The three biggest myths about angel investors.
They all have a finance background.
A number of people across the investment space have finance backgrounds and that can be intimidating. Angel investors come from various backgrounds and success is not linked to just one skillset. As Highline Beta General Partner, Lauren Robinson explains: ‘early-stage investing is as much a science as it is an art. Diverse skills are necessary for people to be successful investors, and those skills and experience go beyond just financial literacy’.
The proof: Yoko Okano graduated with a Bachelor’s in History from Stanford. For her angel investment strategy, Yoko has married her product background and lens with her partner’s, ‘We invest together, and we come from very different academic disciplines. Although we share a passion for great teams, he is a software engineer and data scientist and I have a product background. This difference in our perspective is quite helpful in making sure we don’t limit ourselves by our individual biases. I get most excited about companies where we approach a company from our different perspectives and we both feel good about a team and the problem/market they’re approaching.’
Read about Yoko’s entry into investing here. Yoko Okano is now a partner in First Row Partners an early-stage venture fund based in Seattle.
They all have an immediate ‘plug and play’ network of deals.
Like every aspect of a professional career, networks take time to develop. Angel investing is no different. To develop the right network and community for your investment thesis and focus, you need time. Joining a group that is focused on angel investing is the first step, and continued exploration and networking is part of the longer-term process of investing time and energy in the space.
The proof: Amanda Eilian co-founder Able Partners, a firm focused on the positive living space, discusses her entry into the investment world, and specifically how her years of network development have created her deal-flow. Listen in at 9 min to hear about how she taps her developed network of investments, industry connections, and personal relationships for investment opportunities.
They aren’t you.
Perhaps the biggest elephant in the room when considering angel investing is all the reasons why you aren’t. Imposter syndrome is common even among active angel investors, and not imagining yourself as an investor can be the very thing stopping you from entering the space.
The best way to overcome this is to hone new skills around investment and develop a deeper understanding of the early-stage investment space; by participating in a structured learning experience with your peers, you will demystify the process, connect you with other individuals moving through their own journey and a larger network of experts and entrepreneurs. Future Capital was designed to do just this, helping you gain insights and education on investment education. Learn more about Future Capital and its learning experiences in early-stage investing here.
