Why Angel Investors Should Diversify Across Sectors and Stages for Startup Success

Angel investing offers exciting opportunities but comes with unique risks. Unlike traditional investments, startups are less liquid, have long lock-up periods, and face uncertain exits. Diversification, therefore, is not just a good strategy—it’s essential for managing risk in startup investing.

Here’s why angel investors should diversify across sectors, stages, and even geographies, and why founder selection is a critical component of investment success.