Startup Investing

40 Epic Resources for Investing in Startups

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...

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When startups and financial hubs collide: FinTech developments in the Startup Nation

Banks and startups, the two worlds could hardly be further apart. Banks: colossal institutions, conservative in nature, often centuries of history. Startups: minimal staff, innovative and fledgling businesses. So why are some of the world’s major financial institutions heading to Tel Aviv to set up start-up accelerators? The answer: Fintech (financial technology). In the most recent development of the Startup Nation, the Israeli fintech space has earned the attention of banking institutions both in Israel and abroad. While there have been some notable success stories (Fundtech, Nice Systems and now, Check), Israel isn’t entirely famous for its fintech startups. However this is beginning to change. So what is fintech all about? Fintech in broad terms refers to the technologies and software available that ensure the smooth operations of the banking and the financial services industry. The services and applications developed in this space include electronic payment platforms, international money transfers, personal finance and asset management and crowdfunding. While the fintech market currently stands at $470 billion annually it is expected to grow at 5.4% annually. According to a recent report...

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5 ways investors can invest in the next WhatsApp

It’s not every day that investors get to buy a winning lottery ticket. But, that’s exactly what happened when Sequoia Capital invested in WhatsApp in 2011 at a $8M valuation. WhatsApp turned out to be one of the largest VC-backed M&A in history (it was acquired by Facebook at a $19 billion valuation). That’s a HUGE return for investors and it turns out that Sequoia happens to be pretty good at investing in startups in general. Check out the following chart that shows the VC firm’s top 10 M&A and IPO exits (just since 2009!) by valuation at time of exit. So, it’s clear that Sequoia is pretty adept at investing. If you’re an individual investor reading this, you’re probably asking yourself: how do I invest in the next WhatsApp? The answer lies with Sequoia. If you want to invest in the next WhatsApp, you’ve got to understand how Sequoia has created an assembly line of multi-billion dollar investments. 1) Understand the risk in each of your startup investments In what appears to be a rare public domain investment memo,...

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The History of Online Investing

This week, the global OurCrowd team gathered in the Jerusalem office for the first ever employee training seminar. The partners presented internally on a multitude of topics, ranging from the Venture Capital industry in Israel to the everyday tasks of the various OurCrowd departments. Below is a slide deck from Zack Miller, Partner and head of the investor community at OurCrowd, about the evolution of online investing. The financial service industry, like most things nowadays, has migrated towards social online platforms. Information on stocks, funds and investment opportunities, which were once only accessible to Wall Street stock brokers, can now be found 24/7 on one of many online forums. From Charles Schwab, to WealthFront and OurCrowd, this evolution is breeding a new type of investor, who is self-sufficient and knows the power of the information at hand. History of Online Investing from...

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What We’re Investing In: Current Investment Opportunities On OurCrowd (June 2014)

Here is a look at all of the latest investment opportunities on OurCrowd’s platform. OurCrowd allows accredited investors to access curated, negotiated startup opportunities, at lower minimums than the traditional venture capital model. Since our last edition of “What we’re investing in,” we’ve launched another two companies in the advertising technology and augmented reality space. Cimagine: Augmented commerce anywhere Cimagine’s novel technology was created to address a very common issue that causes only 4% of all furniture sales to be transacted online. This statistic makes sense, how can anyone make a confident online purchase, without knowing what the furniture will look like in his or her own home? Introducing Cimagine, an augmented commerce platform that allows consumers to view a 3D image of their potentialbefore making the actual purchase. Using the camera view from a mobile device, the software places high definition images from the retailers website into a real worldview of the customer’s home. Once the image is in place, the user can walk around the image in order to view it from all of the various angles and distances....

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