Angel-investor

How to Prepare for Investing in Early Stage Companies

Here are five tips for new angel investors on how to prepare for investing in startups. 


1. Budget Your Time & Money

 Set a budget for how much money and time to invest — allocate 5% of investable capital.  This is money you may never see again and if you do see it again, it will be a long time.  Also, set a budget for how much time you want to spend with each investment.  Your time investment could outweigh you dollar investment in cost to you.

2. Diversify Your Investments

Look to invest in different sectors and stages and certainly not all at one time. As you make investments and see some turn sour you’ll improve your diligence process.

3. Focus on the Team and Company History

Focus on the team and their history, not the product and its functionality. Use online due diligence for background checks, tax lien checks, etc.

4. Utilize Data Analytics

Use data analytics that can give you a list comparable companies to the ones you are considering to invest in.

5. Be Patient

Be patient, most investments are a minimum of a five year holding time and there’s very little you can do to speed things along aside from helping the startup grow and improve.


TEN Capital Network Investor Program provides angel investors, vc funds, family offices, and more, with an easy way to invest in Texas-based startups and early-stage companies. Through our online funding portals, one-on-one funding events, and data analytics services we help take the guess-work out of finding investment opportunities to diversify and expand your investment portfolio.

Signing up as an investor with TEN is easy and free. Visit our Investor Page and sign up now!

If you have any questions, please contact us at info@tencapital.group.

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