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Challenges in Angel Investing

1 min read Investing Challenges in Angel Investing.

Angel investing can be fun and financially rewarding to the investor as well as helpful to the startup.

It can also be challenging.

Before considering becoming an angel investor, there are some challenges to consider:

It’s Hands-On

Angel investing requires hands-on work with the startups in funding and supporting them after the investment.

Angels often fill in the gaps left by the local incubators and accelerator programs by coaching them into a place where they can raise funding.

First-time angels can find it time-consuming and expensive to learn the process.

It Requires Continuing Education

New market segments require the angel investor to learn new industries and business models continually.

It’s Risky

There’s no collateral for the investment, and it can all go to zero as it’s a risky investment class.

One out of ten investments will be a home run, two or three will provide a small return on investment, and the rest will fail.

But it Can be Worth it

Angel investing is not without its challenges, but it can truly be a rewarding endeavor.

Read More from TEN Capital Education here.

Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn.

Are you currently raising funding? Contact us today about how we can help!

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