Intro To Angel Investing | Lecture #8 | Manage Your Expectations - Taught by Garry Johnson III
Dear Students,
The reality is that when you're investing in early-stage startups or even small businesses, many of your investments are likely to fail. It's more probable that an investment will fail than succeed, depending on the type of business, its stage, financials, and other factors. However, statistics tell us that the majority of startups do fail.
As a business matures and figures out its revenue model and efficiencies, it becomes more stable, and its financial performance becomes more reliable. The management team understands that if they invest a dollar, they can expect a certain return. With younger startups, there is less proof and evidence of success. As an investor, you must understand that failures in your investment portfolio are normal and part of the game.