I get some version of this question constantly: how do you actually start angel investing if you don't have $100,000, don't live in San Francisco, and aren't sure you're even accredited? Here's the honest, no-fluff version of what I'd tell a friend.
The basics
What does angel investing actually mean?
Angel investing means putting your own money directly into an early-stage startup (usually pre-seed or seed) in exchange for equity or a SAFE. You're not managing other people's capital like a VC fund. You're writing a personal check, living with the outcome, and typically waiting 7-10 years for any liquidity.
Accreditation
Do you need to be an accredited investor?
For most private deals (syndicates, direct checks, most SPVs), yes.
SEC rules (Rule 501 of Regulation D) require one of these:
- $200,000 individual income (or $300,000 joint with spouse) for the last two years, with the same expected this year, or
- $1 million net worth (excluding your primary residence), or
- An active Series 7, 65, or 82 license.
You do not need to be accredited to start learning, following deals, or investing on crowdfunding platforms under Regulation Crowdfunding (Reg CF).
Capital
How much money do you actually need to start?
Less than most people assume.
- AngelList syndicates / SPVs: $1,000 minimum per deal (some leads set higher floors of $5k-$25k).
- Republic: as low as $10-$50 (typical company minimum is $25-$100). Non-accredited investors can participate under Reg CF limits.
- WeFunder: usually $100 minimum.
- Realistic starting range for first-time angels: you can start from $1,000 checks, but realistically $5,000-$10,000 is the starting point.
Only invest money you are fully prepared to lose. Most experienced angels allocate less than 10% of their investable portfolio to this asset class. 90% of startups return zero or near-zero.
Portfolio
How many startups should you invest in?
Aim for 15-20 companies minimum. Data from the Angel Capital Association and multiple studies shows portfolios with 15+ companies returned ~2.6x over 10 years, while portfolios under 10 companies often returned less than 1x.
Startups follow a power law: 1-2 companies typically generate the vast majority of your returns. The rest mostly go to zero. One or two big checks into "exciting" deals is a lottery ticket, not a portfolio.
Deal flow
Where do you find your first deals if you're not in San Francisco?
You don't need to be in the Bay Area.
- AngelList (angellist.com) - the main marketplace for syndicates and SPVs. Browse leads, join their lists, invest from $1k.
- Republic (republic.com) - open to non-accredited investors, lowest minimums.
- WeFunder (wefunder.com) - similar Reg CF platform.
- TK Capital Syndicate - you can join my syndicate and invest alongside me in the deals I'm backing. Join here.
Follow active angels and founders on X/Twitter, join deal-review calls, and ask to shadow a few investments before writing your first check.
Evaluation
What actually matters in due diligence?
Look past the polished pitch:
- Team - What's their actual superpower? Why will this group win? Track record and coachability beat a novel idea almost every time.
- Business model - Can this realistically reach $100M+ in revenue? What's the path and the unit economics?
- Other investors - Strong co-investors are useful, but not a guarantee (WeWork and Convoy raised from top firms too). Ask: can this team raise the next round?
- Price - What's the post-money valuation and your resulting ownership? Compare to stage averages (tools like Carta publish ranges). Too high means higher risk of a future down-round and heavy dilution.
Red flags that kill most deals early: unrealistic valuation for the stage, no clear use of funds, founders who dodge direct questions, or zero evidence of customer demand.
The one mistake
The one mistake almost every first-time angel makes
Writing one large check into a single company they're excited about instead of building a portfolio of 15-20 smaller ones.
Startups are a power-law asset class. Most of your checks will return little or nothing. The entire return almost always comes from one or two outsized winners. One or two bets total is a lottery ticket. Twenty bets is an actual portfolio.
Next steps
Simple next steps
- Decide the exact dollar amount you can afford to lose completely, then apply to join the TK Capital Syndicate (no money required).
- Keep a simple tracker: company, date, why yes/no, check size.
- Make your first 2-3 checks within the next 3 months.
- Aim for 15-20 total positions over the following 2-3 years.
That's the practical version. You don't need $100k or a San Francisco zip code. You need a clear loss budget, access to deal flow, and the discipline to write many small checks instead of one big one.
Start small. Track everything. Stay patient.
By Taisiya Kudashkina, Founder of TK Capital · Published September 2026
