Insights from Zenith Wealth Partners’ webinar with Brahm Rhodes, Ph.D., Founder of Fictive Ventures

Angel investing gets a lot of attention as a wealth-building strategy. It also carries a lot of myths, such as it’s only for the ultra-wealthy, that it’s all about finding the next unicorn, or that getting started requires insider access you simply don’t have. 

At Zenith Wealth Partners, we believe in helping clients understand every tool available to them. That’s why we invited Brahm Rhodes, Ph.D., co-founder of Fictive Ventures and an experienced early-stage investor, to walk through the reality of angel investing. Covering what it is, how it works, and what it actually takes to get started.

What is angel investing?

At its core, angel investing means providing capital to early-stage companies, typically startups, in exchange for equity. Unlike buying stock in a public company, you’re investing in businesses before they’ve gone public, often before they’ve even proven their model at scale.

The potential upside can be significant. So can the risk. Which is exactly why understanding the landscape before you write a single check matters so much.

Three ways to access angel investing

One of the most practical takeaways from the webinar was Brahm’s breakdown of the three main investment vehicles and how they differ in terms of control, involvement, and capital requirements.

Direct investing means you’re sourcing companies yourself, talking to founders, doing your own due diligence, and making individual investment decisions. You have the most control but also the most responsibility.

“Your ability to diversify is coupled to how many companies you can see, and how many checks you can write over what period of time.” 

– Brahm Rhodes, Ph.D.

Syndicates sit in the middle. A syndicate has a lead investor who sources deals, does the due diligence, and writes up an investment memo. As a member, you get to review that memo and decide whether to invest deal by deal, with no obligation.

“They’re doing all the legwork engaging with the founder, doing the due diligence, verifying, doing the customer calls. You get to read their diligence, assess the company on your own terms, and make a decision.”

– Brahm Rhodes, Ph.D.

Brahm noted that joining a syndicate before you’re ready to write a check is one of the best ways to start building your eye for deals: “Joining a syndicate before you’re ready to write a check is a good way to start to look at companies, and to see deal flow. And practice how you evaluate them.”

Fund investing is the most hands-off approach. As a limited partner in a fund, you commit capital that gets called over time, and the general partners handle everything else. You don’t choose individual companies; your job is to evaluate the fund manager and their strategy.

“Funds are blind pools. You invest in the fund, and then the general partners get to source the companies, evaluate the companies, do all the due diligence, and then write the checks.”

– Brahm Rhodes, Ph.D.

The tradeoff? You get instant diversification; most funds invest in 20+ companies but less visibility into individual decisions. Minimums are typically higher too, though Fictive Ventures operates with a $20,000 minimum called over time, not upfront.

Why diversification matters more than picking winners

One of the most important mindset shifts Brahm emphasized: angel investing isn’t about finding the one company that goes 100X. It’s about building a diversified portfolio across 15 to 25 companies over two to three years.

“Resist the urge to concentrate; it’s gonna mess you up.”

He was equally candid about the fund versus direct tradeoff: “A fund isn’t going to give you 100X. It’s a diversified strategy. It’s gonna give you much less return, but it’s also gonna probably at least give you your money back. Whereas a startup gives you potential for 100X, but you’re probably not gonna get any money back if it doesn’t.”

The honest question to ask yourself, as Brahm put it: “Do you, in your soul, believe you have God’s phone, and you know which one is gonna be the one?”

The #1 mistake first-time angel investors make

When asked what most first-time angels wish they’d known before writing their first check, Brahm’s answer was clear.

“The biggest mistake that most angel investors I’ve ever talked to and in my own experience is not having a disciplined process for how to decide to write the check. You get caught up in the hype, you get caught up in the vibe, and it can cloud your judgment.”

Having a documented set of criteria and actually referring back to it is what separates emotional decisions from sound ones.

Where to find angel communities and get started

For anyone ready to explore, Brahm pointed to several accessible entry points:

• Angel Capital Association (ACA): the largest network of angel investors in the U.S., with educational resources and a searchable directory of local groups
• AngelList: a platform where individuals can browse and join syndicates
• Citrine Angels:  a syndicate where all investors are women
• Pipeline Angels / IEFL:  focused on impact investing
• Local angel groups:  “If you just did a Google search for angel groups in my city, it’s gonna show you something.” Groups exist in Philadelphia, New York, DC, and most major metros.
• Fictive Ventures: Brahm’s own fund, with a $20,000 minimum that’s called over time (not all at once), and monthly angel investor education sessions open to the public

Is angel investing right for you?

Angel investing can be a compelling addition to a financial plan, but it requires the right foundation first. At Zenith, we think about it in terms of time, willingness, and ability: Do you have the bandwidth to be involved? The risk tolerance to absorb potential losses? And the financial cushion to keep this allocation truly separate from the rest of your plan?

If you’re curious about whether and how angel investing fits into your specific picture, we’d love to talk through it with you. Reach out to your Zenith advisor or contact us here.

Connect with Brahm Rhodes, Ph.D.

Fictive Ventures Website | Brahm Rhodes, Ph.D. on LinkedIn 

All written content is for information purposes only. Opinions expressed herein are solely those of Zenith, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.