ASYMMETRIC Breaking Down Angel Investing: IRRs, Exit Strategies & Risk–Reward Trade-Offs
Oct 3, 2025
Utsav Somani, a prominent angel investor and former head of AngelList India, shares insights on the evolving landscape of angel investing. He discusses the shift from hands-on approaches to transactional investing post-COVID and the need for deeper engagement among angels. Utsav explains the significance of IRRs in portfolio success, highlighting how a few standout investments can drive overall returns. He also classifies types of angel investors and warns about the pitfalls of media hype, emphasizing the importance of transparency in founder-investor relationships.
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Origin Story: AngelList To India
- Utsav Somani recounted bringing AngelList to India and building a prolific angel investing career across funds and personal checks.
- He used that origin story to explain why he became a prolific early-stage investor and fund builder.
Founder-Scout Fund Model
- Utsav described Galaxy ($45M) and iSEED ($21M) funds and how founders act as scouts writing checks for the scout fund.
- He explained the mechanics: founders choose entities on the cap table and LPs are individuals backing those funds.
Post‑COVID Investing Is More Transactional
- Post-COVID angel investing became more transactional and less hands-on compared with early days.
- Deep, time-intensive angels who add value are rarer but drive outsized outcomes.