Episode Summary:
In this episode of First Cheque, Cheryl and Maxine dive deep into financial planning for angel investors—how to avoid running out of money, manage liquidity, and strategically deploy capital across investment cycles. If you're an aspiring angel investor wondering how much money you need to start or an experienced investor looking to refine your cash planning strategies, this episode is packed with essential insights.
They discuss the importance of staying liquid, diversifying check sizes, and the dangers of deploying too fast. Plus, they break down the realities of payback periods in startup investing, why you shouldn’t expect quick returns, and how power law dynamics shape investment outcomes.
Cheryl also shares her personal approach to budgeting for angel investments, alternative funding sources (like self-managed super funds and term deposits), and how investors can avoid the all-too-common mistake of running out of capital too soon.
If you want to build a sustainable angel investment strategy, ensure you're making long-term, high-return decisions, and avoid costly mistakes, this is an episode you don’t want to miss!
Key Takeaways:
00:00 – Introduction: Why budgeting and cash planning are critical for angel investors
01:49 – The golden rule: How not to run out of money when investing
02:37 – Why staying liquid matters: Power law, economic cycles, and risk mitigation
05:15 – Angel investing vs. stock market investing: Why you can't just sell down a position
08:04 – How Cheryl funds her investments: Breaking the myth of needing huge capital
10:00 – Alternative funding sources: Super funds, ETFs, term deposits, and more
13:41 – The importance of knowing your risk tolerance and financial boundaries
17:48 – Varying check sizes: When to double down on winners and how to strategise
23:15 – Why new angel investors should start with consistent check sizes
30:47 – Australian angel success stories: Real returns and lessons from Clarity Pharmaceuticals, Autra, and Instacluster
34:56 – Final takeaways: Planning, patience, and how to build a sustainable angel investing portfolio
Resources Mentioned
- Angel Academy – The most comprehensive angel investing course for Australia & NZ: www.venture.academy
- Aussie Angels – Cheryl’s platform for angel investing
- Coventures – Maxine’s venture capital firm
- Central Texas Angel Network (CTAN) – Study on angel investment returns
- TechCoast Angels California – Report on long-term angel investing performance
- Australian Angel Success Stories:
- Clarity Pharmaceuticals – 50x return for early investors
- Autra (Agil) – Acquired by Schneider Electric, 91% IRR
- Instacluster – 63% IRR after acquisition by NetApp
Sponsors:
First Cheque is supported by our wonderful sponsors:
Vanta automates up to 90% compliance, getting you audit-ready quickly and saving you up to 85% of associated costs. Join 10,000 global companies like Cipherstash, Handle and Indebted that use Vanta to build trust and prove security in real-time.
Get 10% off http://dayone.fm/vanta/cheque
Aussie Angels makes it easy for accredited investors to back early-stage startups alongside experienced syndicate leads. With no platform fees and minimum cheques from $2,500, you can build a diversified portfolio of high-growth companies with confidence.
https://www.aussieangels.com/
Galah Cyber: Galah Cyber are perfect for founder-lead and SAAS businesses. Galah provides advice, education, and training. Get in touch with Galah Cyber for a complimentary call to make sure you’re secured.
https://dayone.fm/galah
First Cheque is part of Day One.
Day One helps founders and startup operators make better business decisions more often.
To learn more, join our newsletter to be notified of new First Cheque episodes and upcoming shows.
Mentioned in this episode:
Angel Academy - Best online angel investing course in Australia and New Zealand
Don't forget to check out the best online angel investing course in Australia and New Zealand, Angel Academy. It's fun, engaging, and packed full of insights from experienced investors to help you get started or level up your angel investing, visit www.venture.academy
February 2025 - Angels Academy
FC Vanta Ad March 2025_02
FC Vanta Ad March 2025_02
This podcast uses the following third-party services for analysis:
Podtrac - https://analytics.podtrac.com/privacy-policy-gdrp
Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/
Remember Everything You Learn from Podcasts
