Dear SaaStr: How Much Money Do You Need to Be An Angel Investor?
You can certainly start with a few small checks — to learn. As long as they are experiments, to learn, and you are OK losing it all.
But you probably need at least $2,500,000 liquid to do it right. $10,000,000 to do it well.
Why?
- You should probably make 50 bets to have a shot at a unicorn
- Minimum check size is $10k usually, bare minimum
- You probably shouldn’t put more than 5% of your net worth into angel investing unless you are truly a professional
So
50 x $10,000 each = $500,000 x putting even 20% of your liquid worth into angel investments = $2,500,000
And putting 20% of your net worth into angel investments is a lot. Stressful.
5% as noted above would be investing $500,000 of your liquid $10,000,000
A related post here:
angel image from here
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via https://www.aiupnow.com
Jason Lemkin, Khareem Sudlow
