How Does Angel Investing Work? A Beginner's Guide

The Basics

Angel investors write checks of $10K-$100K into companies that are typically pre-revenue or early-revenue.

The SEC requires accredited investor status ($200K annual income or $1M net worth) to invest in most private companies.

Most angels invest through syndicates (pooled capital), SPVs, or direct investments.

Getting Started

Start with $25-50K per year. Write 5-10 checks of $5-10K each.

Use GitDealFlow to source deals. Build a weekly routine. Join an angel group or syndicate.

Expect to hold each investment for 7-10 years. Angel investing is illiquid.

Frequently Asked Questions

How much money do I need to start angel investing?

A minimum of $25-50K in annual investment capacity. Most angels write 10-20 checks per year of $5-25K each.

What returns do angels see?

Top-quartile angels return 2-3x on their portfolio. Average angels break even or lose money. GitDealFlow helps improve your odds with data-backed sourcing.

See pricing & start tracking →

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