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Angel Investing.md

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  • highly recommended book https://www.amazon.com/dp/1119639689/ref=cm_sw_r_cp_api_i_A68Y5G1B918VPBP9519K https://twitter.com/terronk/status/1512529779500544005?s=21&t=_4jVlHObW0tnuuxCp6VviA

  • https://sacerdoti.medium.com/investing-in-public-non-obvious-lessons-from-100-angel-investments-a5951985593e

    1. find the "one yard line" - good bull market
    2. have very limited time, capital, high bar for participation
    3. defer trust to others you believe in - no time for diligence
    4. be a momentum investor - find companies that are doing so well they dont need you/diligence. take risk of fraud.
    5. find companies tackling hated incumbents (whether bad product or pricing power) - tradfi, bad internal tools, paper process, legacy data platforms
    6. be operatING investor, not "operator investor"
    7. say thank you when exit, be polite/respectful.

  • https://twitter.com/lennysan/status/1486021231589482497?s=20

    • Surprise #1: I’m usually wrong about which investments will do best
    • Surprise #2: Most deal flow comes from other investors—not founders, friends, or colleagues
    • Surprise #3: Great deals are currency among investors
    • Surprise #4: Angel investing is more about access than picking
    • Surprise #5: It’s mostly about becoming someone founders want on their cap table

  • https://www.seedrs.com/insights/blog/investing/what-i-learned-investing-in-138-startups#.WYDyiTHCL4E.twitter

      • it’s not about the idea
    • it’s about the market
    • it’s about the teamit’s about momentum
    • don’t get bushwacked by flashy videos
    • revenue curves are king
    • there are always bulls
    • there are always hawks
    • make up your own mind
    • know and balance your bias
    • co-invest with institutions
    • follow-on and double down
    • don’t double down on your losers
    • early-stage valuations are what you can justify
    • funds are likely to invest in the really early-stage of the spectrum
    • do your own research, don’t follow the crowd
    • learn how early-stage startups work, what makes them succeed or fail
    • understand the type of shares you’re buying
    • focusing on unicorns is for VCs and the press
    • only invest what you’re happy to lose 100% of (take into account tax relief)
    • expect to get nothing back
    • talk to your investments, help them
    • forecasts are fairy dust, look at fundamentals
    • place bets, don’t try to pick winners
    • just because you don’t get it doesn’t mean it’s bad
    • EIS and SEIS are awesome
    • SEIS stage is a quantum higher risk than EIS
    • money is just numbers, don’t be emotional
    • miracles are for fairy tales
    • spray and pray can be an almost strategy
    • making decisions will contain conscious/unconscious bias (be aware)
    • investing in something that fails doesn’t make you the dumb money
    • being a founder is one of the hardest jobs there is, be nice but balanced

dont worry about valuation so much as yes/no because https://twitter.com/paulg/status/1492961322236928001?s=21