One of the most pleasing outcomes of being a long-term investor is that history has demonstrated that the rewards of owning an excellent business in a tax-efficient manner can be life-changing. This sentiment was summed up by legendary investors Warren Buffett and Charlie Munger at the 1996 Berkshire Hathaway meeting when they commented, “If you find three wonderful businesses in your life, you’ll get very rich.” One year later, in 1997, Warren remarked, “The single biggest recurring mistake I’ve made has been my reluctance to pay up for outstanding businesses.”Read More
(1) High average returns
Angel investors have returned 2.5 times their original investment over a period of about four years.
(2) Potential for super returns
Peter Thiel, cofounder of Paypal, turned his $500K investment in Facebook into $1.6bn. Jeff Bezos turned $250k into $1.6bn on Google.
(3) Affect life changing solutions
Startups can change the world for many people. Think of the connections Facebook has fostered.
(4) Job creation
Supporting the next big thing has impacts far beyond financial returns and innovation, but into the wider employment side of the economy.
(5) Get involved
You will have the opportunity to influence and impact the future direction and prosperity of the startup.
(6) Tax incentives
Many countries offer juicy investor tax incentives for supporting startups.
Here are the things to look for:Read More
The goal for angel investors is to provide capital seed funding for early stage companies with the promise of receiving high net worth in the end. There are many misconceptions about the length of time that an angel investor should invest in a company. Some entrepreneurs believe that once the angel investors give them the money, these angels will simply wait around for years until their funds are returned with interest. Angel investors can be very patient and willing to make long-term investments; however, they need to envision a clear picture of the company’s overall rate of return on their investment.Read More
Last night I listened to attorney Karen McKercher presenting tips for negotiating an investment deal to a group of angel investors (the Willamette Angel Conference members). I think her list of five points is good reading for both sides of the table, both startup founders and angel investors. Here’s a summary (points are Karen’s, and the explanations are my summary):Read More
1. Don’t be “sold” investments.
You select your investments. Don’t blindly accept a friend’s or family member’s pitch. If you haven’t established your own investment goals, do not invest in anything until you do so. Without your own goals or standards, you lack a basis for assessing the opportunity. You leave yourself vulnerable to the sales pitch that sounds good.
Only get into investments that meet your criteria. Check out the business plan yourself. If you do not have the ability to review the business plan, get help from someone who does.Read More
This is very dependent on the situation, size of investment, size of company, industry trends, etc. However, it is estimated that many angel investment returns in Malaysia small businesses and start-ups have been in the range of 20-40% return on investment (ROI). Some prove to be less but they are sometimes much, much more.
Arguably, it could be easier to invest in or outright purchase a small business that is already up and running than establishing a new one from scratch. Although you need to know what type of business you want to invest in, you also need to present yourself as a serious investor otherwise the deal may pass you buy. This will require you undertake extensive research to illustrate you are prepared to begin the process.Read More
天使投资人 (angel Investor): 有钱人怎么玩投资
美国现在有 500-720 万人被认证为是“投资人”。这群人大约占了美国总人口的 1%，每人的平均年收入超过 20 万美元，或净资产超过 100 万美元。
投资界将资金投入到创业企业中的这种趋势被称为是天使投资。根据罗盛最新的调查，美国有约 75.6 万天使投资人，他们提供天使投资或参与朋友、家人的创业融资。
As a startup investor, you need to understand that the investments you make are highly risky and illiquid for 5-10 years on average. With big risk, however, comes the potential for incredible returns. To give you an idea of what’s possible, if you would have invested $1,000 in Facebook in 2005, it would approximately be worth $624,500 today, which is a 62,450% return on investment (ROI). Or imagine you invested $1,000 into Airbnb in 2009, which today would be worth $589,667- not a bad ROI. Granted, only approximately 15 companies per year reach that success level out of hundreds of thousands, but there are still smaller scale successes that result from acquisitions.Read More