Angel Portfolio Bankroll Requirements

A framework for building an angel investment portfolio, focusing on optimal check sizes, deal flow management, and portfolio construction.

Initial Portfolio Construction

• Need $300-500k minimum bankroll to start
• Allows for 20-30 total investments
• Accounts for expected losses in angel investing
• Important to have enough capital for follow-on investments

Deal Flow Management

• Expect to take ~90 meetings for every 30 investments
• 30% acceptance rate from meetings is considered high
• Time commitment considerations:
  • 90 hours just for initial founder meetings
  • Additional time for due diligence
  • Ongoing portfolio company support and introductions

Investment Strategy Framework ("Ikigai" for Investing)

Best performing investments sit at intersection of:

• Natural curiosity about the space
• Strong network in the sector
• Good market fundamentals

Benefits Beyond Returns

• Learning opportunity about new markets
• Network building with founders
• Cross-pollination of ideas for main business
• Allows entrepreneurial exploration without switching focus
• Acts as "entrepreneurial steam release valve"
  • Lets you stay focused on main business
  • While participating in exciting new spaces

Common Mistakes

• Making too many small investments ($10-15k checks)
• Spreading capital too thin across too many deals
• Investing in sectors where you lack:
  • Domain expertise
  • Strong networks
  • Genuine interest

Time Management Warning

• Missing deals is normal and acceptable
• Can't evaluate every opportunity
• Better to be focused than spread too thin
• Quality of deals matters more than quantity