/teams where if this happens, I’m still okay with it.
Why do I do it? To both help these startups (who have odds stacked against them) and also learn as we go.
I invest with the expectation that I can lose all my investment. I invest in companies/teams where if this happens, I’m still okay with it.
Why do I do it? To both help these startups (who have odds stacked against them) and also learn as we go.
5. Play games you want to win.
As a small-time angel investor, you’ve got tiny chances of turning profits.
This is not the game I play. I play the game of being involved in startups I’d love to work at/work with, and investing gives the second best option of getting involved.
As a small-time angel investor, you’ve got tiny chances of turning profits.
This is not the game I play. I play the game of being involved in startups I’d love to work at/work with, and investing gives the second best option of getting involved.
The companies I’ve invested in: blog.pragmaticengineer.com/investing/
One last point: if you invest, work with an accountant to understand tax implications upfront.
This advice is more relevant for some countries than others. Eg in NL there’s no capital gains tax (yay!) but there’s annual wealth tax after assets - that include investments.
This advice is more relevant for some countries than others. Eg in NL there’s no capital gains tax (yay!) but there’s annual wealth tax after assets - that include investments.
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