Why you shouldn't be an angel investor in start-ups.
Updated: Jul 30, 2019
Australian early stage angel investors often treat start-up investing like horse racing. They punt with money they're willing to lose, but this approach has led to a lack of discipline and very poor returns.
They place a few bets based on a good jockey (founder), their form (prior success), the stable (team and advisers), horse (business), equipment (technology), running line (strategy) and weather conditions (market), but start-ups should not be treated as an adrenaline-shot gamble where the majority of investors lose their money and a few "lucky" punters make a killing.
Originally posted on the Australian Financial Review website.
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