The Angel Advantage
Angel investing in pre-revenue or early-stage companies offers highest asymmetric returns. A R100K investment in a company that becomes unicorn creates R100M+ returns. Portfolio approach: invest R50-100K across 20 founders. 3-5 succeed spectacularly. Expected return covers losses on failures.
Founder Evaluation
Evaluate founder capability more than business idea. Can they execute? Do they have deep market knowledge? Are they coachable? Will they persist through adversity? Best founders create successful companies even if early ideas fail. Poor founders fail even with great ideas.
The Portfolio Approach
Diversify across sectors, geographies, and business models. Expect 70% failure rate. Expect 20% return capital. Expect 10% produce exceptional returns. Only bet amounts you can afford to lose completely. This is not core portfolio capital. This is opportunistic allocation.
Angel investing is asymmetric opportunity. Small capital, small probability of massive return.