Sitemaps
How We Secretly Lose Control of Our Startups
Should Kids Follow in Our Founder Footsteps?
The Evolution of Entry Level Workers
Assume Everyone Will Leave in Year One
Stop Listening to Investors
Was Mortgaging My Life Worth it?
What's My Startup Worth in an Acquisition?
When Our Ambition is Our Enemy
Are Startups in a "Silent Recession"?
The 5 Types of Startup Funding
What Is Startup Funding?
Do Founders Deserve Their Profit?
Michelle Glauser on Diversity and Inclusion
The Utter STUPIDITY of "Risking it All"
Committees Are Where Progress Goes to Die
More Money (Really Means) More Problems
Why Most Founders Don't Get Rich
Investors will be Obsolete
Why is a Founder so Hard to Replace?
We Can't Grow by Saying "No"
Do People Really Want Me to Succeed?
Is the Problem the Player or the Coach?
Will Investors Bail Me Out?
The Value of Actually Getting Paid
Why do Founders Suck at Asking for Help?
Wait a Minute before Giving Away Equity
You Only Think You Work Hard
SMALL is the New Big — Embracing Efficiency in the Age of AI
The 9 Best Growth Agencies for Startups
This is BOOTSTRAPPED — 3 Strategies to Build Your Startup Without Funding
Never Share Your Net Worth
A Steady Hand in the Middle of the Storm
Risk it All vs Steady Paycheck
How About a Startup that Just Makes Money?
How to Recruit a Rockstar Advisor
Why Having Zero Experience is a Huge Asset
My Competitor Got Funded — Am I Screwed?
The Hidden Treasure of Failed Startups
If It Makes Money, It Makes Sense
Why do VCs Keep Giving Failed Founders Money?
$10K Per Month isn't Just Revenue — It's Life Support
The Ridiculous Spectrum of Investor Feedback
Startup CEOs Aren't Really CEOs
Series A, B, C, D, and E Funding: How It Works
Best Pitch Decks Ever: The Most Successful Fundraising Pitches You Need to Know
When to Raise Funds
Why Aren't Investors Responding to Me?
Should I Regret Not Raising Capital?
Unemployment Cases — Why I LOOOOOVE To Win Them So Much.
How Much to Pay Yourself
Heat-Seeking Missile: WePay’s Journey to Product-Market Fit — Interview with Rich Aberman, Co-Founder of Wepay
The R&D technique for startups: Rip off & Duplicate
Why Some Startups Win.
Chapter #1: First Steps To Validate Your Business Idea
Product Users, Not Ideas, Will Determine Your Startup’s Fate
Drop Your Free Tier
Your Advisors Are Probably Wrong
Growth Isn't Always Good
How to Shut Down Gracefully
How Does My Startup Get Acquired?
Can Entrepreneurship Be Taught?
How to Pick the Wrong Co-Founder
Staying Small While Going Big
Investors are NOT on Our Side of the Table
Who am I Really Competing Against?
Why Can't Founders Replace Themselves?
Actually, We Have Plenty of Time
Quitting vs Letting Go
How Startups Actually Get Bought
What if I'm Building the Wrong Product?
Are Founders Driven by Fear or Greed?
Why I'm Either Working or Feeling Guilty
Startup Financial Assumptions
Why Every Kid Should be a Startup Founder
We Only Have to be Right Once
If a Startup Sinks, Founders Go Down With it
Founder Success: We Need a Strict Definition of Personal Success
Is Quiet Quitting a Problem at Startup Companies?
Founder Exits are Hard Work and Good Fortune, Not "Good Luck"
Finalizing Startup Projections
All Founders are Beloved In Good Times
Our Startup Culture of Entitlement
The Bullshit Case for Raising Capital
How do We Manage Our Founder Flaws?
What If my plan for retirement is "never retire"?
Startup Failure is just One Chapter in Founder Life
6 Similarities between Startup Founders and Pro Athletes
All Founders Make Bad Decisions — and That's OK
Startup Board Negotiations: How do I tell the board I need a new deal?
Founder Sacrifice — At What Point Have I Gone Too Far?
Youth Entrepreneurship: Can Middle Schoolers be Founders?
Living the Founder Legend Isn't so Fun
Why Do VC Funded Startups Love "Fake Growth?"
How Should I Share My Wealth with Family?
How Many Deaths Can a Startup Survive?
This is Probably Your Last Success
Why Do We Still Have Full-Time Employees?
The Case Against Full Transparency
Should I Feel Guilty for Failing?
Always Take Money off the Table

Everything You Need to Know About Angel Investor Groups

The Startups Team

Everything You Need to Know About Angel Investor Groups

Who are angel investors?

Angel investors are typically high net worth individuals who invest very early into the formation of a new startup company, usually in exchange for convertible debt or equity. Angel investors serve as a critical bridge between the very early stages of a startup and financing they’ll get later on. That’s because angels are much more likely than other types of investors to take on high risk investments without much proof of return. In other words, they’re betting on you and your idea — not your metrics.

Angel investors tend to invest in companies that are in industries they know a lot about. So, for example, if an angel investor made a lot of money in the real estate industry, you can imagine they would be most comfortable putting money back into that industry. After all, they know the industry, including the right questions to ask, what kinds of opportunities exist — and who’s BS’ing them.

