By now you may have some extra money saved. Ever consider angel investing? You’d provide cash—$50,000 to $100,000—for a business start-up, generally in return for equity in the business. Women now account for almost 22 percent of angel investors. To learn the ins and outs of being an angel, look for a program such as the Pipeline Fellowship, which runs boot camps for women. Here, a Pipeline preview:
You Need Cash. The fellowship requires applicants to earn $200,000 a year alone, $300,000 with a spouse, or have a net worth of $1 million.
Know What You’re Getting Into. “You will really have skin in the game,” says Natalia Oberti Noguera, founder
of the Pipeline Fellowship. “All the fellows at the start of the program have committed to putting down a minimum of $5,000 in a woman-led, for-profit social venture.”
You Should Be Comfortable With Risk. “These investments do not generate income,” says Peggy Wallace, managing director of angel-investing firm Golden Seeds. “The financial return, if there is one, usually comes from the sale of the company, and this can take years.”
You Can Be Active Or Passive. Some start-ups want someone who can provide capital and also play a role as an adviser. Others just want the check. Make sure you understand which part you want to play before you get involved.