Cosmos Group - 10 golden rules of angel Investing

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10 Golden Rules of Angel Investing
What rules might a higher investing power
pass on to angel investors, to help in their
quest for success in early stage company
investing? Although not necessarily etched in
stone, well take a stab at what might be
considered the 10 Rules of Angel Investing a
set of basic rules for early stage company
investing. http//cosmosgroup.ae
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1. Profit is the Ultimate Goal.

• Angel investing is not charity.
• Invest to create successful companies.
• Invest Create Grow Exit (MA
  or IPO).
• The goal is to yield profits for future
  investments.

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2. Invest in Great Teams.

• Avoid single member mad scientist investment.
• Great entrepreneurs build great teams.
• Great teams can overcome most challenges.
• Try to find, and fund, great teams (business
• experience, business diversity, attitude).

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3. Invest in Big Ideas.

• Look for big idea, where market is heading.
• Avoid the me too investment (similar ideas in
• crowded field).
• But big idea must be backed up with data.

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4. Invest in Large Markets.

• Large markets allow for growing pains larger
• field, more playing time.
• Large markets support inevitable competition.
• Even somewhat successful result might yield
• large exit in a large market.

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5. Know The Valuation Range.

• Angel investing is risky investing, dont
  overvalue.
• Companies should be reasonably priced.
• Use comps of similar companies but always
• adjust for risk.
• Remember failure more likely than success, dont
  be afraid to walk away, there will always be
  another deal.

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6. Always Do Due Diligence.

• Angel investing is full of unknown unknowns.
• Use your due diligence time to uncover them.
• Take nothing for granted, be thorough.

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7. Support Your Companies.

• Keep dry powder for future investment rounds.
• Listen and advise where you add value.
• Help keep the faith start-ups succeed with
  persistence and patience.

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8. Create an Investment Portfolio.

• If one or two out of ten or twenty are
  homeruns, you need a portfolio of co.s to
  increase odds.
• Invest where comfortable but diversify.
• Be patient a good investment portfolio takes
  time
• to develop.

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9. Know When to Fold Em.

• Dont throw good money after bad in deals.
• Dont just chase the homeruns (100X exits).
• Reasonable returns in a reasonable timeframe
  (doubles, triples etc. keep you in the game).

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10. Give More Than You Receive.

• Always be teaching, as well as learning.
• Mentor and help entrepreneurs and startups, even
  those you may pass on, for investment.
• Those you help, may later help you one day.

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I. Profit is the ultimate goal
VI. Always do due diligence.
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II. Invest in great teams.
VII. Support your companies.
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III. Invest in big ideas.
VIII. Create an investment portfolio.
M
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IV. Invest in large markets.
IX. Know when to fold em.
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V. Know the valuation range.
X. Give more than you receive.
GROUP
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Who are the COSMOS GROUP
Cosmosgroup.ae is an angel investment company
which provides comprehensive support to the
budding community of start-ups and entrepreneurs
in the Middle East region. Our team of
experienced internet entrepreneurs have partnered
and counseled several web start-ups in the
region. We respect the spirit of entrepreneurs
and start-up community. And it is disappointing
to hear about a potential start-up not able to
scale up due to lack of funds. When we provide
financial backing for such startups or
entrepreneurs, we invest in the person rather
than the firms viability. This helps us focus on
helping the business succeed under any
circumstances.
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http//cosmosgroup.ae