How to Make Money as an Angel Investor

[Mika]

Start-ups and small businesses are always on the lookout for investors. If you have money, you can invest in these start-ups and small businesses.

Angel Investing: How To Do It

You give a certain amount of money to a start-up or small business to build a business or scale the business in exchange for equity. When the value of the company or the business grows, the value of your equity also grows, you can then earn profits on your investment.

Angel investing can be risky, though, because chances of start-ups becoming successful are pretty low, or it might take a lot of time for them to become the next big thing. However, on the bright side, if the start-up becomes the next big thing, earns a lot of profit, or is acquired by some big companies, you are going to make a lot of money.

Where to find the start-up for Angel Investing

You can start an investment company and call for proposals from people who are trying to launch start-ups.

Go to trade shows and business shows and look for the start-ups looking for funding.

Participate in business seminars and find a start-up with a lot of potentials.

The rule of the thumb is to invest only when you can afford to lose.

 

[moonchild]

Angel investing is really awesome if you have money or rich already, it can also be a passive income source, because if a start up you funded go on and become successful, you'll be making your cool cash without breaking a sweat.

In my country a lot of young people are getting funded by angel investors, I think tech is really having it's best time at the moment, because I've seen crazy ideas that didn't even makes sense getting crazy funds, which shows you that a lot of angel investors are out there looking out, you just have to know who to approach.

 

[Wisdomkind]

Great interpersonal skills and being technologically-savvy in your work

 

[cmoneyspinner]

Angel Investing? That brings back memories from several years ago. So long ago that I can not remember the name of the site. But it was a network that connected people who had business ideas WITH people who had money to invest but wanted to be passive partners in the business. If you are on LinkedIn there is an Angel Investor Network. So if you have money to invest and want to be an angel investor you might want to check it out.

 

[Jasmine]

This is something I want to try but I do not have that kind of money. This is risky business but it is also interesting concept as you do not have to work to make money, it is kind of passive income because you fund a start up company The company will do the hard work and you take the cut just because you hold an equity in the company. However, you need to be very careful about investing because you might be tricked by fraudster, or even when you have invested in legit company, the investment can go horribly wrong.