Stream Fishing Framework

Shaan Puri describes angel investing as a passive "stream fishing" approach rather than actively hunting for deals. Here's his framework for this strategy.

Core Philosophy

• Treats angel investing like dipping a net into a flowing stream rather than actively fishing
• Focuses on capturing opportunities that naturally come through existing networks
• Leverages personal brand and network for deal flow rather than actively sourcing

Deal Flow Sources

• Personal network of friends
• Inbound opportunities through Twitter presence
• Podcast audience connections
• Existing portfolio companies and founders

Investment Process

• Monthly investment updates to document:
  • New companies invested in
  • Investment thesis and conviction points
  • Reasoning behind investment decisions
• Deploys approximately $1M per quarter
• Usually depletes quarterly allocation within first 2 months
• Focuses on larger check sizes vs. many small investments

Key Advantages

• No need to actively source deals
• Natural filter through trusted network
• Deals come pre-vetted by trusted sources
• Reduced time commitment compared to traditional VC approach
• Can maintain focus on other primary business activities

Operational Structure

• Uses Rolling Fund structure
• Minimal investor management:
  • Monthly updates only
  • No regular investor calls
  • Limited direct communication
• Maintains investment documentation for personal reference
• Requires some regular deal review to meet deployment obligations

This passive approach allows for significant deal flow while minimizing the operational overhead typically associated with professional investing.