Diversification and Pace

How many investments do I need for real diversification—and how should I pace?

Empirically, larger early‑stage portfolios perform better on average because of power‑law dynamics. Analyses of tens of thousands of AngelList portfolios show that investors with more deals tend to achieve higher typical returns than those with only a handful. A practical target is 20–50 initial bets over 2–4 years, reserving capital to follow on into the best few.
‍

Pacing tips:

● Avoid front‑loading; your judgment gets better as you see more deals.
‍
● Batch by “thesis sprints” (e.g., 3–5 AI infra deals this quarter) to compare patterns.

● Review your pipeline quarterly and adjust reserves as winners emerge.

©2025 Angel Investing 101 by Alumni Ventures. All rights reserved.

Alumni Ventures is America's largest venture firm for individual investors based on the combination of total capital raised, number of investments, and number of investors of leading VC firms as reported by PitchBook and other publicly available information reviewed by AV. We provide accredited investors & institutions with access to professionally-managed, diversified venture portfolios. Our network is among the largest and most well-connected in the industry. Venture capital investing involves substantial risk, including risk of loss of all capital invested.