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By Lenny Rachitsky · lennysnewsletter.com · @lennysan on X · YouTube · LinkedIn
Lenny Rachitsky reviews more than 140 of his angel investments, sharing seven surprises, a practical path into angel investing, and his startup evaluation criteria. His core argument is that access to good deals and a broad portfolio matter more than picking winners, since returns follow a power law driven by a few outsized successes.
Subscriber post — summary only01Key takeaways
- Angel returns depend on catching the rare huge winners, so investing broadly in many credible deals beats trying to pick a few.
- Most deal flow comes from other active investors, so build collaborative relationships and share deals you find promising.
- Access to hot deals matters more than picking skill; becoming a valuable person for founders to have on their cap table helps.
- Follow top-tier investors for most bets, but keep some portion on under-the-radar companies where you have unique insight.
- Start small, document your reasoning, use syndicates and angel programs, and expect a long game of roughly eight to ten years.
“Judgment is important but overrated.”Naval · Lenny’s Newsletter
02Frameworks mentioned
Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.