Happy Thursday, and thanks for reading.

Question: I’ve recently been surprised (and honored) to receive quite a few referrals from other newsletters in the space. I’d like to pass it back - what’s one other newsletter you love that I should consider referring to?

In today’s issue:

P.S. I’m actively hiring an A player Angel Operations Director for our service business. Know someone who would kill it running point on ops across multiple investor groups? Send them my way.

Angel funding rounds announced in recent weeks, compiled from public sources or via direct announcement. These deals represent the elite few that survived an angel network’s vetting process. Note: I have not personally analyzed these companies and am sharing for informational purposes only.

📊 Angel Network Investment Tracker: 179 Deals, 104 Networks.

Participating Group: Cowtown Angels

Zenblen is developing a network of fully automated smoothie kiosks targeting high-traffic locations such as university campuses and healthcare systems. The Chicago-based company combines proprietary hardware and software to deliver fresh, made-to-order smoothies via touchscreen-operated machines. The company says it currently operates 10 kiosks and is working toward 100 locations. Cowtown Angels recently invested alongside Promise Holdings, Sipadan Capital, Slauson & Co., and the IL INVENT fund.

Tom Xinyuan Zhang | Chicago, IL | May 2026 | Source

Participating Group: Oregon Sports Angels

MXXY is developing a dual-reservoir hydration system for endurance athletes and outdoor enthusiasts. The company's Flexx system, founded in Marin County, California, uses a shoulder-strap dial to let users switch between water, a supplement mix, or a blended ratio on the move, without stopping to fumble with extra bottles. The product line includes standalone reservoir systems and integrated packs and vests. Oregon Sports Angels recently announced an investment to support the company's growth.

Drew Dawson | Marin County, CA | April 2026 | Source

Participating Group: Band of Angels

Strados Labs is developing FDA-cleared wearable biosensors (small chest-worn devices that record lung sounds) for respiratory clinical trials. The Philadelphia company recently acquired the clinical trial business of NuvoAir, adding remote spirometry (lung function testing) and FeNO (a breath test measuring airway inflammation) to its existing cough and lung sound monitoring platform. The combined Strados Endpoint Suite has been deployed across more than 55 trials globally. Band of Angels recently announced an investment in the company.

Nick Delmonico | Philadelphia, PA | April 2026 | Source

“What problem are you solving?”

This is THE foundational question for every single founder. As investors, we press and press and press on this to make sure a) there’s a real unmet need in focus and b) the founder can articulate exactly what that need is.

Yet over the last 5 years working with angel networks, I’ve found group leadership teams often struggle to answer this foundational question for themselves. And that lack of clarity is just as devastating for an angel group as it is for a startup.

A few weeks ago I shared findings from my survey of 101 angel investors across 13 groups, which was aimed at understanding what problem angels were solving via their angel network membership. I have found myself referencing this data multiple times a week with our clients and my network since we released it. Since The Angel Capital Association featured the analysis this week, I felt it was worth revisiting.

Here is my core (and perhaps counterintuitive) finding:

Community and Social Experience: 28% of overall satisfaction. Deal Quality and Access: 17%. Together they explain 45% of what drives whether members feel good about the value they’re getting from being part of the network.

Deal flow is often what gets people in the door. But community is what keeps them satisfied.

For network operators, the implication here is pretty simple: the dinner before the pitch meeting, the unique cultural isms, the people in the room and relationships that form around these deals - these things are not “nice to haves” or “extras.”

They are the core product.

If you run an angel network and want to run this kind of analysis with your own members, reply - I’d love to help.

On Thursday, May 21 I’ll join Alycia Doxon at Seraf to walk through my recently published Angel Network Pulse Q1 2026 report, covering 60 deals, 48 networks, and 22 states.

I’ll break down what the data shows, what surprised me, and what it means for how angels are making decisions right now. I'll also share what we're seeing from inside operations across multiple active angel networks.

And, if we’re lucky, we might have time to hit on a couple of my soapboxes…

Thanks for reading - have a great week.

-Andrew

If you’re finding this newsletter valuable, share it with a friend, and consider subscribing if you haven’t already. You can also find me on LinkedIn and X.

Advertise with The Diligent Observer.