On paper, i am worth 82$M. 

I am worth 82$M because i own equity in almost a dozen startups.

Will they all exit and will I get the 82M?

Probably not.

But i will wake up in the next 2-3 years, as they exit, with atleast $5M extra in the bank.

That is the power of angel investing when you actually knowing what you are doing.

Here is how to diversify from investing into stocks, bonds, real estate and crypto to get some of these calculated 100x gains:

?Here is how to become a profitable angel investor?

1) You need to be a business owner or a well paid employee :

A good angel investor is one that either built a business that generates a surplus of cash for them or a well paid employee who has been building a portfolio of investments that makes them extra income. 

Both these catagory of people can afford to handle the risk of venture investing and be calm until the 100x comes which usually takes 5 years.

People who have not created any wealth or have the experience tend to be terrible angel investors.

(Keep your story about your cousin who invested his last $5000 in a tech startup and made millions to yourself. This is a 0.000001% occurrence and not a strategy ?)

2) You need to have between $100k to $1M to invest

Angel investing can start from as low as $10K (although $50K is standard) and go all the way up to $1M or more.

By having atleast a $100k, you can invest in 10 good startups per year.

Given that 90% of them will fail. The 10% that do exit or IPO (that one startup) will return 100-1000x on the initial investment.

This is the only calculated way to actually wake up 5 years with an extra few million dollars in the bank.

3) You need to only invest in companies you like and understand (both)

Trying to invest in AI because its the “trend” will guarantee that your investments go to zero. 

Try to invest in companies you understand based on what has been most of your lifes work experience. If you ran a service based company that catered to the tourism industry. Invest in companies that are revolutionizing the way things work in that industry.

But if you do want to invest in the trendiest things like AI and Web 3. Then you need an expert in those areas.

Remember, Business Is People. 

And that’s why investing in people will always be a win. 

Looking to angel invest in AI and Web3 startups? Send me a DM me on LinkedIn or go to www.doublemorgan.com