Everyone is discussing Angel Investing, so here are all my thoughts on it in a thread:

1) There's no open marketplace that lets you price your investment. The money goes in and you can't *track* the money movement daily. You can't even find comps like real estate to approximate value. This is the most unique and scary part of angel investing to me.

Since the likelihood that I am investing in winners consistently (as a newbie to this realm) is extremely low, I am only investing money I am willing to lose 100%. Gambling money, money I'd bet with in Vegas.

3) My first check was $10k. I was terrified and had no idea what I was doing. I also figured out that the exit multiple needs to be massive in order for me to win like I do elsewhere.

4) Afterwards, I had conversations with people who angel invest regularly, and because I don't see how these work in my favor when I'm choosing, I selected a group I believe in to invest on my behalf, and occasionally invest outside of it via syndicates.

5) My conclusion is that you need to be angel investing for more than just the income. Networking, perhaps, or helping someone build a company you believe in. But not income. At the very least, not liquid income you can see right away.

Do I like angel investing? Yes. I really believe and respect the companies I've given money to, and the fact that I've even considered is a BFD to me. Those of you who know me know I don't like to spend money unless it's thoughtfully done.

If you want to angel invest, you should. I don't think it means a lot of money needs to be spent- you just need to be careful, and understand that this is a long-term (likely $0 return) investment. If you're OK with that, then I say go for it.