Welcome to Learning VC💡! I’m Luis Llorens and I write monthly about VC, fundraising and my personal experiences as an investor.

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👼 Become a Business Angel

Angel investing is one of the most exciting ways to participate in the startup ecosystem. It’s also one of the most misunderstood.

At its core, angel investing is about backing people before the numbers make sense. You’re investing in vision, execution, and trust. Not traction.

Only invest an amount you can afford to lose, as it is a high risk/ high return investment. Decide how much of your net worth you’d like to use to angel invest. Ideally, start only if you can make at least 10 investments to diversify your portfolio.

Timing is also important. You’re entering at the very beginning of a company’s journey, and you’ll likely be one of the last to cash out. Occasionally, there might be opportunities to sell part of your stake during later rounds (for example, when new investors join), but expect to be in it for 7-10 years if the company succeeds.

Access To The Deals

The main barriers for 1st time angels are capital, access to quality deals, and structure. You can think of the investment process in 4 key pilars:

1. Dealflow: Awareness of and access to top founders before or during their fundraising process. You get this through network & reputation.

2. Ability to pick: Most startups fail. Good angels focus on evaluating the team and market opportunity more than product features.

3. Ability to sell yourself: There is a lot capital chasing a small number of companies. Founders often choose angels who add value.

4. Capital: Many founders don’t accept very small checks, so you either need to invest larger amounts or join syndicates or investment vehicles.

Traditionally, investing in startups meant dealing with messy paperwork and small ticket sizes that didn’t justify the hassle. Today, that’s changing fast.

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💡 How to Start

Start by understanding the dynamics and timelines of angel investing.

Build your name in the space, or more easily, join a syndicate, angel community, or crowdfunding platform.
You don’t have to invest alone. These platforms let you co-invest with experienced investors, learn from their process, and access better deal flow.

Start small and diversify. Angel investing is a long game. Expect some write-offs, and 1 or 2 big wins that make it worthwhile.

Invest through structured vehicles led by people you trust, with a clear differentiation.
Early angels rarely have top-tier deal flow, so get close to experienced angels who share great opportunities, and co-invest with them through their vehicles.

Entrepreneurs often set a minimum check size that’s too high for first-time angels, so joining deals through SPVs (Special Purpose Vehicles) with other angels can make more sense.

🚀 Join My Community

That’s why I’m creating a private and exclusive community of Family Offices and individuals who want to invest in startups.

If you’re interested, apply here, it will take you less than 1 minute:

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