This first lesson will lay the groundwork, defining what angel investing truly is, how it differs from other investment avenues, and – crucially – the unique mindset required to thrive in this high-stakes, high-reward environment.

This lesson will delve into the most crucial strategy for navigating this reality: building and managing a diversified angel portfolio. Understanding the "portfolio mindset" is fundamental to mitigating risk and maximizing your potential for overall success in this unique asset class.

As you prepare to make your first angel investment, it's crucial to understand that the world of venture capital, particularly early-stage startups, operates under a different set of rules than public markets. Legal and tax considerations are not mere formalities; they are foundational elements that can significantly impact your eligibility to invest, the structure of your investment, your potential returns, and how those returns (or losses) are treated for tax purposes.

This lesson will highlight key areas you need to be aware of and discuss with your legal and tax professionals. 

This lesson will introduce a third, equally critical component of successful angel investing: the concept of "smart money." Unlike a passive investor who simply provides capital, a great angel investor provides value beyond the check. This "value-add" is the mentorship, guidance, and network that can help a startup navigate its most challenging early days and significantly increase its chances of success. This isn't about being a full-time operator; it's about being a strategic, accessible partner.

Due diligence is the process of thoroughly investigating and verifying all material facts about a potential investment. For angel investors, it is a systematic approach to asking hard questions, scrutinizing claims, and confirming that the opportunity is what it appears to be. While the term may sound intimidating, effective due diligence is simply about gathering enough information to make an informed decision—a skill you already possess from your professional life.

This lesson will provide you with a mental map of the key players and the different stages of a company's life. Understanding this landscape is crucial for positioning yourself as a knowledgeable and effective angel investor.

This lesson will provide a deep dive into the three most common early-stage investment vehicles: SAFEs, convertible notes, and priced equity rounds. We will also explore the key terms you'll encounter on a term sheet, with a special focus on the critical concept of pro-rata rights.

An exit is the culmination of years of hard work by the founders and strategic support from investors. It's the moment when your illiquid equity in a private company becomes cash (or publicly traded stock). Understanding the different types of exits, the typical timelines involved, and the role of market conditions is crucial for setting realistic expectations and effectively managing your portfolio.