Things to consider for an Angel Investment
Antony L. Chauvet - Deal Flow - Capital Raiser - M.Sc. -
Marketing Campaigns | Proven Methods Raise Capital and Invest | >20% returns | Series A Early Stage | World-Class Certified Fundraiser Investor | AI Fintech Blockchain Cybersecurity Impact Investing Non-Profit ??
I heard of an investor who invested in a Twitter tool that helps to search past tweets and curate them. Apple invested as well. This was a huge success.
The key is to have wins that compensate for the losses. Investments that give a return of 5x , 10x, even 100x.
It is not always apparent at the beginning if a startup has a potential to become a unicorn or not. For Uber, some investors had noticed the potential to disrupt the taxis market for a while. Taxis used to have to pay hundreds of thousands of dollars in New York for a license.
A good strategy is to have a conversation with the founders and to see if they have the right kind of personality for the service they are creating, and for the market they are entering. I think it is good to not underestimate anybody so as not to miss out on fast growth companies.
Some teams have a lot of drama, and it is something to take into account for the viability of the project. Tezos is a company with huge potential, and it almost got destroyed last year because of the fight between the founders.
The media focuses on the negative, possibly because 99.99% of what happens in the world is actually positive. They will unfortunately pick up any tiny negative aspect of a company and blow it up.
Kevin O’Leary said on Shark Tank that he sends his $ soldiers to fight and hopefully they come back with more soldiers. Once the investment is made there is not much control over what will happen.
The angel space is very enjoyable. You get to hang out with some of the smartest people in the world. Professional investors will meet with 4 to 10 people per day. It is definitely a worthy and exciting business.