Introduction

No gamble no future

It's all very simple. Pay attention, write down numbers and do back-of-the-envelope math
If you learn anything from this book, it's that you must take risks as an angel investor and in life if you want at least the chance of an outsized outcome
If doesn't mean you should be reckless

Angel Investing 101

Introduction

Angel investing is the act of putting money into the earliest investment rounds of a private business with the goal of getting back more money than you put in
The businesses angels invest in are typically less than three years old, have little or no "traction", and are trying to find PMF
PMF = the product the founder has built has found a group that is delighted by it. If a large number of folks find a product delightful, there is a solid, but not guaranteed, chance the founder can solve the next biggest challenge: scaling and monitisation

No risk, no reward

When you have predictable revenue, you can attract unlimited capital. But when you're just starting out, you can only attract capital from crazy, risk taking angel investors
As you add customers and revenue, it becomes easier to value your company. But when you're just two people with a prototype, the value is anyone's guess

"You only have to be right once" - Mark Cuban

When I invested in Uber, it wasn't clear if the business could scale or make money, but I knew the founder was exceptionally driven and that I personally loved the product. Uber was an exceptional product for about 10% of the population who already used car services, typically business people in major cities. That was enough evidence for me to place a bet
Uber will be... the best investment the three of us will ever make. We hit the home run of home runs. Without that one investment, I wouldn't be writing this book
Angel investing can change your life if you suspend fear, squint a little, and focus on not just what could go wrong with a business but what could go right
Even if you just make back the money you invested in a hundred startups, you will have been able to hang out with the most driven, creative people in the world, building an exceptional personal network, and learning a shit ton. All while having this amazing lottery-ticket possibility of winning one hundred to ten thousand times your money