Should startup founders become angel investors?

Startup founders often consider angel investing in other startups. However, this may not be a smart financial move, as it's the same asset class as their own startup equity. A better option is to secure their financial basics, such as a home deposit and superannuation. Angel investing can be beneficial for strategic reasons, such as gaining experience and network access. It allows founders to see the other side of the pitch and ask questions that make them sharper founders. They also get access to a network of networks and may find fundraising easier over time. Pattern recognition is another benefit, as evaluating deals and pitches teaches them about good and bad startups. This education compounds and makes them better at running their own company. Before angel investing, founders should sort their financial basics, including emergency funds, home deposits, and superannuation.