Are You Suitable To Be An Angel Investor

Are You Suitable To Be An Angel Investor?

Angel Investing as an investment asset class is commonly regarded as "high risk with high reward". But its high knowledge, illiquidity and binary nature makes it not suitable for some people. Complete this short survey to help you see if you have the right chops to be an angel.

NB: this is purely a marketing survey and does not constitute any financial or risk assessment advice.

1) Are you an Accredited Investor?

Yes, my annual income is above 300K SGD in the preceding 12 months OR my net personal assets exceed S$2 million.No, but I am an Expert Investor and my work requires me to regularly evaluate and assess early stage businesses.No, I am neither an accredited investor nor an expert investor.

2) Are you financially disciplined and have you already established your mid to long term financial goals?

I am just starting out, and I am saving up for future goals.I have a good emergency sum saved up and have invested the rest and I don't anticipate any sudden capital requirement for the next 10 years.I have everything in (b) and quite a fair bit more for contingencies. My long term goal is to grow my capital as a form of legacy.

3) Are you financially literate and have you done any investing in traditional asset classes?

Yes, I have an active investment portfolio allocated by asset classes and I review them regularly. I have set clear targets for the portfolio and the portfolio takes into account my risk profile and needs. My asset classes include hedge funds, private equity and even a bit of crypto.Yes, I am an active investor but I own mainly equities that I research and know better.Yes, I am an active investor and my portfolio is mostly bonds, cash and/or property.No, I have not much idea what asset allocation, ROI, IRR, or PE, PS ratios mean.

4) How do you expect your high risk investments to perform?

What high risk investments? I believe in safe investments that won't lose money.I expect to lose some money sometimes but I will be very sad if I lose 80-100% of capital in any one investment.I am comfortable with writing down an individual investment to zero as long as on an overall portfolio basis I make good returns.

5) Your best friend, a top engineer from Google, just quit his job and is now co-founding a startup with two of his Google-mates. He is looking to raise an angel round and has shared his plans and ambitions with you, hoping that you could be an early angel to support him. What's your reply?

I will support him with all my savings as I believe in this guy and his capabilities.I am investing 50K from my "long term legacy bucket" because I believe in him and want to learn from his startup experience.I don't really know, but I think they have potential. I will just invest 20K from my savings. Anyway year end bonus coming, I can afford to lose this 20K.No, even $20K is too much to lose in 1 year.