A certain mentality and perspective is required to make club deals work out well. I think long-term. I actively nurture all the relationships I've developed with wealthy and successful people. I'm very concerned with making sure they're getting what they want out of every situation. And my concern goes far beyond any joint investment.
The people I do business with recognize my concern for their ongoing success. I'm always looking for people I can introduce them to who will help them professionally or personally. Being proactive and identifying ways the different people in my network can help each other leads to more opportunities for everyone-including me.
When I introduce people, I want them to understand I'm making the connection for their benefit. While I might also benefit, that's not the primary motivation. People take my calls and go to the meetings I set up because they know that it's to their advantage to do so. They know I'm thinking of them and they know I'm not wasting their time. I spend a lot of time and effort getting to know these people professionally and personally. So when I reach out to one of them, I'm absolutely confident they will appreciate the opportunity.
This approach, focused on delivering value to the people in my network, is characteristic of my family's approach to doing business. My ideas and introductions are designed to help everyone become more successful. By working this way, I've found that my network of contacts for everything from money to expertise continues to grow, creating a steady stream of new and interesting business opportunities.
Conclusion
Angel investors are becoming an increasingly important source of funds for start-ups as well as for more established, often middle-market, companies. Club deals among the wealthy, such as family offices, are on the rise and there's no indication that trend is abating. Furthermore, all the research shows that the number of angel investors as well as the money they control is growing rapidly.
Success as an angel investor is about helping the company succeed. Angel investors are doing a great deal more than just contributing money. Knowledge, expertise and their Rolodexes are all part of their commitment. More telling is the fact that angel investors will often continue to pool resources for different club deals because they realize that everyone is looking out for one another's interests-even beyond the deals themselves.
Miguel Forbes is president of New Ventures for Forbes Media LLC.