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You’re wealthy and wired. You just read Become an Angel Investor in 2010: An HBS Framework and 2010: The Ultimate Buyers’ Market for Investor. You’re getting antsy. You’re ready to invest in a startup. You’re ready to tap into your Rolodex and pave the road to success for any startups that cross your desk.

Whoa. Slow down! Angel investing is risky — the exact reason why it garners such high potential rewards.

On average, 55% of startups fail within 5 years. Even accredited angels who invest with organized angel groups see a negative return in 40% of their investments, according to Scott Shane, author of “Fool’s Gold?: The Truth Behind Angel Investing in America.”

If angel investing is so risky, why on earth would anyone in their right mind do it?

To read the full, original article click on this link: Profiting From Promising Startups: Improving the Odds (Part 1) | Venture Hype

Author: The Hyper Team