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Book · How the machine works

Angel

Jason Calacanis · 2017

A practising angel investor on how to actually do it — deal flow, meetings, cheque sizes and the unglamorous work of being useful enough to get an allocation.

Why it is here

This is the most directly practical book on the list and the one most obviously written by someone doing the job. It covers the mechanics of building deal flow, running founder meetings, deciding quickly and being sufficiently useful that founders want you on the cap table.

It is also, unavoidably, a book by someone whose portfolio contained a famous outlier, and it should be read with that in mind. The tactical advice is sound; the implicit promise that following it produces similar results is the survivorship problem our angel legends section describes.

Read it alongside the portfolio maths, which supplies the sober arithmetic the enthusiasm does not.

Read it if

You are starting out and want the practical mechanics of finding and winning deals.

Skip it if

You are allergic to a confident authorial voice, or you want the risks foregrounded rather than the upside.

Pair it withThe Power LawSebastian MallabyA financial historian on how venture capital became what it is, and why the distribution of outcomes makes it behave unlike any other asset class.

Angel: common questions

Is this book too optimistic about angel investing?
It is written by someone with an exceptional outcome in their portfolio, and the tone reflects that. The tactical content on deal flow and founder meetings is genuinely useful; pair it with the portfolio maths so the arithmetic sits alongside the enthusiasm.
What is the most useful chapter for a new angel?
The material on being useful to founders. Access to competitive rounds is the binding constraint for most small cheques, and the argument that it is earned rather than bought is both true and actionable.