Angel Investing: Evolving Roles

Part 1 - Angel Investing: Basics and Becoming an Accredited Investor

Part 2 - Angel Investing: Starting Your Journey

Part 3 - Angel Investing: How much to Invest

Part 4 - Angel Investing: Evolving Roles

Part 5 - Angel Investing: Finding Deals and Adding Value

Part 6 - Angel Investing: Scaling Up

As you progress in the startup investing world, you’ll encounter different “flavors” of investors. It’s important to understand the distinctions between a regular angel investor, a “super angel,” and a limited partner (LP) in a venture fund – as well as how one role can evolve into another over time.

Angel investors (individuals, active or passive): An angel investor is typically an individual investing their own money into startups. This is “plain old vanilla” angel investing. Angels can be active or passive to varying degrees.

An active angel might source their own deals, take board observer seats, or mentor the founders, effectively behaving almost like a one-person VC. An active angel often has an entrepreneurial background, loves the thrill of picking companies, and is willing to roll up their sleeves to help startups post-investment.

On the other hand, a passive angel might simply write a check and not be very involved – for example, backing a friend’s company or investing through a syndicate and then quietly waiting for outcomes.

Both are legitimate styles; it’s more about personal preference and available time. It’s worth aligning expectations with founders – if you invest and don’t plan to be hands-on, that’s fine (many angels are just financial backers), but the startup should know if they can count on you for help or not. You could simply be a source of money, or become almost a part-time team member – it varies widely. Many of the best angels add value through advice and introductions, but it’s not strictly required.

Characteristics of good angels: