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Monitor investments regularly from "summary" of Angel by Jason Calacanis
As an angel investor, it is crucial to stay on top of your investments. You can't just write a check and then disappear, hoping for the best. No, you need to be actively involved in monitoring how your money is being used and how your investments are performing. This means keeping a close eye on the companies you have invested in, regularly reviewing their progress, and assessing whether they are meeting their milestones. Monitoring investments regularly also requires you to have a keen understanding of the key metrics and indicators that signal how well a company is doing. This includes looking at revenue growth, customer acquisition, user engagement, and other important factors that determine the success of a startup. By tracking these metrics over time, you can identify any red flags early on and take corrective action if needed. In addition to tracking performance metrics, it is essential to stay in regular communication with the founders and management teams of the companies you have invested in. By building strong relationships with these individuals, you can gain valuable insights into the day-to-day operations of the company and better understand any challenges they may be facing. This open line of communication also allows you to provide guidance and support when needed, helping your investments succeed. Another aspect of monitoring investments regularly is being prepared to pivot or cut your losses if a company is not performing as expected. As an angel investor, you must be willing to make tough decisions and take action to protect your investment portfolio. This may involve having difficult conversations with founders, renegotiating terms, or even walking away from a deal if necessary.- By staying actively involved in monitoring your investments, you can increase the likelihood of success and maximize your returns. It takes dedication, time, and effort, but the rewards can be significant. So roll up your sleeves, dig into the details, and stay vigilant in tracking the progress of your investments. Your diligence will pay off in the long run.
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