New angel investors often make the critical mistake of under-diversifying their portfolios, typically investing in only one or two startups. To increase the chances of hitting an outlier, it's essential to aim for 25 to 50 investments and focus on companies with proven traction. Investing only in companies that have a product in the market and have garnered initial customer interest can significantly enhance success rates. Remember, only invest what you can afford to lose in these high-risk ventures.
