Angel Portfolio Minimum

A framework for the minimum portfolio size needed to start angel investing effectively, based on Shaan Puri's experience.

Core Portfolio Requirements

• Minimum bankroll needed: $300,000-500,000
• Target portfolio size: 20-30 investments
• Rationale: Many deals will be losers, need enough bets to find winners

Alternative Approaches If Under-Capitalized

• Scout for established investors
  • Get carry in exchange for finding deals
  • Investors provide the capital
  • How Shaan got started with Lambda School investment

Investment Learning Philosophy

• View it as funding your own MBA
  • Alternative to $200k business school cost
  • Benefits:
    • Build network
    • Gain business knowledge
    • Have skin in the game
    • Potential for profit

Early Stage Investment Strategy

• Benefits beyond just returns:
  • Learning opportunities
  • Network building
  • Business connections
  • Can help your main business/career
• More valuable than passive public market investing when starting out
  • Active vs passive learning
  • Relationship building
  • Direct business benefits

Initial Investment Pace

• Example starting amount: $120k (equivalent to business school cost)
• Annual investment pace: $200-250k once established
• Focus on learning and building portfolio gradually

This framework suggests angel investing requires significant capital but can be approached strategically if under-capitalized, with emphasis on learning and network building alongside potential returns.