The writer is a former global head of equity capital markets at Bank of America and is now a managing director at Seda Experts

Not long after I left investment banking, I was invited to an angel investing event in central London. Dozens of early-stage companies had set up stalls in a large reception hall to showcase businesses ranging from clean tech to immersive gaming to sports gizmos. Founders weren’t pushing a hard sell; they just offered demos and a chat. The whole affair was impressively run.

As I looked around the room, I recognised several faces. Many were late-career or retired managing directors from banks and funds, now with time on their hands and, presumably, capital to deploy. I wondered: Was this the “smart money” I should invest alongside? How many of us truly knew what we were doing?