Got a nice beginner's intro on Angel Investing from @vinod_shankar yesterday. One of the important myths busted for me was you don't need to be a crorepati to start angel investing. Even a 25-30 year old with decent savings and an aggressive risk profile can invest

1/

Cheque sizes can be as low as 5 lakhs. Probably even lower if you know people or bring some other value.
Broadly two channels to source deals - online platforms (AngelList, LetsVenture) or personal network

2/

Just like any other kind of investing, you have to keep portfolio management basics in mind.
1. Allocate only a portion of your savings to angel investing. How much % will depend on your risk temperament

3/

2. You will have to spread your investments even within angel class (like in stocks). Since you are not a crorepati and can't write 20 cheques in a short time, you will have to play the long term game. You find & invest in 1 or 2 startups per year and do so over 5 to 10 years.
4/

Angel inv. or 'Entrepreneurship as an asset class', if I can call it that, has the potential to give good returns on your portfolio, especially over next decade in India (obv assuming you do it right)
More of us could start thinking of it as a viable option while investing

5/

But keep in mind, it is still a very risky asset class. So you should jump into it only if you have a higher risk threshold and have an idea about how to evaluate entrepreneurs/startups

6/

I think more people getting into angel investing is also good for the country. Was recently listening to Zerodha's Nithin Kamath on Outliers podcast. He raised a very interesting point. He said local capital should drive local entrepreneurship...

7/

... because then, the country's wealth is put to more productive use and wealth generated also stays within the country. I don't how much investing in secondary capital markets (MFs/stocks) will help in that regard but...

8/

... I definitely see angel investing having an impact on that front - local capital will directly be driving local entrepreneurship

9/9