I’ve spent my first few months at Dealum deep in conversations with angel investors — not pitching or in founder mode, but really listening. It’s been fascinating hearing what they actually need to understand how their portfolio companies are performing.

And honestly? It made me realise how much I got wrong as an angel-backed founder myself. Hearing their perspectives revealed some key things I’d do differently now to improve the success outcomes for them and for me.

Here are some of those lessons.

1️⃣ Ask about their strategy and motivation upfront

They picked you for a reason — but not all angels invest for the same reason. Well before their money hits your account, understand:

  • Are they backing you or the company?
  • Are they sector specialists or generalists?
  • Are you a small bet in a big portfolio, or a relatively big first-time bet for a new angel?

Knowing personal motivations early helps you nurture the right relationships. Some angels are founder-focused — they want to be relevant, involved, and will have your back when things get tough. Identify one or two people on your share cap table who can be that moral compass, critical friend, or sounding board, and build that trust before you need it.

2️⃣ Do your own due diligence

It still surprises me how few founders vet potential investors, especially given how much diligence we go through. I can count on one hand how many times founders have asked me for a reference on an angel or group — yet those conversations are invaluable. Not just for red flags, but for reassurance.

Remember: It’s perfectly OK to say no to money that doesn’t feel right.

Personally, I say no to anyone trying to buy their way into a job or consultancy gig, or those whose real goal seems to be acquiring IP or control. And if someone doesn’t like investing in couples — fine. My husband is the best product lead I’ve ever worked with, and we’ve built five companies together. That’s not changing for a cheque.

The first time you turn down money, when you’re not sure your company will survive, is terrifying. But I promise — no money is far less traumatic than the wrong money.

3️⃣ Understand the angel investment asset class

This is their personal money, not fund capital. Angel investment isn’t just “early VC.”

It’s OK to be an angel-track only business — not everyone needs VC levels of cash or hypergrowth. But if that’s your path, be deliberate. Your valuation, growth story, and exit logic still need to make sense for individual investors — just in a different way.

If you’re raising in the UK, learn the EIS/SEIS tax relief system — over 90% of UK angel deals use it. At the European Angel Investment Summit last week, non-UK angels told me they’re baffled by UK founders pitching them without realising how much of UK angel investing is shaped by game-changing tax reliefs that they can’t access in their own country.

We’ll post separately about what UK-based founders need to know about EIS/SEIS and investor loss relief — but for now, really understand your role in securing and maintaining their tax relief. A total write-off after two or more years is, perhaps surprisingly to founders, far better for an angel than a “zombie company” that limps on indefinitely.

4️⃣ Know your place in their wider portfolio

An angel’s risk profile improves significantly once they reach 20+ investments in their portfolio. At that point, they expect a mix of good and bad exits.

Be cautious about being someone’s first or only investment. New angels may bring enthusiasm and time, but also unrealistic expectations and over-involvement. I also avoid friends or family unless they’re already active, dispassionate angels — I couldn’t bear the weight of that responsibility.

Working with a syndicate or multiple angel groups can balance enthusiasm with experience, and keep legal costs manageable (important, given these are ultimately your costs). I’ve learned to appreciate angels who explain their strategy clearly — e.g. “no follow-ons, 10 deals a year, all SEIS, same cheque size.” Transparency like that makes everyone’s life easier.

5️⃣ Communicate consistently and proactively

I’ll admit: I was terrible at this in my first angel-backed startup. It filled me with dread. But I now realise I was thinking about it all wrong — investor updates aren’t a test to pass or fail every month; they’re an opportunity.

Angels want to understand how their investments are doing, where they can help, and whether you’re still delivering on what you promised. You’re probably one of 20-50+ companies in their portfolio, and they’ll have their own way of grouping companies into good performers and otherwise — so make their life easy.

Maintain structured, regular updates. Even a simple standard template covering runway, pipeline, revenue, and headcount can make a big difference. It reduces surprises and the likelihood of inbound enquiries about progress, and it helps you stand out for the right reasons. Believe me, life is so much easier if you can track along nicely in the good performer zone of their portfolio. But you won’t be there if you hide bad news or overpromise and then fail to deliver.

Be confident asking for specific help — or in saying “no, not now” when something is a distraction.

💡 Good investors are discerning. Founders should be, too.

Angel money can do a lot of good — or a lot of damage — depending on how well motivations, expectations, and communication are aligned. Take the time to ask, listen, and assess as you go to make sure all the hard work of fundraising is ultimately worth it.