The 2008 Angel Summit offered many words of wisdom for existing and potential angel investors. Here’s what Stephen Tindall had to say on Angel Investing.

= Expect 12-15 years to pass to maximize the return

=Always reserve some cash for 2nd and 3rd round funding projects.

=Don’t take more than 10% first-up.

=Don’t go on the board but use the further funding “needs” of the company as leverage to get the company to make “mid-course corrections.”

=Expect growth curves to be flat—then tending upwards. Do not expect 45 degree growth curves (or better).

=Do not expect 1st round funding will suffice.

Of 10 investments:

1 might be a superstar, 2 might be good, 3-4 will be marginal, And the rest will fail, so it isn’t necessarily wise to put all your eggs in one basket. 

General Word of Wisdom:

As a precondition to investment, assess if the founder is willing to step aside and work for a proper CEO. Get it in writing in advance – or don’t invest.