Winning Angels: The 7 Fundamentals of Early Stage Investing; Book Reflection Week 2

Sourcing is the first step in making early stage investments, and involves identifying projects that are of interest to the angel investor.

My takeaway from this section is the description of the 18 sourcing activities and how these activities help you sift your way through opportunities.

Preparation activities are things you might do to prepare for generating and managing the deal flow. Creating a well thought out “one-pager” is the best way to describe what kind of projects you are interested in and what you are willing to consider.

Networking activities are things you can do to develop and support your network. These are personal meetings with people like bankers, lawyers, or other angel investors. The goal is to share your “one-pager” information and build a network of referrals.

Visibility activities are things you can do to gain exposure and increase your credibility. These activities could be public appearances via interviews, speeches, or publishing an article/book.

Focus activities are tactics which narrow your targets and positively impact your deal flow. Having the discipline to focus on your network, or 1-2 industries of interest, or simply build a network within one industry, is an efficient way to get desired results.

For me, the “one-pager” is the most significant activity to begin the sifting process. Providing a summary of details and the key elements for the kind of deals you want to the type of people that can help you the most is the best use of time and effort.

2 thoughts on “Winning Angels: The 7 Fundamentals of Early Stage Investing; Book Reflection Week 2

  1. Devon,
    You and agree that the one-pager is a great process to start with any angel investing process. The book is so good at giving us a blueprint, a way to start this process, that is, if we had the money to invest in others ideas. I definitely agree with the writer who says that the angel investor should focus on one or two industries, something that they understand. It may be flashy to jump on the next “sure thing”, but I did not know mush about the computer industry nor the internet with companies like Google or Apple came along. Even Amazon was a surprise. But nothing anymore should ever really surprise us. Back in 2004-2005 I told employees “no worries, the newspaper industry will be here for our lifetime”. Was I stupid or what? Yes, the newspaper still exists but nothing like they were only 15 years ago. I’ll never forget a radio DJ warning people on Thanksgiving Day one time “If you have a back injury or you are pregnant, whatever you do, DO NOT pick up the newspaper off your driveway”. Back then a typical Thanksgiving Day newspaper was about six POUNDS. Now, not so much.


  2. Hailee Barbarits June 17, 2019 — 4:55 pm

    Hi Devon,

    While I agree about the one-pager being extremely important, I had an experience where I was able to communicate more about myself and my business endeavors, but dropped the ball. A newspaper reporter had called me to get more information about me and my business at 5pm on a Friday night, to which I was not expecting, nor was I prepared. Therefore, I requested to call them back and never did, which resulted in them stalking my Facebook page. Not that any information retrieved from my Facebook was bad, but it was shortcoming in communicating who I was and included an outdated place of work (which was updated at the time, but they can pick and choose the information they use). Anyways, I had a great opportunity to communicate more about myself, but I let it go.


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