Startup Stakes: An Early Stage Company Race

“The Startup Stakes” ©2013 Tech Coast Angels

“The Startup Stakes” An Early Stage Company Thoroughbred Race

“The Startup Stakes”

Angel investors and other early stage investors

might well consider startup company investing a

“horse race”:

1. The “investment” is their “Bet”.

2. The “management” is the “Jockey”.

3. The “company” is the “Horse”.

4. The target “market” is the “Horse Race”.

This presentation considers the “Startup Stakes”,

an early stage company thoroughbred race, and

strategies used to hopefully “win, place or show.”

….and THEY’RRRRRRE OFF!


…some

investors

bet on “the

Jockey”…



Betting On “The Jockey”

These investors consider

“the Jockey” may be more

important than “the Horse”

or “the Race”.


Betting On “The Jockey”

Founder(s) past successes (exits)

Team’s experience & work history

Success-to-date running company

Investor’s “gut feel” for team

…some

investors

bet on “the

Horse”…



Betting On “The Horse”


“the Horse” may be more

important than “the

Jockey” or “the Race”.


Betting On “The Horse”

Company product or service

Intellectual property of company

Company partners or relationships

Reputation of company in market

…some

investors

bet on “the

Race”…



Betting on “The Race”


“the Race” may be more

important than “the

Jockey” or “the Horse”.


Betting On “The Race”

Invest in one particular market segment

Software, Hardware, BioTech etc.

Or consumer, enterprise, media products etc.

Investor’s unique experience in market

Investor may see market trends that favor bet

…so, what is

the correct

“betting

strategy”?



What Is Correct “Betting Strategy”?

No “one” absolutely correct “investing strategy”.

Strategy as “unique” as each investor/investment.

Diversification/portfolio of “bets” should increase odds.

Leveraging other investor’s knowledge/due diligence should increase odds.

…but sometimes, even with a seemingly great Jockey,

riding a terrific Horse in a huge Race… REMEMBER:

…most

startups

FAIL!

BUT…


…someone

will WIN!


Worst case,

there’ll

always be

ANOTHER

race!


Tech Coast Angels, www.techcoastangels.com, the largest angel investor network in the United States, provides funding and guidance to more early‐stage, high‐growth companies in Southern California than any other investment group. Since its inception in 1997, TCA members have focused on building valuable companies, personally invested more than $100M, and helped portfolio companies attract more than $1B in additional capital, mostly from venture capital firms. TCA members give companies more than just capital; they also provide counsel, mentoring and access to an extensive network of potential investors, customers, strategic partners and management talent. TCA has more than 300 members, including its venture capital affiliates, in five networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbara and the Inland Empire.

Who are the Tech Coast Angels?


http://www.techcoastangels.com/

Economy & Finance

Startup Stakes: An Early Stage Company Race