Angel Investing is similar to playing golf…

OK, so you are looking at the title of this post and asking yourself, “what in the world is she thinking; how can you possibly compare angel investing to playing golf”?

Let me explain…

It’s a beautiful day.  You have played this particular golf course many times and you know where all the sand traps are hiding. You actually arrived early enough to get in some practice swings and are looking forward to some golfing partners whom you enjoy and whose golf tips you really appreciate. To boot, you had a lesson earlier in the week and feel totally prepared for a great round.

What could possibly go wrong?

Was that tree really there last week and how many times can I actually ricochet my ball off of it? Have I somehow willed my ball to proceed directly into the sand trap that I had so carefully planned to avoid? Could there be a GPS chip implanted in my golf ball that is leading it off it’s intended flight path?

Sometimes angel investing can seem very similar to the scenario outlined above.  You have invested in a particular sector many times, have done your due diligence on both the entrepreneur and the idea and feel that you have this investment nailed.

What could possibly go wrong?

There may not be sand traps out there waiting for you, but there are always factors totally out of your control that can impact your investment. It may be the entrance of a new competitor into the market who was not even on the radar screen when you first made your investment. Or perhaps that “perfect team” has discovered that building a company is much more intense than they imagined and the team begins to unravel. Whatever the situation, just like in golf, it’s bad form to toss your clubs into the nearest lake and head home ( this is not to imply that the thought has not crossed my mind on more than one occasion!) What you do try to do is salvage the situation.

A golfing friend of mine gave me some sage advice which was – at the end of the round, focus on what was your best shot of the day. Both golf and angel investing provide many opportunities for both learning and character building.

As angel investors, we really want all of our companies to succeed but need to recognize that this is not a realistic outlook, given the statistics. It is important to conduct due diligence on potential investments and if you invest through an angel group, as I do through Golden Seeds, to rely on the wise counsel of other investors as you evaluate investment opportunities.

For both the angel investor and the golfer, that great round or winning investment decision will continue to lure you back into the game…

One response to “Angel Investing is similar to playing golf…

  1. Good article.Your comparison of golf and Angel Investing is really good.Your insights are really informative,this kind of information really are helpful to us Investors along with good advice from experts in the Field like Ed Butowsky.Thank for you a really good post.

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