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