Where do angel investors find great ideas to invest in?
Updated: Jan 5
(Answer requested by Howard C.)
The best angel investors tend to have deep networks spanning multiple ecosystems. When a good deal arises, they get referred that deal; usually via a warm intro.
I call these networks closed, personal networks because they take a lot of time and networking to establish yourself.
Alternatively, there is beginning to be a shift towards investing online/finding deals online. For example, here at Angelfund, we use data to match startups with relevant investors and investors with relevant startups.
It’s an interesting new world, and I think the shift towards online will continue to grow.
Alternatively, you can also find good deals by joining an angel group/syndicate. This is another good way for beginners to invest and learn alongside veteran angels.
Finally, investors rarely invest in “ideas” anymore. You’d be hard pressed to find an angel investor willing to cut a check for simply an idea.
Investors today, even angels tend to invest in startups with at least some traction.