When you are looking to join a VC firm, having some angel investments under your belt is always a good thing.
But not all angel investments are created equal.
Here are the ones that I think will give you the most mileage.
Maybe not in terms of returns.
But almost definitely for your VC job search.
Investments you source > Investments you’re sent
There are so many angel groups, platforms, and places to get deal flow passively:
But VCs want to know that you can source deal flow actively:
Get yourself in front of hard-to-reach founders …
… find off-the-beaten-path opportunities no one else saw coming.
And then win allocation.
Now, I know you might also be in angel investing for the money.
But if you’re in it as a potential route to VC:
You have to keep this dynamic in mind.
Investing alongside brand names > Investing alongside other names
Well-known angels and VCs investing in the same things you did?
That will generally look good to a VC who is thinking about bringing you on …
… regardless of when those investors wrote the check.
Or when you wrote yours.
Oh!
There’s a way to get bonus points here, too.
Which is:
Investing BEFORE brand names > Investing AFTER brand names
If those well-known investors I just mentioned invested AFTER your check went in:
That’s even better.
Because it shows VCs that you had the inside track.
And maybe a unique insight, too.
Markups (can be) > Returns
A 3X return on an angel investment that flipped fast is great for your bank account.
But not as great for your VC job search.
You see:
Most seed or Series A stage investors will care more about a 3X markup on a company that’s still alive.
And still has the chance to become their next unicorn.
After all, a startup can’t get acquired for billions …
… or IPO for the same:
If another company has already acquired it for a “measly” 3X.
