[PangurBan]

Thank you to the author for sharing your experience and insights. Some tips for being a better angel investor and reducing risk: 1) I can't stress this enough - learn the ABC's of private investments. I have seen a ridiculous number of angel investors as well as founders who don't understand the fundamentals of private equity investments and returns - even people who have been working at a startup for several years. 2) Limiting yourself to meeting with and investing in startups an industry in which you've worked, so that you understand their industry, better evaluate them and add value 3) Limiting yourself to meeting with and investing in startups in industries in which you or close colleagues and friends have worked so that you can consult with them regarding the potential investments 4) Joining an angel group, such as Band of Angels, so that you have a group of fellow angels to learn from and discuss investments with 5) Meeting with successful serial entrepreneurs who make angel investments to ask what they look for 6) If you have not founded a company or worked at an early stage startup, learn Lean Startup methodologies 7) Make sure you understand how a startup achieves product-market fit 8) Put together a list of good people and companies who can help startups you invest in, with everything from operations to tech to growth There's much more, but this is a start.