Last month, as part of the side events at the African Business Angel Network (ABAN) Congress, we witnessed the formal signing of a Memorandum of Understanding (MoU) between the Netherlands Enterprise Agency (RVO) and Lagos Angel Network(LAN) to support the Lagos Angel Fellowship — our flagship program designed to nurture the next generation of angel investors across Africa. The Fellowship was established to deepen professionalism and provide structured, high-quality education for new members of the network. It is being implemented in partnership with the African Angel Academy(AAA).
Yesterday, we officially kicked off the Fellowship with an induction program. As I welcomed the new inductees, we explored a topic that has become a recurring theme in many of my conversations — the misconceptions people hold about angel investing. It’s a question I’m asked often, and one that deserves a clear, honest conversation.
Some of these myths discourage bright, capable individuals from participating. Others distort what angel investing truly is — a blend of capital, judgment, mentorship, and ecosystem-building.
That conversation with the Fellows was the spark for this piece — a reminder that clarity is just as important as capital in building our ecosystem. So, let’s set the record straight.
1. “You must be very rich to be an angel investor.”
This is the crowd favourite myth.
People hear “angel investor” and imagine a billionaire with a yacht in Banana Island and a private jet on standby.
But angel investing is not exclusively a billionaire’s sport. Many angel syndicates and networks (including LAN) accept entry points from $1,000 – $5,000, and syndicated deals allow angels to contribute smaller amounts while sharing risk.
It’s not just riches that qualify you, but it’s readiness, appetite, and intentionality.With Gareth Shepperson, Miranghe Pela & Henry Alalibo
2. “Angel investing is only about giving money.”
Capital is just the entry ticket. The best angels bring:
- Strategic guidance
- Industry connections
- Credibility
- Access to customers
- Operational experience
In Lagos, sometimes the most valuable investment you can give a founder isn’t money — it’s a phone call.
I recall a founder who had been struggling for nearly two years to secure a patent, working with three different lawyers over that period — all without success. One even told him it was impossible to obtain the patent he was seeking.
Then, one of our angels stepped in, made a few strategic calls, and within 28 days, the patent was approved. That’s the kind of leverage angels bring — experience, relationships, and access that money alone can’t buy.
3. “You must fully understand tech to invest in startups.”
No. You don’t need to code. You don’t need to build apps in your backyard. Angel investing requires you to understand:
- Market potential
- Business models
- Founder capacity
- Execution risk
- Timing
Angels from aviation, law, consulting, entertainment, oil & gas, finance, academia, and even the civil service have backed great companies. Your domain insight may be the missing link a founder needs.
4. “Angels lose money most of the time.”
Angel investing is risky, but not reckless.
Experienced angels diversify, join syndicates, perform structured diligence, and understand timing. One strong breakout startup can return the entire portfolio. Like one my angels said to me the other day on “Angels Lounge”, “the money I made from LemFi paid up for all my other investments and more…”
It’s like farming: you plant broadly, tend carefully, and understand that every seed will not sprout — but the harvest compensates.
Risk doesn’t disappear — it becomes managed.
5. “Angel investing is only for older, established professionals.”
Not anymore.
Younger talent — engineers, operators, product managers, consultants — are entering angel investing much earlier. Fractional investing and structured angel training programs (like the Lagos Angel Fellowship) have reduced the barrier significantly.
Angel investing isn’t an age thing. It’s a competence thing. And I saw this clearly during a visit to Covenant University last year.
After speaking at the Hult Prize for Innovation event, I stepped outside to leave when two young men — one in 200-level, another in 300-level — came up to me. Within minutes, a crowd formed around us.
Then one of them asked: “Sir, what does it take to become an angel investor?” They weren’t joking. They weren’t intimidated. They were curious and ready to learn. That moment reminded me that the next generation isn’t waiting for grey hair before stepping into angel investing. They’re already preparing themselves.
It mirrors the paths of top African angels — people like @Iyinoluwa Aboyeji and Olumide Soyombo — who began investing in their late 20s and early 30s, long before society would consider them “old enough.” My first check was back in 2009, and I wasn’t 30.
Angel investing is a readiness milestone, not a birthday milestone.
6. “Angels just gamble on ideas.”
No seasoned angel is gambling. Behind that “gut feeling” you hear angels talk about is a mix of:
- Pattern recognition
- Founder evaluation
- Market timing
- Traction analysis
- Pricing logic
- Team dynamics
Yes, angels move faster than VCs. But they are not gamblers — they are strategic early risk-takers with experience, context, and frameworks. Networks like LAN amplify this by bringing collective wisdom into every deal conversation.
Angels Are Builders, Not Spectators
Angel investing remains one of the most powerful ways to shape Africa’s economic future.
We invest before the headlines. We believe before the traction. We help founders build — sometimes from a one-room office in Yaba or Port Harcourt.
As we continue the journey with the Lagos Angel Fellowship, clearing these misconceptions is essential. We need more informed, confident angels — young or old — stepping into their role in Africa’s innovation story.
Because Africa needs more builders, not spectators.
