This post was originally published in the January 2024 edition of the AIO monthly newsletter by Kate Tomen, VP, Business and Operations. To get updates on everything angel investing in Ontario, subscribe to receive our newsletter directly here.
With the start of a fresh calendar, now is the perfect time to reflect on our goals and aspirations for the year. Some want to hit the gym more, reach a new career milestone, or start a new hobby. But I will tell you why you should make Angel investing your 2024 resolution.
People invest in this asset class for many reasons – from a financial return to supporting entrepreneurs. This year, make it your resolution to explore the world of angel investing and find your “why.”
Diversify your Portfolio
Diversifying your investment portfolio is a fundamental principle of financial success. Angel investing is a spicy asset class- adding some risk to your portfolio. Angel investing provides an avenue to diversify beyond traditional stocks and bonds. By backing early-stage startups, you spread risk across various industries and potentially high-growth ventures.
Angel investors play a pivotal role in fostering innovation. By investing in startups, you contribute to the growth of disruptive ideas and technologies that have the potential to reshape industries. Supporting these innovative companies can benefit your portfolio, drive economic and social progress, and solve real-world problems.
Access High Growth Potential
Startups often present high-risk, high-reward opportunities. While only some startups succeed, those that do can provide substantial returns on investment. As an Angel investor, you can identify and support the next big thing before it becomes mainstream, capitalizing on the exponential growth potential of successful startups.
Flex your Mentoring Skills
Many angel investors become mentors to the entrepreneurs they back, offering valuable guidance and opening doors to valuable networks. Angel investing is not just about capital investment- it is about sharing your expertise and experience to help these startups thrive. This mentorship role adds a personal and fulfilling dimension to your investment journey.
Angel investing is a tremendous learning experience. It exposes you to various industries, business models, and management styles. The challenges and successes of startups provide valuable lessons that can enhance your decision-making skills and strategic thinking. By partaking in angel investing, you also stay informed about the latest trends and technologies, keeping your knowledge sharp and up-to-date.
Beyond financial returns, angel investing allows you to contribute to positive social change and shape the world you want to see. You align your investments with your values by supporting startups focused on sustainable practices, social impact, or diverse founders. This personal touch adds a sense of purpose to your financial endeavors, making your resolutions more meaningful.
By joining an angel group, you catalyze change and growth in the entrepreneurial landscape. Angel investing goes beyond simply providing funds to startup ventures. It is an opportunity to give back to the community and shape the future economy. We hope to see you at an investment meeting in 2024!