Consider this: You’ve just found a startup with a great idea, a superstar founding team, and the potential to pull in some serious revenue… and you decide to take the leap.
Congratulations! You’ve just made another potentially life-changing angel investment.
But now what?
Angel investing is my absolute favorite way to make money… but it’s all about playing a waiting game. And even if you’ve chosen the right company and you’re playing the game right, you could be waiting for a long time. I’m talking months, or even years.
But in my opinion, it’s well worth it.
Because the most important rule of thumb for any angel investor looking to score the maximum payout on their investment is to get in early and stay put. With that strategy, you’ll ideally see payouts that completely shatter any returns you could ever see on the public market.
Now, while you wait for your investments to mature, there are a few key things that you should be doing in the meantime. Here are the three I think are most important:
Never stop vetting new opportunities
While you’re waiting for your investments in other companies to mature, there are plenty of other opportunities that you can keep an eye on in the meantime.
In that sense, investing is like a rotating door… there are always new startups coming around that are worth your attention. Personally, I like to set up at least one investment every month or two. That way, when those returns start coming in, they’ll be spaced out at intervals that’ll keep things exciting.
And whether you decide to invest in them or not, taking the time to study up, network, and build your own deal flow will be extremely important to your angel investing toolbox for the future.
It’s all about developing your skills as an angel investor so that you can continue to make wiser decisions as you grow in your understanding of the way the startup world works.
But it’s all about practice… and I highly suggest you put some hours into learning (and relearning) the ropes.
Provide value beyond just your capital
One of the most unique parts about being an angel investor is that you have the inside scoop on your portfolio companies right from the beginning.
Basically, your job does not end after you drop money into a startup. In fact, your role only becomes more important.
While you’re waiting for that investment to mature, you should always be thinking about what the best ways are to provide even more value to your portfolio companies.
And as someone who has been with those founding teams from the very beginning, you should have some insight into how you can help their company develop successfully. Along with that, every investor has a unique skillset that they can bring to the table that will be useful to a founding team in some way.
Make sure you ask each of your founding teams how you can use your role to add value or help them succeed. I guarantee you’ve got some good ideas.
Explore alternative ways to make money while you wait
Angel investing is one of the most reliable ways to make money in the private market, but that doesn’t mean there aren’t other profit-making opportunities out there. Opportunities like these can be extremely helpful in filling the monetary gaps between your angel investments.
To me, one of the most interesting ways to score potential profits in the short-term is by pattern trading… or the analysis of historical economic patterns to make wiser trades based on predictable past trends.
And some patterns – called flashpatterns – happen so quickly that they last only a few hours at most. What this means is that you can get in and get out fast, without leaving your money up to chance in some incredibly volatile markets.
It can be extremely lucrative, too… flashpatterns like these could earn you thousands of dollars in just a few hours every day.
But it’s not as easy as it sounds… which is why I’ve always relied on industry experts like Tom Gentile to guide me in the right direction. He’s one of the most talented pattern traders in the world, and he’s developed a sophisticated trading system that has the potential to bag you some incredible profits, and fast.
He’s sharing all of his industry secrets on the best flashpattern trading strategies right now. Just click here to check it out.
And don’t forget to keep up with me on Facebook, Instagram, and Twitter for news on even more startup trends and Network updates.
Until next time,