Articles from Entrepreneur, Forbes, Investopedia, the Angel Capital Association (ACA), Covey Club, PropelX, Small Biz Daily, and Tech World provide educational information for aspiring angel investors. Below is a description of the focus of these resources and the content they offer.
To find resources that provide educational information for aspiring angel investors, we conducted a search of relevant media sources as well as trade associations like the ACA. We focused on sources that were published roughly within the past two years, and found eight freely-accessible sources that provided at least some unique content.
1. Entrepreneur: “Getting Started With Angel Investing“
This article, provided by Entrepreneur, a credible source for business education and information, focuses on the context in which a business might receive angel investing (i.e., the types of businesses that might seek this kind of funding). It also explains some basic requirements of angel investors, such as SEC accreditation, which is requires a minimum of $1 million in net worth and $200,000 annual income, or $300,000 joint annual income with a spouse.
2. Forbes: “8 Basic Steps To Becoming an Angel Investor”
This source, written by Marianne Hudson, Forbes’s reporter in the angel investment space, explains certain steps that aspiring angel investors should take, such as evaluating the level of financial risk one is willing to take, asking experienced investors for advice, and joining an angel group.
3. Investopedia: “How to Join an Angel Investor Group”
This article, written by Daniel Kurt, a reporter who has covered the investment space for over a decade, provides a more in-depth look at angel groups mentioned in the previous source. It describes the typical fees and meeting structure of traditional angel groups, as well as the structure of newer online groups, and the relative benefits and disadvantages of each type.
4. Angel Capital Association (ACA): “How to Become an Angel Investor”
This article, provided by ACA, an angel investing trade association, describes the perks and pitfalls of angel investing, noting that investments fail more often than not. It also describes the life cycle of a business, and the stage of this cycle at which businesses seek angel investments. Another useful point made in the article is the time at which angel investors generally ‘exit’ investments: either when the company is sold, or when it initiates an initial public offering.
5. Covey Club: “How to become an angel investor”
This article, written by writer Lisa Roepe and featuring information provided by experienced angel investors, provides a female perspective on angel investing. It notes that the financial system in America was largely established prior to most women’s entry into the workforce, and, as such, women often seek specialized female angel groups to overcome challenges in the industry. Groups like Portfolia and Golden Seeds LLC, among others, are examples of female-specific angel investment companies that women can join to gain an edge in the angel investing sphere.
6. PropelX: “Investor Round-Up: 35 Angels Share Their Tips”
This source compiles advice from numerous experienced angel investors. They provide information and tips that are not generally found elsewhere. For example, one suggests that “you can assume that the lead investor did some diligence on the company, but you should do some diligence on the lead investor.” Another notes that a startup’s success often hinges on its leadership, so it may be fruitful to avoid investments in companies if the founder or founders do not seem like an ideal fit for the job.
7. Small Biz Daily: “How to Go About Becoming an Angel Investor”
This article, provided by Jeremy Larner of the credible business insights publication Small Biz Daily, touches on several aspects addressed in other sources, but one aspect that it delves into with some more depth than others is the angel investor’s investment strategy. This strategy should encompass industry preferences, the reasoning for investment, the desired number of investments in a given year, and the ideal exit strategy.
This source compiles additional advice and commentary from experienced and successful angel investors, who again offer useful information not often found in other sources. For example, one says that startups with a clear business model are often the most fruitful. Another explains the type of investment approaches often utilized by angel investors, including term sheets or Special Purpose Vehicles (SVPs).
We expanded our search to include older sources, and while some additional resources were found, none offered content not already explored in the sources provided above; as such, additional research is unlikely to be fruitful. Some new content may be found in books on the subject, such as Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups and Angel: How to Invest in Technology Startups — Timeless Advice from an Angel Investor Who Turned $100,000 into $100,000,000. However, these resources are not freely accessible, and, in any case, may not be particularly conducive to a one-day course on the subject.
Articles from Entrepreneur, Forbes, Investopedia, the Angel Capital Association (ACA), Covey Club, PropelX, Small Biz Daily, and Tech World provide educational information for aspiring angel investors. Other freely-accessible resources do not appear to offer additional content that is not already reviewed in these sources.