Building Pipeline Through Deal Sharing
How to build a network that consistently delivers high-quality startup referrals.
As an angel investor, deal sourcing is pretty much everything. You’ve probably heard the saying, “you’re only as good as your network,” and there’s a lot of truth to that. In many ways, being a successful angel investor is all about having access to the best startups with the best founders.
We estimate that over 50% of the deals the average active angel investor gets involved in are referred by other investors. These referrals can come from syndicates, deal-sharing group, platforms like AngelList, venture capital firms, or other angel investors. We’ll focus on the last one: getting introductions to startups from other angel investors. Let’s focus on the last one: getting introductions to startups from fellow angel investors.
It’s clear why getting deal flow from other angels is valuable—but how do you consistently get high-quality referrals? Let’s break down a few tips.
The deal sharing dilemma
Of course, you want to get referrals to the best founders. But here’s the catch: the best founders are usually in high demand, so they don’t need to go looking for more angels. If you’re already in on such a deal, you might be hesitant to share it with others, especially if you know the round could get oversubscribed, cutting into your own investment allocation.
But here’s the thing—deal sharing is a two-way street. If you want others to share their deals with you, you’ve got to share yours with them. The more you give, the more people will want to keep you in the loop, making sure you’re always in the mix for the best opportunities. At the end of the day, what you put in is what you get out.
Angel groups: should you join?
Joining an angel group or deal flow group is an easy and obvious option. These groups can be small, with just a few angels, or massive, with hundreds or even thousands of members. The bigger the group, the more deals you’ll see—but be prepared for a lot of “spam” (uninteresting deals). However, if you’ve got a unique area of expertise, you might still find some hidden gems. For example, if a founder is looking for an angel with specific expertise and only wants a few angels on board, you could find some great opportunities.
On the flip side, small angel groups can sometimes go quiet—maybe because members aren’t actively investing or they’re keeping deals to themselves. Either way, if no one’s sharing, the group isn’t doing much for you.
There’s no harm in joining a few angel groups that seem promising. Give it a few months, see what deals come through, and then decide if it’s a good fit for you. Ask around in your angel investing network to find out which groups are worth your time.
One-to-one deal sharing
One of the best ways to get high-quality deals is by getting them directly from angels you trust and respect. Here’s how to do it:
Build strong relationships: Referrals don’t just fall into your lap—people need to think of you when they see a great deal. Stay in touch regularly so you’re top-of-mind. A good way to start is by sharing deals with them first; if they start returning the favor, you know it’s a relationship worth keeping.
Regular meetings vs. on-demand sharing: Some angels like to set up regular meetings, say monthly, to share their deal flow. This approach helps keep everyone committed and reduces the chance of missing out on deals. But in a fast-moving funding round, waiting a few weeks might be too late. That’s why we prefer the on-demand approach—share interesting deals as soon as they come up.
Mutual commitment: Before you commit to regular meetings or sharing deals, set some expectations. Both sides should agree to share only deals they’re genuinely interested in—either because they’re investing or seriously considering it—not just deals for the sake of sharing.
Start small: Don’t overwhelm yourself by trying to share deals with too many people. Start with up to five angels (three is even better) who you trust and enjoy working with. If you like working together, you’ll be more likely to keep sharing deals.
Double opt-in introductions: Even if another angel is excited to meet a startup, always check if the founder is interested in the intro. Your first priority is making sure the founder is happy with the connection. You don’t want to be the angel who wastes a founder’s time with unwanted intros.
Aligning on investment criteria
Whether you’re doing one-on-one sharing or participating in angel groups, success depends on aligning your investment criteria, such as:
Investment Stage: If you’re focused on Series A deals but join a pre-seed group, you’re probably not going to find many deals that interest you.
Domain Expertise: If you’re a B2B SaaS investor, but most of the angels you’re sharing deals with are into B2C, the deals they share might not be relevant to you.
Check Size: If you typically write $250K checks, you might need a more targeted approach than what you’ll find in a general angel group.
We love diving into these topics with you each week. Your questions really get us thinking and help us put into words the principles we’ve learned over the years. Keep the questions coming at angelsedge@substack.com!