An angel investor is a high-net-worth individual who invests personal capital in early-stage startups — typically at the pre-seed and seed stages.

Types of angels

1. Operator-angels: Current or former founders/CEOs with sector expertise.
2. Executive-angels: Senior operators at large tech companies (Google, Meta, Stripe, OpenAI alumni).
3. Financial-angels: Successful professionals (finance, consulting, law).
4. Domain-expert angels: Doctors, lawyers, engineers with specific vertical expertise.
5. Celebrity-angels: Entertainers, athletes, founders of consumer brands.

Typical check sizes

• $5K–$25K: New angels or casual investors.
• $25K–$100K: Active angels.
• $100K–$250K+: Super-angels.
• $250K–$1M: Syndicate leads.
• $1M–$5M: Operator-funds (Lee Fixel-style, Ravi Gupta, Ben Ling, Elad Gil).

How angels find deals

• Personal network: Direct founder relationships.
• AngelList: Syndicates and investment platforms.
• Accelerators: Demo days (YC, Techstars, 500 Global, Antler).
• Angel groups: Miami Angels, NY Angels, Golden Seeds, Keiretsu Forum.
• Scout programs: Run by VC firms (Sequoia Scouts, First Round’s Dorm Room Fund).
• Warm intros: Other founders and investors.

How founders find angels

1. Start with operators who built something similar.
2. Ask current investors for intros.
3. Target angels whose backgrounds match your hiring or GTM needs.
4. AngelList’s syndicate network for warm intros.
5. LinkedIn scout outreach with 3–5 line pitches.

What angels offer beyond capital

• Recruiting help: Introductions to senior engineers and operators.
• Customer intros: First paying customers from their network.
• GTM advice: Pricing, positioning, early sales motion.
• Future investor intros: Next-round warm paths.
• Sanity checks: Independent views on product and market.

Red flags in angels

1. Overcommitment: Angel who asks for outsized influence for a small check.
2. Excessive hand-holding: Requires weekly calls for a $25K investment.
3. Conflicts of interest: Angel invests in direct competitors.
4. Slow payer: Signs SAFE but drags on wiring money.
5. Unsophisticated expectations: Angel who expects early returns from a pre-seed bet.

How angel investments are structured

• Usually SAFEs in the U.S.
• Convertible notes outside the U.S. or in bridge situations.
• Side letters for pro-rata rights are common for larger-check angels.
• Usually no board seat at angel checks.

Practical takeaway

1. Founders: Angels are best used for expertise and network, not just capital. Design your round around 3–5 operator-angels alongside a lead.
2. Aspiring angels: Start small ($5K–$10K) and aim for 10–20 investments before evaluating your thesis.
3. LPs: Angel returns cluster around high variance; professional angel funds (Lerer Hippeau, K9 Ventures) often outperform individuals.

Further reading

• AngelList: https://www.angellist.com/