Angel Investing sucks!!
(Almost) no Angel earns money with, actually most of the Angels loose their money
It is impossible to know how motivated the startup team is before you give them your -hard earned- money
Startup team is gone, as soon as the money is gone
“Small” investments of Angels are to survive or to find the next investor, which mean all the time is gone finding the next investor
…And startups with serious traction are not interested in Angels…
The easiest solution is to stop with Angel investments, anyway you don’t need the money, if you want to loose money you buy an expensive sports-car or if you want to earn something you speculate on the stock market are hire a investment banker, who you can blame if didn’t earn enough for you.
My conclusion is, being Angel Investor is a hobby. And it is an expensive hobby..
But luckily, if you enjoy this hobby and you would like to earn with Angel Investments, I have a solution.
The solution is time. Look for startups with a very motivated CEO (or maybe Business Developer is a better word) but a challenge to bring his product to the market. The challenge was to big that the “product developer(s)” already left the startup, as they could for example earn more as a freelancer. Off course and most of all you have to believe in the idea of the startup. The startup team is always by far most important but as an Angel you also have to like the idea too.
And then we come in. We (me and my team in Poland) can take over the product development. and much more important, we are very experienced with getting traction. We are getting traction before we even start building a product or better a Minimal Viable Product (MVP). In other words, first customers, then a product.
You as Angel can help getting traction and so some small investments (pocket-money) to build an MVP (if you feel comfortable with it). After getting serious traction, the more serious investments are coming, and besides of that, you define your exit already before. In these times of Disruption, the multinational- and even serious SME are willing to pay for serious traction.
Summarized, you spend some pocket money to get known the Business Developer. The product development we do and if the Business Developer gives up during the process of getting traction we may find new one. After serious traction you define the wished exit with us and invest.
In other words, it is easier to earn your investments back and you will have more fun of it.