Investment Readiness Checklist

I have dedicated capital for angel/early-stage investments that I can afford to lose without impacting my lifestyle or financial security.

I understand portfolio construction and plan to diversify across multiple investments (typically 10-20 companies for angel investing).

I have 6-12 months of living expenses in liquid, accessible funds separate from my investment capital.

I'm prepared for a 7-10 year investment horizon and understand that early-stage investments are highly illiquid.

I have determined my typical check size (e.g., $10K-$50K) based on my total investable capital and diversification goals.

I have reserved additional capital (typically 50-100% of initial investment) for follow-on rounds in successful portfolio companies.

I understand the tax implications of angel investing in my jurisdiction and have consulted with a tax advisor.

I have set an annual investment budget and deployment pace (e.g., 2-4 investments per year) that aligns with my financial capacity.

I understand how startups work, including funding stages, business models, and growth trajectories.

I know how to conduct due diligence on startups, including financial analysis, market assessment, and team evaluation.

I'm familiar with early-stage valuation methods (e.g., comparable companies, venture capital method, scorecard method).

I understand different investment instruments (equity, SAFE, convertible notes) and their implications.

I have knowledge of Caribbean markets, regulatory environments, and regional business dynamics.

I can identify and assess key risks in early-stage companies (market, execution, financial, team risks).

I'm committed to ongoing learning through courses, books, podcasts, or mentorship from experienced investors.

I have connections to entrepreneurs and startup founders in my target sectors or regions.

I'm connected with other angel investors, VCs, or investment groups for co-investment opportunities and knowledge sharing.

I have a clear strategy for finding investment opportunities (accelerators, pitch events, referrals, online platforms).

I actively participate in the startup ecosystem through events, mentorship, or advisory roles.

I have access to domain experts (legal, technical, industry-specific) who can help with due diligence.

I'm building a reputation as a value-add investor through thought leadership, mentorship, or sector expertise.

I can dedicate 10-20 hours per investment opportunity for due diligence and decision-making.

I'm prepared to spend 2-5 hours per month supporting each portfolio company through advice, connections, or governance.

I can commit to supporting portfolio companies for 5-7 years through multiple funding rounds and pivots.

I can respond to founder requests and questions within 24-48 hours during critical periods.

I allocate time for continuous learning about investing, markets, and new technologies (5-10 hours/month).

I have a clear investment thesis defining my focus areas (sectors, stages, geographies, impact themes).

I have specific, documented criteria for evaluating opportunities (team, market size, traction, business model).

I can articulate what unique value I bring to founders beyond capital (expertise, network, operational support).

I have a systematic decision-making process to evaluate opportunities and avoid emotional or impulsive investments.

If investing for impact, I have clear impact objectives and metrics aligned with my values and the Caribbean context.

I understand potential exit paths for Caribbean startups (acquisition, secondary sales, regional expansion) and their timelines.

I'm emotionally prepared to lose 100% of my investment in any single company and understand that 50-70% of investments may fail.

I can wait 7-10 years for returns without needing liquidity or becoming anxious about short-term performance.

I can provide constructive feedback and support to founders during difficult times without being overly controlling or detached.

I can resist FOMO (fear of missing out) and stick to my investment criteria even when seeing "hot" deals.

I have realistic expectations about returns, understanding that most returns come from 1-2 outlier successes in a portfolio.

I'm committed to learning from both successes and failures, and continuously improving my investment process.