- Some firms simply prohibit personal / angel investing altogether. This is cleanest.
- Some firms prohibit personal / angel investor in the subject areas the firm invests in.
- Some firms have a “the firm has to pass” rule.
- Some firms have a de minimus threshold. E.g., if the investment is < $50k, it’s OK, if it’s greater than that, it has to be through the fund. This is what we do.
So as is often the case, there is no single rule.
Published on October 11, 2017