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The Benefits of an Angel Investor Network

Ceramic Baby Angels

  |  By Christopher Orr, SDIP

Recently I had the pleasure of moderating a PENSCO webinar about angel investing with our special guest Randy Williams, Founder & CEO of Keiretsu Forum. Whether you’re currently an angel investor or you’re interested in starting, I highly recommend checking out the webinar replay here.

A big theme of the event was understanding the differences between using an angel network like Keiretsu vs. going it alone. The attendees who were new to angel investing understandably wanted to know which approach would be right for them. The answer is that it depends.

The big advantage to utilizing an angel network is the fact that vetted deals are brought to the table for members to discuss and potentially invest in. So much of alternative investing is finding the right opportunity for your investment dollars. Being part of an angel investing network that regularly searches for and analyzes these kinds of investments opens the door to so many opportunities that most people would not normally see.

What types of deals are you likely to find through one of these angel groups? It’s almost everything under the sun. These networks typically present asset groups such as technology, real estate, life science, food companies, education, clean tech, farming and so on. Like most alternative assets, these investments are usually longer term in nature, and seek returns that are commensurate with the high amount of risk.

Clearly there are some advantages to using an angel investor network if you need help finding an opportunity, but what if you’ve already identified an investment? I see this with many PENSCO clients – self-directed IRA investors who buy alternatives with their retirement funds. Often they first come to PENSCO because they’ve been eyeing a deal for months or even years, and finally feel ready to pull the trigger (and want to invest with tax-advantaged dollars). And if they’ve done their due diligence and feel comfortable with the investment, it can be a powerful diversifying element to their retirement portfolio.

But for those who don’t have the time to track down and vet every startup opportunity, an angel investor network can be a great option for finding their next big deal.

This Blog does not provide investment, tax, or legal advice nor does it evaluate, recommend or endorse any advisory firm or investment vehicle. Investments are not FDIC insured and are subject to risk, including the loss of principal.