Challenges and Rewards for Angel Investors
One of the most common questions we get is: What are the biggest challenges and rewards of angel investing? High net worth individuals become angel investors for a number of reasons, but the opportunity to work with entrepreneurs and provide guidance to founders is typically high on the list. In this video, angel investor Chenoa Farnsworth explains why, interestingly, both the biggest challenges and rewards for angel investors both lie with the entrepreneur.
On the positive side, she explains, angel investors get to work with entrepreneurs who are brilliant, excited, and exciting. As an angel investor, you may have that key piece of information or connection that helps move the company forward – and that mentoring aspect is very rewarding.
However, some founders can also be very difficult to work with. They won’t take angel investors’ advice or give their angel investors the information they need to feel comfortable with their investment – and that can be very challenging.
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This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.