Photo Caption: David Bellini, Gary Pica, Adam Slutskin & Zak Karsan
But how do you transform (or extend) from SMB technology entrepreneur to angel investor? My own journey toward angel investing started in 2014, gained traction in 2019, and is now shifting into overdrive. I’ve shared some highlights, lowlights and tips below to help you consider the pros, cons and potential first steps toward angel investing in the SMB technology market.
Please Note: This blog is NOT designed to offer you investment advice. Instead, it provides a decade or so of learnings in one tip sheet that may (or may not) help you to frame your own journey toward angel investing.
How to Become An Angel Investor: 10 Tips for Technology Entrepreneurs
1. Check the Definition: You don’t need to get certified or pass a test to become an an accredited angel investor. Instead, you simply need to fulfill certain financial criteria. The U.S. Securities and Exchange Commission (SEC) defines an “accredited investor” as someone with a net worth of $1 million in assets or more (excluding personal residences), or having earned $200,000 in income in each of the previous two years, or having a combined income of $300k for married couples, according to Investopia. Those words suggest you may have the financial means to become an angel investor. But those numbers alone should not determine if you take the journey.
Tip: Get your financial house in order (monthly bills, cash flow, debt, etc.), and make sure you truly have the financial means for a long-term angel journey.
