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Online Angels Have an Advantage Over VCs Right Now

Online Angels Have an Advantage Over VCs Right Now
By Adam Sharp
Date June 23, 2020

Traditionally, startup investors (VCs and angels) tended to do deals in person. It’s a slow and inefficient method. But it’s the way things have always been done.

During this crisis, everyone has been forced to operate remotely. But from what I’m reading and hearing, many VCs are still not comfortable investing over video calls.

Those of us who are used to investing remotely have an advantage today. I’ve been investing in startups from home for 6 years now. I am now completely comfortable deploying capital without meeting the founders. And I’ve had enough success that I believe remote investing consistently works.

One interesting thing about investing remotely is that you can focus more on the company’s fundamentals and potential rather than how charming the founders are. I suspect there might be an overall advantage to NOT meeting the founders in person.

The key thing for online angels like us is to look for deals on high quality platforms, like AngeList. AngelList’s syndicate leads are experienced early-stage investors. You can easily find high quality deals through them. 

As long as we’re investing alongside other quality investors in promising deals, remote investing works. We’re lucky to have the ability to invest in great deals when many traditional VC firms are essentially frozen. 

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