When you’re building a startup, raising your first proper round of funding can feel like a full-time job on top of actually running the business. It’s the point where you’re not just pitching an idea, but asking someone to back you with their own capital. For many early-stage founders, this moment often involves seeking out angel investors. But what’s even more powerful, and often underappreciated, is the role of angel investment networks.
These networks are a crucial piece of the startup funding landscape. They provide structure, access, and support that solo investor outreach simply can’t match. If you’re preparing for startup funding rounds, especially at the pre-seed or seed stage, understanding how angel investment networks operate can give you a real advantage.
What Are Angel Investment Networks?
An Angel investment network is an organised group of business angels. These are high-net-worth individuals who have typically built successful businesses or held senior roles in industry, and now invest in early-stage companies. Rather than acting alone, these investors pool resources, share deal flow, and co-invest as a group.
Networks vary in size and focus. Some are regional, others specialise in certain sectors like fintech, healthtech, or deeptech. What they share is a structured approach to evaluating startups and a collaborative process for making investments.
Why These Networks Matter for Startups
If you’re raising between £100k and £1.5m, you might find yourself in a tricky middle ground. Too large for friends and family, too early for most institutional venture capital. This is the gap that angel investment networks fill.
1. Smart Capital and Strategic Support
Angel investors within a network often bring more than just money. These are people with deep operational experience, often with industry-specific knowledge or networks that can open doors. Founders backed by angels typically benefit from strategic guidance, introductions, and hands-on support.
In many cases, angel backing also serves as a signal. It shows that experienced investors see potential in your business, which can help unlock future VC interest.
2. Structured Investment Process
Unlike individual investors who each have their own approach, angel investment networks typically follow a more standardised process. This often includes initial application screening, pitch events, investor Q&A, due diligence, and a final investment decision.
This structure makes the process more predictable for founders. And with platforms like ThatRound, you can now apply to multiple networks using one centralised pitch profile, saving time and effort.
3. Access to SEIS and EIS Aligned Capital
Many business angels in the UK invest through the SEIS and EIS government schemes. These tax relief programs reduce the financial risk for investors, which means they are often more willing to back very early-stage companies.
Angel networks are typically well-versed in SEIS and EIS, and many actively seek out startups that qualify. If your company is eligible, this is something you’ll want to clearly highlight when pitching.
More Than Just Funding
One of the hidden advantages of going through an angel network is the quality of feedback. Even if you don’t secure investment immediately, you will likely receive valuable insights into your pitch, your business model, and your investor readiness.
You also get early exposure to how investors think, which is useful preparation for future rounds.
Common Misconceptions
Let’s address a few myths that come up often when founders consider this route.
“I can just reach out to angels directly on LinkedIn.”
While it is possible, most active business angels do not advertise their activity. Networks offer access to investors who are actively reviewing deals, often with more discipline and consistency.
“Angel networks only invest small amounts.”
While individual angels might invest £10k to £50k, collective raises through a network can exceed £250k or even £1 million. Many networks also co-invest alongside funds or other networks.
“The process is too slow.”
Compared to venture capital funds, many angel networks move relatively quickly. With the rise of platforms like ThatRound, the application and response cycle is becoming faster and far more efficient.
How Startup Funding Platforms and Marketplaces Are Bridging the Gap
Historically, connecting with angel investment networks involved a lot of manual effort. Founders had to research which networks were relevant, tailor applications to each one, and manage follow-ups and introductions through scattered emails or spreadsheets. It was a slow and often frustrating process.
Startup funding platforms and marketplaces are changing that. By aggregating verified angel networks in one place, these platforms allow founders to discover and compare options based on factors like sector focus, investment stage, and fee structure. Many now offer a single, centralised pitch profile that can be shared across multiple networks, along with tools to track engagement, manage conversations, and monitor the progress of introductions.
This shift is transforming what was once a fragmented and resource-heavy part of the fundraising journey into something far more streamlined and transparent, giving founders better access to the right investors at the right time.
A Critical Partner in Early Stage Fundraising
If you’re preparing for one of your early startup funding rounds and haven’t considered angel investment networks, you could be missing out on one of the most founder-friendly paths to capital. These networks are often the first serious external investors to get behind a startup.
They bring funding, yes, but also validation, expertise, and connections that can help accelerate your progress. In a fundraising environment where credibility and momentum are everything, engaging with the right network at the right moment can make all the difference to your round.
Final Thoughts
Startup funding is changing. Founders now have better tools and more options than ever before. Angel investment networks remain one of the most accessible and impactful sources of early-stage funding.
If you’re looking to raise, especially for your first or second round, these networks offer an efficient, transparent, and founder-friendly route to both capital and strategic support.
Want help finding the right angel network for your next raise? Explore ThatRound to compare, apply to, and manage multiple fundraising partners in one place. Raising capital for startups doesn’t have to be a guessing game.