Startups are very risky investments. Expect to lose your money and don’t invest more than you’re comfortable losing. Even if you invest through a syndicate or fund.
Start small. Invest more as you learn more. And never invest more than 5% of your net worth in startups—these investments are risky and illiquid.
Diversify. Only invest if you have enough capital to make 15-20 startup investments. Even still, you should expect your total losses to exceed your gains.
Past performance does not predict future success. Just because a syndicate or fund has made money in the past, doesn’t mean it will make money in the future.
Co-invest with experienced investors and make sure you’re getting roughly the same terms. If you’re backing a syndicate, make sure the lead is an experienced investor.
The lead investor in a syndicated startup may have conflicts of interest with you. For example, she may be an investor in a competitor.
Shop around. Thousands of companies are raising money on AngelList. Don’t invest in a company just because it has good press or famous investors.
Do your own research. The information on this site is submitted by users and is not verified by AngelList. We do not conduct due diligence on any syndicate or company.
Startups change plans constantly. And they don’t need your permission to do so. Plans and forecasts are not predictions about the future.
Don’t discuss a fundraising in public unless you’re certain the company is raising publicly. It could get the company in trouble with regulators.
Stick to the facts and don’t make forecasts when you talk about a fundraising company. Investors and regulators can use non-facts or forecasts to go after the company.
You must agree not to hold AngelList responsible for your losses or missed opportunities.
Invest in a startup because you love their mission, not just for profit.
When in doubt, don’t invest.