Chisos Capital’s Post

today's minor annoyance ... lots of experienced angels telling other people not to be angel investors because the deck is stacked against them. kudos to looking out for people - the world needs more of it, but please stop conflating being an angel investor with being an EQUITY investor. there's no rule that says the only structure for investing in early-stage companies is spray and pray (for an exit one day). plenty of investors are racking up venture-beating returns sticking with intelligently structured (read: distribution paying) deals with equity upside. your goal as an early-stage (financially motivated) investor should be to consistently generate annualized returns in excess of 20%. a pure equity portfolio is perhaps the worst way to achieve that goal.