I talked to Phin quite a bit about investing and some of the selection criteria I use.
The most important tactic I have found for angel investment is “less is more”. I am sure this will not be popular with angel syndicates, crowdfunding site or gatekeepers but I certainly have found it to be a very important part of my investment strategy.
So a simple rule of investing in one company per annum has certainly been good for me. I mainly decided to do this as a way of me being able to cope as an angel investor. If you invest in a company the founding team do expect you to help – and being a full time executive means I have very little spare time. Investing in multiple startups at the same time is the same as starting multiple companies – a big no go to investors.
The reason investors spend time pulling together shareholder and employee agreements to restrict the number of things you do is the same strategy I use in angel investing.
So the next time you get a plan or meeting request across your desk, think if this was the only thing I could invest in for the next 12 months would I do it?
Just like dieting – less is more!Tweet