Why Series A is the Best Entry Point for First-Time Angels

Every day, I meet people who aspire to be angel investors. It’s exciting, it sounds good, and it feels like something they should be doing. However, once I start discussing the risks involved, especially at the early stages, you can see the interest fade. That’s why many people never get started. To be an angel investor, you have to invest. Otherwise, you are a dreamer.

I’ve been angel investing for the past five years. I’ve invested in over 35 companies across Africa and Europe. I’ve been fortunate enough to see some companies go from pre-seed to Series B. I’ve also seen some of them fail.

Lately, I’ve been asking myself a simple question:
What is the best stage to come in if you’re an angel investor?

And I’ve come to the conclusion that it’s not pre-seed.

In my article, "The Seed Valley of Death for Venture-Funded African Companies," I explained how many startups get stuck after their seed round. They struggle to get to Series A. Interestingly, many of the companies I’ve backed that made it past seed are still around today.

Pre-seed is extremely risky. Seed is slightly better; companies are building various products, some are making money, but it’s still risky. One thing I’ve come to accept is that for many people, especially first-time angels, Series A is the best place to start.

At Series A, founders have found product-market fit. They’re raising bigger rounds, often $5 to $10 million or more. These companies are more mature, have bigger visions, and are now on the radar of institutional investors. The risk remains, but it’s significantly lower than in earlier stages. Series A is proof that these venture-funded companies have climbed successfully out of the Seed Valley of Death.

Some companies I’ve invested in have gone on to raise Series B funding. One hit $10M in annual revenue, but chose not to raise again because they’re now cashflow positive. That indicates they are a solid business.

The main issue with Series A is access. The check sizes are larger, and rounds are more competitive. At this stage, most startups do not need angel investment. They have proven a model. It works. They have found product-market fit. However, there is a way to gain entry. The answer: Investment syndicates, angel groups or collectives.

Investment syndicates tend to invest early, often at the pre-seed and seed stage. As a result, they get the option to follow up on their existing investments as the companies go to raise future rounds. There are lots of collectives, such as HoaQ, Velocity Digital or Naiban, that invested early in companies raising future rounds, and many of them have pro-rata rights. 

If you're a new angel and part of a syndicate, pay attention to companies raising Series A funding where your collective has an allocation. These are often the best deals to get into. These are the companies that have achieved product-market fit, sufficient capital to scale, and tend to stick around for much longer. If you are not yet a member, maybe now is the time to join them.

Thanks for reading.

My name is Joe Kinvi, and I’m building Borderless, the infrastructure that enables the Africa Diaspora to invest at home easily. We are starting with building tools for investment collectives. We are going live this month (June 2025), and you can join our waitlist here.