Angel Investing — a Fool’s task? a Review of Jason Calacanis’ Angel

Pratik Patel
Jul 25, 2017 · 3 min read

When most people think of investing in technology, they look at the stock market and the share prices for some of the most well-known companies such as Apple, Google (Alphabet), Microsoft, or Amazon. But, for a few select investors, the true challenge and excitement comes by investing in companies and startups that are emerging — startups which will become tomorrow’s Microsoft or Apple. Both the challenge and the excitement stems from becoming a part of the future and nurturing emerging tech leaders while having the potential to gain financial returns far beyond what the stock market is capable of delivering.

As a future participant in this emerging future, I have recently read many books that have attempted to explain a systematic method by which I could deploy capital into what could be a fast-moving and a potentially chaotic early technology investment market. It wasn’t until my recent read of Jason Calacanis’ book, Angel: Timeless Advice from an Angel Investor Who Turned $100,000 into $100,000,000, that I can truly say that I have discovered a system that I could use to begin my investment career in the tech market.

I know that I would need as much learning, contacts, resources, and a model which can, at the very least, help in mitigating risk in this highly volatile asset class. Angel investing in tech, by definition, requires risk that, without having a fully proven model, could be disastrous for untrained investors. Granted that no model or system could be full proof against either bad judgment or economic conditions; a useful set of practical guidelines and a conceptual framework go a long way toward ensuring success.

@Jason’s book does just that, providing an excellent understanding of the current tech market, what strategies and tactics lead to success in having early stage investments, and what investors need to do in order to continue to grow their wealth. Jason’s experiences and highly amusing anecdotes told in his inimitable style — even more enhanced in his narration of the audio version — lead the investor through some of the most fundamental questions that they must ask while considering investments in this field. Considerations include the geographical regions where investors should focus, the amount of funding that should be invested, the networks and people with whom to associate, and — perhaps the most important factor — in which founders to invest. Written in short, digestible chapters, the book takes a potential investor from the beginning stages of an investment to the consideration of the factors in working with founders as startups grow.

The fundamental understanding that this book manages to convey will pay back the investment in time and money for any investor who is considering entering the startup investment market. The virtues of this book can be overlooked by a few minor missing chapters. I would have found it useful to gain a better understanding of how a startup is valuated; but, even more important, as a starting investor, it would have been useful to gain a better understanding of the types of supports that an investor needs to set up for success. For instance, information on staffing and resources for office space or logistics needed for a single investor would have been quite welcomed.

These issues are but minor compared to the wealth of information that this book does provide. I aim to use it again and again as a reference point and as a source of inspiration in my career. I hope that other investors find it as useful along with founders who aim to get funding from us.

Pratik Patel

Written by

A New York entrepreneur, running a business, a passionate advocate for the blind and other causes, writer, universal design champion.

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