Sprout Fund LP
The Simple Way to Add Early-Stage Technology Investing to your Portfolio

Resources for Limited Partners

Learning Early-Stage Investing

The do’s and don’ts of early-stage investing

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Our friends at Seedcamp have posted a terrific article on the best things to do, and not do, as you start investing as an angel.

https://seedcamp.com/the-dos-and-donts-of-early-stage-investing/

Some of the key learnings:

  • Law of numbers is more critical to your success the earlier stage you invest.

  • Strategy and Construction of portfolio matters.

  • Back founders you respect and feel you can work with and sectors you understand or feel passionate about.

  • Rank, rank, rank your portfolio.

  • Measure performance.

  • Party rounds mostly suck. 

  • There’s a strong correlation between the quality of the syndicate and results.

  • You don’t have to be desperately founder friendly but do need to be founder fair.

  • It’s better to own a bit less than be greedy and starve companies of critical early capital.

Lindsay Dodd