How early stage investors in NYC/London think

How early stage investors in New York/London think

about investing

Tak Lo• Started at Techstars, NYC; Moved to London to help Techstars start there

• Advisor at Tech City UK and Guest Lecturer at London Business School

• Worked with over 40 companies that have raised > $67.1m

• Ex management consultant and investment banker; soldier turned entrepreneur turned investor

• Pretend academic (Economics, MBA)

@tak_lo

Early stage investment frameworks

My framework

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Techstars framework

London angels’ network

Techstars• Founded 2006

• David Cohen & Brad Feld

• 600+ Companies

• $1.8bn+ raised

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Worked for 20+ programs now, vertical & corporate programs, international (UK, Germany, Israel, South Africa)

Idea < Market < Traction < Team, Team, Team

Techstars framework

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Techstars frameworkIdea

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Market

Techstars framework

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Market

Techstars framework

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Techstars frameworkTraction

Source: http://www.bothsidesofthetable.com/2010/11/15/invest-in-lines-not-dots/Time

Key metric

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Techstars frameworkTeam

High

Low

Low High

Competence

CultureSource: http://www.feld.com/archives/2012/12/hire-for-cultural-fit-over-competence.html @tak_lo

How the most active angels in the London ecosystem think

Jon Bradford ex-MD at Techstars

Chrysanthos Chrysanthou

Notion Capital

Eileen Burbidge Passion Capital

Doug Scott Potential

Richard Fearn Independent

Jeremy Yap Independent @tak_lo

Some of what they’ve invested in

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The 5 things the top angels in the London ecosystem focus on

Be smart money

Bet on crazy

Get their hands dirty

Be the startup CCO

Syndicate

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My framework

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My framework

Team ValuesFounder Values vs

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My frameworkFounder Self-Awareness

“Knowing others is intelligence;knowing yourself is true wisdom.Mastering others is strength; mastering yourself is true power.”

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My frameworkFounder Resiliency

Source: https://www.ted.com/talks/angela_lee_duckworth_the_key_to_success_grit?language=en @tak_lo

My frameworkTeam Execution

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My frameworkTeam Camaraderie

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Other things

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Soft things 90% of the angel game

Don’t go for board seats, control

Unless you’re a super angel or leading, you don’t set the terms

Don’t put more than you can afford to lose

Valuations mean nothing

And don’t worry about exits

@tak_lo

Resources

Dave McClure’s post: https://500hats.com/99-vc-problems-but-a-batch-ain-t-one-why-portfolio-size-matters-for-returns-16cf556d4af0#.q6hv0t1za

David S Rose: Angel investing: The Gust Guide to making money and having fun investing in startups, his TED videos, and his slides

Brad Feld: http://www.feld.com/archives/2011/08/the-techstars-mentor-manifesto.html

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Special acknowledgements

Chrysanthos Chrysanthou

Notion Capital

Jon Bradford ex-MD at Techstars

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Post Script

• I blog at www.taklo.co

• Can be reached at tak@taklo.co

@tak_lo