Why has angel investing become trendy?
On October 30, 2015, the Securities and Exchange Commission "adopted final rules to permit companies to offer and sell securities through crowdfunding." Investing in startups and becoming shareholders before these companies go IPO or get acquired has become very attractive to people with all levels of financial status. Being an angel investor means investing in early ventures, often times before big players like venture capital and private equity companies become shareholders. While the potential reward can be very compelling due to buying equity low and early, there are significant risks that come with investing in companies that need capital to survive, sustain or scale their businesses. Statistically 90% of startups fail. Do not invest with money that you cannot afford to lose.
Thorough due diligence must be done before investing in any deal.
Conducting deep due diligence is absolutely necessary for angel investing, but it is exhausting for part time and even full-time investors to read pages and pages of information on just one deal, not to mention the time and energy it takes to look through 30, 50, 100, 200 deals. And fundraising pages often contain well-polished marketing claims. Startup founders and CEOs all seem so passionate and driven. Their technologies seem disruptive or their products sound so cool. How can investors identify underlying weaknesses, unique advantages, real risks and potential of a company? Knowledge is power! SABR is designed to empower angel investors to quickly gain crucial knowledge, effectively diversify investments and manage risks.
Diversification is the key to mitigating angel investing risks.
SABR's deal flow is highly diversified, spanning across broad sectors, different startup growth stages with various business models. Our vetted deals span across artificial intelligence, agriculture tech, autonomous driving, aviation, biotech, business software, consumer apps and devices, ecommerce, entertainment, food & beverage, fintech, healthcare, home goods, medical devices, 3D printing, renewable energy, retail, robotics, software-as-a-service (SaaS), supply chain, transportation, voice technology, wellness and more. We also closely monitor blockchain and cannabis-related deals, which are inherently riskier. Our vetted deals include B2B, B2C, B2B2C startups at Seed Stage, Early Stage (Series A, B), and Mid Stage (Series C) respectively. Startups at later stages may give investors more certainty about their exit paths but also yield less return on investment as valuation increases at each round of fundraising. SABR's deal flow is designed to help investors with different levels of risk tolerance.
Angel Investing Due Diligence Overview
Investors have no control over any company's fate, but we can manage our decision-making process for better investment outcomes.
SABR translates 40+ hours of due diligence into a 5 ~15min easy read per deal for investors, while covering crucial facts and deep insights.