Angel investing is the quintessential definition of risk versus reward. The reward is you might own part of the next Google; the risk is you have a statistical probability of losing every cent you put into the deal. So why do it? Economic stimulation aside, the answer is diversification.
It’s not for everyone, but if you’re considering angel investing, you can reduce your risk to some degree by watching out for some common problems. Here’s a checklist of prerequisites you’ll want to make sure an entrepreneurial team hits before you make a deal.
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To read the original article: The 4 most preventable mistakes first-time angel investors make | VentureBeat | Business | by Weston Bergmann, investor
