Everywhere I go in Silicon Valley I hear people discussing their angel investments. The conversations remind me of fish stories. People love recounting the one time they caught a big fish, not the many futile hours they spent waiting for a bite.
My skeptical perspective on angel investing is colored by my 25 years in the venture capital business and the data I use to teach my students at the Stanford Graduate School of Business.
I know that many of our clients at Wealthfront are tempted to become angel investors after they sell their company stock post-IPO. It’s not that I think becoming an angel is a bad idea; it’s just that most people who expect to make money as angel investors are fooling themselves.
To read the original article: Why Angel Investors Don’t Make Money … And Advice For People Who Are Going To Become Angels Anyway | TechCrunch
