Most of the time, angel investors are looking to buy one thing: equity.
It makes perfect sense – buying equity is basically like buying company shares at a huge discount, since private companies have lower valuations than those on the stock exchange.
Sure, private equity is flashy; and sure, equity deals are perhaps the only way to achieve a 1,000X return. That’s why different forms of equity make up the bulk of my angel portfolio.
Still, there’s another type of return that’s overlooked much too often: dividends.
While less common than traditional equity deals, investments that return dividends are often the dark horses of the angel world – unassuming at first, but with incredible profit potential.
Check out the video above to see what I mean.
Until next time,
Neil Patel
Follow @angelsandentrepreneurs
