In our previous post, we discussed the strategies you can employ to increase your chances of being successful at investing in startup businesses by mitigating small business risk. In this post, we will address the other major risk inherent in Angel investing – liquidity risk – and ways you can mitigate liquidity risk, as well.
In our last post, we discussed the details of the two main risks that Angel investors will face when investing in startups - small businesses risk and liquidity risk. This post presents a few strategies that will help investors mitigate these risks and increase your chances of making successful Angel investments.
As we noted in earlier posts, the risk profile of investing in startup companies has shifted, making startup investing a more attractive alternative investment than it might have been in years past. In saying that, investing in startup companies is still very risky. In this post, we will discuss a few of these risks, and in subsequent posts, we will present several strategies that will help mitigate these risks and increase your chances of being successful.
One of your first questions about angel investing may be, “If this angel investing thing is so great, why is it only now becoming so popular?” Well, investing in small startup and growth businesses is not new – in fact, angel investors have been around for decades - but over the past five to ten years, angel investing has become a more popular way to diversify outside of typical investment vehicles. Where is this popularity coming from?
Welcome, everyone, to InCrowd Capital!
I would like to take this opportunity to tell you a little about myself and how InCrowd came into being. As our name suggests, InCrowd ensures that everyone, from entrepreneurs to investors, local institutions and key stakeholders, feels like they are a part of the InCrowd. InCrowd’s mission is to grow and promote entrepreneurial communities across the country. We are not just another platform where entrepreneurs come to raise money; we also promote and build awareness of programs in local communities that assist entrepreneurs in their efforts to start or grow their businesses.