How to start up investing in startups - SyndicateRoom

Your essential guide to investing in early-stage businesses

How to start up investing in startups

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Angel investing is an excellent asset class to invest in. You get to participate in changing the future. Josh Maher

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From calculus to sunspots, from lightning rods to the telephone, innovations denote step changes in the advancement of our civilisation. Innovation is everywhere. It's constant. People have been experimenting with marketing new tools and services since before Fred Flintstone bought his first pedal car, and in the age of the internet you'd be hard pressed to go a day without hearing of some new company or app having a go at making it big ? or, at least, big enough. Experienced venture capitalists and business angels already know this, and they have unique access to the best entrepreneurs the world over. They also know that finding the best opportunities means finding a network of investors, online or offline, whom you trust and alongside whom you can invest. This is just as true for active angels as it is for passive ones with full-time jobs. And now, thanks to crowdfunding, more people than ever before can access all this innovation ? but there's a big difference between having the ability to invest and having the ability to invest well. The best business angels tread the same path: they follow a process, keep records and reflect on their past performance to find ways to improve. They know it's ok to go slow and stick to familiar territory, but they also recognise the importance of building a diverse portfolio further afield. This is the guide to put you on that path.

Josh Maher President, Seattle Angel Author of Startup Wealth: How the Best Angel Investors Make Money in Startups

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Where do I start?

A quick look at legals

When things go wrong

6| Be aware of the risks 8| The investment process

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How can I invest?

10| Angel networks 10| Accelerator programmes 10| Equity crowdfunding 12| Venture capital funds

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22| Investor protections 22| Stages of funding

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28| Veering off course 28| Stay in the loop 28| Keep the pot topped up 28| Down and flat rounds 28| What to do when the ship sinks

What to expect now you've invested

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24| Other things to think about

More information

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Exit

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30| Useful resources 31| Some important terms

Knowing the market

14| You can't overestimate the value of experience 14| Don't let your expertise go stale

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26| What type of exit is the company planning for? 26| How long is this likely to take? 26| How big will the exit be? 26| Market conditions 27| Potential competition and intellectual property 27| Does the company have a back-up plan?

Doing your due diligence

19| What your due diligence might look like 20| A few more things to consider...

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