Due diligence is the best conduit to successful early stage investing. Research in early stage investing has shown a direct correlation between the amount of diligence and investment returns. Having said that, infinite diligence will not produce infinite returns. While data remains scarce, available data suggests a minimum of 40-60 hours of diligence as the best practice. It is essential that members actively participate in diligence teams. It is enormous fun and often educational to learn from your angel colleagues while providing advice and insights based on your own experience and expertise. Importantly, successful early stage investment involves picking people and teams more than technologies and engineering. A major advantage of an organized angel group tends to be the scope and depth of the group’s network, enabling insights into the performance and reputation of entrepreneurs and founding teams. Furthermore, LSA’s access to physicians, researchers, scientists and engineers can often provide collaboration of the potential for something to be built and to work as expected. Finally, diversify. A diversified portfolio tends to include some very high risk, potentially high return investments alongside some later stage lower risk, lower return investments. Major considerations for healthcare investments include projected capital to exit and the clinical/regulatory approval pathway, which often determines the projected capital. Balancing deals with shorter, less complicated pathways with those with longer, more complicated pathways is typical. Moreover, some healthcare products can be marketed without any formal regulatory approval, and often provide interesting opportunities for investment.