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 get an email or see a LinkedIn ad for an angel investor network. They promise exclusive deal flow, education from experienced investors, and a community of smart people. The pitch sounds great.

But you're about to hand over several thousand dollars in membership fees and potentially hundreds of thousands in investment capital. How do you know if this community is legit or just selling access to mediocre deals?

The angel investing community space has exploded in the past few years. Some are genuinely excellent. Others are barely disguised lead gen for founders who can't raise from actual VCs. You need to know the difference before you join.

Start With Deal Quality and Source

The most important question: where do their deals actually come from?

Strong communities have systematic deal flow. They're not scraping AngelList or reposting from Twitter. They have relationships with accelerators, partnerships with VC firms, or scout networks that surface opportunities early.

Ask specifically: How many companies do you review monthly? What percentage of those do you share with members? What's your relationship with the founders pitching?

Angel Squad, for example, sees 1,000+ deals monthly through Hustle Fund's pipeline and shares 2-3 of the best. That's a 0.2% acceptance rate, which tells you something about quality. They're not sharing everything that comes through the door. They're curating aggressively.

Red flags: Communities that share every company that applies. Networks where founders are cold-pitching without any prior relationship. Groups that have "open pitch nights" where anyone can present.

The best deals don't need to pitch to rooms full of random angels. They're oversubscribed before they even start fundraising.

Evaluate the Education Quality

Most angel investor networks promise education. The question is whether you're learning from people who've actually deployed capital and seen returns.

Look at who's teaching. Are they active GPs at established funds? Former founders who've raised successfully? Angels with 10+ years of track record? Or are they professional "community builders" who've never written a check?

Angel Squad runs deal review sessions with Hustle Fund GPs who've evaluated tens of thousands of startups. Members watch them break down real companies, ask questions in real-time, and see how experienced investors actually think. That's different from generic webinars about "how to angel invest."

Look for specificity in their curriculum. Do they cover term sheets, pro rata rights, portfolio construction, tax implications? Or is it all high-level fluff about "betting on great founders"?

The test: If you asked a current member what they learned in the past month, could they give you three specific tactical takeaways? If not, the education probably isn't substantial.

Scrutinize the Member Experience

The best way to evaluate a community is talking to actual members, not reading testimonials on their website.

Ask if you can speak with 2-3 current members before joining. Legitimate communities will facilitate this. Ask those members:

• How many deals have you invested in through the network?
• What's been most valuable to you?
• What's been disappointing?
• How active are other members?
• Do people actually help each other, or is it just transactional?

Pay attention to engagement levels. How active is their Slack or Discord? Are people asking questions and getting thoughtful responses? Or is it dead air with occasional spam?

Angel Squad has 2,000+ members across 40 countries. That's meaningful because it suggests retention is strong. People aren't joining, realizing it's not valuable, and leaving. They're sticking around, which implies they're getting value.

Look at member diversity too. Strong communities have a mix of experience levels, industries, and geographies. If everyone's a first-time angel or everyone's from the same industry, that limits what you can learn from each other.

Understand the Fee Structure Completely

This is where communities can hide problems.

Some angel networks charge membership fees plus carry on investments. So you're paying $5,000 per year and then 20% carry on any returns. That's double-dipping. Others have opaque fee structures where you don't really understand what you're paying until you're three months in.

Ask directly:

• What are the membership fees, and are they recurring?
• Are there carry fees on investments?
• What are the SPV admin fees through AngelList or similar platforms?
• Are there any other hidden costs?

Angel Squad charges $875 per quarter (or a lifetime membership option) and uses standard AngelList SPV structures for investments. The economics are transparent. Everyone sees the same fees. There's no additional carry beyond what AngelList charges.

Compare this to traditional angel groups that might charge $10,000+ annually plus 20% carry. You need to understand if the value justifies the cost.

Verify Their Actual Track Record

Anyone can claim their portfolio is doing well. Ask for specifics.

How much total capital have members invested through the community? How many companies? Any exits yet? If they're a new community, that's fine, but they should be transparent about it.

Angel Squad has publicly shared that members have invested $30M+ across 70+ startups including Rupa Health, Karat, and Forage. Those are real companies you can research. That's verifiable.

Be skeptical of communities that won't share any portfolio data or only mention companies by vague descriptions. "A fast-growing SaaS company" doesn't tell you anything.

Also ask about failures. Every angel portfolio has companies that didn't work. If a community only talks about winners, they're either lying or too new to have any real data.

Look for Alignment of Incentives

The best angel investing communities succeed when their members succeed. They should want you to make good investments, learn quickly, and build a strong track record.

Watch out for communities that make money primarily from membership fees with no skin in the game on investments. If they're incentivized to grow membership but don't care whether you actually deploy capital intelligently, that's a problem.

Also watch for conflicts of interest. Some communities are really just deal flow funnels for a parent VC that's looking to fill their rounds. That's not inherently bad, but you should know if that's the dynamic.

Angel Squad is run by Hustle Fund, and members co-invest in Hustle Fund deals. The alignment is clear: Hustle Fund wants to invest in winners, and they're sharing those opportunities with Angel Squad. If the deals are bad, both Hustle Fund and Angel Squad members lose.

Test the Water Before Diving In

Most strong communities offer some kind of trial or sample experience.

Angel Squad has a 14-day free trial where you can attend events, access resources, and get a feel for the community before committing. That's a strong signal. They're confident you'll find value.

If a community requires full payment upfront with no trial or refund period, that's concerning. They're not confident enough in their product to let you test it.

During your trial, be active. Attend events, ask questions in the community forums, message other members. See if it feels like a place you'd want to spend time and deploy capital.

The Checklist

Before joining any angel investor network, verify:

• Deal source is systematic and high-quality (partnership with established VCs or rigorous screening)
• Education is taught by active investors with real track record
• Current members are enthusiastic and engaged (talk to 2-3 before joining)
• Fee structure is transparent with no hidden carry
• Track record is verifiable with actual company names
• Incentives are aligned (they win when you win)
• Trial period is offered so you can test before committing

Angel investing is risky enough without joining a community that wastes your time and money. Do the diligence on the network before you do diligence on startups.

Your capital and your reputation are on the line. Choose carefully.