@eladgil
The Best Way To End Up With $1 Million As An Angel?Start with $2 Million
blog.eladgil.com
ABOUT MESerial entrepreneur (last company acquired by Twitter)Started mobile team @GoogleInvested in AirBnB, Square, Stripe, Pinterest, Optimizely....
AGENDA
1. How to loose money as an angel
2. Good areas for angels
3. Trends
HOW TO LOSE MONEY AS AN ANGEL
HOW TO LOSE MONEY AS AN ANGELBe momentum driven
HOW TO LOSE MONEY AS AN ANGELBe momentum driven
“Who is in” is usually not a good indicator
HOW TO LOSE MONEY AS AN ANGELBe momentum driven
“Who is in” is usually not a good indicatorBest investments often contrarian at the time
HOW TO LOSE MONEY AS AN ANGELBe momentum driven
“Who is in” is usually not a good indicatorBest investments often contrarian at the timeParty rounds may actually be a bad indicator
HOW TO LOSE MONEY AS AN ANGELBe momentum driven
"The companies I have traditionally seen do best over the long term had lead investors for their seed rounds" - Keith Rabois
HOW TO LOSE MONEY AS AN ANGELBe short sighted
HOW TO LOSE MONEY AS AN ANGELBe short sightedHas social internet suddenly become a bad market?
HOW TO LOSE MONEY AS AN ANGELBe short sighted
2004 2006 2007 2010 2010 20112009 2009
Has social internet suddenly become a bad market?
HOW TO LOSE MONEY AS AN ANGELBe short sighted
2004 2006 2007 2010 2010 20112009 2009
“Social is over”
Has social internet suddenly become a bad market?
HOW TO LOSE MONEY AS AN ANGELBe a jerk
HOW TO LOSE MONEY AS AN ANGELBe a jerk
JFK: Don’t ask for updates, ask how you can help
HOW TO LOSE MONEY AS AN ANGELBe a jerk
Be quick on deal docs, don’t get in the wayJFK: Don’t ask for updates, ask how you can help
HOW TO LOSE MONEY AS AN ANGELBe a jerk
Be quick on deal docs, don’t get in the wayJFK: Don’t ask for updates, ask how you can help
Sh*t happens, don’t freak out
HOW TO LOSE MONEY AS AN ANGELBe a jerk
Be quick on deal docs, don’t get in the wayJFK: Don’t ask for updates, ask how you can help
Sh*t happens, don’t freak outReputation matters
HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior
HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior
Poor judgement
HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior
Get squeezed out of rounds by VCsPoor judgement
HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior
Investor unfriendly exits: Corp Dev incentivesGet squeezed out of rounds by VCsPoor judgement
HOW TO LOSE MONEY AS AN ANGELPortfolios
Assume you will lose all your money
Rule of thumb need min 10-12 companies in portfolioFollow ons?
GOOD AREAS FOR ANGELS
GOOD AREAS FOR ANGELSSeek Gaps
GOOD AREAS FOR ANGELSSeek Gaps
Capital gap: $500K to $1M seeds; Series A
GOOD AREAS FOR ANGELSSeek Gaps
Help gap: Hands on leadCapital gap: $500K to $1M seeds; Series A
GOOD AREAS FOR ANGELSSeek Gaps
Help gap: Hands on leadIndustry gap: Bio-informatics, Hardware....
Capital gap: $500K to $1M seeds; Series A
GOOD AREAS FOR ANGELSSeek Gaps
Help gap: Hands on leadIndustry gap: Bio-informatics, Hardware....
Capital gap: $500K to $1M seeds; Series A
Differentiation gap: What you uniquely bring
GOOD AREAS FOR ANGELSBe opportunistic
TRENDS
SUCCESSIVE WAVES OF CAPITAL KEEP VALUATIONS HIGH
SERIES A CRUNCH IS REAL
INFORMATION TRANSPARENCY ACCELERATING
DEAL DOC STANDARDIZATION
RISE OF NYC (AND SF)
ENTREPRENEURSHIP VIEWED AS DE-RISKED
ENTREPRENEURSHIP VIEWED AS DE-RISKED
“If I don’t get into YC I won’t leave my job”
ENTREPRENEURSHIP VIEWED AS DE-RISKED
People assume they can exit (most can’t)“If I don’t get into YC I won’t leave my job”
ENTREPRENEURSHIP VIEWED AS DE-RISKED
“If I don’t get into YC I won’t leave my job”People assume they can exit (most can’t)
Whenever good looking people enter an industry....
THANK YOU!
@eladgilblog.eladgil.com