Opinion expressed by Businessman contributors are their own.
Beginner investors don’t look for mediocre companies. They are looking for an investment with the potential to chart their professional and financial future. In venture capital, “unicorn” is the term used to describe private startups with a value of more than $1 billion. It’s kind of “one”. However, unlike dating, capturing your life-changing investment is often accomplished through a structured and strategic approach to seeking out the right opportunities.
Here are a few other ways of dating and similar angel investing. If we apply the same amount of thinking, goal setting, and direct strategy to both businesses, there’s a good chance you’ll have better leads on both.
It’s a marathon, not a sprint.
For most people, capital is limited. This means we inherently understand that there is a certain speed at which we can pursue investment opportunities before we run out of cash. These mathematical “restrictions” force investors to be methodical in building their portfolios and to sustainably spend money and effort over time. For some reason, dating is often the other way around. It’s easy to become frustrated, impatient or even bitter when the first three months of that date fall through.
Great angel investors develop methods, time horizons, and theses to invest and enjoy the process over time. Not a bad strategy to find a life partner.
Practice makes perfect.
Very few investors can immediately see the ROI. Investing is like learning a language, which means that as you go, you may be confused at first. Developing networks, communities and understanding around the investment process has been shown to develop comfort and confidence in the process.
There is a robust and repeatable framework for investing that provides great returns for VC professionals. What is your strong repeatable framework for meeting people who might tick the box for you?
Related: Getting Started with Angel Investing
This is art and science.
Any investor who tells you they know how to pick a winner every time may not be telling you the truth. The risk versus reward matrix in initial investment is ubiquitous. There are a number of ambiguous skills, intentions and luck that bring investors closer to their investment goals. And the same goes for dating.
Don’t go overboard with dating systems, principles, or processes. Let the magic happen when it can, but make sure you have a solid foundation.
This is a pursuit that requires a lot of resources.
Meeting the right partner takes time and money. This is as true in initial investment as it is in dating. Rushing through the process can mean getting rid of past life-changing opportunities, and it can also mean spending a lot of money on benefits. The hard truth is that you can’t put a timer on these things, so stay focused on the long game.
Related: 7 Keys to Authentic Investing in Various Start-ups
Matchmaking works.
Uncovering certain elements of dating is not a new concept. In some cultures, matchmaking dates back 2400 years.
The premise of modern matchmaking in relationships is focused on saving you time and accelerating your path to a seamless partnership with your significant other. The same is true in investing. You can meet with thousands of founders to find the right fit, or you can trust the experts to filter the best for you. Working with the right partners can speed up the process.
Be patient and persevere. Ultimately, we seek unicorns — in wealth and love.
Related: Sustainable Investment Growth
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