Deal Access Through Partners

Shaan describes a strategy for getting started in angel investing by partnering with established investors through carry sharing arrangements, before building up enough capital to invest directly.

Key Points:

• Initial Strategy When Capital Limited:

  • Partner with wealthy investors who can provide the capital
  • Scout deals for them in exchange for a percentage of the carry
  • Example success: Got into Lambda School deal this way, which became a significant winner

• Evolution Path:

  • Start with carry sharing to access deals
  • Build up personal capital ($300-500k bankroll ideal)
  • Transition to direct investing
  • Eventually scale up through vehicles like rolling funds

• Required Starting Bankroll:

  • Need $300-500k minimum to do proper angel investing independently
  • Should support 20-30 different investments
  • Without this amount, carry sharing is better approach

• Learning Approach:

  • Can treat initial $120-200k as "funding your own MBA"
  • Build network and business knowledge
  • Get skin in the game
  • Potential to become profitable while learning

• Benefits vs Traditional Investing:

  • More learning opportunities than public market investing
  • Build valuable network
  • Gain insights that can help your main business
  • Direct exposure to startup operations and strategies