Budgeting for Angel
Here are a few ways to think about budgeting for Angel Investing.
Angel is a smart part of any portfolio.
Having 5%-10% of your assets in early-stage startups can be part of a sound diversification strategy. This applies to new investments and your existing assets - including retirement accounts.
But don’t move that money over all at once.
Make it sustainable for 3-5 years.
We suggest picking an angel budget you can roll with every year for 3-5 years. You want your portfolio to span companies, markets, and market cycles. Think of it like dollar cost averaging into an ETF on the stock market.
Think beyond your financial portfolio.
Some folks set their angel budget based entirely on financial portfolio allocation. But others augment with spending earmarked for professional development, membership communities, entertainment, and even shopping. (Guilty 🙋🏽♀️)
The ROI from Angel is not just financial.
The learning, community, and endorphin rush of Angel is not a one-time activity. So, you want a budget that allows you to stay in the game.