by Melinda Gloriosa, Executive Director of 71/70 Angels And Companies Rev1
Raising startup capital has never been easy, but in today’s market it can seem especially daunting. Valuations are changing, due diligence is increasing, and founders are being forced to do more with less. Even experienced angels ask: Is now the right time to invest?
For those with capital, curiosity and conviction, the answer is yes.
With next-gen founders and technology accelerating, investing now is justified
The market may be turbulent, but innovation isn’t slowing down, it’s accelerating. We’re seeing a new generation of founders who are sharper, more intentionally capital-efficient, and focused on solving the problems customers want to solve. This discipline is exactly what long-term angel investors are looking for.
Meanwhile, the talent pool has opened up in a way we haven’t seen in years. As big tech companies downsize, exceptional engineers, data scientists, and operators are flocking to the startup ecosystem. Three years ago, the founders struggled to hire talent of this caliber. Today, they form teams that combine creativity and deep technical skills – a powerful signal to angel investors monitoring the progress of deals at an early stage. Contrast that with the many angel investors who, as cashed-up entrepreneurs, understand that while capital fuels growth, wisdom and relationships support it, and that’s a powerful combination for decades. When capital becomes prudent, disciplined angel investors make the difference, and that’s where the next generation of growth stories begins.
Now is the time to invest with determination
Correction periods tend to favor investors who stay committed. With valuations returning to rational levels, deal conditions improving, and competition easing, disciplined angel investors can make smarter, more informed investments.
Beyond market timing, there’s another reason to say yes: angel investing is intrinsically rewarding. Angel investors are attracted by the excitement of new technologies – AI, advanced materials, life sciences, clean energy – and the satisfaction of helping founders turn early sparks into real businesses.
Angel investing has always been about more than just returns. It’s about proximity to innovation and the opportunity to shape the future economy from the ground up. The angels almost provide 90 percent of startup equity funding in the United States, and the startups they support have a 60% percent higher five-year survival rate than those who are not supported by angels.
Where Today’s Angel Investors Find Their Next Big Investment
Quality deal flow is not about luck, but about alignment and access. Most angel investors seek opportunities through trusted networks: other investors they’ve co-invested with, founders they’ve previously backed, or peers who share deals through warm introductions. Pitch competitions and demo days can surface opportunities, but they are hit or miss.
The most reliable deal flow often comes from partnerships with organizations embedded in the startup ecosystem. For angels, collaborate with groups, like Companies Rev1which functions as both a venture capital studio and an early-stage investor, can provide an organized pipeline and a level of diligence that helps manage risks at an early stage.
Syndication is another benefit of today’s angel investing. Co-investing with like-minded angel investors in other regions or sectors amplifies impact and spreads risk. It also surrounds startups with broader expertise: a network of advisors, connectors and champions increasing the chances of success.
And even though remote investing has grown, many angel investors still prefer to keep their capital close to home. In regional markets like the Midwest, investing locally is not only convenient, it’s personal. You can meet the founders in person, validate their work through your networks, and see for yourself the jobs and innovation created by your investment.
Play the long game
Angel investing is not instant gratification. These are long-term, illiquid investments with horizons of five to ten years or more. The returns can be significant, but the real gain comes from being part of the innovation from the start.
There is no one right way to participate. Angel investors can invest directly, join a network, or participate through a fund. What matters is having a plan: how much you will invest, what types of businesses you will support, and how you will evaluate opportunities.
Takeaways
Every transaction is different. Each founder brings new surprises. This is part of what makes angel investing so exciting.
If you love innovation, believe in the power of entrepreneurship, and want to stay in the game, there’s never been a better time to become an angel investor.
Melinda Gloriosa is Managing Director of Investments at Companies Rev1 And 71/70 Angelswhere she analyzes, executes and manages investments in concept, seed and early-stage companies and leads a disciplined angel investing practice, organizing high-quality deal flow, guiding rigorous diligence and helping founders build strong, execution-ready teams.
