Episode
#82 - My Angel Investing Strategy
25:33
Published: Wed Jun 10 2020
Description
Joined our private FB group yet? It's a page where people share each others million dollar ideas or what they're already working on: https://www.facebook.com/groups/ourfirstmillion. Shaan Puri (@ShaanVP) breaks down the way he thinks about angel investing. He talks through his experiences, what you should look for in a founder, how to be an angel investor with someone else’s money, and how to evaluate your returns. See acast.com/privacy for privacy and opt-out information.
Chapters
The speaker discusses their journey in learning about angel investing and the importance of seeking advice from experienced investors.
00:00 - 03:31 (03:31)
Summary
The speaker discusses their journey in learning about angel investing and the importance of seeking advice from experienced investors.
Episode#82 - My Angel Investing Strategy
PodcastMy First Million
The speaker reflects on his experience as an angel investor in San Francisco, recollecting how he missed out on investing in several companies that would go on to become worth over $500 million in valuation.
03:31 - 06:33 (03:02)
Summary
The speaker reflects on his experience as an angel investor in San Francisco, recollecting how he missed out on investing in several companies that would go on to become worth over $500 million in valuation.
Episode#82 - My Angel Investing Strategy
PodcastMy First Million
The number one advice for people who want to be an angel investor is to not wait till you're rich to do it.
06:33 - 13:00 (06:27)
Summary
The number one advice for people who want to be an angel investor is to not wait till you're rich to do it. You need around 30 bets to have sufficient portfolio diversification to improve your chance of success.
Episode#82 - My Angel Investing Strategy
PodcastMy First Million
The recommended number of investments to make in startups with an investment budget of $25,000 on average is around 20 to 30 bets, to be made over three to four years or more depending on the investor's preference.
13:00 - 16:35 (03:34)
Summary
The recommended number of investments to make in startups with an investment budget of $25,000 on average is around 20 to 30 bets, to be made over three to four years or more depending on the investor's preference.
Episode#82 - My Angel Investing Strategy
PodcastMy First Million
The high risk of certain investments necessitates proportionally high returns, which may not always be achievable.
16:35 - 22:54 (06:19)
Summary
The high risk of certain investments necessitates proportionally high returns, which may not always be achievable. The case of Lambda School is discussed in terms of its potential for generating returns.
Episode#82 - My Angel Investing Strategy
PodcastMy First Million
The expected return for the minimum bar of success in angel investing is to earn 4 or 5 times the investment over a seven-year period, resulting in a 20% internal rate of return.
22:54 - 25:39 (02:44)
Summary
The expected return for the minimum bar of success in angel investing is to earn 4 or 5 times the investment over a seven-year period, resulting in a 20% internal rate of return. Although angel investors have a greater chance of success compared to startup investors, investing in startups provides a valuable education that offers insight into how the future is different from the present.