What an angel network is
An angel network is a formal group of angel investors who review deals together and share deal flow, even though each member ultimately decides and invests separately. Networks usually run a structured application process, so a founder submits a pitch once and it gets seen by many investors rather than pitching to each of them individually.
Being accepted by a network does not guarantee investment. It means the deal clears an initial screening and gets put in front of members, who then decide individually whether to put money in, and how much. Some networks focus on a particular sector or region, others take a broader remit, and membership itself can range from a handful of angels to several hundred.
How an angel network differs from an angel syndicate
- In a network, each member decides and invests separately. In an angel syndicate, a lead negotiates terms and other members follow into the same deal.
- Networks are usually a standing group with an ongoing membership and process. Syndicates form more loosely around a lead and can be assembled deal by deal.
- A network can produce several different investors backing a company on different terms and timelines. A syndicate typically means one set of terms for everyone involved.
- Joining a network as a member is usually its own application process, separate from any individual deal it later reviews.
How a network's process usually works
- Deal flow. Founders apply or get referred in, building the pipeline the network works from.
- Screening. A deal committee or a small group reviews applications before the wider membership sees them.
- Due diligence. Once there is real interest, someone runs the checks on the company's claims.
- Individual decisions. Each member decides separately whether to invest and how much, and on what terms.
A founder pitching a network is effectively pitching once to reach many investors, rather than running the same conversation with each of them individually.
