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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
@tak_lo
Techstars framework
London angels’ network
Techstars• Founded 2006
• David Cohen & Brad Feld
• 600+ Companies
• $1.8bn+ raised
@tak_lo
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
@tak_lo
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
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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
@tak_lo
Special acknowledgements
Chrysanthos Chrysanthou
Notion Capital
Jon Bradford ex-MD at Techstars
@tak_lo
