With the start-up wave welling globally, the noise about angel investment has progressively gotten louder. The success stories of the few start-ups that shimmer above the wave excites angel investors to take a plunge into the unforgiving seas, not understand the undercurrents which caused a majority of start-ups to fail and even cause them to drown.
Angels are the financial cornerstone for start-ups starting up.
Angel investment is probably one of the riskiest forms of investment mainly because a majority of angel investors have little experience in investing or are inexperienced investors, supporting emotionally, usually less informed with aspirations of huge quick profits (get rich quick). Most angel investors are generally employed/preoccupied with other commitments and typically do not have the capacity and the knowledge to monitor and nurture their investments.
Angels provide the bed where a seed is sowed; it takes time for a seed to grow into a tree and bear fruit.
Angels should come together, form a group, and have it led by a dedicated team, combined with the support of industry and academia through focused incubation to increase the probability of success of the start-ups they invest in. In doing this, their pure intention of funding and supporting start-ups is achieved with multiples, their risk is lowered by spreading it among numerous start-ups, and the probability of their investment growing is improved substantially through professional support.
Angels supporting an orchard are more likely to succeed than if they keep just one tree.
Angel, in conclusion, like any intelligent investment, it is imperative to ensure that when investing in start-ups, the metamorphosis from idea to POC to a company is overseen by industrial professionals and yourself.