Benefits & Risks of Angel Investing
Angel investing can be very rewarding personally and business wise. It is very different from traditional investing and comes with some unique benefits and risks. Here are a few to consider if angel investing is for you.
Support local entrepreneurs
Share your expertise and contribute to innovation in BC
Work with great entrepreneurial talent
Syndicate deals and learn from other angel investors
High potential returns on companies that succeed
Early stage investment is high risk
Start-ups have a high rate failure
Hard to make a calculated decisions
Dramatic up and down swings or down rounds
The Angel Investment Process
Successful angel investing requires a thorough process to assess the investment opportunity. As a member of VANTEC, you are part of a group of active and experienced angel investors that support each other and the entrepreneurs they invest in. From deal screening to due diligence and post investment management.
Benefits of being part of the VANTEC Angel Network
The following aspects support independent angel investors with their process of screen, due diligence and post investment management:
Strong deal flow of early stage companies - 12+ pitches every month, more than 100 investment opportunities per year.
Access to properly documented deal information - As part of their pitch startup entrepreneurs share their Gust profile with VANTEC members.
Vetted Investment Opportunities - Full presentations are screened by experienced angel investors before they are presented at VANTEC
Easy access to startup entrepreneurs - meet entrepreneurs and have a follow up meeting to get to know them and learn more about their business and the investment opportunity.
Opportunity to syndicate deals - connect and discuss opportunities or collaborate on due diligence with other VANTEC members in the room or elsewhere in the province.
Review and negotiate terms - compare terms of the deal and negotiate a fair value for your investment.
Post Investment Management - Angel investors often act as an advisor for entrepreneurs, especially in the early stages of the business.
In addition to joining VANTEC, many active angel investors join an other local angel investment group like E-Fund to invest in a portfolio of angel investments and participate in due diligence and post investment management as part of a team, or the Keiretsu Forum Vancouver Chapter.
Where Angels Invest
Angels can invest as early as the idea stage and as late as the last round before a VC or private equity round. It all depends on the preference of the individual investor. Earlier investment comes at lower valuations but will have a higher risk and will take longer to exit. Because of the high risk of angel investing it is important to take a portfolio approach to angel investing, and to build your portfolio of companies over time to stagger your exits.
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