Brian Nichols’ Post

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Founder of Angel Squad | I teach professionals how to invest in startups with help from seasoned VC investors | Investor & Advisor

Investing in the private markets is inherently illiquid. Unlike investing in the stock market, there are no easily accessible “markets” where investors can access liquidity. So how do angel investors see cash distributions from their investments? Three common liquidity possibilities for angel investors are: -Initial Public Offering (IPO) -Acquisition -Secondary Sales None of these are guaranteed and investing in the private markets is a long-term game, but in the case of an exit event, angel investors could realize very lucrative returns.

Tim Airey

Executive innovation leader in frontier digital technology | VC Due Diligence advisor | Emerging Founder - CEO COO | Mentor | Angel Investor

1mo

Thanks Brian. Is a potential angle, diversification within your angel portfolio to mitigate some risks associated with illiquidity. By investing in various sectors or stages of startups, can you spread out your chances of hitting one of those lucrative exits. Have you seen any trends where specific industries offer better liquidity prospects?

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