March 1, 2023
→ A Deal Checklist & Basic Filter For New Angel Investors
- U.S. C-Corp | software company | valuation <$12m
- Does the team have a non-obvious insight?
- Is the majority of the team technical?
- Do you believe the team is high on integrity, motivation and grit?
- Is there a working prototype with some passionate customers?
- If everything went right, is there a path to a 100x-1,000x return?
- Are ‘legible’ co-investors also participating?
Identify the one truly elite thing: the one thing you are really excited about
Bias to teams and markets you know well
Feel good about the deal dynamics (valuation, structure, co-investors)
Self-affirm you will be okay losing this money
- Note: You can always consider asking to write a smaller check
Wire the check and remember to document the deal
Email the founder requesting to receive future company updates and list 1-3 tactical ways you can be supportive outside of simply capital
Be proactive: support the founder, find your next deal, and work on leveling-up