NACO is proud to announce the release of the first NACO Academy publication A Practical Guide to Angel Investing: How to Achieve Good Returns. Written by Dr. Steven A. Gedeon, the Guidebook is a practical and comprehensive guide to early-stage fundi...
As a potential Angel investor, you are a high net worth individual who is qualified to be an Accredited Investor. Kudos – you have made it to the stage in your life when you are permitted by the Canadian government to invest in opportunities outside of the public equity markets without the required use of a broker. These investments are typically higher-risk with higher potential for reward.
The good news is that you are now allowed to make private Angel investments outside of the normal public stock markets. You don't need to spend money on management expense ratios or brokerage fees. The bad news is that the government permits this because it thinks you are smart enough to do all the work yourself and wealthy enough to afford losing all your money in these investments!
This book will help you manage this risk and improve your potential for a good return on investment (ROI). It will help you find good opportunities, structure good deals, grow good companies, determine good exit strategies, and manage an investment portfolio, to maximize your chances of gaining high investment returns.
If you do it right (and maybe get a bit lucky), your Angel investment portfolio can achieve significant returns. The average US Angel participating with an Angel group achieves 27% annual return on their portfolio of Angel investments. However, in order to achieve this return, the average Angel will have to wait four to eight years to get their money through an exit event, such as the company being acquired or going public. (Wiltbank & Boeker)
Risk vs Return for Angels
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This book will help distil the wisdom of hundreds of Angel investors who came before you. They will share their tips about things that worked and things that didn't. I hope you'll learn from their mistakes before going out there and making your own.
The Good, the Bad, and the Reality
Good news – you are wealthy enough to make private investments! Bad news – most of your investments will be complete losses! The reality – you should invest in a portfolio of 20-plus companies in order to gain average investment returns of 27% per year.
