Alternative Investments (5): Angel Investing

Becoming a successful angel investor requires a certain degree of skill and luck. Who has or would have invested in Facebook or Uber many years ago, if you had the opportunity early in their inception? Venture capitalists have to be future-thinking and extremely good at looking at ideas and knowing whether there is a market to support often unusual business models. There are all kinds of ways you can invest in start-ups.

The old-fashion way is networking with entrepreneurs, but you can also visit websites like AngelList to see what companies need backing. You can also invest your money with a venture capitalist who finds deals for you. Of course, you’ll pay a management fee and percentage of the asset gains, but therefore, you get access to their expertise and broader range of start-up companies instead of having to go out and find deals yourself.

Sven Franssen