In today’s post, I’m going to share an extremely valuable insight which I came across while listening to The Meb Faber Show podcast; in particular, episode #69 with angel investor Jason Calacanis. In this episode, Jason Calacanis describes his little secret, the dark art to becoming truly wealthy, which I wanted to share with you as I hope you can benefit from this information as well.
So, what’s the secret?
Well Jason Calacanis starts by describing it as being an angel investor and investing in companies that…
- Have launched a product with some signs of traction but,
- Are not yet generating so much revenue that a Venture Capital firm is interested
He calls this, the “Goldilocks” phase.
Now, this might not seem like the revelation I promised. But stay tuned, because I’m only just getting started.
**How do you invest? **
If you’re an accredited investor you can invest directly on a deal by deal basis, via a fund or through syndicates by way of sites like AngelList. This is old news.
What really got me excited was their conversation regarding non-accredited investors and how these people can get in on the action….
Via sites like Seedinvest and Republic, non-accredited investors can invest in start-ups through equity crowdfunding, which only became legal as of May 16, 2016 according to The Wall Street Journal.
Through these sites you can access deal memos and pitch decks just the way a VC firm could and ultimately invest like like one too.
Why did I care?
This means you now have access to the private markets and its potential returns as opposed to being limited to the returns of the public markets. However, we must remember that the VC market was closed off to retail investors for a reason...with the reward comes great risks. This brings me to my next point.
Paper Trade Start-ups
By having access to the aforementioned resource you can try your hand at angel investing but without having to incur all the risks of the private market right away. No one can force you to invest once you’ve created an account. You can simply sign-up to the resource, access all the deal memos, and paper trade start-ups like you would with any virtual/retail brokerage account.
This allows you to see if you’re any good at investing in the private markets before having to get your actual skin in the game. You can buy in at any time once you feel like you’ve gotten the hang of it. Afraid of going at it alone? Now you can even take a course on angel investing like this one.
So, my question to you…
Is anyone as excited by this as I am?! Do you plan on giving this a shot?
ERcaco, pure crickets, that's where I come in. Any of these useful?
More suggestions...
You're welcome.
Angel Investor (Originally Posted: 11/23/2014)
I would like to learn about how one can become angel investor. What does it take to be one and what all information to look into/understand before getting started. How can one grow their portfolio and how to maintain it in the long run.
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