Angel investing doesn’t have to be a solo journey. Whether you're reviewing your tenth pitch deck or preparing to write your first angel check, joining a community of investors can make the process more insightful, collaborative, and effective.

Angel investing groups have exploded in popularity for good reason. According to the Angel Capital Association, there are now three times as many groups as there were at the turn of the century (Investopedia).

Whether you're looking to diversify your portfolio, tap into better deal flow, or simply learn from other investors, finding the right angel group could be a game-changer for your investing journey. 

Want to learn more about investing groups and how to build a smarter portfolio? Find out more about Angel Squad today. 

The Power of Collective Intelligence

Angel groups aren't just about pooling money - though that’s certainly part of it. They're about pooling wisdom, experience, and networks. When you're evaluating a SaaS startup, wouldn’t you want input from someone who’s already backed three successful software companies?

Most young companies are seeking more cash than any single investor is willing to put up, often upward of $1 million. By dividing that ownership stake among several investors, an individual may only need to kick somewhere from $1,000 on a single deal.

But here's what really stands out about angel groups: the collaborative due diligence. Investors who band together can share the considerable diligence work that any major investment requires. Beyond saving time, this collective approach draws on each member’s expertise.

As one incubator puts it: "The syndicate members collectively conduct a comprehensive analysis of the startup's business model, market potential, financial health, and management team." (FasterCapital) This not only diversifies risk but also consolidates the collective acumen of seasoned investors, thereby amplifying the potential for successful outcomes.

Instead of spending 20+ hours researching a company’s market size and competitive landscape yourself, you can divide and conquer with other group members who may have domain expertise you lack.

Types of Angel Groups: Finding Your Fit

Not all angel investing groups are created equal. Some focus on specific industries, others on geographic regions, and still others on demographic groups. Here’s a breakdown:

• Regional Groups support startups in a defined geographic area. These can foster tight-knit ecosystems and enable in-person collaboration.
  
  
• Industry-Specific Groups focus on areas like clean tech, health tech, or SaaS, appealing to investors who want depth over breadth.
  
  
• Demographic-Focused Groups aim to support specific founder communities or mission-aligned investment goals.
  
  
• Fund-Connected Networks offer access to startup pipelines from experienced venture firms. Built by the team at Hustle Fund, Angel Squad leverages years of experience backing early-stage startups to create a platform that connects investors globally, streamlines due diligence, and facilitates collaborative investing at scale.

Membership Benefits: More Than Just Money

The best angel groups offer more than deal access. Here’s what you should expect:

• Education and Learning: Angel investing is complex. Quality groups offer workshops, webinars, and deal memos to help you build your skill set.
  
  
• Networking: Strong relationships with fellow members open doors to co-investment and mentorship. Often, these connections become as valuable as any single investment.
  
  
• Deal Flow: Exposure to a larger volume of curated deals is a major benefit. As noted, "Membership generates sizeable diversification benefits for angels: a larger deal flow" and "generates valuable information, networking, monitoring, and risk reduction effects." (Journal of Corporate Finance)
  
  
• Mentorship Opportunities: Many groups encourage members to mentor portfolio companies. This is often how you add the most value and build stronger founder relationships.

Choosing the Right Group: Your Investment Thesis Matters

Rather than joining the first group that extends an invitation, be strategic. Ask yourself:

• What industries do you understand best?
  
  
• What check sizes are you comfortable writing?
  
  
• How much time can you commit to diligence and mentoring?
  
  
• Do you want to support startups locally, globally, or within a specific vertical?

Before diving in, take stock of your goals. Are you trying to learn about startups, support a specific community, or build a high-performing portfolio? Your answers will help you find a group that fits.

Making the Most of Your Membership

Once you're in, don’t just passively observe. The most successful angel group members are active participants.

Ways to get the most from your group:

• Attend meetings consistently
  
  
• Volunteer for diligence on deals that interest you
  
  
• Share your expertise with founders and members
  
  
• Build relationships outside of formal sessions
  
  
• Stay curious and keep learning

Even if you’re new, your questions and perspectives bring value. Participation is what makes the experience worthwhile.

A Smarter Way to Invest

Angel investing groups can be transformational. They provide the infrastructure to collaborate, the education to grow, and the deal flow to deploy capital intelligently.

Interested in learning how to angel invest within a community? Join Angel Squad today to access top-tier resources and expert mentorship.