a. Startups are very risky investments. Expect to lose your money. And don’t invest more than you’re comfortable losing.

b. Plans change. Startups change plans constantly. Plans and forecasts are not predictions about the future.

c. Start small. Invest more as you get returns or get comfortable.

d. Diversify. Don''t invest unless you have enough capital to make 15-20 early-stage investments.

e. Follow top-tier investors into deals. Co-invest with the best and make sure you’re getting roughly the same terms.

f.  Know your rights. You may not have the same rights as larger investors, such as information rights, the right to participate in future rounds or a board seat. So your returns may suffer relative to larger investors.

g.  Invest in a startup because you love their mission, not because you’ll make money.

h.  Be careful with press. If a startup isn''t raising money publicly, don''t disclose their financing publicly or to the press. That''s the startup''s decision.

i.  Stick to the facts and don''t make forecasts when you talk about a publicly fundraising company. Other investors can use non-facts to sue the company later. And regulators can come after publicly fundraising companies that make forecasts.

j.  Shop around. There are thousands of companies raising money on AngelList. Don’t invest in a company just because it has good press or good investors.

k.  Do your own diligence. AngelList doesn''t verify information. l Indemnify AngelList. You must agree not to hold us responsible for any losses. m When in doubt, don’t invest.

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ANGELLIST How to be an angel investor VENTURE HACKS · MAR 2009 7 angel investing tips in 7 minutes VENTURE HACKS · AUG 2010