“Dumb” angels aren’t careless. They’re just too narrow. In this case, they only invest in industries they already know by concentrating risk and missing out on bigger opportunities.

The risks of staying in one lane:

• All your bets rise and fall with one market.
• They overlook disruptive startups outside personal expertise.
• They may get blinded by emotional attachment to a “pet” industry.
• Great founders and deals in other sectors won’t even come their way.

The upside of branching out (diversifying):

• Diversified portfolios absorb shocks better.
• The biggest returns often come from emerging sectors.
• They grow their network, skills, and ability to spot strong teams.

How to get started:

• Lean on advisors.
• Explore crowdfunding platforms.
• Join angel groups.
• Bet on founders, not just industries.

Bottom line: Safe investing feels smart, but in angel investing, it can actually be dumb. Expand horizons for a better future portfolio.

John Bradley Jackson
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