I've been an angel investor for 15 years, and my understanding of portfolio construction has been completely transformed. These aren't the textbook lessons; these are the hard-won insights from the trenches. Here are the 12 most critical things I wish I knew when I started.
What I've Learned From 141 Companies
Across 234 angel investments, including Anthropic, a few patterns in portfolio construction come up again and again.
The founders who handle portfolio construction well understand that your team matters more than your technology.
The Reality Nobody Talks About
A lot of the advice on portfolio construction rests on assumptions that made sense five years ago. The world has moved on.
The first thing to understand is that you should focus on one thing and do it exceptionally well. I've seen this play out across dozens of companies. The pattern is unmistakable.
Many teams spend months on the wrong path before realizing that the best solutions are often the simplest ones. Once they make the switch, everything changes.
The Counterintuitive Truth
In portfolio construction, the best practitioners often do less, not more.
The lesson: the best solutions are often the simplest ones. It sounds simple. It's incredibly hard to execute.
What I Tell Founders
Before deciding anything about portfolio construction, start with three questions:
What's your timeline? Because the right approach for a company with 6 months of runway is very different from one with 3 years.
What have you already tried? Most founders have tried something. Understanding what didn't work is often more valuable than knowing what might.
Who on your team owns this? If the answer is "everyone" or "no one," that's your first problem to solve.
These questions seem simple but they reveal a lot about where a company actually stands.
This connects to broader themes around portfolio construction, dilution, syndicate investing that I've been thinking about a lot lately.
Wrapping Up
I've shared a lot here, and I know it can feel overwhelming. But you don't need to get portfolio construction right on day one. You just need to get started and keep improving.
Founders who do well at portfolio construction tend to share one trait: they're relentlessly practical. They don't chase perfection. They chase progress.
That's the mindset I'd encourage you to adopt. Start where you are. Use what you have. Do what you can. And keep pushing forward.
As always, I'm rooting for you.
Frequently Asked Questions
Q:Can I implement all of these at once?
I'd strongly recommend against it. Pick the 2-3 items that resonate most with your current situation and focus there. Trying to do everything simultaneously is a recipe for doing nothing well.
Q:How were these items selected?
Each item on this list comes from direct experience, either from building my own companies or from patterns I've observed across the 234 startups I've invested in. I prioritize practical, actionable items over theoretical concepts.
Q:How do I know which items apply to my situation?
Start by honestly assessing where your biggest bottleneck is right now. The items that address that specific constraint will give you the highest return on your time and energy.
Q:Are these recommendations still relevant in 2026?
Absolutely. While specific tools and tactics change, the underlying principles remain consistent. I update my thinking regularly based on what I'm seeing in the market and across my portfolio companies.