Five Types of Angel Investors and How to Engage with Them on LinkedIn

By Tzakhi Freedman

Angel investors come with distinct investment styles, goals, typical investment amounts, and decision-making processes. They are ultimately individuals, so each one is different and unique. They can, however, be divided into 5 basic subtypes, each with a typical decision-making process, and preferred investment stages and amounts. They also vary in approachability. Understanding these differences is crucial if you want your outreach to be effective.

 1. Solo Angel Investors

These angel investors operate independently and are usually experienced in the startup world, with a track record of successful investments. If you reach out to them, they may agree to a meeting to understand your business plan and vision, evaluate your startup's financials, conduct market research, and assess your team's capabilities. As they are individual investors, they have the autonomy to make quick investment decisions, sometimes within days or weeks. They tend to invest in early-stage startups, and while the investment amount varies widely, it is generally smaller than other types of angels.

On LinkedIn, these investors can be identified by searching for keywords like 'Angel Investor', 'Private Investor', or 'Independent Investor' in their profiles. Before you talk to such an investor, you usually won't know how much or how often they invest, and whether the timing is right for them (in terms of their available funds, etc). 

2. Undeclared Angel Investors

These are a subgroup of solo angel investors - wealthy executives or successful startup founders who do not publicly identify as angel investors. They possess significant industry expertise and funding capacity, often investing in later seed and Series A rounds, with investment amounts depending on their financial capacity. Identifying these hidden angels on LinkedIn can be difficult and requires a keen eye for high-ranking executives or successful entrepreneurs demonstrating an interest in startups or technological innovations.

Attempting to reach out to them may result in a higher rate of rejection, since investing in a startup might not even be a priority for them. However, if you do connect with them, the added value they can offer through their experience and connections can be immense. 

 3. Angels in Investment Groups

These angel investors form part of organized groups that pool their resources and expertise to invest in startups. If you approach such an investor, they may introduce you to the group's decision-makers who will carry out due diligence on your startup. The decision-making process can take several months due to the group's size and the complexity of the deal. Investment groups typically invest in the seed or early stages of a startup, and the check sizes can vary widely. You can find these investors on LinkedIn through their association with known angel investment groups listed in their profiles, and specifically by filtering for “angel group” or “angels” in their current company name when searching on LinkedIn or Sales Navigator.

Many angels invest both as individuals and through an angel group or syndicate, and can often belong to several groups or syndicates, to get exposed to high-quality dealflow. In many angel groups, especially smaller and more exclusive groups, a member of the angel group may "lead" the investment, meaning that they will promote the investment opportunity to the entire group, which will bring in more capital for your startup. 

However, many angels do not want to spend time vetting investments and startup deals and only invest along with a group or syndicate. Such angels won't be very helpful in promoting your startup to the group, as they do not have any real influence on the decision process of the angel group. At best, they will offer to introduce you to someone operating the group, or even just send you to the group’s website. This is especially true of members of big angel groups.

4. Angels as Venture Partners in VC Funds

These angel investors are associated with venture capital firms, often in the role of a venture partner. They are not full partners in the fund (not to be confused with "general partners").

They help the VC fund source deals, evaluate startups, and provide mentorship to portfolio companies. Some of these angels can also invest privately, on their own, but usually, they will prefer to bring the startup to the venture capital firm they are associated with. That means the decision-making process is similar to traditional VC investments, as is the typical investment amount. 

Though they might not invest themselves, such angels can offer significant added value through their connections and experience. On LinkedIn, these individuals can be identified through their association with VC firms and their designation as venture partners under “current job titles.”

5. Angels Leading Syndicates

Syndicate lead investors are responsible for sourcing deals, negotiating terms, and rallying other investors to participate. When approached, they may conduct due diligence on your startup, review financials, and negotiate terms. If they decide to invest, they will present the opportunity to the other investors in the syndicate. Depending on the syndicate's size and the deal's complexity, this process can take several weeks or even months. These angels typically lead investments in seed and early stages, with check sizes similar to angel groups. On LinkedIn, these individuals can be found by combining the word “syndicate” in the search, either under “company name” or in the boolean search.

Angels who lead syndicates offer the most value for early-stage startups, as they combine the ability to make relatively fast decisions with a larger cheque size than an individual angel.