In The FemFinity Loop

What is Angel Investing? And Why More Women Should Be Doing It

Written by Hazel Nabarro | Feb 11, 2026 7:07:34 PM

Two years ago, I wrote my first angel cheque.

I remember the moment clearly. Equal parts excitement and fear. A little voice saying, “Am I really ready for this?” and a bigger voice saying, “If not now, when?”

What I realised quickly is this: angel investing is not just about money.

It is about ownership.
It is about access.
It is about shaping the future of the ecosystem we say we care about.

And right now, too few women are in the room when early capital is deployed.

So let’s break it down properly.

What Is Angel Investing?

Angel investing is when an individual invests their own money into an early stage startup in exchange for equity.

In simple terms:

You invest early.
You take on high risk.
You receive shares in the company.
If the company grows and exits, you participate in that upside.

Angels typically invest before venture capital funds come in. Often at pre-seed or seed stage. At this point, the company might have a prototype, early traction, or just strong conviction and a capable founding team.

You are not just investing in a business. You are investing in potential.

And that is powerful.

Why Angel Investing Matters for Women

Capital shapes innovation.

If we want more women-led businesses funded, more inclusive products built, and more representative leadership at scale, we cannot only sit on the founder side of the table.

We have to sit on the capital side too.

When women become angels:

  • We fund ideas others overlook
  • We back founders who look like us
  • We build wealth through equity
  • We gain visibility into how early-stage growth really works

It deepens your understanding of the ecosystem. It sharpens your commercial lens. It strengthens your network in ways few other experiences can.

For founders, it is also transformative. When you become an angel, you start to see fundraising through a completely different lens. You understand risk. You understand portfolio thinking. You understand why investors ask the questions they do.

It makes you stronger.

How I Got Started Two Years Ago

When I started angel investing two years ago, I did not begin with perfect knowledge.

I began with curiosity.

I joined conversations. I listened to experienced angels. I asked uncomfortable questions. I learned how deals are structured, what due diligence looks like, and how portfolio strategy works.

One of the most accessible ways to start is through syndicates.

Syndicates allow you to invest alongside experienced lead angels. You benefit from their due diligence and expertise while learning in real time. It lowers the barrier to entry and builds confidence.

For example, communities like Alma Angels create spaces specifically designed for women to start angel investing together. You learn collectively. You see deal flow. You ask questions openly.

You are not doing it alone.

That is critical.

What Does an Angel Actually Do?

Angel investing is not just writing a cheque and disappearing.

At its best, it is active capital.

That might include:

  • Making introductions to customers or investors
  • Offering strategic advice
  • Helping refine positioning or go-to-market strategy
  • Supporting a founder through difficult moments

You are backing the founder, not just the spreadsheet.

But here is the important part: angel investing is portfolio-driven. Not every investment will succeed. In fact, many will fail. That is part of the model.

The goal is not perfection.
The goal is asymmetric upside.

One breakout company can return the entire portfolio and more.

That is the long game.

Angel Investing Myths: Let’s Bust Them

There are so many misconceptions that stop women from even exploring this space. Let’s clear a few up.

Myth 1: You Have to Be Extremely Wealthy

No. My very first angel cheque was for £1k.

You do not need to be a billionaire or a former tech founder with a massive exit.

Minimum ticket sizes vary. Through syndicates, you can often start with smaller cheques than you might assume. The key is investing what you can afford to lock away long term.

Angel investing is illiquid. Your money could be tied up for years - likely 7-10. So it must be surplus capital, not your emergency fund.

But it is not reserved for the ultra elite.

Myth 2: You Need to Be a Financial Expert

Also no.

You need curiosity. Commercial awareness. And a willingness to learn.

Many exceptional angels come from operator backgrounds. Founders, marketers, product leaders, community builders. You bring pattern recognition from lived experience.

Financial literacy matters. But it is learnable.

Myth 3: It Is Basically Gambling

It is high risk. That is true.

But it is not random.

Good angel investing is structured. You assess:

  • Market size
  • Founder capability
  • Traction and signal
  • Differentiation
  • Timing

You think in portfolios. You spread risk across multiple companies. You understand that returns are long term.

It is risk with strategy. Not chaos.

Myth 4: I Am Not “Qualified” to Invest

This one stops so many capable women.

You do not need permission to participate in wealth creation.

If you have built a career, grown businesses, navigated complex decisions, you already have judgment.

Angel investing sharpens that judgment further.

You learn by doing. You learn by observing. You learn by engaging in the room.

Myth 5: It Is Only for People in Tech

Many angel-backed companies are in tech, yes. But innovation spans industries.

Health. Climate. Consumer. Fintech. Education. Community infrastructure.

If you have domain expertise, that is an advantage.

 

How to Start If You Are Curious

If this is sparking something for you, here are practical first steps:

  1. Join an angel community or syndicate and observe before investing.
  2. Attend pitch events and listen to how angels ask questions.
  3. Read term sheets and learn basic venture structures.
  4. Speak to angels about their portfolio strategy.
  5. Start small and build gradually.

You do not need to leap. You can step.

Angel investing is not just a financial decision. It is a mindset shift.

It moves you from participant to allocator of capital. From asking for funding to deciding where funding flows.

That shift is powerful.

A Final Thought

Two years in, I see angel investing not just as a wealth-building tool, but as ecosystem influence.

Every cheque is a vote.

A vote for a founder.
A vote for an idea.
A vote for the kind of future we want to see built.

If more women hold equity in early-stage companies, we change the trajectory of ownership. We change who benefits from exits. We change who reinvests in the next generation.

And that is how ecosystems evolve.

You do not have to start big.

But you do have to start.

Ownership matters.
Access matters.
Representation in capital matters.

And if you are reading this, wondering whether you are ready, you probably are closer than you think.