Getting into angel investment can be scary. You could lose everything – even if you do it right. So how do you best mitigate the risk? As an angel investor, you are going in with your eyes open that you could lose the money,” says Vikas Shah, a visiting professor of entrepreneurship at the MIT Sloan School of Management.
“That’s your maximum risk here, plus reputational risk and all of those things. But you are looking at that business and it’s the gut feel you have. Question two, can that team execute? If it makes sense and that team can execute, that’s the bulk of my risk mitigated.”
Saud Al Nowais, a commercial counsellor for the UAE to the United States, suggests investing through angel networks and firms such as VentureSouq, which will hold your hand through the process.