The fundamentals · works everywhere
How to back a startup
The universal playbook for angel investing — the part that is the same whether you invest in San Francisco, São Paulo, London or Singapore. For local rules and tax, pair this with your regional desk.
Step by step
Six steps from curious to invested
Check that you qualify
Most private rounds are limited to accredited, sophisticated or professional investors, with definitions and equity-crowdfunding carve-outs that differ by country. Confirm the rules where you live before anything else — your regional desk summarises them.
Choose your route in
Direct angel cheques give the most control; syndicates let you follow an experienced lead for smaller amounts; angel groups pool diligence and deal flow; equity-crowdfunding platforms lower the minimum to as little as US$100. Many angels use several at once.
Build real deal flow
Quality deals come through relationships. Join an angel network, follow syndicate leads whose judgement you trust, attend accelerator demo days, and let founders and other investors know you are actively backing companies.
Do focused due diligence
At the earliest stage, weigh the team, the market, early traction and the deal terms. Read the cap table and the instrument. Note who else is investing — a credible lead is a useful (not sufficient) signal.
Size the cheque and invest
Decide your total risk budget first, then divide it across many companies. Invest only what you can afford to lose entirely, sign the instrument (usually a SAFE or priced-round docs), and send the funds.
Support, then wait
Help with intros, hiring or advice where you genuinely can — and then be patient. Exits typically take 5–10 years, and follow-on rounds will dilute your stake along the way.
Know the paper
The three instruments you’ll actually sign
SAFE
A “Simple Agreement for Future Equity”. Your money converts to shares at the next priced round, usually with a valuation cap and/or discount. No interest, no maturity date. Simple and fast — but understand how the cap affects your eventual ownership.
Convertible note
Like a SAFE, but technically a loan: it carries interest and a maturity date, then converts to equity at a later round. Common where local law makes notes cleaner than SAFEs.
Priced round
You buy shares at an agreed valuation today. More paperwork and negotiation, but you know exactly what you own and your rights are spelled out in the shareholders’ agreement.
Two terms to always check on a SAFE or note: the valuation cap (the maximum price at which your money converts — lower is better for you) and the discount (the percentage off the next round’s price you receive). Together they decide how much of the company your cheque actually buys.
The hard truth
How startup returns really work
Angel investing is not a diversified index — it is a portfolio of lottery-like bets where the maths only works if you play enough hands.
Never invest money you cannot afford to lose entirely. Early-stage investing carries a high risk of total loss of capital. Nothing on this site is investment, legal or tax advice — take professional advice for your own situation.
Now go local
Rules and tax change by region
The steps above are universal. Eligibility, common structures and tax breaks are not — open the desk for where you invest.
United States
The deepest angel market on earth — accredited-investor rules, SAFEs, and a QSBS tax break found nowhere else.
Open the US desk →LATAMLatin America
A young, fast-growing scene led by Brazil and Mexico, where dollars and local syndicates back the next regional champions.
Open the LATAM desk →EUEurope
Dozens of ecosystems under one continent — with the UK’s SEIS/EIS reliefs among the most generous startup incentives anywhere.
Open the Europe desk →APACAsia-Pacific
From Singapore and Bengaluru to Sydney and Jakarta — the world’s largest, most diverse set of startup markets.
Open the APAC desk →Straight answers