Brian Nichols is the co-founder of Angel Squad, a community where you’ll learn how to angel invest and get a chance to invest as little as $1k into Hustle Fund's top performing early-stage startups

You've got $10,000 to start angel investing. Where should you put it?

Not in one company. Your $10K needs to become a portfolio of 10-20 investments, not a concentrated bet on your buddy's startup or the "next big thing" you heard about on Twitter.

The question isn't which single investment to make. It's which network gives you the best shot at building a real portfolio with that capital.

Why Networks Matter

Angel investing used to be a relationships game. You needed to know founders personally, have connections to other investors, and live in Silicon Valley. Most people with $10,000 couldn't participate at all.

Angel investor networks changed this by aggregating deal flow, negotiating investment terms, and creating structures (like SPVs and rolling funds) that let smaller investors participate alongside larger checks.

But not all networks are designed for learning investors. Some assume you already know what you're doing. They give you deal access and expect you to figure out the rest.

Networks that work best for first-timers combine deal access with education and community support. You're not just getting opportunities to invest. You're getting the context and frameworks to make better decisions.

What to Look For

Investment minimums are crucial. You need to spread capital across multiple investments. Networks with $5,000 or $10,000 minimums force too much concentration. Look for $1,000-2,000 minimums that let you build a real portfolio.

Quality of deal flow matters more than quantity. Some networks bombard you with dozens of opportunities weekly. That's overwhelming and honestly, most aren't worth your time. Better networks curate aggressively and only share companies meeting specific quality bars.

Educational resources separate good networks from great ones. Does the network teach you how to evaluate deals? Do they explain their investment theses? Can you learn from experienced investors who've actually made money?

Community structure affects your learning trajectory. Are there other investors at your experience level to discuss deals with? Can you ask questions without feeling stupid? Is there a culture of sharing learnings openly?

Networks Built for New Investors

Angel Squad stands out for investors just starting. Created by Hustle Fund (an early-stage VC that's invested in 600+ companies), Angel Squad gives members access to the same deal pipeline Hustle Fund evaluates. That's over 1,000 startup opportunities monthly, curated down to the handful worth serious consideration.

The real value is educational structure. Angel Squad runs weekly virtual events where you hear directly from experienced VCs and founders about evaluating specific investment topics. One week it's understanding cap tables, another week B2B SaaS metrics, another founder psychology.

Investment minimums are $1,000, meaning your $10K becomes a portfolio of 10 companies. Over 2,000 members across 40+ countries have collectively invested $30+ million through the community.

As Shiyan Koh, co-founder of Hustle Fund, noted in the fund's fundraising guide: "Great founders can look like anyone and come from anywhere." That philosophy extends to Angel Squad's membership, welcoming investors from all backgrounds and geographies.

Syndicate-Based Networks

AngelList syndicates remain popular for newer investors to participate in angel deals. The structure is simple: experienced angels lead syndicates and invite followers to invest alongside them in specific deals.

The advantage is backing deals someone with a track record has already vetted. The disadvantage is you're not developing your own judgment. You're essentially index-investing in someone else's decision-making.

For your first $10K, syndicates can work if you follow multiple syndicate leads and diversify across their styles. But be aware of carry structures (most charge 15-20% carry on profits) and the fact that you're not learning as much as you would in more educational networks.

Equity Crowdfunding Platforms

Platforms like Wefunder, Republic, and StartEngine let anyone invest in startups with minimums as low as $100. That sounds great for diversification, but there are significant drawbacks.

Valuations on equity crowdfunding platforms tend to be high relative to company stage. You're often investing at prices making it very difficult to generate returns even if the company does well.

More importantly, equity crowdfunding is largely "set it and forget it." You don't get education, mentorship, or community that helps you actually improve. You're just buying lottery tickets.

That said, if your goal is supporting specific founders or industries you care about, and financial returns are secondary, equity crowdfunding platforms can make sense. Just be clear-eyed about what you're doing.

Industry or Geographic Focus

Some valuable angel networks are specialized around specific industries or regions. Networks focused entirely on climate tech, healthcare, fintech, or consumer products. Others organized around geographic hubs like Austin, Miami, or emerging startup ecosystems.

These specialized networks provide tremendous value if they match your background and interests. If you've spent 15 years in healthcare, joining a healthcare-focused angel network means you can actually add value to companies, not just capital.

The learning curve is gentler when investing in industries you already understand. You don't need to learn both how venture investing works AND how the industry works simultaneously.

However, specialized networks often require higher minimums (typically $5K-10K per deal) and may have more formal membership requirements. They're not always designed for brand new investors with limited capital.

Traditional Angel Groups

Traditional angel groups like Tech Coast Angels, Golden Seeds, and Launchpad Venture Group have been around for decades. They typically operate regionally, meet monthly to hear pitches, and make collective investment decisions.

These groups provide excellent education and mentorship, but they're not designed for $10K investors. Most require significant capital commitments ($50K+ to join), expect active participation in due diligence, and have cultures that can feel intimidating to newcomers.

Many traditional angel groups are adapting to include virtual members and lower minimums, but the core model still assumes you have substantial capital and time to commit.

Making Your First Investments

Once you've chosen a network, how do you actually deploy your $10K?

Go slow. Don't rush to invest in the first five deals you see. Spend the first 1-2 months just learning. Attend educational sessions, read investment memos, listen to pitch calls. Build a sense of what good deals look like.

Start with smaller checks. Your first few investments should be $500-1,000 each, not $2,000-3,000. You're going to make mistakes. Better to make small mistakes while learning.

As Elizabeth Yin explains: "For beginners, a bigger startup portfolio is better. It helps with diversification - mitigate downside risk. It helps you learn and get reps in. Investing requires practice like everything else."

Develop a simple investment thesis. What kinds of companies are you most interested in? B2B SaaS? Consumer products? Climate tech? Healthcare? Having a loose focus helps you evaluate deals more consistently and build pattern recognition.

Keep learning actively. After each investment, write down why you invested. Six months later, revisit that thesis and see if you were right. The companies that succeed are rarely the ones you expect, but tracking your thinking helps you improve judgment over time.

The Network Effect

The best angel investor networks don't just give you deal access. They give you access to other investors you can learn from and eventually co-invest with.

Over time, you'll develop relationships with other investors in your network. Some will have deeper expertise in specific areas. Others will have complementary dealflow. These relationships become incredibly valuable as you develop.

Angel Squad members frequently organize their own sub-groups around specific industries or geographic regions. These organic connections often lead to co-investment opportunities and shared due diligence that wouldn't happen otherwise.

The community you build through an angel network can ultimately matter more than the initial deal flow. You're not just joining for access to startups. You're joining for access to other investors who can accelerate your learning.

Beyond the First $10K

If you choose the right network and invest thoughtfully, your first $10K will teach you whether angel investing is something you want to continue. That's worth remembering. This is an experiment in both financial returns and personal interest.

Some people discover they love angel investing and want to increase their annual budgets significantly. Others realize they prefer other asset classes or don't enjoy the uncertainty of startup investing.

Either outcome is fine. The point is choosing a network that helps you learn while you invest, rather than just facilitating transactions. Your $10K can either become 10-20 informed investments where you're genuinely learning and developing, or 10-20 random bets where you're just hoping something hits. The network you choose makes all the difference.