Angel investing is a powerful method to diversify one’s portfolio with the potential to realize exponential growth in an investment. While the risk of investing in startups is high, the rewards for angel investors are also high. At an individual investor level, getting in on the ground floor of an exciting and innovative startup can provide huge financial rewards if that startup is successful.
But angel investing isn’t only about high potential rewards for individual investors. It also is powerful for a startup community and by extension a city’s economy. According to entrepreneur, author, and venture capitalist Brad Feld, educating and activating a community’s high wealth individuals around for-profit philanthropy is the biggest 3-5 year enabler of seed capital in a community. Translating the wealth in a community into seed capital through for-profit philanthropy invests directly into the economic engine and innovation of the community.
With these dual benefits in mind, StartupSac organized and held a workshop to educate potential angel investors on why and how to become an angel investor. In this workshop experienced angel investors covered what angel investing is, the requirements to become an angel investor, and how and why to get started investing in startups. The workshop included a presentation by veteran angel investor John Selep, as well as a Q&A session with a panel of experienced angel investors. John’s presentation covered a broad range of introductory information on angel investing, including:
- Why consider startup investing
- Investing in Startups-Not just buying stock
- Asset Allocation and Portfolio Construction
- Who Can be a Startup Investor?
- Portfolio Theory of Startup Investing
- J-Curve of Investor Return
- Non-Financial Benefits of Startup Investing
- How angel investing is a numbers game
- How Angel Investors Make Money
- Structuring the Deal – Startup Financing
- Equity Deal Terms
- Financial Outcomes for Startup Investments
- Tax-Law Benefits for Equity Investors
- Investing as part of an Angel Group
Watch the video recording of the workshop.
Download the Presentation Slides
About the Presenter
John Selep is an active angel investor, former tech executive, and long-standing contributor to the startup community in our Sacramento region. Having spent three decades launching new technologies through both small and large organizations, John now serves as an investor, board member, business consultant, and advisor to emerging technology companies. John has been an active angel investor and Board member for the Sacramento Angels for the past nine years, where he currently serves as manager-designee for the Sacramento Angels LLC aggregation vehicle. John also serves as Board Chair for the organization behind The Lab@AgStart, the largest wet-lab incubator for startup companies in our Greater Sacramento Region. John teaches a ‘Startup Investor School’ for angel investors and is a frequent guest speaker on entrepreneurship and entrepreneurial finance.
The Panel
