Breaking into VC through the backdoor: Start as an Angel

Hi! I’m glad you’re here. You’ve made it to issue #54 of VC Demystified🪄.

My name’s Nicole - I’m a Principal at an early stage venture fund, and I know firsthand that VC can often be a black box. Breaking into the industry may feel daunting and resources can seem scarce and inaccessible. I wanted to put together a newsletter to give others the playbook I wish I had when I first started.

If you’re interested in meeting more angel investors and learning more about angel investing from experts, take advantage of the free 30-day Guest Passes from Hustle Fund Angel Squad here. Feel free to share with a friend!

Today’s deep dive: A starter guide for aspiring investors who want to break into VC through small checks and smart conviction

^{My personal mission is to open as many doors as possible for other people and this newsletter is just one avenue to do that. As always, I will continue to post VC insights daily for free across my socials.}

Read time: 6 minutes

A starter guide for aspiring investors who want to break into VC through small checks and smart conviction

Angel investing has a reputation problem.

People assume you need to write $25K checks, have a deep Rolodex, and be a retired founder to start angel investing. But that’s outdated.

The reality?

You can start angel investing with as little as $1K, no fancy title, and zero prior investments. It’s a great way to build a track record for breaking in VC if you have the means.

My first angel check was $2.5K into a company called Anytime Spritz. I knew the founders and believed in the product. That conviction was more important than the size of the check. I wasn’t looking to optimize for a 50x return. I just wanted to support people I believed in and get closer to the founder journey.

First, What is Angel Investing?

Angel investing is when an individual uses their own money to invest in early-stage startups (usually at the pre-seed or seed stage).

Unlike venture investors, angels invest personal capital, not money from a fund. The check sizes can range widely ($1K - $100K+).

Historically, angel investing was reserved for wealthy individuals writing $25K+ checks and getting access through exclusive networks. But that’s changed.

You still need to be an accredited investor (meaning you meet either an income or net worth threshold), but there are now ways to participate without putting up huge amounts of money.

Accredited investor requirements (U.S.):

• Income of $200K+ (or $300K+ with a spouse) over the last 2 years

• OR net worth of $1M+, excluding your primary residence

• OR you hold certain securities licenses (e.g., Series 7 or 65)

If you’re not accredited, your options are more limited but not impossible. Some syndicates or platforms offer workarounds.

Here’s what I’ve learned (& what I wish someone had told me earlier):

1. Start by looking at your network
Your best deal flow comes from people you already know:
→ Former coworkers
→ Founder friends
→ Community or alumni groups

You don’t need access to the hottest YC demo day or a fancy syndicate to start. In fact, your first few deals should come from relationships you trust (that’s how I started).

2. Join syndicates and platforms
Communities like Hustle Fund Angel Squad (sign up for their 30-day free guest pass to test it out) and platforms like AngelList make it easier to back vetted deals with as little as $1K.

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