That’s not to say that it’s the only criteria for angel investors. They may have made their money in gold mining, but are looking to make investments in tech companies because they think that’s where the big upside opportunity is.

While you wouldn’t want to count out an angel investor who didn’t come from your industry, you would definitely want to seek out those who might have a built-in affinity to your industry first.

in text-min.jpg

What are angel investor groups or networks?

So how do you find an angel investor? One way is by seeking out angel investor groups or networks, which are exactly what they sound like: Groups of angel investors who get together to invest their money, in order to have a greater impact than they would on their own.

There are two different types of angel investor groups: formal (official groups of angel investors) and informal (like your friends and family, if that’s your background).

Let’s take a look at both.

Formal angel investor groups: The cold intro

Angel investor groups
There are angel networks and groups that, on the surface, look like the best and efficient way to get in touch with angel investors. But consider one thing: If you can find them, so can other founders.

That means they get bombarded with emails, pitches, and proposals. What’s the likelihood that your email is going to get through the flood of emails that they receive every hour of every day.

But that doesn’t mean all hope is lost! Do your homework and find a warm connection, even when approaching an angel group or network. It’s your best bet if your goal is to actually get in front of an angel investor and not just to end up automatically in the reject pile.

Online angel platforms
Recent years have also seen a mini explosion of online platforms for angel investors. Angel Capital Association is one, with more than 13,000 accredited angel investors. Each site is going to have its own requirements and expectations for connecting with angels, however, so pay attention to the rules and processes outlined on their site.

And again, remember: They’re getting a lot requests. Follow their rules and then do your homework to see if you can find a warm connection, even if you’re connecting through a site. You’re always more likely to be successful with a warm intro than with a cold call or email.

Angel investor groups
Finally, angel investor events happen across the country. They’re a great opportunity to get your startup in front a range of angel investors who are actively looking to invest. Do a quick search engine search to see if any pop up in your region.

But don’t stop there! Do your homework before attending the event. Who’s going to be there? What industries are they interested in? Who’s interested in your industry? Take the time to figure out who the most likely

Informal angel investor groups: The warm intro

A good place to start is your own friends and family. Are there high net worth people in your personal networks who are already investing in startups? A warm connection is always to your advantage when you’re startup fundraising, as most people are more willing to invest in people that they know than in those they don’t.

So ask around. You might be surprised to find an uncle who’s looking to invest or a cousin who just came into some money and is looking for something to do with it.

As with most things in the startup business world, you’re always going to be more successful with a warm intro than a cold pitch, so be willing to take your time and do your homework as you search for angel investors.

Where can I find angel investor groups?

There are angel investor groups all over the country, from East to West Coast and nearly everywhere in between. For a thorough run down of angel investor groups in your region, check out this list from Angel Capital Association.

In the meantime, here’s a list curated from Crunchbase’s database of angel investor groups. This list is the top 10 angel investor groups, based on the number of investments they’ve made.

1. Apax Partners

Number of investments: 204
“Apax Partners is an independent global partnership focused solely on long-term investment in growth companies. Funds advised by Apax Partners typically invest in large companies with an enterprise value between €1bn and €5bn. The Funds invest in four sectors: Tech & Telco, Services, Healthcare, and Consumer.”

2. Creative Destruction Lab

Number of investments: 191
“Creative Destruction Lab is a seed-stage program for massively scalable, science- and technology-based ventures.”

3. OurCrowd

Number of investments: 152
“OurCrowd breaks barriers to startup investing, providing global, VC-level dealflow, due diligence and terms to accredited investors.”

4. Kohlberg Kravis Roberts

Number of investments: 146
“Kohlberg Kravis Roberts is a global alternative asset manager focusing on private equity, fixed income, and capital markets.”

5. Giza Venture Capital

Number of investments: 128
“Giza Venture Capital is a seed and early-stage technology companies investor.”

6. Indian Angel Network

Number of investments: 80
Indian Angel Network is one of the leading Angel Investors Network in India. We are the business angel or informal investor.

7. GameFounders

“GameFounders is a European business incubator that provides gaming startups with seed capital.”

8. AngelList

“AngelList is a U.S. website for startups, angel investors, and job-seekers looking to work at startups.”

9. META

“META is an investment and advisory platform that provides innovative solutions related to knowledge-intensive entrepreneurship.”

10. Fosun Group

“Fosun Group is a classic story of success after China's reform and opening-up.”

Other types of startup funding

Not sure angel investors are the right fit for your startup? Looking for other types of startup funding? Check out our guides to the full range of options!

Federal Government Grants for Small Business: What You Need to Know

Venture Capital: What It Is & Why Use It

Series A, B, C, D, and E Funding: How It Works

What is Crowdfunding?

Types of Crowdfunding: Donation, Rewards, and Equity-Based

Private Investors for Startups: Everything You Need to Know

Convertible Notes (aka Convertible Debt): The Complete Guide

Small Business Startup Loans: What You Need to Know

Find this article helpful?

This is just a small sample! Register to unlock our in-depth courses, hundreds of video courses, and a library of playbooks and articles to grow your startup fast. Let us Let us show you!

Submission confirms agreement to our Terms of Service and Privacy Policy.

Already a member? Login

No comments yet.

Register to join the discussion.

Already a member? Login

Create Free Account