Angel Investing 101 💰

Angel Investing 101 💰
What is angel investing?
How to invest in pre-IPO companies
Angel investors put their own money into early-stage startup companies.
This is the first in a series of episodes on becoming an effective angel investor / venture capitalist
Read the article: ftb.bz/83B
Listen to the Podcast: ftb.bz/podcast
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Lance Cottrell has been an active startup advisor and startup mentor for over a decade.
He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets.
He works with many companies in accelerators like Y Combinator and Founder Institute.
He provides help with startup funding including raising venture capital and angel investment.
He can help you achieve liquidity for your company at a high valuation.
Feel the Boot is a startup vlog of tips and advice for early-stage founders.

[@FeeltheBoot]

Sign up for my newsletter to access my office hours. ftb.bz/join

[@SirBenjamin-oq1wd]

The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

[@MablePauls]

Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.

[@Stephine-un5zs]

True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diversify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.

[@Elizabeth-mh2dj]

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

[@Stephine-un5zs]

“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@Elizabeth-mh2dj]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@joespear3581]

Founder of 2 different energy companies, struggle is real.

[@FeeltheBoot]

I see that struggle all the time in my advising. I also felt it first hand as a founder.

[@DearDesignCoach]

I am a founder who just found your channel and I immediately liked and subscribed. Being in the early stage (prototyping) is a very humbling and lonely stage... but listening to your content helps a lot.

[@FeeltheBoot]

Thanks, great to hear!!! Best of luck with your startup! It can be lonely, so look for a community where you can. The entrepreneurial ecosystem is generally very warm and supportive.

[@miguelangelramirezchavarri3801]

What is the expected percentage of return on investment (ROI) for investors in their companies, or what percentage of ownership in the company is typically offered to investors through shares?

[@FeeltheBoot]

Angel investors are hoping to make 25% per year on their whole portfolio. Most don't achieve that. To make those returns, every investment needs the potential to return more than 20 times the initial investment. Most investment rounds sell 20-30% of the company ownership, although that is usually divided among a number of investors.

[@antextra300]

Thanks Lance. I look forward to this series. Most people are so removed from the angel crowd and it is great to peek inside the brain of Angels. Also, thank you for your time and advice with your "office hours" It really helped me!! Keep up the great work!

[@FeeltheBoot]

Thanks, I appreciate the feedback!

[@humannatureunleashed]

But couldn’t you get dividends (or pay out on the net profit) on your angel investments like the car wash example you gave?

[@FeeltheBoot]

Most investors see those as very different types of investment. When I am angel investing, I expect potential 20X or more returns and 80%+ failure rates. If I was investing in a revenue share deal (or dividends) I know the payout will be much lower and I would need to see that the risk would also be much lower. The second type of investment would generally not fall under the "Angel Investment" category.

[@allysegraben2196]

Awesome! Thank you

[@FeeltheBoot]

You bet!

[@b00m3rh4nd_sol]

good content ty

[@SkyDogSocial]

Useful content. Thanks!

[@FeeltheBoot]

Glad you think so!

[@bigbanknewyork3655]

Convochat is now entering seed stage.

[@barrosmartins7123]

Great content 👍👍

[@FeeltheBoot]

Thank you 🙌

[@ruialexandre2000]

Hi. Thank you so much for sharing... But i have a question: Do angel investors invest in real estate companies too? To they invest outside of their country? Thank you

[@FeeltheBoot]

It varies, but many do invest in both startups and real estate. Most angels I know prefer to invest within their country, but certainly not all.

[@mauricemickel9131]

Hi Lance, what is the title for the next episode following angel investing 101? Thank you

[@FeeltheBoot]

It is "How to Start Angel Investing" the whole playlist is here kzbin.info/aero/PLgMU_ie96T-JQvKDM2T7TyMllHDTAN3Kd

[@ipozow]

Thanks for the video. ¡Chao!

[@FeeltheBoot]

You bet! Have you started angel investing?

[@ipozow]

@@FeeltheBoot well, I am a founder, but I am going to meet an angel investor in aprox 2 hours

[@bazgo-od7yj]

I don't understand, can't angels get dividends?

[@FeeltheBoot]

There is no legal restriction on Angels receiving dividends, but they generally don't want to. They would rather have the money put back into growing the company towards a big exit. The generally small returns from dividends won't compensate for the extremely high risk of the investment.

[@bazgo-od7yj]

@@FeeltheBoot oh, well that's sweet of them. thank you for the prompt response

[@honestdudeguru]

How do I contact you

[@FeeltheBoot]

There is a contact form at www.FeelTheBoot.com as well as information on scheduling advising.