Monday, December 9, 2019

Why angel investing?

If you ever stumble upon Crowdcube, you may see a bunch of really interesting looking companies, and think, “yeah - they’re great and all, but why should I care?”

Why should I invest my hard earned money into a business that I know very little about? What do I really get out of it?

If there’s nothing else you take from this piece, I want you take the idea of ‘moving the world forward’. I’ll get back to that.

You may lose your money. Capital at risk. Some companies take 3 years to exit, some take 5 years, some take 10 years, some never exit and some simply fail. The first rule of angel investing is that you may lose your money.

In years gone by, you had to be one of the wealthiest individuals on the planet to invest in private businesses. Now, you need a tenner and you can share in exactly the same emotional rollercoaster as the highest net worth humans in the world, as well as the most revered venture capital institutions. You’ll lose money with them, you’ll gain money with them. Most importantly, you’ll move the world forward with them.

So if it’s such a risky business, why do high net worth individuals take that risk? Why do venture capitalists risk hundreds of millions of other people’s money to invest in someone’s idea which often has little more than a proof of concept and a big market size? These people understand the risk. For them it’s about so much more. For them it’s about making an impact. It’s about creating a legacy. It’s about influence. It’s about the upside.
It’s about moving the world forward. 

Every time you go onto Crowdcube, and you see a clothing brand that only uses recyclable materials, an entirely new way of imbibing your favourite beverage, a game-changing way to pay your friend, the cheapest electric bicycle on the market, or simply a pizzeria that has the best tomato base that the world has ever known - you have the opportunity to be part of their story. Without creating the idea, without slaving away 14 hours idea on their vision, you have the opportunity to fuel their vision. You have the opportunity to equip the right people, at the right time to create the right solution for the right problem.

Fuelling them to move the world forward. 

Yes, the upside can be great. Angel investors like returns, but they cannot rely on them.

However, to be part of a movement...
To fuel a business that you believe in…
To move the world forward…. 
That’s why we invest.