If you’re about to take the plunge into angel investing, or you’re finding it hard to get started:
Here’s a tip.
Most startups that are raising money will have a minimum check size they’ll take.
(I’ve seen this minimum be $25k for most angel/seed deals I’ve been involved with, although YMMV)
If you’re not ready to write checks of that minimum size, you might think you’re S.O.L.
Or that you’ll just have to stick with sourcing deals via the equity crowdfunding sites.
But here’s what I’d rather see you do:
- Introduce that company to other investors who can help them close their round.
- Plug them in with talented colleagues and friends who they might want to hire.
- Find some people who might want to try or buy their product.
If you do all that — sometimes a funny thing happens.
That “minimum” goes a bit lower, just for you.
All of a sudden, your $20K or your $10K check — it’s just fine.
Because that startup now sees that you’re bringing a lot to the table:
more than your tiny pile of cash had implied.
