Killer Blog - Latest Comments in Paul Graham: How to be an Angel Investor

Re: Paul Graham: How to be an Angel Investor

millipo22 — Fri, 25 Dec 2009 07:45:12 -0000

A blonde lady was driving along the highway when a blonde police officer pulled her over for speeding.

Officer: May i see your licence?

Lady: what does it look like?

Officer: its a rectangular thing with a photo of you on it.

The lady looks through her bag and pulls out her compact mirror and hands it to the officer.

The officer opens it up and says 'if you had told me you were a police officer I wouldn't have pulled you over.'

Re: Paul Graham: How to be an Angel Investor

Chiropractic marketing — Tue, 13 Oct 2009 20:56:41 -0000

How about investing with your own ideas and styles with out any help of the other do you consider that as an angel investors? Anyway thanks for your thoughts on how to be angel investors it could be help in their future.

Re: Paul Graham: How to be an Angel Investor

mdangear — Tue, 10 Mar 2009 02:32:29 -0000

The reality is that if you really want to be a good investor, you have to be able to spread your risk over a statistically significant amount of deals. Ideally 30 or 50. Because you may be guessing right and the business and the entrepreneurs may be good, there is also too many parameters out of your control that every deal can be a sure deal.
So if you invest in just a few deals, and despite what you want to believe, you are playing the lottery.

This is the value of getting into Angel groups, as a way to mutualise the risk and the returns, with the idea that the group as a whole should have enough money to invest that it can be spread over the 30 or 50 deals that you need.

The issue becomes finding enough people to do it, and then getting everybody to play the game, which is not that easy... And then you have to deal with what happens next: I have seen angel groups get into endless discussions on whether to follow up on a deal or not, the risk is that the whole thing turn into a case of too many cooks in the kitchen.

So the group should work with very simple rules were there are as little decision making as possible.
This is what we are offering with Entrepreneur Commons (www.entreco.org) if you are looking for alternate options...