We invest in technology startups during their seed stage – typically their first or second round of funding. It is the earliest and riskiest point to invest in startups but also the most lucrative for those that go on to become big successes. As an angel syndicate, we can only invest in companies we believe have the potential to reach valuations in the hundreds of millions or billions of dollars in the decade ahead.
We invest in exceptional founders. As seed stage investors, our approach is centered on building a deep understanding of each founding team: their character, how they think, and why they do what they do. We take an active hands on approach to our investments ensuring our companies receive the attention necessary to drive growth.
Diversification: Plan on making 20-25 investments in this asset class (early stage tech) in order to get the diversification required for the very high return. Timing: You should diversify over time as well. I tell most angels to think about getting their 20-25 deals over a 4-7 year time span. Makes those bite-sized chunks more manageable with cash flow and also de-risks based on market fluctuations. Deal Flow: I’ve seen a lot written by some very smart early stage investors warning people who are not “in the flow” to not participate in early stage investing. Meaning, they won’t see any of the best deals. Subject Matter: Do you want to be involved in any way helping the company or not? If not and you’re purely financially driven for this decision then I’d say pick companies across a few sectors for diversification and so that you can play market movements.