A portfolio strategy determines what you invest in, how much, and how often. Without one, you're gambling. With one, you're investing systematically. Here's how to build one.
Step 1: Define your thesis. What sectors do you understand deeply? What stages can you access? What check sizes can you write? Write it down.
Step 2: Set allocation rules. Most angels invest $25K-$100K per deal and aim for 20-30 portfolio companies over 5 years. Reserve 50% of capital for follow-ons.
Step 3: Source systematically. Use GitDealFlow to find deals that match your thesis. Build a weekly sourcing routine (see separate how-to).
Step 4: Diversify intentionally. Don't put all your capital in one sector or stage. Spread risk across 5+ sectors and 3+ vintages.
Step 5: Plan follow-ons. Reserve capital to double down on your best performers. Most venture returns come from 1-2 breakout companies in a portfolio.