The 10 Plagues of Startup Investing: What Passover Has to Teach Us About Startups

This week we are celebrating the Jewish holiday of Passover, which commemorates the liberation of the Israelites from slavery in ancient Egypt. The 10 plagues that Moses, with a little help from on high, launched on the biblical Egyptians have been spun into numerous allegories, lessons, and instructions. And, being the Israeli high-tech investing fanatics we are, our first thoughts were with the connections to startup investing. Startup investing isn’t easy — sometimes you’re blessed with miracles (i.e.- exits and IPOs), but along the way to the Promised Land of Profits, you’re frequently plagued by problems. There is no guaranteed recipe for success, but here are some tips for avoiding bad investments. So, without further ado, here are the 10 rules of what NOT to do when investing in startups. The 10 Plagues of Startup Investing: Investing in just 1 startup: The data here don’t lie – picking the right startup is tough. So, diversification is even more important when investing in young, private companies than it is when investing in startups. How much can investors make investing in startups? The Kauffman Foundation groundbreaking research on startup investing demonstrated investors made 2.5X on...

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