About Cap Table Diversity w/ incredible Rika Christanto

For this campaign 30 of Europe's most active business angels and angel VCs gathered to share unique paths into investing, talk about the current state of the nation and discuss the future of venture capital. This is to inspire even more diversity of thought in backing and building startups to solidify Europe’s contribution to the global tech landscape.

Excited to highlight ?Rika Christanto? founder turned investor. Today, she is a Partner at LifeX Ventures, investing in software and AI-driven companies that extend the life of people (longevity) and planet (climate). Prior to LifeX, she was co-founder and COO of trucking marketplace Ontruck, which raised over $80M, backed by Atomico and Cathay Innovation. She was also COO of AI healthtech company Idoven, raising over $20M from Insight Partners and Northzone. As an investor, she has done seed and pre-seed investments for Accel. Previously, she was a strategy consultant at McKinsey & Company in New York and London, and the Bill & Melinda Gates Foundation in Uganda. She also spent time in Hong Kong as a technology investment banker at Morgan Stanley, working on internet, semiconductor and renewable energy deals. She holds an MBA from Harvard Business School and a Bachelor’s degree from Harvard University (magna cum laude). She has triplets.

Being asked about the current state and future of angel investing that is what Rika replied.

Please tell us more about your journey into investing, Rika, and what makes a great angel investor? My journey as an angel investor started with Accel. The mandate was simple: to find the next big thing. Accel would put up the money and twenty carefully selected founders of tech companies would pick other founders we knew to back. When Sifted did a story on the Accel scout program, my picture was front and center. I couldn't be more thrilled. But I felt like I didn't belong, I was an outsider in European tech - a girl from Indonesia living in Madrid, who didn't speak Spanish (or French or German or any other European language), with three babies at home. The tech and venture world were white, male, and single.?

How did you learn about the credentials of angel investing? I did my homework, I read books, I sought advice, and mentorship. I did what I had always done when facing a new challenge. Angel investing was my weekend job. After hours of running a company full-time. But the time constraints also meant I learned things hard and fast. To be an effective angel investor, I believe you need some combination of time, expertise, and network. With 3 babies at home, time was not an option. So I did this:

1. At first, I invested in things I knew well - B2B marketplaces, logistics.? I ran a tight diligence process, 3 days tops, before making a decision. Besides reference checks, I also had to trust in my judgment to evaluate founders. I would ask the same 3 questions before investing to understand 1) why did the founder choose this business and how committed is s/he, 2) what are the chances of this founder succeeding - not only in this business, but the next one, and in life, 3) what does winning for this founder look like.
2. I leveraged my network. I wiggled my way onto competitive deals by networking with early-stage VCs to get a first look at deals that were too early or had allocation for strategic angels. I did cold outreach to 15 prominent angel investors to learn from them and find interesting opportunities. I went international by reconnecting with old friends in the US who were now founders or investors.

And I found out that I loved it. As an angel, you quickly learn to have big ears and a small mouth. As an introvert, it suited me well. It's like being a therapist - ask concise questions, then listen deeply to the answers. I always learn something new from every conversation.

What is your superpower to support entrepreneurs??It is finding and matching great talent with companies. And storytelling with investors to clearly articulate your value.

?How do you collaborate with other angels? Angel syndicates! I'm a huge fan of these platforms because they give angels the ability to work as a group toward a common goal - increase their companies' value and chance of success. I have my tribe - a group of 5-10 angels that I respect, regularly keep in touch with, and are always sharing deal flow.

What would you tell someone starting to angel invest today, based on your experience?

• If you want to get into angel investing, be in it for the long haul. Losses come early, but the big winners will take 5 to 10 years. Expect your capital to be tied up for at least 5 years.
• Always write a deal memo. A simple one pager of 1) Key facts - traction, team, business description/model, 2) Market/Competitors ,3) Likes/Dislikes, 4) Deal terms. Writing things down will help clarify your thinking and help with the post-mortem (see next).?
• Don't obsess over your losses. But always do a post mortem and keep a log of learnings.

Why did you move into VC? While I love listening to people go on about how they're going to change the world, I also realized angel investing is lonely work. After 20 investments and speaking to at least 200 companies, I had developed a strong thesis around how software can be used to accelerate scientific breakthroughs, particularly in the areas of health and climate. When I connected with the exceptional founders of LifeX Ventures, it was an opportunity I could not pass up.?

What have you learned from your Anti-Portfolio?

1. Valuation, valuation, valuation.
2. Build and use consistently a decision framework. It takes emotions off the table.
3. When first starting to angel invest, don't pull the trigger. Talk to at least 25 companies before writing the first check.
4. ?Invest the same amount each time (if you can) to build a diversified portfolio.
5. ?Put $10 in software over $1 in hardware. The capex and timing profiles of hard-tech is near impossible as an angel.

What is missing in Spain to bring the angel scene to the next level??

The Spanish and European VC ecosystems have already matured so much since I landed in Madrid in 2016. I continue to be bullish as I see 3 key trends that must continue to take things to the next level:?

1. More operators turned VC/angels. The recycling of not only funds, but experience, networks and ambition, is absolutely critical. VCs need to act like startups - with hustle and drive, not just sit on their laurels.
2. Sharing of deal flow. I find VCs here much less open and aggressive about sharing deal flow, or have a very tight network of other investors in which they share credible opportunities. But companies often need different types of VCs on the cap table to get the most value. Also bigger rounds require more syndication.??
3. More thematic, less generalist. When you are a generalist, you will be constantly competing head to head for the best deals with the megafunds like a16z, Accel, Sequoia. When you are focused, you have an edge - to find the hidden gem or win the deal. Spain and Europe have deep R&D roots that should be leveraged.?

Thank you, Rika, for a sneak peek into your angel world and the incredible work you do.

My name is Julia Dous, and I am passionate about diversifying cap tables. I accomplish this through angel investing, advising VCs on talent acquisition, and running the Evangelistas, a vibrant community of +350 seasoned female angel investors backing exceptional founders with big ideas.

This campaign is our joint contribution for more diversity of thought in European venture capital. The 30 angel and angel VCs who gathered have invested into various startups (and funds) across Europe. All bring amazing super power to support founders - and a long track record. We know there are more great angels. This is to start – and inspire more women to check-writing and to building.

Beate Fastrich | Annamaria Tartaglia | Kerstin Bock | Valentine Baudouin | Sylvie Mutschler | Carmen Alfonso Rico | Lin Gong-Deutschmann | Sophia Bendz | Gloria Baeuerlein | Tatiana Jama | Deepali Nangia | Eva Spannagl | Annelie Ajami | Verena Pausder | Georgie Smallwood | Dr. Nakeema Stefflbauer | Maya Ghosn Bichara | Martina Pfeifer | Roxanne Varza | Emma Tracey | Vera Elizabeth Baker | June Angelides MBE | Katja Ruhnke | Mandy Nyarko MBE | Dr. Gesa Miczaika | Delphine Mousseau | Raffaela Rein | Dr Fiona Pathiraja | Noor van Boven | Rupa Ganatra Popat | Sarah Drinkwater | Susanna Campbell | Rika Christanto