3 ms·

If you're just buying index funds, it doesn't help you. If you want to swing for the fences with angel investing, you need to be accredited.

• cortesoft 7y ago
  If you don't qualify to be an accredited investor, 'swinging for the fences' by angel investing is simply foolish... you can't hope to make a return unless you can make lots of bets, and making a lot of bets requires a lot of money. Investing in an angel phase company as a normal wealth individual would be like if someone asked you if you wanted to be the house at a roulette wheel where someone is going to bet $100,000 on red. Sure, the bet is in your favor, but there is a good chance you are going to lose it all. Most of us can't afford that.
  • tunesmith 7y ago
    It seems to me that a million bucks wouldn't really enough to be wise, either. I mean, even if you had a 10% chance of getting 50:1 upside (and a 90% chance of losing everything)... you'd still have to bet 29 times to have a 95% chance of getting your upside. I mean, can you be an angel investor by investing as low as $5,000? (Not sure if 10% and 50:1 is anywhere close to what angel investors shoot for.)
    • gowld 7y ago
      > can you be an angel investor by investing as low as $5,000 Yes. Not so much on your own, but as part of a friends&family pool of investments.