Author: Zack Miller

5 ways top angel investors improve their deal flow

5 ways top angel investors improve their deal flow

Sep 11, 2014 | , ,

For a startup investor, getting good deal flow is paramount for success. Even if your investment process is solid, your risk management is sound, and your luck is (really, really) good, without good deal flow, well, you’re not going to end up a very successful investor. Why? Your investment results will depend on the quality of the opportunities you have — the better the opportunities, the better the expected results. In fact, one could argue that the art and science of early-stage investing lies solely in a person’s ability to develop their own sources of deal flow. Mark Suster writes about why he doesn’t like meeting with bankers who are pushing deals: The process of raising capital IS part of running a business. It’s where you get to test your ideas in the marketplace of people who see many similar ideas. It’s where you meet people who have broad networks and even if they don’t invest in you may prove very helpful in your future. It’s part of a process where you learn which investors YOU like so you can decide with whom...

Read More
23 entrepreneurs turned investors who are banking huge profits

23 entrepreneurs turned investors who are banking huge profits

Sep 9, 2014 | , ,

Just because you’re a great entrepreneur doesn’t mean you’ll make a great investor. While there’s overlap, the skillset that makes an individual a powerhouse when it comes to building a company (and exiting it) isn’t the same as what makes a profitable investor. Gallup research shows certain behavioral traits are shared among top entrepreneurs. Out of 2,500 entrepreneurs studied, top performers tend to spend a lot of time aligning employee responsibilities with corporate goals. That makes for great entrepreneurs but that same behavior doesn’t necessarily manifest itself in top investors. Investors need to be able to identify that trait in the entrepreneurs they fund. It’s common in the startup space for entrepreneurs to try their hands at investing in startups once they cash out, only to find that the same skills that made them rich won’t necessarily make them successful investors. But, there are a few entrepreneurs turned investors that have parlayed their business-building skills into become successful angel investors and venture capitals. Thankfully for us, many of these entrepreneurs-turned-investors write extensively about their experience. Here’s a list of 23 entrepreneurs who...

Read More
5 Mistakes Rookie Angel Investors Make

5 Mistakes Rookie Angel Investors Make

Aug 28, 2014 | , , ,

Startups are exciting again. Reeling from the 2007-2008 financial crisis, investors seemed to sour on illiquid investments. Too many financially-engineered investments in derivatives and wacky mortgage products made investors feel that the game was fixed. But that’s all changed as America’s economic engine — small technology-driven companies — is revving up. Companies with big visions and ambitious growth goals are getting snapped up, merged and acquired, and IPO’d, making their early investors celebrities… and extremely wealthy. Events like Facebook’s multi-billion dollar IPO in 2012 and its subsequent purchase of Whatsapp for $12 billion in 2014 have attracted new investors seeking their fortunes in angel investing. New investors, new mistakes Many of the same rules of the game apply to angel investing, as they do to investing in the stock market. But given the fact that most startups are private, small, and closely-held companies, investors new to the asset class are finding that there is a learning curve to scale before they’re able to reap the historical returns which average close to 30% per year, according to a Kauffman study. While we have...

Read More
Zack’s App of the Week: Product Hunt

Zack’s App of the Week: Product Hunt

Jul 6, 2014 | ,

Finding big trends — and the companies making them happen — is paramount for success as an early stage investor. I’ve written about tools angel investors use to identify and track potential investments in my Forbes column as I try to bubble up some of these apps in my weekly column here on the OurCrowd blog. One tool that’s burst on the scene is so simple yet makes so much sense. It’s called Product Hunt and was developed by a guy named Ryan Hoover. Product Hunt surfaces the best new products every day. Along with a list of cool apps, users of Product Hunt get access to read some of the smartest investors and entrepreneurs discuss the tools and apps. Frequently, in the comments section, the founder of the new app or software product will show up and answer questions about his/her product as they arise. Right now, only a few select contributors can share the apps they find and love — and that keeps the quality of the products high. Users can vote up and comment on the...

Read More
40 Epic Resources for Investing in Startups

40 Epic Resources for Investing in Startups

Jul 1, 2014 | ,

When Sequoia Capital invested in Whatsapp, the venture capital firm didn’t know that within a short couple of years, the company would be sold for $19 billion (!). What they did know is that the firm employs a repeatable process to screen, diligence, and invest in high-powered startup companies in order to invest in what portend to be future billion dollar companies. There’s no doubt that this process has made the investment team — and its investors — very rich over the past couple decades. And now, as equity crowdfunding platforms like OurCrowd are proliferating, individual investors are getting the opportunity to make their own investments in the next Google, Facebook, and Apple. There’s a lot to understand about the angel investment process: from how it works to understanding terms sheets to exiting your investments successfully. With this end in mind, I put together a list of some of the best resources to learn more about investing in startups. Getting Started: How to be an angel investor: Paul Graham’s 2009 essay is as relevant now as it was when he wrote it. He...

Read More