TheFamily Angel Investing Manifesto
Many startups that are part of TheFamily have received seed funding from business angels with all kinds of profiles / backgrounds. Investing in startups is very risky. Today, we’re publishing our Angel Investing Manifesto.
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#TheRisk
Early stage investment is 80% uncertainty, 20% bullshit. Learn how to forge yourself a conviction regarding your decision. Because everything is always at risk, at any moment and forever. Deal with it.
#TheConstraints
Investment is a full set of constraints. You don’t always get to know the team perfectly, you’re never sure about the market, the past has never predicted the future. Don’t overthink it.
#TheMoney
Whatever the amount you plan to invest within the next 24/36 months, make sure it goes into 15 deals minimum. Against uncertainty, your only serious option is diversity.
#TheTalking
Don’t discuss a fundraising in public. Be careful when it comes to your fellow investors and trusted friends, because everyone has an opinion and the worst effect on a dealflow is collusion. The best investments never came from a consensus. Make your own mind.
#TheConditions
There is always a market price range for a certain type of deal. It’s never the right price, nor the perfect conditions. Until you sell your shares, you don’t know if you’re in the money or out of the money. Make sure you are pari-passu with the other investors.
#ThePresent
The present is always too ugly, too steady or too beautiful. Gather the facts. Understand the context. Learn as much as you can about the team and its journey. A change in configuration can change everything for the greatest or for the ugliest.
#ThePeople
Do not invest in solo founders. Cohesive teams with an insane learning curve are the best. Singular leaders make extreme outputs.
#TheDoubt
In doubt, you’re in trouble. In trouble, you always are. Learn to deal with your own uncertainty. Make your framework of decision, type of play, market, people.
If you agree with it, feel free to share it ☺