Angel investing has seen a significant rise in recent years, with more founders and experienced operators stepping up to write checks. But what truly makes an angel investor stand out, beyond just capital? As someone who’s dipped my toes into angel investing, here are a few insights I’ve picked up from exceptional founders and co-investors.

Capital 💸

Let’s start with the obvious – money. Yes, some startups need capital for building and growing fast, and angel investors provide that crucial early-stage funding and often write first checks. Interestingly, 20% of startup investments are $10K or less, particularly in pre-seed rounds where startups raise up to $2.5M. This shows that you don’t need to be a high-roller to begin investing; smaller ticket sizes can still make an impact. Setting a budget, saving part of it for follow-on investments, and understanding that this money could be gone is essential.

Here’s the catch: Don’t expect to be a perfect picker. It’s more about portfolio diversification. Invest in at least 20 companies, writing similar check sizes. No one can predict which early-stage startup will succeed. The goal is to stay consistent and give yourself more chances at being involved in a winner.

Superpower 🦓

Being invited to a founder’s cap table is an honor. For me, it’s a personal drive to make sure I’m bringing more than just money to the table. So, what’s your unique edge? This is where angel investors become truly valuable. Atomico’s 2022 Tech Report states that founders most need support in fundraising, talent acquisition, sales, and product development. Strategic advisors who bring domain expertise or industry connections in these areas become invaluable.

Your “superpower” as an angel is identifying where you can add value—whether it’s offering insights on go-to-market strategy, making key introductions, or helping with product roadmaps. The more you can bring to the table, the stronger your relationship with the founders becomes, and the more they lean on you for guidance and advice.

Network 👩‍🎤

Investing is not a solo sport; it’s done in networks. VC land thrives on connections—who raises from whom, who co-invests, and who sources deals from whom. Investors who have built a strong reputation can create what’s known as the “signaling effect.” When you have established yourself as a credible and influential angel, your participation in a round can signal to other investors that the startup is worth backing.

Find your "angel gang." Working together with other angels allows you to share deal flow, pool resources for due diligence, and leverage each other’s networks to help founders raise more efficiently. Plus, collaborating with other investors sharpens your own learning curve and expands your professional reach.

Founder First 🏄‍♀️

At the core of every great startup is the founder/founding team—their talent, ambition, and resilience. Building a generation defining company takes grit, clarity, and rapid learning, all while facing immense pressure. As an angel investor, you’re not just a source of capital; you may also be a partner on this journey.

Investors often become sounding boards. You write the first check, but you’re also there in the trenches as the founders navigate product pivots, talent struggles, and market challenges. The most valuable angel investors understand this is a long-term relationship. You’re not just betting on an idea; you’re betting on the person/team building it.

Wrapping it up: Transparency and Encouragement

Transparency around angel investing could encourage more experienced founders and operators to get involved, and we need that. The more diverse perspectives in this space, the more innovative startups will thrive.

Angel investing isn’t just about money—it’s about using your superpowers, network, and passion to support exceptional founders. The significance of an angel investor isn’t about the size of the check, but about the value and impact they can offer beyond capital.

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