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Venture Deals

Can a Small Angel Investment Be Used to Warehouse a Deal and Later Match Fund Investment Thesis?

Question around investment sizes when warehousing a deal: The angel checks I write are much smaller than what I would be writing out of the fund. I want to invest in a great founder which closes by EOY. We have discussed me coming in on a smaller angel check to warehouse the deal and then assuming I can first close basically follow-on with capital that would bring the investment size to match fund investment thesis (FWIW if I were to fail closing the founder is ok with just having me as an angel). Is that a viable path? Can a small investment be used as a warehoused deal?
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You can warehouse a deal of any size that is related to your Thesis. If they are too small, then it may appear strange to have in your fund. Unless your fund has a follow on strategy, then don’t plan to do a follow on, as this would be off strategy.

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