Investing in startups is a risky business. Thus, before going into the startup scene and became an angel investor investment itself, it is important to have a keen understanding of the risks involved and how you can best cope. You can hire a professional who is an expert in crowdfunding to help you out.
New startups have a 50% chance of making it through the first five years. There is no real science to predict which ones will survive because there is a lot of uncertainty involved in new business, but three causes of startup failure are: there is no need for the market, ran out of cash flow, and does not have the right team in accordance with this research in the top 20 reasons startups fail.
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Due to the high-risk nature of startup investment, you should not invest more than you feel comfortable losing. There is no sure way to eliminate this risk, however, you should perform thorough due diligence of the company, drilling to the track record of the founding team, check if the company can feasibly scale, and financial investigated.
If you have less experience to judge one of these, you should invest with experienced major investors who are well versed in the industry are investing in your startup and can perform a more thorough due diligence examination. In addition, there are many strategies of leading angel investors on how to choose the right startups.