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

The biggest difference between network investing and solo investing is deal flow volume. In an angel network, you see dozens or hundreds of deals filtered through the network's screening process. Investing solo, you see whatever comes through your personal network.

Neither is inherently better. It depends on the quality of your network versus the quality of the angel network.

If you're well-connected in startup ecosystems, you know founders, you have friends at top companies, you're active in the right communities, your solo deal flow might be excellent. If you're just starting out or don't have those connections, networks provide access you couldn't get otherwise.

But volume creates its own problems. More deal flow sounds great until you're drowning in pitch decks and trying to figure out which opportunities deserve your time. Networks solve this through curation, but that curation introduces bias. You're seeing deals the network thinks are good, which might not align with what you think is good.

The Learning Curve Is Completely Different

Angel networks are essentially schools for investors. You see how experienced investors evaluate deals. You hear their questions, understand their frameworks, watch them decide what to back and what to pass on. That pattern recognition is invaluable when you're starting out.

Solo investors learn through expensive mistakes. You back companies that fail and try to figure out why. You pass on companies that become huge and kick yourself for missing obvious signals. Eventually you develop intuition, but it takes longer and costs more.

The trade-off is that network learning can create groupthink. Everyone starts evaluating deals the same way, looking for the same signals, backing the same types of companies. Solo investors have to develop their own frameworks, which can lead to more contrarian bets that pay off big when the crowd is wrong.

Access and Allocation Work Differently

In angel networks, hot deals get oversubscribed quickly. Everyone wants into the same companies, which means allocation gets spread thin. You might get $5,000 into a deal where you wanted to invest $25,000. In competitive situations, the network leads often prioritize their own investments or investments from more active members.

Solo investors don't have this problem. When you source a deal yourself, you can take as much allocation as the founder is willing to give you. You're not competing with other network members. The relationship is direct.

But that assumes you can source good deals yourself, which brings us back to the network question. Most people don't have strong enough personal networks to source consistently good deals solo, especially when they're starting out.

The ROI Math Depends on Your Strategy

Angel networks typically charge membership fees, anywhere from a few thousand to tens of thousands per year depending on the network. You need to generate enough return to cover those fees plus make the investing worthwhile.

If the network gives you access to deals you wouldn't otherwise see, the math works. If you're seeing the same deals you could access solo, you're paying for nothing.

Some networks add value beyond deal flow. Education, events, connections to other angels who become co-investors or friends. These soft benefits are hard to quantify but matter for long-term success.

Solo investing has lower overhead costs but higher learning costs. You're not paying membership fees, but you're probably making more mistakes early on because you don't have experienced investors helping you avoid obvious pitfalls.

Speed Can Make or Break Deals

Angels can write checks after one meeting if they like the founder and the idea. That's true for both network and solo angels, but the mechanics differ.

Network angels might need to wait for the next pitch event or deal review session before seeing a company. By the time you see the pitch, evaluate the deal, and decide to invest, the round might be closed. Fast-moving solo angels can move the day they hear about an opportunity.

But networks can also accelerate deals through social proof. If a respected network is backing a company, other angels are more likely to follow. That momentum helps companies close rounds faster, which helps you as an investor get into deals before valuations spike.

Building Reputation Inside Networks

Within angel networks, reputation matters. Members who consistently source good deals, provide valuable feedback, or have deep expertise in specific sectors become go-to resources for the network.

At Angel Squad, certain members have built reputations as experts in particular sectors just by showing up to events and sharing knowledge. When a climate tech company pitches, everyone wants the climate tech expert's opinion. That expertise creates deal flow, founders start reaching out directly, other angels loop you in on relevant deals.

You can't build that reputation investing solo. You're anonymous outside your immediate network. Founders don't know who you are. Other angels don't know you exist.

The Sourcing vs. Selecting Question

Some angel network members source deals and bring them to the network. Others just select from deals the network surfaces. The sourcers often get better treatment, priority allocation, better terms, sometimes even carry on deals they bring in.

Solo investors are forced to source everything themselves. That skill development is valuable if you ever want to raise a fund or work in VC professionally. Your ability to source and pick winners is your track record.

But sourcing is hard. It requires building relationships with founders, being active in startup communities, and developing a reputation that makes founders want you in their rounds. Most angels aren't good at this initially. Networks provide a bridge while you develop sourcing skills.

Nicole DeTomasso, speaking at an Angel Squad event about breaking into VC, emphasized that your number one job as an investor is to source and invest in the best deals. To do that, you need to show a track record. There's no better way to prove a track record than putting your own personal capital to work.

Networks help you build that track record faster through volume. You can invest in more companies, get more reps, and learn faster. Solo angels might take years to build the same portfolio size networks give you access to in months.

The Two Skills Every Investor Needs

Most venture firms have partners who write checks into deals they didn't source. They just saw it as the best deal that came through and wanted to do it. There are two skill sets. One is sourcing and finding deals. The other is being able to diligence deals and figure out why you want to invest.

If you're really good at picking deals and you get a unicorn investment as an angel investor, nobody's questioning where you sourced it. People see thousands of deals. To choose the one in 1,000 deal that ends up going to a unicorn, nobody's questioning you. But try to source anyway, because it's a big component of being in venture.

Community Creates Value Beyond Deals

Angel networks create community among investors. You meet people at similar stages of their investing journey. You share war stories, co-invest on deals, become friends. Some of these relationships last decades.

That community provides emotional support when investments go sideways. Startup investing is brutal, most investments fail. Having people to commiserate with makes it less lonely. Networks formalize that community. Solo investors have to build it themselves.

The Cost Structure Differs

The cost structure differs between networks and solo investing. Networks charge membership fees, typically a few thousand dollars per year. Solo angels save that money but spend it on other things, paying for data rooms, legal reviews, or flying to meet founders. The costs add up differently but they still add up.

For People Breaking Into VC

For people trying to break into VC, networks provide crucial experience. Programs like the Venture Fellows Program at Angel Squad bring you close with the fund. You join pitch calls. You help with deal pipeline. That hands-on experience with a working fund teaches you the mechanics of venture that solo angels never learn.

The Hybrid Model Wins

The best approach depends on where you are. If you're starting out and need education, networks make sense. If you're experienced and have strong deal flow from your own network, solo investing gives you more control. If you want to break into VC professionally, networks provide the track record and connections you need.

But don't make it binary. The smartest angels do both. They invest through networks to get volume and education. They invest solo on deals they source themselves to build direct founder relationships. They use networks to meet other angels they can co-invest with outside the network.

Members at Angel Squad get access to deal flow that includes reviewing hundreds of pitch decks every month through Hustle Fund's pipeline. That volume teaches you pattern recognition faster than anything else. But members also invest in startups they source themselves. The combination builds better investors than either approach alone.

If you're serious about angel investing and want to learn alongside experienced investors while building your track record, Angel Squad gives you structured access to deal flow, education from Hustle Fund's team, and a community of active angels who can become co-investors and collaborators on future deals.