Breaking into Angel Investing: A Journey
I just finished up Jason Calacanis’ new book ‘Angel‘ on breaking into angel investing. First off, great read. Jason has a super candid approach to his writing; it reads more like a conversation from a friend or mentor than that of an angel investing titan showing us his way. Number one take away from the book was that I need to get into angel investing as fast as I can.
A few problems: I’m not in Silicon Valley and I’m not an accredited investor (yet).
As much as the cost of living in SV legitimately makes me feel ill, I understand the importance of being in the center of the startup ecosystem. Perhaps in a few years I’ll be headed west to set up camp in CA? In the meantime, I’m taking Jason’s advice and getting my toes wet with a few investments through syndicate funds.
Word on the street is that the SEC may be loosening the qualifications of an accredited investor. Currently, you must have either $1M in assets, excluding your primary residence, or have two consecutive years of $200k+ in income. The thought is that these individuals are able to invest in riskier assets (angel investing, venture capital, hedge funds, etc) because they are a more sophisticated investor. I completely understand the need to protect investors from risky investments, but I’m not quite sure that income//net worth requirements is the best way to measure sophistication.
Its no secret to those who know me that I have ambitious goals for myself. Angel Investing could prove to be a significant contribution towards achieving those goals. Plus, at the very least I’d be growing my network, learning a ton, and working with some of the most innovative companies and people.
-J
Originally published at www.itsjamesmurray.com on August 25, 2017.
