Angel investing is a great way to support early-stage startups while potentially building long-term wealth. For many LatBAN members, it’s not just about returns—it’s also about learning, sharing expertise, and growing alongside bold entrepreneurs.
If you’re curious about where to begin, here’s a down-to-earth guide on what it takes to make your first steps into the world of angel investing.
So, what is angel investing?
In simple terms, angel investors back early-stage startups with their own money—usually in exchange for a share of ownership in the company (equity). These are high-risk, high-potential investments made at a stage where banks and traditional investors usually say no.
At LatBAN, we bring these opportunities to our members—giving them access to vetted startups and a supportive network to learn alongside.
Are you ready?
Angel investing isn’t for everyone, and that’s okay. It’s important to:
- Have some capital you can afford to risk
- Accept that some (or many) investments won’t succeed
- Be patient—it can take years to see a return
We recommend starting small, treating this as part of a broader investment portfolio.
Define your personal investment strategy
Ask yourself:
- What kind of startups interest me?
- Do I want to be hands-on or hands-off?
- What’s my long-term goal?
Some investors go deep into specific sectors like fintech, hardware, or healthtech. Others prefer to invest in founders they believe in. Either way, your strategy should reflect your interests and risk appetite.
Connect with the right people
You won’t find the best startups by scrolling alone. Most angel deals happen through trusted networks. That’s why LatBAN exists—to connect you with:
- Fellow investors
- Syndicates
- Startups
- Pitch events
You don’t need to know everything—just start showing up.
Do your homework (a.k.a. Due Diligence)
Before putting money into any startup, learn how to evaluate:
- The team and their track record
- The market and competition
- The business model
- Financials and projections
In LatBAN syndicates, our lead investors do much of this work and share their insights with you. But being curious and asking good questions is still essential.
Understand the deal
Angel investments usually involve equity, convertible loans, or SAFEs. Key things to understand:
- Company valuation
- Ownership % you’re getting
- Exit options (how you’ll eventually get your return)
- What rights you have as an investor
Don’t hesitate to ask for help or get legal advice—it’s part of the process.
What happens after the investment?
This depends on your style. Some investors like to mentor founders or open doors with their network. Others simply follow progress via quarterly updates.
At LatBAN, we encourage active involvement—but it’s totally fine to be more passive, especially in your early deals.
Diversify your bets
Don’t put all your eggs in one startup. That’s a fast way to burn out. Instead, invest in multiple startups over time, ideally across sectors and stages. The reality is that a few will succeed, and they’ll carry the portfolio.
Exits take time
Angel investing isn’t a quick flip. Most exits happen through acquisitions or later-stage funding rounds. IPOs are rare. Expect to wait 5–10 years to see meaningful returns.
Keep learning
Even experienced investors still get surprised. Read, talk to others, join syndicates, attend events. At LatBAN, we run regular trainings, panels, and angel academies to help members level up.
Final word
You don’t need to be a tech wizard, financial expert, or ex-founder to be an angel investor. You just need curiosity, some capital, and a willingness to learn.
LatBAN is here to guide and support you along the way.
Want to explore your first investment? Join one of our pitch events or reach out—we’re happy to show you around.