Anyone here into angel/seed investing?

[Anonymous No.27469685]

I want to use some of my gains from Link (cash out around 200k) to invest in start ups around my area, because it gives me more of a feeling I am helping people grow instead of sitting at home all day looking at charts. Where would I begin? I guess going to start up conferences? Is there a platform where I can find startups to invest in?

[Anonymous No.27469803]

>>27469685
Most fail, anon. Be extremely prudent, there's a reason VC's are sharks.

[Anonymous No.27469887]

>>27469803

That's true, but I'm guessing that's no different compared to starting your own business.

[Anonymous No.27470599]

You absolutely must know the industry on a granular level you're wanting to invest into. Startup founders will blow smoke up your ass, slide deck you to death, wow you with prognostications about taking over their industry, and state timelines that they have no ability to reach. Most seed stage startups are garage band efforts building some kind of a tech "solution" that doesn't really solve a problem, and doing so with just sloppy Zoom meetings everyday and poor leadership and direction. Be very, very careful doing this. These people will say anything to get funding. If you don't know the industry you're investing in in deep detail, startup founders will lead you on. Learn the industry, look at successful companies, grill these founders on specifics, and be extremely skeptical of bold claims.

[Anonymous No.27470711]

>>27470599

Thanks, so you think it's a better idea to search for companies that have a growing revenue track record for at least a few years?

[Anonymous No.27471063]

>>27470711
You don't want to be in the first round of investors. That is pre-seed. You're investing in whims and fantasies. Usually there is some type of incomplete software build, zero go-to-market strategy, and just a few people working part-time on slapping things together. This is where you will hear pie-in-the-sky fantasies and delusions from founders eager to get a few hundred thousand in their bank account. This stage is extraordinarily risky. Seed funding is a little different in that business strategy, go-to-market, the product, etc. have been workshopped heavily and are in the process of coming together. They may even have a couple commitments from buyers once everything is finished. You can invest here, but still risky. I would look to invest in Series A fundraising rounds. Here you're investing in a company with existing enterprise sales, a largely finished product, and usually leadership in place to steer the ship. Pre-seed funding is basically gambling.

[Anonymous No.27471253]

>>27470711
>>27471063
There is also a widely-held opinion in the VC world that it is not smart to invest in first-time founders. People who have never built a startup company and succeeded. Or failed. I don't know if I always agree with this but its something to consider. Really examine the backgrounds of the founders. Can these people deliver on their promises? Have they done it in the past?

[Anonymous No.27471391]

>>27469685
Check BUILD if you want to be "seed" round early

[Anonymous No.27471788]

Two time tech founder and YC alum. Yes I know about seed investing. Your best bet is to access top tier startups coming out of YCombinator. They are the cream and first investors in Airbnb, Dropbox, stripe, Reddit (kek), boom (supersonic jet company), door dash etc.

[Anonymous No.27471899]

>>27471063
Amateur advice. Series A rounds today average 10M. There is no fucking way why a series company would want to take your money unless you are investing st least a million.

[Anonymous No.27471943]

>>27471253
>>27471063
>>27471391

Thanks guys

[Anonymous No.27472057]

>>27471253
Incorrect advice. Some of the biggest wins are first time founders. Bill gates, Steve jobs, Peter thiel and Elon musk (PayPal), Mark Z (fb), Brian (Airbnb), Drew (Dropbox) and so on.

Focus on product market fit and founder market fit. Ignore advice from folks who haven’t played the game.