[PreMoney SF 2015] Paige Craig: "From 100+ Investments To 10,000+ Angels"

TL;DR

Early-stage investor shares insights on navigating chaotic environments, hunting, trading, trapping, and farming deals.

Transcript

I met Dave years ago he's very generous to meet with me and I was just a nobody investor try and figure out in David's very very generous with this time so I'm glad to be back here today sharing some of what I've learned over seven years of investing the title here is cutting through the fog of deals not war but I chose this title because it's incr... Read More

Key Insights

• 🤝 Early-stage investing involves hunting for deals through events, online platforms, and personal networking.
• 🤝 Transitioning to trading allows for sharing deals with other investors and fostering a generous, value-adding investment approach.
• 🤝 Trapping involves attracting deals to you through strategic positioning and baiting while farming entails long-term community building and mentorship for sustained impact.
• 😤 A structured decision-making framework involves assessing team compatibility, personal passion for the business, potential value addition, impact potential, and timing relevance of the idea.
• 🤝 Sharing deals on platforms like Angel List can enhance transparency, align incentives with backers, and create a nurturing community for investors.
• 👋 Valuation for seed investments is a negotiation process balancing the desire for a good deal with ensuring founders maintain a fair ownership stake.
• 👨‍💼 Only a small percentage of startups undergo significant pivots post-investment, with most staying aligned with their initial business models.

Questions & Answers

Q: How does sharing all deals on Angel List benefit your investment strategy?

Sharing all deals on Angel List allows for transparency, aligning incentives with syndicate backers, and encouraging a nurturing community for investors.

Q: How do you decide on valuation for seed investments?

Valuation for seed investments is a negotiation process aiming to strike a balance between getting a good deal while ensuring founders retain a fair ownership stake in the company.

Q: What percentage of startups you invest in undergo significant pivots?

Only a small percentage of startups undergo significant pivots after investment, with most remaining aligned with their initial business models.

Q: How do you aim to educate new angels and help them become sophisticated investors?

Educating new angels involves sharing insights through blog posts, live Q&A sessions with founders, and continuous engagement to demystify the investing process and foster a learning community.

Summary & Key Takeaways

• Investing in early-stage startups is a chaotic process that requires hunting for deals through events, parties, and online platforms, followed by trading with experienced investors.

• As investors gain experience, they can transition to trapping, where deals come to them, and farming, which involves long-term community building and mentorship.

• A structured framework helps investors make decisions by assessing team compatibility, personal passion for the business, potential value addition, impact potential, and timing relevance of the idea.