3 ms·

Why does ever seller of a business become an angel investor? And the follow up, I wonder how business seller angels perform compared to your normal angel fund.

• gnicholas 3y ago
  One cause is the tax benefits. If you're selling qualified small business stock, you can defer gains by rolling them over into new qualified small business investments, within a certain time window. That's a pretty big tax preference, and it means that even if you don't do an amazing job of angel investing, you might be better off than taking the money, paying tax on the gains, and investing it in real estate or the stock market.
• tracerbulletx 3y ago
  I'd guess because it is a way to be involved in start ups without the intense work of being a founder?
  • brianwawok 3y ago
    Ah I guess that is true. Keep some of the fun parts without the bad parts. If you are just throwing out 10-100k angel rounds, depending on how much you sold for it's pretty small. Wonder if you could do the same thing just offering to be an advisor or on the board for startups without the check?