Small checks can make a big impact!

This interesting data breakdown from Carta on the distribution of checks by size into pre-seed SAFE rounds shows a significant portion of investments in these early-stage rounds come from checks under $100,000 [12% of checks are under $10k, 33% are between $10k-$24k, and 41% are between $25k-$99k]. This highlights the crucial role that angel investors play in funding startups at the pre-seed stage.

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Why are small checks important?

There are a few reasons why small checks from angel investors are important for startups:

They can help startups get off the ground: Early-stage startups often need capital to cover basic costs such as developing a product or service, hiring employees, and marketing their business. Angel investors can provide this essential funding.

They can provide valuable mentorship and advice: Angel investors are often successful entrepreneurs or business leaders who can provide startups with guidance and support.They can help startups build a network of contacts: Angel

investors can introduce startups to other potential investors, partners, and customers.My thoughts as a VC analyst

If you're an entrepreneur looking to raise capital, don't underestimate the power of small checks from angel investors. And if you're a VC analyst, be sure to factor angel investment into your evaluation of early-stage startups.