26 July: Angel investing is misleading

A deep dive this week ft. one silly pic from our team offsite.

Batko opened a can of worms this week.

The premise: Angel investing is misleading.

I thought we could unpack it a little - since investing in startups is kind of a big part of what we do here at Startmate

(+ scroll to the bottom for more updates)

In startup land, angel investing is a term thrown around frequently. It represents something that is prestigious, philanthropic, cool even. And brings to mind big names like Ron Conway, Naval Ravikant, Peter Thiel etc.

But when most people decide to start investing in startups, the reality is:

• 90% never write a direct cheque.
• most, work full-time and don’t have the time to commit intensively to becoming a successful angel, finding deals, meeting with founders, doing DD.
• most, don’t have enough cash lying around, nor the risk appetite, to create a diversified portfolio (20+ startups) of direct cheques ($10k+) into one of the highest risk investing classes being an early-stage venture.

RARELY, if ever, is the primary reason centred on financial returns (if that’s the true incentive, let me tell you, there are FAR safer ways to achieve that outcome).

Instead, we see people who are deeply motivated to give back to the world around them, believe that startups will be a key driver of change in the future, and therefore see their own pathway to impacting the world be through funding and supporting them.

This is true for many investors in our community and in particular many of the people who have come through our First Believers program.

Why *most* people join First Believers along their angel journey

First Believers brings in people from all walks of life. Exited founders, brilliant operators, corporate partners, even veteran investors.

At its base, it’s a program that teaches the theory and practice of angel investing. But the real reason people apply and join the community drives far greater and longer-term value than any crash course in investing.

• Mentoring the next gen of startup founders - A massive part of First Believers is mentoring startups from our three founder programs (Accelerator, Launch Club & Buildmate). This means leveraging your unique knowledge and network to play a critical role in increasing the chance that a startup succeeds.
• Selecting the Accelerator cohort - Our First Believers help choose which ANZ founders get to have a radical boost in their chance of succeeding. You can literally be the reason why the whole world will end up using lasers to transmit energy or why seaweed becomes the universal replacement for plastics.
• Learning from ANZs most brilliant minds - The early-stage founder space attracts amazing people, both on the founding and investing sides of the coin. Being surrounded by 1,200+ fast-growing companies / year and innovative founders with ambitious ideas that constantly challenge the way you think is a fantastic learning arena.
• Make friends for life and invest together - First Believers is a COMMUNITY. We share knowledge, resources, ideas, feedback, dealflow. We’re friends. Most of our First Believers catch up for coffees, discuss deals and invest together via syndicates.

A meaningful impact on the world

As (angel) investors, we have the privilege of being the First Believers in the people who will shape the world we live in. We get to be there right from the beginning and grow alongside them. There is immense meaning and joy to be found in working towards something that your kids (real or hypothetical) would be incredibly proud of.

I think that’s one of the key drivers for people applying to First Believers. Of course there is the added bonus of great Dealflow, Due Diligence and Diversified Investments via SM funds, syndicates and direct cheques - BUT that isn’t everything.

I’ll finish this whole ramble off with a quote:

"The single most important contributor to a nation’s economic growth is the number of startups that grow to a billion dollars in revenue within 20 years." ?— Carl Schramm, Economist and President of Kauffman Foundation

We all have a part to play in changing the world and making it a better place for future generations. Some will found the startup, some will work at it and some will invest in it.

If you’ve ever considered the investment side of startups, join First Believers - every year, you get to choose which 30x ANZ founders will shape the future.

PSA: If any of the above resonated with you - applications for First Believers close THIS SUNDAY - we’d love to meet you.

• 14 WEEKS, 13 SEP - 10 DEC
• More info
• Apply here
• Meet some alumni: Tom, Sam and Anna.

Alumni founders shaping the world

W22 Femmi - Competing in a man’s world

MEL18 Swoop Aero - New Swoop drones could deliver more medical supplies to rural Victoria

MEL18 JigSpace - The local software firms cashing in on Apple’s Vision Pro

W22 Aquila, W23 Misti, S24 Telemattica, SBF Alt Leather - From Microclimates on Skyscrapers to Water-Emitting Aircraft…Meet 23 deep tech ventures taking to the stage at Cicada x Tech23.

S22 JustFund - JustFund names new COO

SBF Hyro - Marathon vibes

S24 Empathix - Defying the odds

Founders, where are you?

?? Launch Club

• What is it? Pre-accelerator helping early-stage/aspiring founders validate a problem, develop an MVP, get it into customers' hands and kickstart their founder journey.
• 9 WEEKS, 19 AUG – 25 OCT
• Applications close: 4 August
• More info
• Apply here

?? Buildmate

• What is it? Co-working, accountability and founder community. This membership is for founders seeking the optimal environment to build traction, hit milestones and go hard.
• 3 MONTHS, 6 AUGUST - 6 NOVEMBER
• Applications close: 5 August
• More info
• Apply here

Women, where are you?

?? Ladymates Leadership

What is it? A membership accelerating professional development for ANZ’s top women tech leaders through exec coaching, peer-to-peer mentorship, exclusive workshops and a powerful women-led community. ?

• 6 or 12-MONTH MEMBERSHIP
• More information
• Refer a woman leader
• Apply here

?? Ladymates Collective

• What is it? A membership for women working in startups to ensure they have the tools, community and confidence to thrive.
• 6 or 12-MONTH MEMBERSHIP
• More information
• Apply here

?? Women Fellowship

• What is it? Program for women who are seeking mentorship, and are ready to land their dream job. ?

• 8 WEEKS, 7 OCT – 29 NOV
• More info
• Apply here

Have a wonderful weekend!!

If you liked what you read, feel free to share it with a friend! We want to hear from you – let us know in the comments what you want to see in future issues.

Did someone forward you this newsletter? Yippee. Subscribe here so the next one lands straight in your inbox. ??