The same is absolutely true about angel investing. Sure, it takes a some hustle and bush beating to hunt down dealflow if you're an independent angel, but when it comes down to choosing good deals, there are no hard, fast rules.
This is what makes angel investing so great. Venture capital firms are a much more accountable for what they do. A venture capitalist can't just go to his or her limited partners and say "I know this team has no experience or traction, but I've got this gut feeling about them ..." Angel investors are accountable to no one but themselves. If they get a gut feeling, they can follow it.
I'm not saying that angel investing is nothing but a roll of the dice. Angels should certainly pay attention to the usual areas of importance -- team, traction, connections, market viability, etc. Angel groups should be aware of the best practices in running an angel group -- how to encourage participation, deal structures, etc.
But when it comes to investing in the best deals, either you've got it or you don't.
Ifeel there should be more "local" angel investing networks. There are so many people..including myself..who have great ideas but there are not many places to present them in a detailed manner. I do enjoy success stories and am amazed at the minds of many people and their new inventions.
Sincerely,
Carl Peterson, President
Mega 1 Marketing Group, Inc.
Job For America
2326 Liberty Street
Erie, PA 16502
E-Mail: mega-1@hotmail.com
Posted by: Carl Peterson | July 6, 2006 7:12 AM | Permalink to Comment