TLDR:
- Angel investing is difficult due to lower deal flow, smaller investments, less portfolio diversification, overly broad thesis, and less consistent diligence process.
- Despite the challenges, angel investing can provide valuable insights into venture capital, learning opportunities, enjoyment, impact, and potential financial returns.
David Gardner, a seasoned entrepreneur and investor, highlights the complexities and challenges associated with angel investing in his article. Gardner emphasizes the difficulties faced by angel investors, including a lower deal flow, smaller investments, lack of portfolio diversification, overly broad investment theses, and inconsistent diligence processes. He points out the importance of maintaining a steady flow of high-quality deals, protecting investments, and diversifying across various companies.
Despite these challenges, Gardner remains a proponent of angel investing, citing the valuable learning experiences, enjoyment, and potential financial gains it can offer to investors. He highlights the impact angel investors can have on local communities by supporting entrepreneurs and their ventures. While acknowledging the hurdles in angel investing, Gardner emphasizes the rewarding aspects and unique opportunities it provides to aspiring investors.
