DO GOOD WHILE DOING WELL

Learn how to invest in inspiring start-ups—for as little as $50.

As a teenager, Dawood wanted to figure out a way to do some good in her community, spurred by the desire to help a friend with multiple sclerosis. She donated to charities but thought there had to be a way to do more, and she found that she could do “more” as an angel investor—giving money to startups whose missions are to effect positive change, like Cognition Therapeutics, a company working toward alleviating Alzheimer’s disease. That’s the thrust of Dawood’s guide, a manual about investing, both monetarily and nonmonetarily, in the organizations that do good work. The author calls her approach the “Halo Strategy” and breaks down the motivation and process in individual chapters, such as, “How Anyone Can Invest in Change,” “Understanding the Process of Investing in a Start-Up,” and “Don’t Put All Your Halos in One Basket—Diversify!” The guide overflows with useful resources and exercises, such as worksheets helping readers identify what they can give to a startup and what causes might prompt them to invest. Particularly interesting is the chapter “Surprising Ways You Can Bridge the Funding Gap,” which offers several methods (including using IRAs and philanthropic funds) to give money instead of just writing one huge check. Dawood, an adviser for the Securities and Exchange Commission, is an authority on the ins and outs of investing in new companies, but this book is much more about how a typical person—someone without great wealth or financial know-how—can make a difference, donating as little as $50 via crowdfunding (investors are able to give as little as $50 to startups via crowdfunding, thanks to a 2016 rule change from the SEC). The information is presented in an easy-to-follow manner and organized so that even the financially illiterate will come away with a good understanding of what angel investing is and how to do it; a glossary is included.

A useful, inspiring investment guide on funding companies that align with investors’ principles.