- 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.