A lot of people are curious about angel investing and would love to get involved—but they’re not quite sure how it works, so they keep putting it off. Here are a few surprising facts that might encourage you to take the leap and give it a try.
1. You can use your IRA or 401(k) for angel investments.
That’s right! Even if you don’t have $10,000–$25,000 sitting around when a great deal comes along, your retirement funds can often be used to invest. With a self-directed IRA or 401(k), you have a ready asset to put into play—just remember to keep your angel investments under about 10% of your investable wealth.
Want to learn more? Check out this upcoming ACA webinar: Unlocking Hidden Capital
2. Angel groups totally change the game.
If you’ve ever worried about term sheets, valuations, negotiations—or even just figuring out whether a deal is “good enough”—angel groups make it easy. Working with a professional network like Rockies Venture Club gives you access to proven diligence methods, experienced investors, and shared deal flow. You don’t have to go it alone.
3. Angel investing isn’t as risky as you think.
Many people assume most angel deals fail—but data from angel groups tells a different story. While not every company succeeds, a well-constructed portfolio can deliver an average of 3x returns. Some individual deals even return 30x or 100x. The key is portfolio strategy and investing alongside experienced peers who diversify and analyze deals rigorously.
4. Tax breaks and incentives are game changers.
What if the most you could lose on a deal—after incentives—was only 35%? And what if you could pay 0% capital gains tax on your winners? Federal and state programs, along with Qualified Small Business Stock (QSBS) rules, can dramatically improve returns. Angel investing offers advantages you simply can’t find in public markets.
5. Angel investing is a team sport.
Yes, there are financial rewards—but the community is the real bonus. You’ll meet fascinating, driven people from diverse backgrounds who are all curious, optimistic, and engaged in shaping the future. Many RVC members say the relationships and shared experiences are among the most rewarding parts of investing.
6. It’s not just what you get—it’s what you give.
Angels often become mentors, advisors, or connectors for startups. Your experience, insight, and network can make a world of difference to a founder. RVC offers structured mentoring programs where investors can share their expertise while watching their investments grow.
7. Angel investing can be impact investing.
This isn’t philanthropy—but it can feel like it. Through RVC’s Cleantech and Impact Investing groups, members back companies creating both financial returns and social or environmental benefits—like clean energy, water innovation, and recycling technologies. Imagine if your charitable dollars paid you back. That’s the power of mission-aligned investing.
If any of these points resonate with you, we invite you to get involved with Rockies Venture Club.
Start by joining a workshop to learn the technical side of angel and venture investing, or attend a pitch event to watch experienced investors in action. Whatever your level of experience, RVC will meet you where you are and help you grow as an investor.
👉 Learn more and become a member today: www.rockiesventureclub.org/membership
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