NACO Academy provides an array of educational modules that can help you improve your Angel investing practices. These are usually half-day workshops, and many also offer online content. (See the list of NACO Academy modules in the Appendix.) Dr. Andrew Maxwell states: “Angels can learn a great deal about Angel investing – from each other, from research, and from the NACO Academy – that can help them identify superior deals, make good investment decisions, and guide entrepreneurs to achieve better outcomes. More-experienced Angels invest differently from the less- experienced and generally achieve better outcomes, creating a motivation to find ways to share knowledge and experience, as well as deals. “Angels with a knowledge of the basic aspects and terms of Angel investing will be better prepared for investing and will have more realistic expectations of investment outcomes. Angels who have a better understanding of their own motivations, strengths and weaknesses will be able to find promising opportunities where they can add the most value. Angels with a better understanding of both the investment decision process and the path to successful exits will be able to achieve a higher level of return on investment, while understanding how specific factors influence the likelihood of long-term success will improve the quality of their investment decisions.” The following Angel self-evaluation tool allows you to mark an X on the line to better understand where you think you want to be, in general, between the two extremes. For example, do you want to be invisible or do you want to make it very easy for potential investees to contact you?
Angel Self-Evaluation Tool: Set Good Targets
Invisible
Highly Visible
Economic Returns Very Important
Economic Returns Not Important
Non-Economic Returns Not Important
Non-Economic Returns Very Important
% of Total Assets Invested > 25%
% of Total Assets Invested < 5%
High Powder > 60%
Low Powder < 20%
< 5 Investments Wanted
> 25 Investments Wanted
Value Investor
Momentum Investor
Highly Collaborative Investor
Lone Wolf Investor
Active Investor
Passive Investor
Lead Investor
Follower Co-Investor
High Post-Investment Role in Company
Low Post-Investment Role in Company
Highly Focused
No Focus
Highly Experienced (Archangel)
Neophyte (Cherub)
Many Education Goals
No Education Goals
31 A Practical Guide to Angel Investing: How to Achieve Good Returns
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