Tag: OurCrowd portfolio

The portfolio approach to investing in startups

Should startup investors bet heavily on one sexy startup? Or, should you keep your investments in startups relatively small and spread them out over multiple early stage companies? This question of how many startups an investor should invest in is one of the most frequently asked questions in the startup investing world. For people who invest in venture capital funds, it’s not really a question they need to address. They assign a representative — a venture capital fund — to make investment decisions on their behalf. But with the rise in popularity of angel investing and crowdfunding, investors are becoming more active in the startup investment process. The issue of the right number of startup investments an investor should make becomes a more integral part of the investment process. 2 approaches to investing in startups Concentrated, large bets: This approach is all about zeroing in a single or small number of investments with a relatively large bet on their success. It’s like a sniper who is down to just a couple of bullets in his investment gun. When he pulls...

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OurCrowd portfolio company Abe’s Market featured in Fast Company

The natural products industry is in serious growth mode, too. Natural Foods Merchandiser’s 2012 Market Overview Natural Retailers Survey shows that nationwide, sales of all natural and organic products (including dietary supplements) within all channels jumped 10 percent to nearly $91 billion last year. Lydia Dishman, contributor to Fast Company’s Co.Exist, featured OurCrowd portfolio company Abe’s Market in a clip on January 19. Richard Demb, Abe’s cofounder and CEO, told Dishman his focus was on harnessing the rapid growth of the natural products industry while retaining the unique qualities that made Abe’s a popular destination for shoppers today. “Every day we hear from hundreds of consumers with particular needs and wants,” Demb said. Abe’s success will undoubtedly be connected to its continued focus on a customized shopping experience as it grows. OurCrowd members invested in Abe’s alongside Carmel Ventures, Accel Partners, and...

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How OurCrowd chooses startup investments

We frequently get asked about our investment methodology. Our investment process has been honed by the decades of investing experience our senior management has. One interesting note: Our founder and CEO, Jon Medved, managed a startup portfolio of almost $300M. The rest of OurCrowd’s management team has serious chops, too. We’ve all got experience building and running our own companies, management consulting, equity research, investment banking, and portfolio management. **Remember, though OurCrowd members can choose to invest in as many (or little) of the companies we list for investment, OurCrowd invests in every deal we show to investors. We’re ponying our own money up alongside the crowd. So, what do we look for in making an investment in a startup? OurCrowd’s 5 point investment checklist Great team: Successful startups are founded by great people. So, when we look at potential investments, we give serial entrepreneurs special attention. We’re looking for people who have built and managed companies. Failures are OK, too. It’s the process of realizing an idea, building out a plan that we’re looking for.  Great people are...

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SHOCKER: Angel investors DO make money

There’s been an interesting back-and-forth occurring on TechCrunch the past couple of weeks about angel investing performance. The Anti-Camp: Angel investors can’t win In this corner, we’ve got Wealthfront’s Andy Rachleff. He penned an article entitled Why Angel Investors Don’t Make Money…. In his post, Rachleff explains how professional venture investors do make money (and at that, a small minority). The winning formula? Those premier venture firms succeed because they have proprietary knowledge of the characteristics of winning companies In his view of the world, there are winners and losers (losers mostly). The few who understand this “proprietary knowledge” make money at the expense of those who don’t. He doesn’t buy the idea that angel investors — without the large infrastructure and different incentive structure from traditional VCs — are taking share from venture capitalists. The Data-Doesn’t-Lie-Camp: Angels do make money Then we’ve got Robert Wiltbank’s Angel Investors Do Make Money. Wiltbank, a professor and angel investor himself, takes a hard look at angel returns via a recent study he published at Willamette University. Wiltbank’s research actually shows that...

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